Codan (CDA) H2 2018 earnings summary

Executive summary

• FY18 revenue reached $229.9m; underlying NPAT was $39.8m and statutory NPAT was $41.5m, with base-business sales growing 20%.

• Strong cash generation and a $27.7m net cash position supported $22m in ordinary and special dividends to shareholders.

Financial highlights

• Revenue was $229.9m, up from $226.1m in FY17; EBITDA was $70.4m versus $75.6m, and EBIT was $53.7m versus $61.5m.

• Underlying NPAT was $39.8m versus $44.7m; statutory NPAT was $41.5m versus $43.5m.

• Cash generated from operations was $48m; receivables rose to $29.8m on sales timing, while payables increased to $46.3m due to production and inventory needs.

Outlook and guidance

• FY19 base-business sales guidance is $180m–$200m and NPAT guidance is $25m–$30m; the base-business range increased 20%.

• Potential to exceed base-business sales and profit again; continued growth initiatives include new products, wider geographic reach and stronger distribution.

• Radio Communications FY19 sales are expected within the $65m–$75m base-business range; large HF projects could lift results to the top of the range.

• Minetec targets circa $15m FY19 revenue, with CAT MineStar for Underground integration and the BHP contract delivery as priorities.