While we all know that the shares of Afterpay Ltd (ASX: APT) and Kogan.com Ltd (ASX: KGN) were extremely strong performers in 2020, a few lesser-known companies impressed.
Two surprisingly strong performing ASX shares in 2020 are listed below. Here's why they smashed the market:
Codan Limited (ASX: CDA)
The Codan share price jumped 50% higher over the 12 months. Investors were buying the electronic products company's shares thanks to an impressive full year result in FY 2020 and further strong growth in the new financial year.
In respect to FY 2020, Codan delivered record sales of $348 million thanks largely to strong metal detector demand. And on the bottom line, the company reported a record statutory net profit after tax of $64 million. This was an increase of 40% year on year. The strong gold price has been supporting demand for its metal detectors.
Pleasingly, in the middle of December the company released a trading update which revealed that management expects a record half year profit after metal detector sales continued to grow in both the recreational and commercial markets.
It has provided guidance for a net profit after tax of $40 million for the half. This is up by 33% from $30 million a year earlier.
Dicker Data Ltd (ASX: DDR)
The Dicker Data share price also surged 50% higher during 2020. The catalyst for this was the leading computer hardware and software distributor's strong performance during the pandemic.
During the first half of FY 2020, Dicker Data achieved a total revenue of $1,006.1 million, up 18.1% compared to the prior corresponding period. This was driven partly by the working from home initiative, which led to a surge in demand for remote work and cloud-based solutions.
And thanks to widening margins, the company's profits (and dividends) grew even quicker. Earnings before interest, tax, depreciation and amortisation (EBITDA) came in at $47.1 million for the half, up 27.6% from the same period last year.
Pleasingly, this strong form continued in the third quarter, with Dicker Data reporting a net profit before tax for the nine months to 30 September of $60.8 million. This represents an increase of 28.3% over the prior corresponding period.
