Codan shares dive despite higher first-half profit, dividend
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More news: Codan shares shed more than 7% even as the technology manufacturer reported a 21% rise in first-half net profit and hiked its interim dividend.
Codan shares were up 7.8% to $15.77 at 2:40pm AEDT, having advanced more than 50% over the last 12 months.
Codan notches 21% growth in HY profit, hikes dividend
The news: Technology manufacturer Codan reported a 21% rise in first-half net profit to $46.1 million, and lifted its interim dividend, as its military communications business comfortably outstripped its growth target for the period.
The numbers: Group revenue climbed 15% year on year to $305.6 million. It communications business saw revenue grow 22% to $187 million, exceeding its 10% to 15% growth target range.
The company declared an interim dividend of 12.5 cents per share, up 19% compared to a year earlier.
The context: Codan said it will continue to target organic revenue growth in its communications business of between 10% to 15% for the full year, while seeking acquisition opportunities in the space.
Codan's net debt increased by $48.7 million during the half to $124.1 million, following the $33.6 million acquisition of military communications solutions provider Kägwerks, announced in September. The company also increased working capital by $26.2 million to support the growth of its communications business.
The source: ASX
