views

WILL YELL'S REFINANCING PROPOSALS BE ENOUGH TO SECURE ITS FUTURE?

<strong>ALEX DEGROOTE </strong>PANMURE GORDON<br />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.<br /><br /><strong>ANDY VINER </strong>BDO STOY HAYWARD<br />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.<br /><br /><strong>SAM HART </strong>CHARLES STANLEY<br />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.