South Australian firm Codan in acquisition mode

Codan's retiring managing director Michael Heard who is being replaced by Donald McGurk (left) with chairman Dr David Klingner (right) Picture: Sarah Reed Source: The Advertiser

Chairman David Klingner told the company's annual general meeting yesterday a taskforce had been established to examine buying opportunities.

"We continue to look for other clever products to add to our range by in-house development and also by acquisition," he said.

SA-based Codan had arrangements with its banks to borrow up to $85 million and its likely targets would be below that mark.

However, if a more expensive opportunity arose that was too good to miss, Codan would seek capital through equity.

Dr Klingner paid tribute to Mike Heard who resigned yesterday as managing director and from the board.

"Mike has overseen and led an enormous change in our company during his tenure," he said.

"The company has grown from annual sales of $22 million when he joined in 1991 to our record $189.3 million sales and $31.1 million profit this year."

Mr Heard said he was proud to leave the company in good shape.

A highlight of his tenure had been the company celebration last year of its 50th anniversary.

"It embodied everything  the fact we'd survived and thrived really was about the people," he said.

He and wife Mary were looking forward to a holiday and then to spending time in France in 2012.

He has been succeeded as managing director by Donald McGurk but will remain as a consultant.

"I'll be on call as guidance and mentorship to Donald," he said.

"Some long-term experience may come into play."

Mr McGurk, who has been a Codan executive since 2000, said he felt humbled by his appointment.

"I want to keep intact the very strong culture we have at Codan and hopefully build and enhance that," he said.

"People feel that they can participate and be involved.

"It's an environment that has been born from our history of supplying the United Nations.

"We have a real concern, particularly in UN peacekeeping operations, to do want we can to help people who are less fortunate in the world."

Codan's products include radio and satellite communications and mine detection devices.

All resolutions put to the AGM were passed.