WILL YELL’S REFINANCING PROPOSALS BE ENOUGH TO SECURE ITS FUTURE?
ALEX DEGROOTE PANMURE GORDON
Based on what was said today, the plans seem fairly well-advanced. I think it is a step in the right direction, but it has been well-trailed and the news has already been priced into the shares, which have been hit today by the underwhelming trading outlook given by the firm.
ANDY VINER BDO STOY HAYWARD
The timing of the equity raising is good, and it enables Yell to diversify its funding sources and secure its future in the medium term. The company still has a high level of debt so there remains a question whether the equity fund raise is sufficient.
SAM HART CHARLES STANLEY
The proposed restructuring should tide Yell over in the short to medium term. But we still remain concerned about the long-term structural challenges in moving from print to online publishing, and think that the shares remain a high risk and would not go back into them yet.