While Vodafone Group Plc managed to launch its LowCall service without hurting profits (CI No 2,185), the same is not true of Cellnet Mobile Communications Ltd with its new Lifetime offering. Interim pre-tax profits at the cellular telephone operator, in which Securicor Group Plc holds a 40% stake, fell 6.5% to UKP21.4m. Securicor’s financial director Christopher Shirtcliffe said this was due to the undisclosed costs of marketing and advertising Lifetime, particularly at points of sale. Furthermore, he stated, unlike Vodafone, which simply offers a low tariff service, Cellnet has invested a lot of cash on software adjustments. As a result, customers can now walk into any retail chain, such as Dixons, and leave with a phone that works within 10 minutes. The aim, he said, was to provide a complete package to attract the consumer. And he added, Cellnet now claims 60% of the consumer market – although Vodafone still commands 56% of the cellular market in total. As for the Cellnet retailing company, Securicor Cellular Services, it now claims 13% of the entire Cellnet installed base – the equivalent of 90,000 subscribers – and has moved into profit for the first time since it was set up five years ago. Securicor Datatrak, a vehicle tracking service provider that was also formed five years ago, reduced its losses. Shirtcliffe does not expect it to move into profit for another couple of years yet. But he feels the newly-won deal with several UK police forces could open up business to cover the tracking of stolen vehicles. Finally, Securicor PMR Systems, which supplies private mobile radios, acquired an unnamed complementary operation in South Wales for an undisclosed sum to consolidate our domestic retailing business and enhance our expertise in this area. PMR currently has a range of linear modulation, or single side band mobile radios, in testing, which will be available commercially in a couple of months. Shirtcliffe reckons these use the band spectrum two and a half times more efficiently than conventional products and so can support two and a half times more users. The entire communications division, excluding Cellnet, saw turnover rise 24.5% to UKP38.3m, showing a faster overall growth rate than the rest of Securicor’s businesses total group sales rose 10.3% to UKP317.6m. Pre-tax losses, however, were UKP2.4m, again excluding Cellnet, while group profits increased 27.1% to UKP29m.
