• Strong Group financial performance, with Communications business the key driver
• Delivered sustainable growth over the last four consecutive halves
• Ongoing engineering investment across segments supports competitive positioning

Codan Limited reported strong financial results for the first half of FY25, with group revenue of $305.6 million and net profit after tax of $46.1 million, both up 21% compared to the prior corresponding period. The Communications business was the key driver, achieving revenues of $187.0 million, up 22% and exceeding the 10-15% growth target range. Metal detection revenue also increased by 5% compared to the prior period, with Africa contributing to this improvement. The company has continued to deliver sustainable growth over the last four consecutive halves, highlighting strong operational execution. Codan has also been investing in engineering, with H1 FY25 engineering spend of $31.3 million, equating to around 10% of group revenues. This investment is focused on strengthening the company's competitive positioning and driving its inorganic growth strategy. Codan's financial position remains strong, with net debt of $124.1 million and a net debt-to-EBITDA ratio of less than 1 times, providing flexibility to support future growth opportunities. The company has also successfully integrated several acquisitions, including the recent acquisition of Kägwerks, which enhances its presence in the US military communications market.

When considering the outlook for the balance of FY25, Codan expects: Communications to continue targeting organic revenue growth in a 10 to 15% range, with the benefit of the Kägwerks acquisition expected to drive overall Communications revenue growth to exceed 15% for the full year; and if business conditions remain similar to H1, Minelab revenues in H2 are expected to be comparable to H1.

Codan will continue executing its strategic growth plan by investing in the development of next-generation products and solutions, enhancing revenue quality and predictability to position Codan for sustained long-term growth.