The Codan Limited (ASX: CDA) share price has zoomed to a record high on Wednesday morning.
The technology company’s shares jumped a sizeable 9% to $7.43 after upgrading its guidance for the first half of FY 2020.
When Codan’s shares reached this level, it meant they had gained an impressive 160% since the start of the year.
What did Codan announce?
This morning Codan revealed that it has continued to perform strongly since its annual general meeting in October.
At that meeting Codan advised that it had made an excellent start to the new financial year.
Pleasingly, these positive business conditions have continued during November and December. This has led to Metal Detection and Communications sales exceeding its expectations. The latter includes the delivery of a major $15 million Kenyan contract.
In light of this, the Codan board now expects its underlying net profit after tax for the six months to December 31 to be in the order of $30 million. This compares to its previous guidance for an underlying net profit after tax of around $26 million for the first half.
However, the company has warned that large projects like the Tactical Communications project in Kenya may not be repeated in the second half. Furthermore, given the strength of its metal detector sales in the first half, it believes it is too early to determine if its traditional second half weighting of sales will occur this year.
Also rising strongly in the tech sector today has been the Electro Optic Systems Hldg Ltd (ASX: EOS) share price.
The Aerospace and Defence Markets-focused technology company’s shares are up 5.5% today after revealing a contract with the Department of Defence. This brings Electro Optic Systems’ year to date gain to an even more impressive 200%.
The post Why this ASX technology share is up 160% in 2019 appeared first on Motley Fool Australia.
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