YELL CRIES OUT FOR CASH

The Yellow Pages publisher, which has been hit by the steep decline in local classified advertising, saw its shares slump 41⁄2p to 261⁄4p after it said it needed to “completely refinance” the group.

“This will lead to the group holding discussions with its debt holders with a view to extending the maturity and changing the terms of its debt facilities and, in due course, to discussions with its principal shareholders,” it said. It expects to complete this process by the autumn. Yell must refinance £3billion by 2011 and has £323million to repay by next March.

It said its profits would fall by 20 per cent in the first quarter of this year and 30 per cent in the second quarter in the wake of a marked decline in spending across the advertising industry following the continued economic downturn and uncertainty in its main markets.