Adelaide-based electronics manufacturer Codan has posted a record half-year profit of $26.5 million on the back of strong demand for its metal detector products.
In a statement Codan said the result was the highest half-year profit in its history, with its Minetec metal detector business transitioning to become a technology supplier for the mining industry.
The company said it had continued to receive strong demand from its traditional gold mining customer base, but it had also benefited from developing new markets in Africa and South America.
“As we expand our footprint into new countries and customers embrace the technology and make more and more gold finds, our sales into these regions have surged,” it said.
Codan said it was continuing to seek other “attractive untapped regions” to expand in, and while the potential of some overseas markets was not yet known, sales in existing markets continued to grow and it was bullish on the new opportunities.
While the Minetec division was the key driver for the company it said “tough business conditions” in the radio communications segment remained a challenge.
Overall the company said its second-half profit was expected to be as strong as the first-half, and it was aiming to invest heavily in new product development.