Securicor warning of Cellnet hit

Doubts about the trading performance of Cellnet, the UK's second-largest mobile phone company, intensified yesterday after its 40 per cent shareholder, Securicor, issued a profits warning.

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."

Start your day with The Independent, sign up for daily news emails
News
election 2015
Sport
Cristiano Ronaldo celebrates his goal for Real Madrid against Juventus
football
Voices
Ed Miliband and David Cameron are neck and neck in the polls
voicesArmando Iannucci: on how British politics is broken
Arts and Entertainment
Harrison Ford plays Indiana Jones in The Last Crusade (1989)
film
Life and Style
Great minds like Einstein don't think alike
tech
Arts and Entertainment
Billie Piper as Brona in Penny Dreadful
tvReview: It’s business as usual in Victorian London. Let’s hope that changes as we get further into the new series spoiler alert
Life and Style
A nurse tends to a recovering patient on a general ward at The Queen Elizabeth Hospital in Birmingham
health
ebooks
ebooksA celebration of British elections
News
Fans take a selfie with Ed Miliband in Kempston, near Bedford, on Tuesday
election 2015
News
science
Arts and Entertainment
No Offence
tvReview: No Offence has characters who are larger than life and yet somehow completely true to life at the same time spoiler alert
News
Chuck Norris pictured in 1996
people
Arts and Entertainment
Sarah Lucas, I SCREAM DADDIO, Installation View, British Pavilion 2015
artWhy Sarah Lucas is the perfect choice to represent British art at the Venice Biennale
  • Get to the point
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Guru Careers: Project Manager / Business Analyst

£40-50k + Benefits.: Guru Careers: A Project Manager / Business Analyst is nee...

SThree: Trainee Recruitment Consultant - Swiss Banking and Finance

£20000 - £25000 per annum + Uncapped commission: SThree: Can you speak German,...

Ashdown Group: Marketing Executive - 6 month FTC - Central London

£25000 - £30000 per annum + benefits: Ashdown Group: An exciting opportunity f...

Ashdown Group: Junior Project Manager (website, web application) - Agile

£215 per day: Ashdown Group: Junior Project Manager (website, web application ...

Day In a Page

General Election 2015: Ed Miliband's unlikely journey from hapless geek to heart-throb

Miliband's unlikely journey from hapless geek to heart-throb

He was meant to be Labour's biggest handicap - but has become almost an asset
General Election 2015: A guide to the smaller parties, from the the National Health Action Party to the Church of the Militant Elvis Party

On the margins

From Militant Elvis to Women's Equality: a guide to the underdogs standing in the election
Amr Darrag: Ex-Muslim Brotherhood minister in exile still believes Egypt's military regime can be replaced with 'moderate' Islamic rule

'This is the battle of young Egypt for the future of our country'

Ex-Muslim Brotherhood minister Amr Darrag still believes the opposition can rid Egypt of its military regime and replace it with 'moderate' Islamic rule, he tells Robert Fisk
Why patients must rely less on doctors: Improving our own health is the 'blockbuster drug of the century'

Why patients must rely less on doctors

Improving our own health is the 'blockbuster drug of the century'
Sarah Lucas is the perfect artist to represent Britain at the Venice Biennale

Flesh in Venice

Sarah Lucas has filled the British pavilion at the Venice Biennale with slinky cats and casts of her female friends' private parts. It makes you proud to be a woman, says Karen Wright
11 best anti-ageing day creams

11 best anti-ageing day creams

Slow down the ageing process with one of these high-performance, hardworking anti-agers
Juventus 2 Real Madrid 1: Five things we learnt, including Iker Casillas is past it and Carlos Tevez remains effective

Juventus vs Real Madrid

Five things we learnt from the Italian's Champions League first leg win over the Spanish giants
Ashes 2015: Test series looks a lost cause for England... whoever takes over as ECB director of cricket

Ashes series looks a lost cause for England...

Whoever takes over as ECB director of cricket, says Stephen Brenkley
Fishing for votes with Nigel Farage: The Ukip leader shows how he can work an audience as he casts his line to the disaffected of Grimsby

Fishing is on Nigel Farage's mind

Ukip leader casts a line to the disaffected
Who is bombing whom in the Middle East? It's amazing they don't all hit each other

Who is bombing whom in the Middle East?

Robert Fisk untangles the countries and factions
China's influence on fashion: At the top of the game both creatively and commercially

China's influence on fashion

At the top of the game both creatively and commercially
Lord O’Donnell: Former cabinet secretary on the election and life away from the levers of power

The man known as GOD has a reputation for getting the job done

Lord O'Donnell's three principles of rule
Rainbow shades: It's all bright on the night

Rainbow shades

It's all bright on the night
'It was first time I had ever tasted chocolate. I kept a piece, and when Amsterdam was liberated, I gave it to the first Allied soldier I saw'

Bread from heaven

Dutch survivors thank RAF for World War II drop that saved millions
Britain will be 'run for the wealthy and powerful' if Tories retain power - Labour

How 'the Axe' helped Labour

UK will be 'run for the wealthy and powerful' if Tories retain power