John Caudwell
Encyclopedia
John Caudwell is an English
businessman who has made most of his money in the mobile phone
business. In 2005, the Sunday Times
estimated Caudwell's wealth at £1.28 billion (then around $2.4 billion).
and raised on Wellesley Street in Shelton
, and with his brother Brian attended Shelton Church of England School, and then Berry Hill High School
. His father had a stroke when he was 14 and died 4 years later.
Bullied at school, he abandoned his A-levels to become an apprentice at Michelin
, and then swept floors at the local pottery
factory
. He then became self-employed, running a corner shop and starting a mail order business selling clothing to motor bikers
, both of which failed.
, he noticed the first of the new mobile phones. He noticed that they were vastly cheaper to buy and distribute wholesale
over retail, so picked up the phone and called United States
handset maker Motorola
to see if he could do a deal.
With his brother Brian, in 1987 Caudwell registered Midland Mobile Phones as a mobile phone wholesaler, taking 26 Motorola mobiles at £1,350 each. It took 8 months to sell these 26 phones to local plumbers, taxi drivers and television repairmen at a price of £2,500 each. The company made a loss every month for the first two years of operations.
Developing from a small dealership to a wholesale distributor, turnover expanded to £13 million in 1991, making it the UK's largest independent distributor of cellular phones. Turnover increased from £13 million in 1991 to over £1 billion in 2000. In 1996 and 1997, the Caudwell Group was named the UK's fastest growing company for 2 years in succession.
He had a longstanding professional rivalry with Charles Dunstone who built that other UK mobile dynasty, The Carphone Warehouse. Whereas Dunstone’s success was forged in the retail side of cellular, the Caudwell empire was built on the success of wholesaling with 20:20 Distribution – which became one of the largest handset distributors in Europe – and Singlepoint, an airtime reseller for Vodafone
. 20:20’s dominance in the fast growing UK mobile market paved the way for aggressive expansion into retail and accessories, with the development of Phones4u and Dextra.
By 2003, the Caudwell Group employed over 8,000 worldwide and was selling 26 phones every minute.
In 2005 the House of Lords decided against the Caudwell companies and in favour of Inland Revenue
in a major piece of tax litigation concerning the use by companies in the Caudwell group of employee benefit trusts to provide financial benefits to employees, including Caudwell himself and his brother Brian.
As the mobile industry slowed it curtailed Caudwell’s dream of creating the largest private telecom group in the world, which had driven him for years. A bull market player by nature, Caudwell could see the end of the glorious growth days. He sold Singlepoint to Vodafone
, for £405m (then $648m). With no new mountains to climb, it was only a matter of time before Caudwell sold the entire group. The end came on 26 September 2006, when it was revealed that the Caudwell Group had been sold for a £1.46 billion to private equity
firms Providence Equity Partners
and Doughty Hanson.
ist Jane Burgess, ex-girlfriend of Conservative MP Rupert Allason
, with whom he had a daughter Scarlett. He is presently in a relationship with former model Claire Johnson, with whom he has a son. The couple live in Broughton Hall, Staffordshire
, a 50-room Jacobean
mansion worth around £7.5m; and also have an apartment in Chelsea
, London
and a chateau in France
.
A self-confessed adrenalin freak, his hobbies include motorcycle
s, helicopter
s (he is a qualified pilot
), and aeroplanes. He owns a £1m Sunseeker
motorboat, a narrow boat, and a Bentley Azure
. He supports Liverpool F.C.
.
Caudwell spends most of his time now supporting Caudwell Children, a charity he started himself. He still donates heavily to the NSPCC
, and undertakes regular 1,000 mile charity bike rides to raise funds for many children's charities.
England
England is a country that is part of the United Kingdom. It shares land borders with Scotland to the north and Wales to the west; the Irish Sea is to the north west, the Celtic Sea to the south west, with the North Sea to the east and the English Channel to the south separating it from continental...
businessman who has made most of his money in the mobile phone
Mobile phone
A mobile phone is a device which can make and receive telephone calls over a radio link whilst moving around a wide geographic area. It does so by connecting to a cellular network provided by a mobile network operator...
business. In 2005, the Sunday Times
Sunday Times Rich List 2005
The Sunday Times Rich List 2005 was published in April 2005.Since 1989 the UK national Sunday newspaper The Sunday Times has published an annual magazine supplement to the newspaper called the Sunday Times Rich List...
estimated Caudwell's wealth at £1.28 billion (then around $2.4 billion).
Early life
Caudwell was born in Stoke-on-TrentStoke-on-Trent
Stoke-on-Trent , also called The Potteries is a city in Staffordshire, England, which forms a linear conurbation almost 12 miles long, with an area of . Together with the Borough of Newcastle-under-Lyme Stoke forms The Potteries Urban Area...
and raised on Wellesley Street in Shelton
Shelton, Staffordshire
Shelton is a suburb in the city of Stoke-on-Trent in the English county of Staffordshire.-Profile:Shelton's proximity to Staffordshire University has resulted in it having a large student population. Within the grounds of the University is a film theatre which often shows local and art house films...
, and with his brother Brian attended Shelton Church of England School, and then Berry Hill High School
Berry Hill High School and Sports College
Berry Hill High School and Sports College was a mixed, secondary school located on Arbourfield Drive, Berry Hill, Stoke-on-Trent. The school was awarded specialist Sports College status, though was usually just referred to as Berry Hill High School....
. His father had a stroke when he was 14 and died 4 years later.
Bullied at school, he abandoned his A-levels to become an apprentice at Michelin
Michelin
Michelin is a tyre manufacturer based in Clermont-Ferrand in the Auvergne région of France. It is one of the two largest tyre manufacturers in the world along with Bridgestone. In addition to the Michelin brand, it also owns the BFGoodrich, Kleber, Riken, Kormoran and Uniroyal tyre brands...
, and then swept floors at the local pottery
Pottery
Pottery is the material from which the potteryware is made, of which major types include earthenware, stoneware and porcelain. The place where such wares are made is also called a pottery . Pottery also refers to the art or craft of the potter or the manufacture of pottery...
factory
Factory
A factory or manufacturing plant is an industrial building where laborers manufacture goods or supervise machines processing one product into another. Most modern factories have large warehouses or warehouse-like facilities that contain heavy equipment used for assembly line production...
. He then became self-employed, running a corner shop and starting a mail order business selling clothing to motor bikers
Motorcycle
A motorcycle is a single-track, two-wheeled motor vehicle. Motorcycles vary considerably depending on the task for which they are designed, such as long distance travel, navigating congested urban traffic, cruising, sport and racing, or off-road conditions.Motorcycles are one of the most...
, both of which failed.
Caudwell group
In 1987, while working as a used-car salesman in Stoke-on-TrentStoke-on-Trent
Stoke-on-Trent , also called The Potteries is a city in Staffordshire, England, which forms a linear conurbation almost 12 miles long, with an area of . Together with the Borough of Newcastle-under-Lyme Stoke forms The Potteries Urban Area...
, he noticed the first of the new mobile phones. He noticed that they were vastly cheaper to buy and distribute wholesale
Wholesale
Wholesaling, jobbing, or distributing is defined as the sale of goods or merchandise to retailers, to industrial, commercial, institutional, or other professional business users, or to other wholesalers and related subordinated services...
over retail, so picked up the phone and called United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
handset maker Motorola
Motorola
Motorola, Inc. was an American multinational telecommunications company based in Schaumburg, Illinois, which was eventually divided into two independent public companies, Motorola Mobility and Motorola Solutions on January 4, 2011, after losing $4.3 billion from 2007 to 2009...
to see if he could do a deal.
With his brother Brian, in 1987 Caudwell registered Midland Mobile Phones as a mobile phone wholesaler, taking 26 Motorola mobiles at £1,350 each. It took 8 months to sell these 26 phones to local plumbers, taxi drivers and television repairmen at a price of £2,500 each. The company made a loss every month for the first two years of operations.
Developing from a small dealership to a wholesale distributor, turnover expanded to £13 million in 1991, making it the UK's largest independent distributor of cellular phones. Turnover increased from £13 million in 1991 to over £1 billion in 2000. In 1996 and 1997, the Caudwell Group was named the UK's fastest growing company for 2 years in succession.
He had a longstanding professional rivalry with Charles Dunstone who built that other UK mobile dynasty, The Carphone Warehouse. Whereas Dunstone’s success was forged in the retail side of cellular, the Caudwell empire was built on the success of wholesaling with 20:20 Distribution – which became one of the largest handset distributors in Europe – and Singlepoint, an airtime reseller for Vodafone
Vodafone
Vodafone Group Plc is a global telecommunications company headquartered in London, United Kingdom. It is the world's largest mobile telecommunications company measured by revenues and the world's second-largest measured by subscribers , with around 341 million proportionate subscribers as of...
. 20:20’s dominance in the fast growing UK mobile market paved the way for aggressive expansion into retail and accessories, with the development of Phones4u and Dextra.
By 2003, the Caudwell Group employed over 8,000 worldwide and was selling 26 phones every minute.
In 2005 the House of Lords decided against the Caudwell companies and in favour of Inland Revenue
Inland Revenue
The Inland Revenue was, until April 2005, a department of the British Government responsible for the collection of direct taxation, including income tax, national insurance contributions, capital gains tax, inheritance tax, corporation tax, petroleum revenue tax and stamp duty...
in a major piece of tax litigation concerning the use by companies in the Caudwell group of employee benefit trusts to provide financial benefits to employees, including Caudwell himself and his brother Brian.
As the mobile industry slowed it curtailed Caudwell’s dream of creating the largest private telecom group in the world, which had driven him for years. A bull market player by nature, Caudwell could see the end of the glorious growth days. He sold Singlepoint to Vodafone
Vodafone
Vodafone Group Plc is a global telecommunications company headquartered in London, United Kingdom. It is the world's largest mobile telecommunications company measured by revenues and the world's second-largest measured by subscribers , with around 341 million proportionate subscribers as of...
, for £405m (then $648m). With no new mountains to climb, it was only a matter of time before Caudwell sold the entire group. The end came on 26 September 2006, when it was revealed that the Caudwell Group had been sold for a £1.46 billion to private equity
Private equity
Private equity, in finance, is an asset class consisting of equity securities in operating companies that are not publicly traded on a stock exchange....
firms Providence Equity Partners
Providence Equity Partners
Providence Equity Partners is a global private equity investment firm focused on media, entertainment, communications and information investments...
and Doughty Hanson.
Personal life
Caudwell was married to Kate for 25 years, ending in 2001. They had three children and parted amicably. He then had a relationship with violinViolin
The violin is a string instrument, usually with four strings tuned in perfect fifths. It is the smallest, highest-pitched member of the violin family of string instruments, which includes the viola and cello....
ist Jane Burgess, ex-girlfriend of Conservative MP Rupert Allason
Rupert Allason
Rupert William Simon Allason is a military historian and former Conservative Party politician in the United Kingdom. He was the Member of Parliament for Torbay in Devon, from 1987 to 1997...
, with whom he had a daughter Scarlett. He is presently in a relationship with former model Claire Johnson, with whom he has a son. The couple live in Broughton Hall, Staffordshire
Broughton Hall, Staffordshire
Broughton Hall near Eccleshall, Staffordshire is a privately owned 16th century Elizabethan style manor house. It is a Grade I listed building....
, a 50-room Jacobean
Jacobean architecture
The Jacobean style is the second phase of Renaissance architecture in England, following the Elizabethan style. It is named after King James I of England, with whose reign it is associated.-Characteristics:...
mansion worth around £7.5m; and also have an apartment in Chelsea
Chelsea, London
Chelsea is an area of West London, England, bounded to the south by the River Thames, where its frontage runs from Chelsea Bridge along the Chelsea Embankment, Cheyne Walk, Lots Road and Chelsea Harbour. Its eastern boundary was once defined by the River Westbourne, which is now in a pipe above...
, London
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...
and a chateau in France
France
The French Republic , The French Republic , The French Republic , (commonly known as France , is a unitary semi-presidential republic in Western Europe with several overseas territories and islands located on other continents and in the Indian, Pacific, and Atlantic oceans. Metropolitan France...
.
A self-confessed adrenalin freak, his hobbies include motorcycle
Motorcycle
A motorcycle is a single-track, two-wheeled motor vehicle. Motorcycles vary considerably depending on the task for which they are designed, such as long distance travel, navigating congested urban traffic, cruising, sport and racing, or off-road conditions.Motorcycles are one of the most...
s, helicopter
Helicopter
A helicopter is a type of rotorcraft in which lift and thrust are supplied by one or more engine-driven rotors. This allows the helicopter to take off and land vertically, to hover, and to fly forwards, backwards, and laterally...
s (he is a qualified pilot
Aviator
An aviator is a person who flies an aircraft. The first recorded use of the term was in 1887, as a variation of 'aviation', from the Latin avis , coined in 1863 by G. de la Landelle in Aviation Ou Navigation Aérienne...
), and aeroplanes. He owns a £1m Sunseeker
Sunseeker
Sunseeker International, is a UK luxury motor yacht manufacturer. Their headquarters and assembly factory is in Poole Harbour, at Poole in Dorset, England. The company has been making motor boats since 1979.-Profile:...
motorboat, a narrow boat, and a Bentley Azure
Bentley Azure
The Bentley Azure is a large, four seater convertible built by Bentley Motors Limited at its factory in Crewe, England. The model debuted in 1995 on the Continental platform and was produced in its original guise until 2003. A completely new version powered by a significantly updated engine and...
. He supports Liverpool F.C.
Liverpool F.C.
Liverpool Football Club is an English Premier League football club based in Liverpool, Merseyside. Liverpool has won eighteen League titles, second most in English football, seven FA Cups and a record seven League Cups...
.
Caudwell spends most of his time now supporting Caudwell Children, a charity he started himself. He still donates heavily to the NSPCC
NSPCC
The National Society for the Prevention of Cruelty to Children is a United Kingdom charity campaigning and working in child protection.-History:...
, and undertakes regular 1,000 mile charity bike rides to raise funds for many children's charities.