Codan (CDA) H2 2019 earnings summary

Executive summary

• Record FY19 sales of $270.8m and statutory NPAT of $45.7m; base-business sales and profitability increased.

• Returned $27m to shareholders through ordinary and special dividends; ended FY19 with $37.5m net cash.

Financial highlights

• Revenue rose to $270.8m from $229.9m in FY18; EBITDA was $78.6m and EBIT was $63.4m.

• Underlying NPAT was $45.7m versus $39.8m in FY18; statutory NPAT was $45.7m versus $41.5m.

• Engineering spend reached $28.7m, or 10.6% of sales, supporting product development and future growth.

Outlook and guidance

• FY20 base-business sales guidance: $200m–$220m; NPAT: $28m–$33m, with potential to exceed both ranges.

• A stronger FY20 second half is expected due to normal seasonality; FY19’s first half included unusually strong gold-detector sales from a new Middle East market.

• FY20 Communications sales expected at $70m–$80m; Minetec sales target is $15m.

• FY20 goals include launching VANQUISH, expanding tactical communications, and scaling Minetec through Caterpillar distribution.