THE owners of mobile retailer Phones 4U split a £101m payout last year, bucking the trend for high-street belt tightening.

Providence Equity Partners and management led by chief executive Tim Whiting took out the cash less than two years after they bought the business for £778m from founder John Caudwell. The sum is the same as the equity they put up.

However, Caudwell also benefits. He quietly rolled over part of his investment and still owns 25% of Phones 4U via a trust. The billionaire provided vendor financing to Providence, which has paid down £108m of group debt so far.

Its progress contrasts with that of 20-20 Mobile, Caudwell’s phone-distribution firm. He sold it at the same time as Phones 4U, but buyer Doughty Hanson has been forced to inject £15m after it breached one of its banking covenants.

Phones 4U has opened 64 net new stores since the takeover and has been investing in its insurance arm. It has just paid HBOS £7.5m for St Andrew’s Membership Services, a unit that protects consumers from credit-card and identity theft.

“We can confirm that we have made a return of cash to shareholders as well as voluntarily paying down some of our debt,” it said. “This payment reflects the continued success of the Phones 4U business over the past two years in a tough consumer environment.”

The last set of filed accounts, for 2006, showed the group made a £104m profit on sales of £782m.

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