Codan (ASX:CDA) still expects record FY22 profit

Codan (ASX:CDA) still expects record FY22 profit despite warning that the timing of project sales or challenges in supply chains could still impact revenues and profitability towards the end of the financial year.

The metal detection and mining tech company said it expects its FY22 first half profit of $50 million to be matched in the second half of FY22, which will result in a record FY22 full year profit.

Codan noted that its DTC and Zetron businesses have been “excellent” acquisitions, with integration of both businesses and their expanding opportunity pipelines tracking ahead of schedule. In terms of revenues and profit, Codan also said FY22 will be Minelab’s second best year ever.

Codan said its decision to invest in inventory rather than let customers down has proven to be the correct one.

Following the investment in inventory, $41 million has been generated from operating activities so far in the second half of FY22, which is an improvement from the first half, which had an operating cash outflow of $13 million.

Shares in Codan (ASX:CDA) are trading 10.2 per cent higher at $7.44.