Codan Limited
(ASX:CDA) has entered into a US$7.9 million contract to supply HF Radio equipment to a longstanding military customer.
The equipment to be supplied is a combination of Codan manufactured equipment and third-party items, with a significant portion of the revenue in FY17.
Codan said the contract award is consistent with the company’s Half Year result which stated that although the HF business softened in the first half, the level of instability and conflict in some of its key markets is driving demand for HF products.
The company announced at its AGM that its strategy to reduce the variability in earnings is primarily based on developing new products, giving the company access to larger and more diverse markets.
Codan Radio recorded a net profit of $6.085 million at 31 December 2015
