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Johannesburg - AltX-listed telecoms equipment manufacturer Africa Cellular Towers [JSE:ATR] on Friday reported a fully diluted headline loss per share of 30.8 cents for the year ended February 2011, from a loss of 22.9 cents previously.
It reported a fully diluted loss per share of 37.4 cents, from 25.9 cents
Revenue declined to R202m from R227.4m, with an operating loss before interest taxation, depreciation and amortisation of R117.26m, from a prior loss of R100.4m.
Africa Cellular Towers said its revenue declined mainly as a result of the lack of quality contracts in the Cellular and Equipment Shelters Divisions and lower volume throughput in the factory in the first six months 2011 as well as the strong rand.
"A stated objective of the group was to reduce its exposure in Africa and ACTowers' geographic revenue split was 55% South Africa (2010: 14%) and 45% the rest of Africa (2010: 86%), a noteworthy achievement," it said.
The company made a gross loss of R11.6m, from a gross profit of R2.9m. However it highlighted a gross profit of R13m in the second half of the year against a gross loss of R21m in the first half of the year.
"The gross profit achieved in the second half of the year can be attributed to the turnaround strategy implemented and would have been even higher was it not for the completion off loss making projects from the first half of the year," it said.
The group said its Power Lines Division's revenue growth of 1 694.8% to R81.8m was testimony to ACTowers having established its credentials with Eskom and being awarded turnkey power line contracts. This division moved into an operating profit position of R5.5m, from an operating loss of R5.6m.
The Equipment Shelters Division continued to disappoint. Revenue decreased by 30.8% to 9.4 million rand, but the operating loss improved by 5.6% to 10.5 million rand in the current financial period.
Looking ahead, Africa Cellular Towers said its turnaround strategy, implemented since May 2010, encompassed inter alia a cost cutting exercise, major organisational restructuring and evaluating the sustainability and viability of each division, which resulted in the closure of the Fibre Optics Division.
The group said its turnaround strategy was still ongoing and the full benefits should materialise over the next 18 months.
Post year end, the company was able to secure various debt facilities to the amount of R99m from the Industrial Development Corporation (IDC) which assisted with working capital requirements and the purchase of necessary assets for the Power Lines Division.
The Power Lines Division, subsequent to the funding being secured, was well placed on several big tenders. The Cellular Towers Division was beginning to see an increase in demand from new clients and operators and with a focus on growing the business locally and in stable SADC and African countries, it was expected that this division would return to profitability.
"ACTowers is considering recapitalising the business to reduce gearing, alleviate short term pressure on cash flow, provide funding for contracts and to be able to execute larger power line contracts. The management of ACTowers believes that the group is turning the corner and is striving to become reliable in all aspects of its business," the group concluded.
It reported a fully diluted loss per share of 37.4 cents, from 25.9 cents
Revenue declined to R202m from R227.4m, with an operating loss before interest taxation, depreciation and amortisation of R117.26m, from a prior loss of R100.4m.
Africa Cellular Towers said its revenue declined mainly as a result of the lack of quality contracts in the Cellular and Equipment Shelters Divisions and lower volume throughput in the factory in the first six months 2011 as well as the strong rand.
"A stated objective of the group was to reduce its exposure in Africa and ACTowers' geographic revenue split was 55% South Africa (2010: 14%) and 45% the rest of Africa (2010: 86%), a noteworthy achievement," it said.
The company made a gross loss of R11.6m, from a gross profit of R2.9m. However it highlighted a gross profit of R13m in the second half of the year against a gross loss of R21m in the first half of the year.
"The gross profit achieved in the second half of the year can be attributed to the turnaround strategy implemented and would have been even higher was it not for the completion off loss making projects from the first half of the year," it said.
The group said its Power Lines Division's revenue growth of 1 694.8% to R81.8m was testimony to ACTowers having established its credentials with Eskom and being awarded turnkey power line contracts. This division moved into an operating profit position of R5.5m, from an operating loss of R5.6m.
The Equipment Shelters Division continued to disappoint. Revenue decreased by 30.8% to 9.4 million rand, but the operating loss improved by 5.6% to 10.5 million rand in the current financial period.
Looking ahead, Africa Cellular Towers said its turnaround strategy, implemented since May 2010, encompassed inter alia a cost cutting exercise, major organisational restructuring and evaluating the sustainability and viability of each division, which resulted in the closure of the Fibre Optics Division.
The group said its turnaround strategy was still ongoing and the full benefits should materialise over the next 18 months.
Post year end, the company was able to secure various debt facilities to the amount of R99m from the Industrial Development Corporation (IDC) which assisted with working capital requirements and the purchase of necessary assets for the Power Lines Division.
The Power Lines Division, subsequent to the funding being secured, was well placed on several big tenders. The Cellular Towers Division was beginning to see an increase in demand from new clients and operators and with a focus on growing the business locally and in stable SADC and African countries, it was expected that this division would return to profitability.
"ACTowers is considering recapitalising the business to reduce gearing, alleviate short term pressure on cash flow, provide funding for contracts and to be able to execute larger power line contracts. The management of ACTowers believes that the group is turning the corner and is striving to become reliable in all aspects of its business," the group concluded.
