Debt-hit Yell sounds profit caution as refinancing bites

The compact unveiled plans to "comprehensively refinance" the accountability as it buckles beneath the heaviness of Ј3.8 billion of debt.

It also said profits desire be down 20% in the first fourth of the year and 30% in the succeeding fourth as advertising revenues fall.

The shares slumped 3p to 27¾p to value it at Ј218 million.

Yell was spun away from BT in 2001 but has racked up mammoth debts because of calamitous acquisitions abroad, including the €3.1 billion (Ј2.6 billion) takeover of Madrid-based TPI, at current Yell Publicidad.

It has debts of Ј4.2 billion and ought to refinance Ј3 billion close by 2011.

In a assertion to the furnish market-place today, it said: "Yell has embarked upon a procedure to comprehensively refinance the group.

"This desire conduct to the assembly holding discussions with its accountability holders with a outlook to extending the adulthood and changing the terms of its accountability facilities and, in due course, to discussions with its chief shareholders.

"These discussions and the resulting processes are expected to grip because of to the autumn to complete."

Yell crashed to a Ј1 billion deprivation hindmost year, against Ј310.9 million of profits the year before.