Codan tips record first half result

Australian electronics and communications company Codan is tipping a record first half profit for the 2012-13 financial year.

Codan Chairman Dr David Klinger told the Codan annual general meeting yesterday it was likely the net profit after tax for the first half should reach $25 million based on strong first quarter earnings. He said this would be more than double that of the first half last year and would be the highest half-year profit number in the company’s history.

Dr Klinger said that although it was early in the year, based on current momentum, Codan could be expected to substantially exceed the company’s previous record underlying annual profit of $31.1 million, with an expected profit in the region of $40 million for 2012-13. This would represent an increase of more than 40% over the result achieved in 2011-12.

Speaking about the company’s radio communications division, he said it had been “a good year, with increased sales and profitability despite frustrating delays with the awarding of some major government projects in Africa and Central Asia. The increase in sales of 9% and profitability of 32% compared to last year was a reflection of the work put in by our team in the areas of marketing and business development.”

He said the release of the Codan software-defined radio to the market in June was “very well received by our dealers and customers”, and gives the company “a brand-new HF technology platform from which to continue to grow this [radio communications] division”.

Dr Klinger said that the acquisition of Canadian-based Daniels Electronics, which took place after FY 2012 year-end, was also an exciting event for the division.

“The focus of the radio communications division for some time has been to spread our offering beyond our current HF products and to position ourselves to supply a more comprehensive and complete radio communications solution. Daniels Electronics is a leading supplier of the infrastructure required for land mobile radio and represents a major step into this important and growing segment of radio communications,” he said.