A dramatic surge in gold exploration has helped communications technology specialist Codan (ASX:CDA) forecast significant growth for the half year period ending 31 December 2025.
Led by record gold prices and media attention on exploration for the precious metal, Codan's forecast growth was led by double digit growth in gold detector sales in the African region and strong metal detector sales in other key rest of world recreational markets.
In releasing a market update, Codan told shareholders metal detection sales delivered a revenue of approximately $168 million and growth of approximately 46% compared to the prior corresponding period (pcp).
Strong overall growth
Overall, the company is expecting a growth in underlying net profit after tax of approximately 52% with a a return of at least $70 million.
Group revenue for the first-half of FY26 is estimated to be approximately $394 million, a 29% jump over pcp.
The company's communications segment achieved revenue of approximately $222 million, up 19% compared to the prior corresponding period (pcp).
The company said this rate of growth matches its forecast for a 15% to 20% growth target range for the first half of FY26.
Codan will release its FY26 first-half results on 19 February 2026.
FY2025 success
The first half estimates come on the back of Codan's successful FY25, a year where it achieved 22% growth in group revenues, 28% in group earnings before interest and taxes (EBIT) and 27% in group net profit after tax (NPAT).
The company's communications business made up of Zetron and DTC, grew revenues to $413.5 million, up 26% on pcp and lifted segment profit to $107.9 million.
Codan's Minelab business achieved a 16% increase in FY2025 with aggregate revenue of $254.8 million and segment profit growing 26% to $98.2 million.
Segment margins improved to 39%, up from 35% in the previous year, reflecting the higher margins achieved on gold detectors and operational leverage.
