Securicor's mobile phone boss quits - Business - News - The Independent

Securicor's mobile phone boss quits

Securicor yesterday heralded a further shake-up of its troubled mobile phone business as it parted company with Ed Hough, chief executive of its communications division, by mutual agreement.

Mr Hough, 53, left his job with Securicor yesterday and did not have another post to go to. He is likely to receive a pay-off of around pounds 280,000 from his two-year rolling contract. Last year he was paid pounds 163,000 including bonuses, with a basic salary of pounds 140,000.

Jeff Pack, Securicor's group treasurer, said: "He went home yesterday and is not coming back to work. His resignation was by mutual agreement. Ed's interest in the business was really more to do with the growth phase."

Securicor said Chris Shirtcliffe, its finance director, would take direct control over Securicor Cellular Services, the mobile phone business in the UK which sells Cellnet airtime. Securicor owns 40 per cent of Cellnet, with the remainder controlled by British Telecom.

Roger Wiggs, Securicor's chief executive, said a further announcement would be made within days about restructuring measures and management changes. Securicor shares fell 11.5p to 264p on the news.

Mr Hough's departure follows long-running troubles with the mobile business, which culminated in the spring with the announcement of an pounds 18m exceptional restructuring charge. It covered write downs on the value of customer contracts in Securicor's accounts because people were leaving the Cellnet network at a much faster rate. The charges contributed to a slump in Securicor's profits in the six months to the end of March, which fell to pounds 19.1m from pounds 47.6m.

Mr Pack said further action would be taken to weed out low-spending customers attracted on to the network by big discounts.

"The economies of service provision have changed dramatically over the past two years. There's been such a degree of bad debt that it's become necessary to be more careful than before."

Though Mr Hough was not in direct control of Cellnet, the mobile operator has also faced a series of fiascos, including the revelation this month of a pounds 40m charge after the company abandoned work on a new billing system. It came on top of a pounds 25m provision to cover billing delays, taken last year, of which pounds 10m was charged to Securicor's first-half profits. In March Howard Ford left Cellnet as managing director.

Jim McCafferty, a telecommunications analyst from ABN Amro Hoare Govett, said Mr Hough's resignation suggested Securicor was determined to get to grips with the division. "They've realised these are loss-making businesses, so reporting direct to the finance director should help their visibility."

Other communications operations in the US controlled by Mr Hough will be the responsibility of Mr Wiggs. Securicor said Bob Shiver, a non- executive director of Intek, its US radio division, would become a full- time chairman and chief executive.

John Travolta is a qualified airline captain and employed the pilot with his company, Alto
people'That was the lowest I’d ever felt'
Life and Style
healthIt isn’t greasy. It doesn’t smell. And moreover, it costs nothing
peopleThe report and photo dedicated to the actress’s decolletage has, unsurprisingly, provoked anger
Home body: Badger stays safe indoors
The programme sees four specialists creating what they believe are three perfect couples, based on scientific matchmaking. The couples will not meet until they walk down the aisle together
tvUK wedding show jilted
Arts and Entertainment
US pop diva Jennifer Lopez sang “Happy Birthday” to Gurbanguly Berdimuhamedow, president of Turkmenistan
musicCorporate gigs become key source of musicians' income
Arts and Entertainment
You've been framed: Henri Matisse's colourful cut-outs at Tate Modern
artWhat makes a smash-hit art show
ebooksAn unforgettable anthology of contemporary reportage
Arts and Entertainment
While many films were released, few managed to match the success of James Bond blockbuster 'Skyfall'
filmsDaniel Craig believed to be donning skis as 007 for first time
Mikel Arteta pictured during Borussia Dortmund vs Arsenal
champions league
Yes supporters gather outside the Usher Hall, which is hosting a Night for Scotland in Edinburgh
voicesBen Judah: Is there a third option for England and Scotland that keeps everyone happy?
Arts and Entertainment
Pulp-fiction lover: Jarvis Cocker
booksJarvis Cocker on Richard Brautigan
Arts and Entertainment
Robin Thicke and Pharell Williams in the video of the song, which has been accused of justifying rape
music...and he had 'almost no part' in writing it
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating

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

iJobs Job Widget
iJobs Money & Business

Sales Executive

£20 - 24k (Uncapped Commission - £35k Year 1 OTE): Guru Careers: We are seekin...

Payroll & Accounts Assistant

£20 - 24k + Benefits: Guru Careers: This is a great opportunity for an enthusi...

SQL Developer - Watford/NW London - £280 - £320 p/d - 6 months

£280 - £320 per day: Ashdown Group: The Ashdown Group have been engaged by a l...

Senior BA - Insurance **URGENT**

£400 - £450 Per Day: Clearwater People Solutions Ltd: **URGENT CONTRACT ROLE**...

Day In a Page

Mystery of the Ground Zero wedding photo

A shot in the dark

Mystery of the wedding photo from Ground Zero
His life, the universe and everything

His life, the universe and everything

New biography sheds light on comic genius of Douglas Adams
Save us from small screen superheroes

Save us from small screen superheroes

Shows like Agents of S.H.I.E.L.D are little more than marketing tools
Reach for the skies

Reach for the skies

From pools to football pitches, rooftop living is looking up
These are the 12 best hotel spas in the UK

12 best hotel spas in the UK

Some hotels go all out on facilities; others stand out for the sheer quality of treatments
These Iranian-controlled Shia militias used to specialise in killing American soldiers. Now they are fighting Isis, backed up by US airstrikes

Widespread fear of Isis is producing strange bedfellows

Iranian-controlled Shia militias that used to kill American soldiers are now fighting Isis, helped by US airstrikes
Topshop goes part Athena poster, part last spring Prada

Topshop goes part Athena poster, part last spring Prada

Shoppers don't come to Topshop for the unique
How to make a Lego masterpiece

How to make a Lego masterpiece

Toy breaks out of the nursery and heads for the gallery
Meet the ‘Endies’ – city dwellers who are too poor to have fun

Meet the ‘Endies’ – city dwellers who are too poor to have fun

Urbanites are cursed with an acronym pointing to Employed but No Disposable Income or Savings
Paisley’s decision to make peace with IRA enemies might remind the Arabs of Sadat

Ian Paisley’s decision to make peace with his IRA enemies

His Save Ulster from Sodomy campaign would surely have been supported by many a Sunni imam
'She was a singer, a superstar, an addict, but to me, her mother, she is simply Amy'

'She was a singer, a superstar, an addict, but to me, her mother, she is simply Amy'

Exclusive extract from Janis Winehouse's poignant new memoir
Is this the role to win Cumberbatch an Oscar?

Is this the role to win Cumberbatch an Oscar?

The Imitation Game, film review
England and Roy Hodgson take a joint step towards redemption in Basel

England and Hodgson take a joint step towards redemption

Welbeck double puts England on the road to Euro 2016
Relatives fight over Vivian Maier’s rare photos

Relatives fight over Vivian Maier’s rare photos

Pictures removed from public view as courts decide ownership
‘Fashion has to be fun. It’s a big business, not a cure for cancer’

‘Fashion has to be fun. It’s a big business, not a cure for cancer’

Donatella Versace at New York Fashion Week