Yell looks to turnaround blueprint
Nick Clark is the arts correspondent of The Independent. He joined the newspaper in June 2007, initially reporting on the stock markets. He has covered beats including the City, and technology, media and telecoms and made the switch to arts in December 2011. He has also contributed articles to the sports section.
Wednesday 09 November 2011
Yell Group's revenues fell more than a tenth in its first half as its directories business continued to struggle, and the company revealed it was in talks with its lending banks to avoid breaching covenants.
The new management of Yell unveiled a dramatic plan to go digital in July in an attempt to salvage a company labouring under a mountain of debt, and said it was making "significant progress" in the plan.
Yet revenues fell 12 per cent to £787m in the first half, as the company has come under "cyclical and structural pressure", according to analysts at Numis. The broker also noted the declines reflect "the economic pressure on the group's small and medium-sized enterprise clients". Print-directory revenues were down almost 20 per cent.
The company said it was in talks with its banks to renegotiate covenant levels before Christmas, and needs agreement from two-thirds of its syndicate of 300 lenders. While Yell is confident it will remain within the limits this year, Numis predicts it will breach its covenants some time before March 2013.
It needs to renegotiate its covenants to allow more breathing room to invest in turning the company into a digital operation.
- 1 President of Argentina adopts Jewish godson to 'stop him turning into a werewolf'
- 3 Sir Winston Churchill’s family begged him not to convert to Islam, letter reveals
- 5 Game of Thrones is most-pirated TV show of 2014
President of Argentina adopts Jewish godson to 'stop him turning into a werewolf'
Exclusive: Abusers using spyware apps to monitor partners reaches 'epidemic proportions'
Stoke-on-Trent becomes first British city to be classified as 'disaster resilient' by the United Nations
Sir Winston Churchill’s family begged him not to convert to Islam, letter reveals
AirAsia flight QZ8501 missing: Search for plane carrying 162 passengers from Indonesia to Singapore suspended overnight
British actor Idris Elba cannot star as James Bond because he is black, says shock jock Rush Limbaugh
Millions of Britons struggling to feed themselves and facing malnourishment
Ukip member gets into Christmas spirit with Union Flag plea to Santa 'for our country back'
Germany anti-Islam protests: 17,000 march on Dresden against 'Islamification of the West'
Nigel Farage: Ukip leader named 'Briton of the year' by The Times
Immigrants make UK racist, says Ukip councillor Trevor Shonk
iJobs Money & Business
Not specified: Selby Jennings: VP/SVP Credit Quant Top tier investment bank i...
Not specified: Selby Jennings: Quantitative Research | Global Equity | New Yor...
Not specified: Selby Jennings: SVP Model Validation This top tiered investment...
Highly Competitive: Selby Jennings: Our client, a leading European Oil trading...