The Codan Limited (ASX: CDA) share price is up 2% on this negative day after winning a big client.
About Codan
Codan describes itself as a technology company that develops technology solutions to solve customers’ communications, safety, security and productivity problems in some of the harshest environments around the world.
The big client win for Codan
The company said that Codan Communications, which designs and manufactures mission-critical communications for global military and public safety applications, has won a contract with a large African government to supply tactical communications equipment.
The contract has a value order of US$10 million for the supply of Sentry-H radios and accessories.
It’s expected that the order will be delivered in the second half of FY21. The customer intends to deploy Sentry-H radios for national security purposes in military operations in a country-wide program.
The contract is a one-off purchase and there are no material conditions to be satisfied before delivery. Codan reassured investors by saying that the customer has an investment-grade credit rating with a stable outlook. It has a policy of mitigating risk with either a ‘letter of credit’ or appropriate credit insurance.
Codan said it is a significant contract as it reinforces its strength and position in the African market and enhances the strategy of trying to penetrate the global security and military sector.
Summary
This is a good step for Codan. I don’t know a lot about the business, so I can’t say if it’s a good buy today. However, I do like ASX growth shares with global expansion potential, so Codan could be one to watch. I really like ideas like Pushpay Holdings Ltd (ASX: PPH) because of that international element.
