Securicor warning of Cellnet hit
Friday 21 March 1997
Roger Wiggs, Securicor chief executive, told shareholders at the annual general meeting that profits for the six months to the end of March would be hit by a mixture of trading losses and exceptional charges totalling pounds 27m. Of these, pounds 21m stem from Securicor Cellular Services, a subsidiary which acts as a wholesaler for Cellnet mobile phones. Securicor shares fell 21p to 294.5p.
The warning came less than three weeks after the abrupt resignation of Howard Ford as Cellnet's managing director, though Securicor yesterday refused to elaborate on reasons for the departure. British Telecom owns the other 60 per cent of Cellnet. Chris Shirtcliffe, Securicor's finance director, said: "It wasn't in any way a form of retribution. We have confidentiality agreements with Cellnet's majority shareholder, BT, and you will have to talk to them."
Securicor said the cellular subsidiary, which has 400,000 subscribers, was likely to lose pounds 3m in the first half of this year. Mr Shirtcliffe warned similar losses could continue into 1998. Securicor will also write- down pounds 18m off the value of mobile contracts in its accounts because people are leaving the Cellnet network at a faster rate. The remaining pounds 6m of the profits warning related to start-up costs at Securicor's US radio joint venture, which it warned would not break even until 1999/2000.
Mr Shirtcliffe defended Cellnet's record last night. "Cellnet is still very well placed indeed. It's the overall market and not just Cellnet which has changed so rapidly."
- 2 Caitlyn Jenner car crash: Driver who died in collision sued by surviving passengers for $18.5m
- 3 Watch the Supermoon live: How to see the brightest Moon of the year tonight
- 4 Hulk Hogan wants to be Donald Trump's running mate in the US Presidential election
Caitlyn Jenner car crash: Driver who died in collision sued by surviving passengers for $18.5m
Celebrity Big Brother 2015: Tila Tequila kicked off show after 'describing Hitler as a good man'
Watch the Supermoon live: How to see the brightest Moon of the year tonight
Hulk Hogan wants to be Donald Trump's running mate in the US Presidential election
Blood Moon and Supermoon: September to bring brightest – and dimmest – full Moon of the year on same night
Climate change: 2015 will be the hottest year on record 'by a mile', experts say
'Women only' train carriages: Jeremy Corbyn unveils radical move to tackle public harassment
Black holes are a passage to another universe, says Stephen Hawking
Iain Duncan Smith 'should resign over disability benefit death figures', says Jeremy Corbyn
Tony Blair attacks Jeremy Corbyn's 'Alice In Wonderland' politics
Theresa May says jobless migrants should be banned from entering the UK
iJobs Money & Business
£25000 - £30000 per annum: Recruitment Genius: From modest beginnings the comp...
£35000 - £40000 per annum: Recruitment Genius: From modest beginnings the comp...
£15000 - £65000 per annum: Recruitment Genius: This is an exciting opportunity...
£18000 - £20000 per annum: Recruitment Genius: This is a fantastic opportunity...