Codan is guiding fiscal 2027 sales growth in its communications segment of 30%-40% from fiscal 2026, on higher sales to active conflict zones. First-half fiscal 2027 group net profit after tax is guided to at least AUD 160 million, more than double a year ago. Shares rose as high as 24% on Sept. 30.
Growth in emergency call center software is underpinned by the US government’s next-generation 911 software mandate, requiring upgrades of old technology and increasing the value of the addressable market.
Bears
Metal detection sales are exposed to cyclicality, with a pullback from customers at low points in the economic cycle.
Codan designs and sells communications products and metal detection devices. Its global customer base includes military, security, emergency responders, broadcasters, government, humanitarian organizations, utilities, and mining. Earnings are skewed to its communications business. This business provides command center technology used to coordinate public transport, emergency services, utilities, and broadcasting. Codan also produces lightweight radios suitable for attaching to drones. In metal detection, it produces hand-held metal detection devices, sold to organizations and individuals such as gold prospectors and hobbyist treasure hunters. Customers also use this equipment for safety and security. About half of group revenue comes from North America, and one-fourth from Europe.