[July 15, 2011] Lacklustre Yell struggles to emerge from the gloom [Daily Mail, London] Tweet (Daily Mail (London, England) Via Acquire Media NewsEdge) July 15--Yell lost a quarter of its value after a much-heralded strategic overhaul was eclipsed by a gloomy snapshot of current trading from the directories publisher. The Yellow Pages owner yesterday signalled that there had been no uplift in its main markets over the past two months, dashing hopes for an improvement in its performance. The lacklustre trading update knocked shares in Yell 2.75p to 8.28p, reversing much of the gains registered this week following the company's alliance with software behemoth Microsoft. Alan Howard at brokerage Canaccord Genuity said it was "disappointing," although "not surprising" that there was as yet "no sign of (trading) getting any better." Yell's three biggest operations are in the UK, US and Spain, where business confidence remains at rock bottom and economic growth sluggish. The share slump was a blow for new boss Mike Pocock, an American turnaround specialist drafted in to revitalise Yell's flagging fortunes in December. It will be five years before his revival plan takes full effect and turnover and earnings begin growing again, Pocock declared. He's aiming to transform Yell from a directories firm whose mainstay ad revenues are in terminal decline into an internet-based services provider for small- and medium-sized businesses. Instead of relying on small ads, Pocock wants Yell to become a digital middleman between its small firms and consumers. He also wants to sell software, design and run websites and handle web-based payments for his customers. But his masterplan -- described by one analyst as "laudable" -- failed to dispel concerns over the long-term financial health of the company, which almost collapsed under its debt load in 2009. With a UKpound2.7bn overdraft, many investors fear it is only a matter of time before Yell comes knocking on their door with a begging bowl in hand. Finance director Tony Bates moved to quash these concerns, insisting that the strategic review would "not require us to go to the market for more cash." ___ To see more of the Daily Mail, or to subscribe to the newspaper, go to http://www.dailymail.co.uk/home/index.html. Copyright (c) 2011, Daily Mail, London Distributed by McClatchy-Tribune Information Services. For more information about the content services offered by McClatchy-Tribune Information Services (MCT), visit www.mctinfoservices.com, e-mail [email protected], or call 866-280-5210 (outside the United States, call +1 312-222-4544) [ Back To TMCnet.com's Homepage ]