Africa's growing cellular market has boosted earnings for Africa Cellular Towers, which posted a 35 percent increase in revenue at 239 million South African rand (US$23.2 million) for the six months ending Aug. 31, up from 177 million rand over the same period last year.

Growth in revenue mainly resulted from the continued demand for cellular towers and equipment shelters in Africa, as well as the increase in the steel price that led to higher selling prices, explained Chris Kruger, ACTowers chairman and CEO.

The company's gross profits rose by 56 percent to 89 million rand compared to 57 million rand during the same period last year. The growth was attributed to a concerted effort by ACTowers to move to "supply-only" contracts, which earn higher margins.

Meanwhile, headline earnings per share increased by 32 percent to 37 million rand compared to 28 million rand over the same period last year.

"We put a great deal of effort into recouping some of our long outstanding debtors," Kruger noted. "Celtel remains a large outstanding debtor, but we are in discussions with them."

"The galvanizing plant is in the process of undergoing environmental approval, which should be completed by May 31, 2009, and we expect some meaningful cost savings once the galvanizing bath is installed," he added.

ACTowers is a leading manufacturer and supplier of telecommunication lattice towers and equipment shelters in Africa, with operations in Botswana, Burkina Faso, Chad, Niger, Sierra Leone, Sudan, Tanzania, Uganda, Zambia and Zimbabwe.

The company plans to establish a distribution center in Ghana but will rent a bond store rather than pursuing a facility in the Ghana Free Zone, as originally planned. The move is expected to yield advantages for ACTowers' overall African operations.