Cellnet Mobile Communications Ltd, the mobile network operator that is 40%-owned by Securicor Group Plc as sleeping partner with British Telecommunications Plc, contributed a total UKP32m to the group’s profits before tax and interest for the financial year ended September 30, down 16% on the previous year. This indicates a total 12-month pre-tax profit figure of around UKP80m for Cellnet, though the operator’s financial year runs to the end of March, in synchrony with its majority owner, British Telecom. Securicor chairman Peter Smith refutes suggestions that the group might give up its 40% interest in Cellnet, noting that the affiliate’s second half contribution of UKP19.8m was a marked improvement over the UKP12.1m profit reported for the first six months. The Securicor Group reported pre-tax profits down 36% at UKP33m on revenues up 6% at UKP565m. Securicor has a confusing financial structure, the group being rather a holding company, mainly comprised of Security Services, a company in which it holds a 50.75% stake. It is the Security Services division that owns the bulk of Securicor’s 40% interest in Cellnet, earning UKP20.4m of the mobile network operator’s pre-tax profit. Security Services’ UKP511m turnover figure, which does not include Cellnet, comprises UKP259m from the security business; UKP207m from parcels; and UKP45m from communications – the division under which Cellnet would be included if its turnover figures were shown. The contributions of all three businesses were up on the previous year, resulting in a 9% increase in revenue overall. Security’s total profits before tax and interest, however, were down 38% at UKP21m, all activities having shown a reduction in earnings. This time, Cellnet provided almost all the pre-tax profits shown by Security Services, making up UKP21.3m of the UKP21.4m total; the contributions from security and parcels were cancelled out by a UKP9m loss in the rest of the communications activity, which includes cellular retailing. This operation, which encompasses Securicor Cellular Services (formerly Securicor Communications), is reported to have increased its number of cellular subscribers to 57,500 by the year end, which the chairman says has moved the company that bit closer to the volume required to become profitable. In addition to Security Services’ activities, all of which are brought under the parent’s umbrella, Securicor Group has a business services operation, accounting for UKP47m of revenues, which is made up of the group’s hotel business, employment services and other relatively small units.
