YELL, the Yellow Pages firm, yesterday warned next quarter earnings were likely to be 30 per cent lower as it continued to feel the pain of the slump.
The update came as Yell said talks were under way to "comprehensively refinance" the group, which is saddled with £3.5 billion of debt.
Yell warned in its recent annual report that uncertain trading conditions meant it might need to reset financia
l covenants with its lenders.
The report also set out ways in which Yell could breach its bank terms, including a fall of more than 9 per cent in underlying earnings for the 12 months to June 2010.
At constant exchange rates, earnings for the quarter to June 30 will be 20 per cent lower, reducing to 10 per cent when including the impact of the weaker pound.
In the company's historically weaker second quarter, starting today, earnings will be down 30 per cent on last year at constant currency rates.
The group, which also trades as Yell.com in the UK, racked up the debt following acquisitions in Spain and the United States.
The trading update and news of refinancing talks put fresh pressure on Yell's shares.
Numis Securities said it would be no surprise if the firm opted to raise money from shareholders alongside its refinancing.
Any new debt facility in the absence of steadier trading would result in much higher interest charges. Numis retained its sell recommendation.
The full article contains 249 words and appears in The Scotsman newspaper.
