March 22 2004

CELSYS Ltd posted impressive half year results showing a phenomenal 8 486% growth in earnings to $28 billion, thanks largely to their payphone division's (Celsys c-phone) exceptional performance. '

This division now accounts for 70% of their business with more than 1 500 c-phone payphones in the market.


Celsys chief executive officer Gary Shayne recently revealed at a briefing to analysts, that they currently have a full order book of payphones for the next six months.

He said several hundred dealers had already signed up with Celsys.

The GSM payphone units, called c-phones - for community phones, on credit to approved dealers.

The dealers are then able to purchase discounted airtime from Celsys, who have a bulk supply agreement with the networks.

Once their units are active in the field, the dealers "top-up" their airtime as and when needed and on sale to their customers.

Celsys, who have the ability to track all c-phones via the network, also use encryption technology to ensure the security of all units.

Celsys, which listed on the Zimbabwe Stock Exchange in April last year, now has four operating divisions - Celsys c-phone, Celsys comms, Celsys print and Celsys IT.

The technology-based organisation looks set to continue this strong growth pattern with planned expansion of its current operations, primarily Celsys c-phone, as well as through targeting acquisitions in the coming months.

The company continues to focus on cash generation.

Shayne said of note was that the payphones provided a large recurring revenue base from airtime and with the recent tariff increases result in substantial increases in revenues.

Celsys print, an independent security print works, now prints cheques for the Zambian market and the IT division, though still in its infancy, has substantial growth opportunities.