Securicor to sell US wireless arm for $36m
Securicor, the security, distribution and communications group, confirmed on Thursday that it was in advanced talks to sell its US wireless communications business for about $36m (£25.3m).
The group also confirmed that Roger Wiggs, chief executive, will retire at the end of December, to be succeeded by Nick Buckles, chief executive of the security division.
The sale of the US wireless business and the management change is likely to be interpreted as the start of a restructuring aimed at focusing the group on its core security division.
Securicor reported pre-tax profits before taxation, discontinued operations, exceptional items, goodwill amorisation and the results of Securicor Wilreless and Safedoor rose to £27m against £24.5m for the six months to March 31.
Securicor Wireless, the US arm of Securicor’s communications division, provides private mobile radio services. It made a loss of £6.5m on turnover of £5m. Analysts said possible buyers could include US operators that wished to increase airwave coverage, or possibly the management.
However, some analysts thought a sale of the division could prove difficult to complete.
The decision to sell Securicor Wireless is likely to increase speculation about the fate of Securicor’s other non-security businesses.
The UK arm of the communications division provides mobile communications systems to the police service, while Securicor has also invested in SafeDoor, an e-commerce security business. The company said it made a loss of £3.4m and expects the internet service to incur development costs for the next two years.
Analysts believe the appointment of Mr Buckles could accelerate changes at Securicor. He has won praise from the City for executing a string of acquisitions and for lifting turnover and profits within the security division.
Mr Wiggs, 62 next month, indicated two years ago that he would not retire when he was 60 but when he had completed the sale of its 40 per cent stake in Cellnet.
The group said it will announce the appointment of a new non-executive director later in the year.
Shares in Securicor were up 9-1/2p to 181p in early London trade
