Yell announces plan to cut debt

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The publisher of the Yellow Pages in the UK, Yell, has announced a plan to radically reduce its level of debt.

It said that shareholders would not get any dividend payments until it had cut its debt to less than four times its earnings before tax and other costs.

The company reported in July that it owed £3.7bn after acquiring businesses in the US and Spain.

Yell shares jumped by as much as 9% after the announcement, but closed 5% lower at 85.25 pence.

Yell also plans to seek extra financial flexibility from its lenders.

Conversations with its lenders had already begun, it said, and a number of them, including HSBC, had already given their approval in principle.

The publisher of Yellow pages in the UK and Yellow Book directories in the US added that its trading and financial performance was on track to meet market expectations.