Published by the government of Zimbabwe
Joseph Madzimure
8 October 2007
Harare — Communication and information technology group Celsys Limited is set to increase its market base through strategic partnerships to enhance export volumes.
Speaking at an analyst briefing in Harare last week, Celsys's chief executive Mr Geoff Goss said this was critical for the company's growth. "For Celsys to grow we must seek and secure strategic partnership with either local and international companies that will give an access to markets or sufficient economies of scale to capitalise upon their strength and mitigate upon their weakness," he said.
He added that the coming in of Lonrho plc would add value to the business.
"The Lonrho deal comes through when several companies are closing down, so for us it would be a dream come true since we will be part of the international investor listed on the London Stock Exchange" said Mr Goss.
This week, Lonrho took control of Celsys and chemical manufacturer Gardoserve by buying an 80 percent stake in Blueberry International. Mr Goss said in another related development, the company had acquired printing machinery for printing recharge cards and bale tickets for tobacco sales floors. "Logistics are underway to make sure that the machines would be in the country in three weeks' time."
In its financial results for the half-year ended June 30, 2007, the group posted an attributable profit of $9,8 billion, from the corresponding figure of $445 million. Celcys recorded a turnover of $25,9 billion from the previous figure of $964 million. Basic earnings per share of 624 cents were achieved compared to 39 cents previously. The board has seen it imprudent to declare a dividend. On its general operations Mr Goss said Celsys had completed the acquisition of a website design, hosting and marketing business - Venekera Works Technologies - with a view of turning the internal marketing department into a profit operation branded Celsys Marketing.
In the first six months of the year volumes in Celsys Print increased although handset unit sales at Celsys Comms were significantly lower than the previous year despite anticipated growth in the industry, said Mr Goss.
In the period under review, Mr Goss said that the company has enjoyed a 24 percent increase in volumes of recharge cards and a 26 percent increase in cheque printing volumes at Celsys Print.
The number of ATM transactions was down at Celsys IT, the division has significantly benefited from the inclusion of the new security soft ware business.
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