Cellnet continues to bolster profits at Securicor Group Plc, contributing UKP38.0m in end of year pre-tax profits to the Group, the company reported yesterday. Securicor made a total pre-tax profit of UKP52.0m. Securicor holds a 40% stake in Cellnet, the balance of which is held by British Telecommunications Plc. The UKP38.0m compares with UKP19.3m in pre-tax profits last time, a rise of 98%, and reflects heavy investments in quality improvement, marketing and extra services that Cellnet has been making in an attempt to catch up with its more successful rival, Racal Vodafone. However Securicor also reported a loss of UKP7.7m in its Communications division, which includes Cellnet retailing. This is an increased loss, up from UKP3.6m last time. Securicor attributed the higher loss to the heavy promotional cost of expanding the Cellnet subscriber base – the investment in retailing mobile phones. Chief executive Roger Wiggs also blamed the recession which he said had caused higher rates of subscriber disconnection and lower average call usage. Securicor is one of the largest retailers of Cellnet, with a subscriber base of 34,000.
