Codan shares tumble as North America trading softens
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The news: Codan shares dived on the ASX after the technology manufacturer said it was observing softness in North America, its largest market, ahead of the US elections.
The numbers: Shares in Codan, which designs and manufactures communications equipment, were down 6.7% to $14.80 by 11am AEDT, making it the worst performing company across the ASX 200.
At its annual general meeting this morning, Codan chief executive Alf Ianniello told investors that the company is "optimistic" about its growth prospects in FY25 and focused on achieving organic revenue growth of 10% to 15% in its communications segment.
The context: Ianniello said last month's acquisition of US-based military communications solutions provider Kägwerks would enhance Codan's capabilities and enable the company to compete effectively in the global military communications market.
However, he noted that while Codan's metal detector business Minelab continues to target "high single-digit" revenue growth in its rest of world division, it is observing "some softness" in North America.
Despite this weakness, Ianniello said, Codan expects Minelab's first-half revenue to be ahead of last year.
The source: ASX announcement
