EMERGING MARKET MOBILE PLAY
HAVING JUST CLOSED OUT its full-year period, recent AltX listing Africa Cellular Towers (Actowers) will soon update the market on its second-half trading performance. It listed on 29 November last year and forecast in its prospectus it would achieve revenue of R157,2m and headline earnings per share of 13c in the full year to February.
It manufactures steel communication towers and tower parts for mobile operators, having completed more than 3 000 so far throughout African countries, from Sudan to SA. It has a manufacturing facility in Alberton, south of Johannesburg, and listed to raise capital to buy companies in its supply chain plus raise its profile and broaden its shareholder base. A black economic empowerment deal is also a possibility.
Actowers is already trading under a cautionary regarding a possible R40m purchase of a company called JK Shelters. OPPORTUNITIES To add other countries to its base: it operates in 24 out of a potential 53 countries in Africa and also has its sights on the Middle East and India. To improve margins by buying companies in its supply chain. RISKS Its reliance on one major customer – Celtel International. But it’s seeking to diversify its customer base.