Financial report for the year ended 31 March 2010

RNS Number : 0831M

Yell Group plc

18 May 2010

 

 

 

 

18 May 2010

 

Yell Group plc financial report for the year ended 31 March 2010

 

Performance ahead of guidance. Customer retention and revenue declines stabilising. Internet momentum continues. Strong cash flow.

·; Revenue down 11.5% to £2,122.7 million; down 13.8% at constant exchange rates

·; Online revenue of £415.1 million; up 13.3% at constant exchange rates to 19.6% of total revenue (14.9% prior year)

·; Adjusted EBITDA down 24.1% to £619.6 million; down 25.7% at constant exchange rates

·; Operating cash flow down 0.8% to £724.1 million; down 4.2% at constant exchange rates. Cash conversion 116.9% (2009 - 89.5%)

·; Free cash flow before payments of exceptionals was £397.5 million (2009 - £395.2 million)

·; Adjusted diluted earnings per share down 66.1% to 11.7 pence

	Statutory results (unaudited)
	Year ended 31 March
	£ millions, unless noted otherwise	2010	2009	Change
				%
	Revenue	2,122.7	2,397.9	(11.5)
	EBITDA *	599.5	713.1	(15.9)
	Cash generated from operations	753.3	741.4	1.6
	Free cash flow	346.3	338.4	2.3
	Profit (loss) after tax**	46.8	(1,141.4)
	Diluted earnings (loss) per share (pence)**	3.4	(124.1)
	* EBITDA is reconciled to operating profit in note 3 to the financial information on page 15. ** Statutory earnings are reconciled to adjusted earnings in note 5 to the financial information on page 17. Differences arise from exceptional items and amortisation of acquired intangibles.

 

John Condron, Chief Executive Officer, said:

"For the fourth quarter, Yell delivered results ahead of guidance, despite increasing our investment in products and services and, for the full year, we beat expectations.

"The financial and economic impacts over the past two and more years have been unprecedented for our customers and, therefore, for ourselves. The actions we have taken have brought Yell through this period, creating efficiencies, maintaining investment, supporting our customers, stabilising print retention, growing our internet businesses and, at the least, maintaining our strong market position in all our geographies.

"Economic recovery, and therefore the recovery of our customers' confidence, has yet to become fully established. However, we continue to experience noticeable improvement in the rate of decline. This and the strength of our business reinforce our confidence in Yell's ability to benefit strongly when the economic recovery and our customers' confidence do become more fully established."

John Davis, Chief Financial Officer, said:

"We delivered adjusted EBITDA of £620 million with very strong free cash flow of £397 million, whilst still investing in the business. We also addressed our capital base with an equity issue and an extension of our debt facilities on favourable terms through to spring 2014. Our net debt is now some £1.1 billion less than a year ago.

 

"For the current year, while we expect economic pressures to continue, we have identified an additional £60 million of net cost reductions, over and above the £250 million already removed over the past two years. Yell is very well positioned, through its operational strength and very positive operational leverage, to benefit from an economic recovery."

Enquiries

Yell - Investors Yell - Media

Rob Hall Jon Salmon

Tel +44 (0)118 950 6838 Tel +44 (0)118 950 6656

Mobile +44 (0)7793 957848 Mobile +44 (0)7801 977340

 

Citigate Dewe Rogerson

Anthony Carlisle

Tel +44 (0)20 7638 9571

Mobile +44 (0)7973 611888

 

This news release contains forward-looking statements. These statements appear in a number of places in this news release and include statements regarding our intentions, beliefs or current expectations concerning, among other things, our results of operations, revenue, financial condition, liquidity, prospects, growth, strategies, new products, the level of new directory launches and the markets in which we operate. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those in the forward-looking statements as a result of various factors. Readers are advised to read pages 20 through 24 in Yell Group plc's annual report for the financial year ended 31 March 2009. We undertake no obligation publicly to update or revise any forward-looking statements, except as may be required by law.

 

A copy of this release can be accessed at:

www.yellgroup.com/announcements

 

Yell Group plc summary financial results (unaudited)

Year ended 31 March			Change
£ millions, unless noted otherwise	2010	2009	Reporting currency	Constant currency(a)
			%	%
Revenue (b)	2,122.7	2,397.9	(11.5)	(13.8)
Adjusted EBITDA (b) (c)	619.6	816.1	(24.1)	(25.7)
Adjusted EBITDA margin	29.2%	34.0%
Operating cash flow (b) (d)	724.1	730.2	(0.8)	(4.2)
Cash conversion (b) (e)	116.9%	89.5%
Free cash flow, before exceptionals (f)	397.5	395.2	0.6
Adjusted profit after tax (g)	163.8	320.6	(48.9)
Adjusted diluted earnings per share (pence) (g)	11.7	34.5	(66.1)
Effective average exchange rates:
US Dollars: £1.00	1.60	1.66
Euros: £1.00	1.13	1.19

See end notes on page 8. End notes 'c' through 'g' provide an explanation of non-statutory figures along with references to where they are reconciled to statutory figures.

 

Group results

2010 Overview

For the year, revenue(b) at constant exchange rates was down 13.8% and adjusted EBITDA (b) (c) at constant exchange rates was down 25.7%. Our cost savings partially offset the declining revenue and continued investment for future recovery, limiting the EBITDA margin decrease to 4.8 percentage points.

Online revenue at £415.1 million was up 13.3% at constant exchange rates for the year and accounted for 19.6% of our total revenues compared with 14.9% last year. 

Despite the 25.7% lower adjusted EBITDA, the release of working capital from the reduction in revenue coupled with good cash management has resulted in a 4.2% decrease in operating cash flow (b) (d) at constant exchange rates. Cash conversion (b) (e) was up 27.4 percentage points to 116.9%. 

Our free cash flow(f), after interest and tax payments but excluding payments of all exceptional items, increased 0.6% to £397.5 million.

On 30 November 2009 the Group completed a firm placing and a placing and open offer of shares that raised net proceeds of £559 million to prepay those lenders who had agreed to a debt extension to 2014. More than 95% of lenders (by value) had agreed to the extension. The remaining lenders will be repaid in accordance with the original lending terms. The Group's net debt at £3.1 billion was down £1.1 billion from 31 March 2009 with strong cash generation and favourable foreign exchange rate movements adding to the £559 million net proceeds from raising equity.

 

2011 Outlook

 

Revenue in the three months ending 30 June 2010 is largely sold and we expect a noticeable improvement in the rate of decline to around 11% at constant exchange rates, compared with the 15% decline in the three months ended 31 March 2010. 

 

For the seasonally weaker second quarter, ending 30 September 2010, visibility at this stage is naturally more limited, but around 60% of revenue is sold and we expect the rate of decline to be similar to the first quarter - noticeably better than the second quarter last year. 

 

Although their confidence is improving, our customers remain nervous about increasing the levels of their advertising spend. However, the stabilising print retention rate and the continued growth in the run-rates of internet sales support our confidence about the future and about our ability to benefit strongly when economic recovery is fully established.

 

It is too early to forecast profits, but we have identified £60 million of net cost reductions in the 2011 financial year. We expect our net debt to continue to reduce further through scheduled repayments and strong free cash flows.

 

 

Yell UK operating performance

 

Year ended 31 March (unaudited)

				Change
		2010	2009	%
Revenue (£million) (b)		608.0	692.1	(12.2)
Adjusted EBITDA (£million) (b) (c)		225.2	266.7	(15.6)
Adjusted EBITDA margin (%)		37.0	38.5
Printed directories
Revenue (£million)		409.4	504.4	(18.8)
Unique advertisers (thousands) (h)		335	390	(14.1)
Directory editions published		105	113
Unique advertiser retention rate (%) (i)		72	73
Revenue per unique advertiser (£)		1,222	1,293	(5.5)
Internet
Revenue (£million)		176.2	164.5	7.1
Searchable advertisers at period end (thousands) (j)		199	217	(8.3)
Unique users for the month of period end (millions) (k)		9.7	10.7	(9.3)
Annualised (LTM) revenue per average searchable advertiser (£) (l)		839	772	8.7
Total live advertisers
At period end (thousands) (m)		399	455	(12.3)

See end notes on page 8.

Economic pressures affected revenue and customer numbers throughout the year. While we continue to gain new customers, we have intentionally been acquiring fewer new customers during the economic downturn, as new customers traditionally are less loyal and spend less than customers who have been with Yell for some years. Retention of unique advertisers in the printed directories was only one percentage point lower for the year, with recent trends showing improvement.

Internet revenues continue to grow and represent 29.0% of total UK revenues compared with 23.8% last year. Unique internet users in March fell in comparison with last year in part due to our intentional focus on generating searches that are more directly monetizable and therefore of more benefit to our advertisers. This partly explains the increase in annualised revenue per average searchable advertiser.

Our focus on cost management has enabled us to limit the full effect of the revenue decline on EBITDA.

 

 

Yellowbook operating performance

 

Year ended 31 March (unaudited)

				Change
		2010	2009	%
Revenue ($million) (b)		1,683.4	1,962.5	(14.2)
Adjusted EBITDA ($million) (b) (c)		405.0	563.7	(28.2)
Adjusted EBITDA margin (%)		24.0	28.7
Printed directories
Revenue ($million)		1,414.7	1,735.2	(18.5)
Unique advertisers (thousands) (h)		546	634	(13.9)
Directory editions published		1,002	996
Unique advertiser retention rate (%) (i)		68	68
Revenue per unique advertiser ($)		2,591	2,737	(5.3)
Internet
Revenue ($million)		268.7	227.3	18.2
Searchable advertisers at period end (thousands)(j)		362	366	(1.1)
Unique visitors for month of period end (millions) (n)		25.7	16.8	53.0
Annualised (LTM) revenue per average searchable advertiser ($) (l)		736	598	23.1

See end notes on page 8.

The economic environment continues to put pressure on our revenues and customer numbers. The print customer retention rate is flat and, as in the UK, the declining customer base reflected the intentional acquisition of fewer new customers, as we concentrated on our core advertisers.

Internet revenues now represent 16.0% of total US revenues up from 11.6% last year with future growth expected on the foundation of continuing strong growth in unique visitors. Unique visitors increased 53.0% from March 2009 to March 2010, while revenue per average searchable advertiser increased 23.1%.

As in the UK, our focus on cost management has enabled us to limit the full effect of the revenue decline on EBITDA.

 

 

Yell Publicidad operating performance

 

Year ended 31 March (unaudited)

				Change
		2010	2009	%
Revenue (€million) (b)		517.6	620.7	(16.6)
Adjusted EBITDA (€million) (b) (c)		157.9	248.0	(36.3)
Adjusted EBITDA margin (%)		30.5	40.0
Paginas Amarillas classified directories (Spain)
Revenue (€million)		177.5	251.1	(29.3)
Unique advertisers (thousands) (h)		253	285	(11.2)
Directory editions published		86	89
Unique advertiser retention rate (%) (i)		77	78
Revenue per unique advertiser (€)		702	881	(20.3)
Internet (Spain)
Revenue (€million)		59.6	50.0	19.2
Searchable advertisers at period end (thousands)(j)		158	116	36.2
Unique users for the month of period end (millions) (k)		6.6	6.9	(4.3)
Annualised (LTM) revenue per average searchable advertiser (€) (l)		435	329	32.2

See end notes to the above table on page 8.

Economic pressures have severely affected the Spanish market and have driven a significant reduction in print advertisers and yield. As in the UK and US however the deterioration in retention rates slowed during the second half of the year. The negative effect on print revenues was partially offset by strongly improved internet revenues, which grew 19.2%.

Revenue from Latin America at €150.3 million decreased 7.5%, and decreased 1.9% at constant exchange rates, but was affected by delayed deliveries caused by the earthquake in Chile.

The adjusted EBITDA margin was down 9.5 percentage points on last year. This reflected a combination of declining revenue and increased investment in the year partially offset by the savings from cost cutting initiatives.

Statutory disclosures

A discussion of our risk management along with the principal risks and uncertainties that could affect our business activities or financial results is detailed on pages 20 - 24 of Yell Group plc's annual report for the financial year ended 31 March 2009, a copy of which is available on our website www.yellgroup.com. A comprehensive and detailed list of risks was also presented in our Firm Placing and Placing and Open Offer prospectus, which is available on our website at http://www.yellgroup.com/english/investors-debtrefinancingandequityraising on pages 12 through 28. These risks and uncertainties will be updated in the annual report for the financial year ended 31 March 2010, which will be available on our website in June 2010.

(a) Change at constant currency states the change in the current period compared with the previous period as if the current period results were translated at the same exchange rates as those used to translate the results for the previous period.

(b) Revenue, adjusted EBITDA, operating cash flow and cash conversion are the key financial measures that we use to assess growth in the business and operational efficiencies.

(c) A reconciliation from operating profit to adjusted EBITDA is presented in note 3 to the financial information on page 15. Adjustments to EBITDA and profit after tax are explained in notes 5 and 6 to the financial information on pages 17 and 18. Adjustments to earnings per share are explained in note 5 to the financial information on page 17.

(d) Cash generated from operations before payments of exceptional costs, less capital expenditure. A reconciliation to cash generated from operations as presented in the cash flow statement is presented in note 9 on page 21.

(e) Operating cash flow as a percentage of adjusted EBITDA. A reconciliation to cash generated from operations as presented in the cash flow statement is presented in note 9 on page 21.

(f) Free cash flow before exceptionals is defined as (pre-exceptional) operating cash flow of £724.1 million (2009 - £730.2 million) less pre-exceptional interest of £296.5 million (2009 - £275.9 million) and tax payments of £30.1 million (2009 - £59.1 million). Exceptional interest of £17.2 million (2009 - £nil) was paid on early settlement of interest rate hedges when the underlying debt was paid early.

(g) Adjusted profit after tax and adjusted diluted earnings per share are stated before exceptional items, amortisation of acquired intangibles and fair valuation charges for hedges not qualifying for hedge accounting, all net of related tax. A reconciliation to the related statutory figures is presented in note 5 to the financial information on page 17. The adjusted diluted earnings per share for the year ended 31 March 2009 have been restated and the adjusted diluted earnings per share for the year ended 31 March 2010 have been adjusted to reflect an adjustment to outstanding shares arising from the discount in the firm placing and the placing and open offer of shares on 30 November 2009 as though the adjustment was effective on 1 April 2008.

(h) The number of unique advertisers in printed directories that were recognised for revenue purposes and have been billed. Unique advertisers are counted once only, regardless of the number of advertisements they purchase or the number of directories in which they advertise.

(i) Retention in the UK and Spain is based on the proportion of prior year unique advertisers who have renewed their advertising. In the US it is based on unique directory advertisers.

(j) Unique customers with a live contract at month end. These figures refer only to those advertisers for whom users can search. They exclude advertisers who only purchase products such as banners and domain names.

(k) The number of unique users who have visited Yell.com or PaginasAmarillas.es once or more often in the indicated month. Unique users are measured according to independently established industry standard measures.

(l) UK, US and Spain internet LTM revenue per average searchable advertiser is calculated by dividing the recognised revenue in the last twelve months by the average number of searchable advertisers in that period. The twelve month average numbers of searchable advertisers are as follows:

Yell.com 31 March 2010 - 210,000; 31 March 2009 - 213,000.

Yellowbook.com 31 March 2010 - 365,000; 31 March 2009 - 380,000.

PaginasAmarillas.es 31 March 2010 - 137,000; 31 March 2009 - 152,000.

In the UK the revenue includes our netReach and Search Marketing Service products, in the US our WebReach product, and in Spain our Europages product.

 

(m) The number of total live advertisers is a count of all unique advertisers at the date of the period end with a live advertisement, regardless of product. Total live advertisers cannot be used to calculate average revenue per advertiser, as the basis of measurement differs for each product and should not be aligned with revenue recognised in the current period.

(n) The number of individuals who have visited the Yellowbook.com network at least once in the month shown. Our data provider, Comscore, counts individuals visiting all Yellowbook affiliated websites that display Yellowbook.com data.  

 

YELL GROUP PLC AND SUBSIDIARIES

UNAUDITED CONSOLIDATED INCOME STATEMENT

Year ended 31 March
£ millions, unless noted otherwise	Notes			2010		2009
Revenue	2			2,122.7		2,397.9
Cost of sales				(955.3)		(1,050.2)
Gross profit				1,167.4		1,347.7
Distribution costs				(84.7)		(91.3)
Administrative expenses				(673.4)		(720.3)
Impairment of goodwill	10			-		(1,272.3)
Operating profit (loss)	3			409.3		(736.2)
Finance costs				(340.8)		(299.4)
Finance income				1.8		2.7
Net finance costs				(339.0)		(296.7)
Profit (loss) before taxation				70.3		(1,032.9)
Taxation	4			(23.5)		(108.5)
Profit (loss) for the financial year				46.8		(1,141.4)
Basic earnings (loss) per share (pence)	5			3.4		(124.1)
Diluted earnings (loss) per share (pence)	5			3.4		(124.1)

 

 

 

UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

Year ended 31 March
£ millions	Notes			2010		2009
Profit (loss) for the financial year				46.8		(1,141.4)
Exchange (loss) gain on translation of foreign operations				(14.2)		302.8
Actuarial loss on defined benefit pension schemes	17			(58.8)		(31.6)
Gain (loss) in fair value of financial instruments used as hedges				99.9		(114.9)
Tax effect of net (gains) losses not recognised in the income statement	4			(13.4)		31.5
Comprehensive income not recognised in the income statement				13.5		187.8
Total comprehensive income (loss) for the year				60.3		(953.6)

 

See notes to the financial information for additional details.

YELL GROUP PLC AND SUBSIDIARIES

UNAUDITED CONSOLIDATED STATEMENT OF CASH FLOWS

Year ended 31 March
£ millions	Notes			2010		2009
Net cash inflow from operating activities
Cash generated from operations				753.3		741.4
Interest paid				(302.9)		(278.6)
Purchase of interest rate caps				(11.6)		-
Interest received				0.8		2.7
Net income tax paid				(30.1)		(59.1)
Net cash inflow from operating activities				409.5		406.4
Cash flows from investing activities
Purchase of software, property, plant and equipment	7			(63.2)		(68.0)
Purchase of subsidiary undertakings, net of cash acquired	8			(4.1)		(9.5)
Net cash outflow from investing activities				(67.3)		(77.5)
Cash flows from financing activities
Net proceeds from share issues				637.8		2.2
Purchase of own shares				(18.3)		(9.7)
Treasury shares sold by trust				0.1		-
Net payments on revolving and other short-term credit facilities				(69.2)		(40.3)
Repayment of borrowings				(719.5)		(232.0)
Financing fees paid on debt extension				(60.6)		-
Financing fees paid on covenant reset				-		(23.7)
Dividends paid to company's shareholders				-		(44.1)
Net cash outflow from financing activities				(229.7)		(347.6)
Net increase (decrease) in cash and cash equivalents				112.5		(18.7)
Cash and cash equivalents at beginning of the year				51.1		60.4
Exchange (losses) gains on cash and cash equivalents				(3.2)		9.4
Cash and cash equivalents at year end				160.4		51.1
CASH GENERATED FROM OPERATIONS
Profit (loss) for the year				46.8		(1,141.4)
Adjustments for:
Tax				23.5		108.5
Finance income				(1.8)		(2.7)
Finance costs				340.8		299.4
Depreciation of property, plant and equipment and amortisation of software				65.1		53.1
Amortisation of other acquired intangibles				125.1		123.9
Impairment of goodwill				-		1,272.3
Changes in working capital:
Inventories and directories in development				43.6		48.5
Trade and other receivables				184.7		50.1
Trade and other payables				(89.7)		(100.1)
Share based payments and other				15.2		29.8
Cash generated from operations	9			753.3		741.4

See notes to the financial information for additional details.

YELL GROUP PLC AND SUBSIDIARIES

UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

	At 31 March
	£ millions					Notes								2010			2009
	Non-current assets
	Goodwill							10						3,218.3		3,329.2
	Other intangible assets							11						1,266.9		1,423.5
	Property, plant and equipment							12						104.6		119.8
	Deferred tax assets							13						114.5		142.6
	Investment and other assets													7.0		6.5
	Financial assets - derivative financial instruments													6.2		-
	Total non-current assets													4,717.5		5,021.6
	Current assets
	Inventory													8.9		14.9
	Directories in development													242.4		291.9
	Trade and other receivables							14						905.1		1,132.8
	Financial assets - derivative financial instruments													1.9		0.6
	Cash and cash equivalents					15								160.4		51.1
	Total current assets													1,318.7		1,491.3
	Current liabilities
	Financial liabilities - loans and other borrowings							15						(54.6)		(381.7)
	Financial liabilities - derivative financial instruments													(97.8)		(64.9)
	UK Corporation and foreign income tax													(85.2)		(100.6)
	Trade and other payables							16						(534.1)		(590.8)
	Total current liabilities													(771.7)		(1,138.0)
	Net current assets													547.0		353.3
	Non-current liabilities
	Financial liabilities - loans and other borrowings						15							(3,200.4)		(3,876.6)
	Financial liabilities - derivative financial instruments													(7.4)		(141.4)
	Deferred tax liabilities						13							(594.2)		(624.8)
	Retirement benefit obligations							17						(63.3)		(21.9)
	Trade and other payables						16							(13.6)		(19.2)
	Total non-current liabilities													(3,878.9)		(4,683.9)
	Net assets													1,385.6		691.0
	Capital and reserves attributable to equity shareholders
	Share capital													1,848.8		1,226.5
	Other reserves													154.7		128.9
	Accumulated deficit													(617.9)		(664.4)
	Total equity													1,385.6		691.0

 

 

 

 

 

 

See notes to the financial information for additional details.

 

YELL GROUP PLC AND SUBSIDIARIES

UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

 

£ millions		Share capital		Other reserves		Retained earnings (a)		Total
Balance at 31 March 2008		1,204.3		(61.9)		524.2		1,666.6
Comprehensive income not recognised in the income statement		-		187.8		-		187.8
Loss on ordinary activities after taxation		-		-		(1,141.4)		(1,141.4)
Total recognised income (loss) for the year		-		187.8		(1,141.4)		(953.6)
Value of services provided in return for share based payments		-		29.8		-		29.8
Treasury shares issued to employees		10.1		(8.0)		(0.4)		1.7
Treasury shares disposed by employee benefit trust		19.8		-		(19.3)		0.5
Own shares purchased by employee benefit trust		(7.7)		-		-		(7.7)
Own shares purchased for settlement of cancelled share plans		-		(18.8)		16.8		(2.0)
Dividends paid to equity shareholders		-		-		(44.3)		(44.3)
		22.2		190.8		(1,188.6)		(975.6)
Balance at 31 March 2009		1,226.5		128.9		(664.4)		691.0
Comprehensive income not recognised in the income statement		-		13.5		-		13.5
Profit on ordinary activities after taxation		-		-		46.8		46.8
Total recognised income for the year		-		13.5		46.8		60.3
Value of services provided in return for share based payments		-		15.2		-		15.2
Capital duty paid on additional share capital in Spanish holding company		-		(0.5)		-		(0.5)
Share placings, net		636.8		-		-		636.8
Ordinary share capital issued to employees		1.9		(0.9)		-		1.0
Treasury shares issued to employees		0.4		(0.1)		(0.3)		-
Own shares purchased by employee benefit trust		(18.3)		-		-		(18.3)
Treasury shares sold by employee benefit trust at a loss		1.5		(1.4)		-		0.1
		622.3		25.8		46.5		694.6
Balance at 31 March 2010		1,848.8		154.7		(617.9)		1,385.6

a) Cumulative foreign currency gains attributable to equity shareholders at 31 March 2010 are £353.1 million (31 March 2009 - £367.3 million gain).

 

  

See notes to the financial information for additional details.

 

YELL GROUP PLC AND SUBSIDIARIES

UNAUDITED NOTES TO THE FINANCIAL INFORMATION

1. Basis of preparation and consolidation

The principal activity of Yell Group plc and its subsidiaries is the sale of advertising in, and publishing of, its print and online directory products and services in the United Kingdom, the United States, Spain and certain countries in Latin America.

This unaudited condensed set of financial statements for the year ended 31 March 2010 has been prepared in accordance with International Financial Reporting Standards as adopted by the European Union ("IFRSs") as will be set out in our annual report for the year ended 31 March 2010, and in accordance with the Listing Rules of the Financial Services Authority.

The financial information contained herein has been prepared on a going concern basis. In the opinion of management, the financial information included herein includes all adjustments necessary for a fair presentation of the consolidated results, financial position and cash flows for each period presented.

The unaudited financial information contained herein does not constitute statutory financial statements within the meaning of section 434 of the Companies Act 2006, but has been extracted from the statutory financial statements for the year ended 31 March 2010, which will be delivered to the Registrar of Companies in due course. The audit opinion on the statutory accounts for the year ended 31 March 2009 was unqualified, and contained an emphasis of matter paragraph on going concern. It did not contain any statement under section 498 of the Companies Act 2006.

The financial information herein should be read in conjunction with Yell's 2010 annual report due to be published in June 2010, which includes the audited consolidated financial statements of Yell Group plc and its subsidiaries for the year ended 31 March 2010.

The preparation of the consolidated financial information requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial information and the reported amounts of income and expenditure during the period. Actual results could differ from those estimates. Estimates are used principally when accounting for doubtful debts, depreciation, retirement benefits, acquisitions and taxation.

The financial statements for the year ending 31 March 2010 are not expected to be materially affected by implementation of new standards, amendments to standards, or interpretations, except for the following amendments to standards that are mandatory for the first time for the financial year beginning 1 April 2009:

IAS 1 (revised), Presentation of financial statements prohibits the presentation of items of income and expenses (that is 'non-owner changes in equity') in the statement of changes in equity, requiring 'non-owner changes in equity' to be presented separately from owner changes in equity. All 'non-owner changes in equity' are required to be shown in a performance statement. The group has elected to present two statements: an income statement and a statement of comprehensive income. The final financial statements have been prepared under the revised disclosure requirements.

YELL GROUP PLC AND SUBSIDIARIES

UNAUDITED NOTES TO THE FINANCIAL INFORMATION (continued)

2. Revenue

	Year ended 31 March
						Change
	£ millions, unless noted otherwise		2010		2009	Reporting currency	Constant currency(a)
						%	%
	Yell UK (b)		608.0		692.1	(12.2)	(12.2)
	Yellowbook (b)		1,054.0		1,182.2	(10.8)	(14.2)
	Yell Publicidad (b)		460.7		523.6	(12.0)	(15.1)
	Group revenue		2,122.7		2,397.9	(11.5)	(13.8)

 (a) Change at constant currency states the change in current period compared with the previous period as if the current period results were translated at the same exchange rates as those used to translate the results for the previous period.

(b) Segments are determined by management reports used by the chief operating decision maker, which are based upon the location of responsible management.

3. Adjusted EBITDA and operating profit

	Adjusted EBITDA(a)
	Year ended 31 March
							Change
	£ millions, unless noted otherwise			2010		2009	Reporting currency	Constant currency(b)
							%	%
	Yell UK (c)			225.2		266.7	(15.6)	(15.6)
	Yellowbook (c)			253.1		340.2	(25.6)	(28.2)
	Yell Publicidad(c)			141.3		209.2	(32.5)	(34.7)
	Group adjusted EBITDA			619.6		816.1	(24.1)	(25.7)

 (a) Adjusted EBITDA is a key income statement measure used by the chief operating decision maker to assess growth and operational efficiencies in the business.

(b) Change at constant currency states the change in current period compared with the previous period as if the current period results were translated at the same exchange rates as those used to translate the results for the previous period.

(c) Segments are determined by management reports used by the chief operating decision maker, which are based upon the location of responsible management.

 

YELL GROUP PLC AND SUBSIDIARIES

UNAUDITED NOTES TO THE FINANCIAL INFORMATION (continued)

 

3. Adjusted EBITDA and operating profit (continued)

Reconciliation of operating profit (loss) to adjusted EBITDA(a)
Year ended 31 March
£ millions, unless noted otherwise	2010		2009
Yell UK (b) operating profit	175.4		187.4
Depreciation and amortisation	25.9		20.0
Yell UK EBITDA	201.3		207.4
Exceptional items (b)	23.9		59.3
Yell UK adjusted EBITDA	225.2		266.7
Yell UK adjusted EBITDA margin	37.0%		38.5%
Yellowbook (b) operating profit	203.4		281.6
Depreciation and amortisation	53.5		46.5
Yellowbook EBITDA	256.9		328.1
Exceptional items (b)	(3.8)		12.1
Yellowbook adjusted EBITDA	253.1		340.2
Yellowbook adjusted EBITDA margin	24.0%		28.8%
Exchange impact (c)	(8.7)		-
Yellowbook adjusted EBITDA at constant exchange rate (c)	244.4		340.2
Yell Publicidad (b) operating profit (loss)	30.5		(1,205.2)
Depreciation and amortisation	110.8		1,382.8
Yell Publicidad EBITDA	141.3		177.6
Exceptional items (b)	-		31.6
Yell Publicidad adjusted EBITDA	141.3		209.2
Yell Publicidad adjusted EBITDA margin	30.7%		40.0%
Exchange impact (c)	(4.7)		-
Yell Publicidad adjusted EBITDA at constant exchange rate (c)	136.6		209.2
Group operating profit (loss)	409.3		(736.2)
Depreciation and amortisation	190.2		1,449.3
Group EBITDA	599.5		713.1
Exceptional items (b)	20.1		103.0
Group adjusted EBITDA	619.6		816.1
Group adjusted EBITDA margin	29.2%		34.0%
Exchange impact (c)	(13.4)		-
Group adjusted EBITDA at constant exchange rates (c)	606.2		816.1

(a) Adjusted EBITDA is a key income statement measure used by the chief operating decision maker to assess growth and operational efficiencies in the business.

(b) Segments are determined by management reports used by the chief operating decision maker, which are based upon the location of responsible management. Details of exceptional items are set out in note 6.

(c) Constant exchange rate states current period results at the same exchange rates as those used to translate the results for the previous period. Exchange impact is the difference between the results reported at constant exchange rates and the results reported using current period exchange rates.

 

We do not allocate interest or taxation charges by product or geographic segment.

 

YELL GROUP PLC AND SUBSIDIARIES

UNAUDITED NOTES TO THE FINANCIAL INFORMATION (continued)

 

4. Taxation

The tax charge for the period is different from the standard rate of corporation tax in the United Kingdom of 28% (2009 - 28%). The differences are explained below:

Year ended 31 March
£ millions, unless noted otherwise		2010		2009
Profit (loss) before tax multiplied by the standard rate of corporation tax in the United Kingdom		19.7		(289.2)
Effects of:
Goodwill impairment		-		356.2
Adjustments in respect of prior years		(10.5)		(6.9)
Differing tax rates on foreign earnings		7.2		5.1
Deferred tax assets not recognised		5.1		36.4
Decrease in tax benefits on share based payments		-		1.1
Other		2.0		5.8
Tax charge on profit (loss) before tax		23.5		108.5
Effective tax rate on profit (loss) before tax		33.4%		(10.5%)

The tax on the Group's profit (loss) before tax is analysed as follows:

Year ended 31 March
£ millions		2010		2009
Current tax:
Current year UK corporation tax (a)		21.4		43.3
Current year foreign income tax		23.8		59.4
Adjustments in respect of prior years		(16.8)		(8.8)
		28.4		93.9
Deferred tax:
UK (a)		(0.6)		1.0
Foreign		(4.3)		13.6
Tax charge on profit (loss) before tax		23.5		108.5

Taxation (charged) credited directly to equity is as follows:

Year ended 31 March
£ millions		2010		2009
Current tax on actuarial losses (a)		4.8		3.3
Deferred tax on actuarial losses (a)		11.7		5.5
Deferred tax on fair valuations of financial instruments used as hedges		(30.0)		21.6
Other		0.1		1.1
Total taxation recorded in equity		(13.4)		31.5

(a) Tax credits on actuarial losses have been reclassified for the prior year between current and deferred tax in both the Income Statement and the Consolidated Statement of Comprehensive Income to be consistent with the current year.

 

YELL GROUP PLC AND SUBSIDIARIES

UNAUDITED NOTES TO THE FINANCIAL INFORMATION (continued)

5. Earnings per share

The calculation of basic and diluted earnings per share is based on the profit for the relevant financial period and on the weighted average share capital during the period.

£ millions unless noted otherwise	Statutory	Exceptional items(a)	Other items(b)	Adjusted
Year ended 31 March 2010
EBITDA	599.5	20.1	-	619.6
Depreciation and amortisation	(190.2)	-	125.1	(65.1)
Net finance costs	(339.0)	17.2	5.7	(316.1)
Group profit before tax	70.3	37.3	130.8	238.4
Taxation	(23.5)	(9.0)	(42.1)	(74.6)
Group profit after tax	46.8	28.3	88.7	163.8
Weighted average number of issued ordinary shares (millions)(c)	1,384.9			1,384.9
Basic earnings per share (pence)	3.4			11.8
Effect of share options (pence)	-			(0.1)
Diluted earnings per share (pence)	3.4			11.7
Year ended 31 March 2009
EBITDA	713.1	103.0	-	816.1
Depreciation, amortisation and impairment	(1,449.3)	1,272.3	123.9	(53.1)
Net finance costs	(296.7)	-	-	(296.7)
Group (loss) profit before tax	(1,032.9)	1,375.3	123.9	466.3
Taxation	(108.5)	3.0	(40.2)	(145.7)
Group (loss) profit after tax	(1,141.4)	1,378.3	83.7	320.6
Weighted average number of issued ordinary shares (millions) restated(c)	919.8			919.8
Basic (loss) profit per share (pence) restated(c)	(124.1)			34.9
Effect of share options (pence) restated	-			(0.4)
Diluted (loss) profit per share (pence) restated(c)	(124.1)			34.5

(a) Details of exceptional items are set out in note 6.

(b) Other items include amortisation of acquired intangibles and the fair valuation charge for the time value of interest rate caps taken directly to the Income Statement.

(c) The basic and diluted earnings per share reflect the firm placing of 785.9 million shares and the placing and open offer of 785.9 million shares on 30 November 2009. The basic earnings per share and adjusted diluted earnings per share for the year ended 31 March 2009 have been restated and the basic earnings per share and adjusted diluted earnings per share for the year ended 31 March 2010 have been adjusted to reflect an adjustment to outstanding shares arising from the discount in the firm placing and the placing and open offer of shares on 30 November 2009 as though the adjustment was effective on 1 April 2008. The balance of the equity raising was taken into account from 30 November 2009.

 

YELL GROUP PLC AND SUBSIDIARIES

UNAUDITED NOTES TO THE FINANCIAL INFORMATION (continued)

6. Exceptional items

Exceptional items are transactions that, by virtue of their incidence, size or a combination of both, are disclosed separately. Exceptional items comprise the following.

Year ended 31 March
£ millions	2010		2009
Impairment of goodwill (see note 10 on page 21)	-		1,272.3
Yell UK restructuring programmes	23.9		54.6
Yellowbook restructuring programme	(1.2)		10.5
Yellowbook net litigation accrual no longer required	(2.6)		(6.8)
Yell Publicidad restructuring programme	-		30.4
Accelerated share plan costs	-		14.3
Costs of breaking interest rate hedge contracts to avoid over hedged position after early payment of bank debt	17.2		-
Net exceptional expenses in Group profit before tax	37.3		1,375.3
Impairment of deferred tax assets	-		29.4
Net tax credit on items above	(9.0)		(26.4)
Net exceptional expenses in Group profit after tax	28.3		1,378.3

7. Capital expenditure

Year ended 31 March
£ millions	2010		2009
Capital expenditure on software, property, plant and equipment	67.3		65.1
(Increase) /decrease in accrued capital expenditure	(4.1)		2.9
Cash paid for capital expenditure	63.2		68.0

Proceeds on the sale of software, property, plant and equipment were £nil in the year ended 31 March 2010 and 2009.

 

Capital expenditure committed at 31 March 2010 was £14.4 million (31 March 2009 - £11.8 million).

 

YELL GROUP PLC AND SUBSIDIARIES

UNAUDITED NOTES TO THE FINANCIAL INFORMATION (continued)

8. Acquisitions and disposals

Year ended 31 March 2010

In the year ended 31 March 2010, the Yell Group acquired an in-fill acquisition in the US for $5.0 million (£3.0 million). Total costs were allocated to the acquired assets and liabilities as follows:

£ millions	Acquiree's carrying amount		Provisional fair value adjustments		Provisional fair value
Non current assets
Other intangible assets	-		2.0		2.0
Total non current assets	-		2.0		2.0
Current assets
Directories in development	-		0.9		0.9
Trade and other receivables	1.3		(0.2)		1.1
Total current assets	1.3		0.7		2.0
Current liabilities
Trade and other payables	(2.5)		-		(2.5)
Total current liabilities	(2.5)		-		(2.5)
Identifiable net (liabilities) assets	(1.2)		2.7		1.5
Goodwill					1.5
Total cost					3.0

 

Goodwill of £1.5million was attributable to the expected future synergies, the workforce acquired and expected future growth of the business.

 

YELL GROUP PLC AND SUBSIDIARIES

UNAUDITED NOTES TO THE FINANCIAL INFORMATION (continued)

8. Acquisitions and disposals (continued)

Year ended 31 March 2009

In the year ended 31 March 2009, the Yell Group acquired 100% of the Adworks businesses in the UK, US, Spain and India for £8.7 million, and several small in-fill acquisitions in the US for a total of $2.3 million (£1.5 million). Total costs were allocated to the acquired assets and liabilities as follows:

 

£ millions	Acquiree's carrying amount		Fair value adjustments		Fair value
Non current assets
Other intangible assets	0.6		1.3		1.9
Property, plant and equipment	2.3		(0.1)		2.2
Total non current assets	2.9		1.2		4.1
Current assets
Directories in development	0.1		-		0.1
Trade and other receivables	4.8		-		4.8
Cash and cash equivalents	1.7		-		1.7
Total current assets	6.6		-		6.6
Current liabilities
Corporation tax	(0.2)		-		(0.2)
Trade and other payables	(5.6)		(0.4)		(6.0)
Total current liabilities	(5.8)		(0.4)		(6.2)
Identifiable net assets	3.7		0.8		4.5
Goodwill					5.7
Total cost					10.2

 

Goodwill of £5.7million was attributable to the expected future synergies, the workforce acquired and expected future growth of the business.

 

Cash flow

A reconciliation of cash paid on acquisitions, including deferred payments for prior period acquisitions and capital duty paid on additional share capital in a Spanish holding company to the cash flow on page 10 is as follows:

Year ended 31 March
£ millions			2010		2009
Cost of acquisitions in the period			3.0		10.2
Less cash acquired			-		(1.7)
Payment relating to additional share capital in YPSA			0.5		-
Payments in period for amounts deferred on prior period acquisitions			0.6		1.0
Net cash outflow in period			4.1		9.5

 

 

YELL GROUP PLC AND SUBSIDIARIES

UNAUDITED NOTES TO THE FINANCIAL INFORMATION (continued)

9. Operating cash flow

The following table reconciles EBITDA, operating cash flow and cash conversion to cash generated from operations as presented on the cash flow statement on page 10.

Year ended 31 March
£ millions, unless noted otherwise								2010			2009
Adjusted EBITDA								619.6			816.1
Net exceptional expenses in EBITDA								(20.1)			(103.0)
Working capital movements and non-cash charges								153.8			28.3
Cash generated from operations (see page 10)								753.3			741.4
Add back payments of exceptional costs included in cash generated from operations								34.0			56.8
Purchase of software, property, plant and equipment (see note 7)								(63.2)			(68.0)
Operating cash flow								724.1			730.2
Adjusted EBITDA								619.6			816.1
Cash conversion								116.9%			89.5%

Free cash flow before payment of exceptional items (defined as operating cash flow less pre-exceptional interest and tax payments) was £397.5 million, up 0.6% compared with £395.2 million in the same period last year. Exceptional interest of £17.2 million (2009 - £nil) was paid to settle interest rate hedges early to avoid over hedging when the underlying debt was paid early.

10. Goodwill

At 31 March
£ millions	2010		2009
Opening net book value at 1 April 2009 and 2008	3,329.2		3,898.2
Acquisitions (note 8)	1.5		5.7
Impairment	-		(1,272.3)
Currency movements	(112.4)		697.6
Net book value at period end	3,218.3		3,329.2

Goodwill is not amortised but is tested, at least annually, for impairment. £Nil impairment charges have been required in the year ended 31 March 2010. During the year ended 31 March 2009, impairment losses of £1,103.9 million, £120.1 million, £40.8 million and £7.5 million on goodwill in relation to its operations in Spain, Chile, Argentina and Peru, respectively, were recorded. The goodwill in the UK and the US was not written down, because estimated recoverable amounts continued to be in excess of carrying values.

 

 

YELL GROUP PLC AND SUBSIDIARIES

UNAUDITED NOTES TO THE FINANCIAL INFORMATION (continued)

11. Other non-current intangible assets

At 31 March
£ millions	2010		2009
Opening net book value at 1 April 2009 and 2008	1,423.5		1,318.7
Acquisitions (note 8)	2.0		1.9
Additions	45.3		32.9
Disposals and transfers	-		8.6
Amortisation	(157.9)		(152.0)
Currency movements	(46.0)		213.4
Net book value at period end	1,266.9		1,423.5

12. Property, plant and equipment

At 31 March
£ millions	2010		2009
Opening net book value at 1 April 2009 and 2008	119.8		99.2
Acquisitions	-		2.2
Additions	22.0		32.2
Disposals and transfers	(0.6)		(8.8)
Depreciation	(32.3)		(25.0)
Currency movements	(4.3)		20.0
Net book value at period end	104.6		119.8

YELL GROUP PLC AND SUBSIDIARIES

UNAUDITED NOTES TO THE FINANCIAL INFORMATION (continued)

13. Deferred tax assets and liabilities

The elements of deferred tax assets recognised in the accounts were as follows:

At 31 March
£ millions	2010		2009
Tax effect of timing differences due to:
Financial instruments	35.4		68.3
Bad debt provisions	34.8		30.0
Defined benefit pension scheme	17.7		6.2
Other allowances and accrued expenses	12.3		24.8
Depreciation	7.8		9.5
Share based payments	2.2		0.2
Other	4.3		3.6
Recognised deferred tax assets	114.5		142.6

The elements of deferred tax liabilities recognised in the accounts were as follows:

At 31 March
£ millions	2010		2009
Tax effect of timing differences due to:
Intangible assets	522.4		551.0
Deferred directory costs	45.5		54.7
Unremitted earnings	10.0		10.4
Other	16.3		8.7
Recognised deferred tax liabilities	594.2		624.8

14. Trade and other receivables

	At 31 March
	£ millions			2010		2009
Net trade receivables (a)				817.7		1,017.2
Net accrued income (a)				36.7		53.2
Other receivables				25.0		28.2
Prepayments				20.0		21.2
Prepaid corporation tax				5.7		13.0
Total trade and other receivables				905.1		1,132.8

 (a) The Group's trade receivables and accrued income are stated after deducting a provision of £216.8 million (31 March 2009 - £205.4 million).

 

YELL GROUP PLC AND SUBSIDIARIES

UNAUDITED NOTES TO THE FINANCIAL INFORMATION (continued)

15. Loans and other borrowings, net debt

	At 31 March
	£ millions	2010		2009
Amounts falling due within one year
Term loans under senior credit facilities(a)		45.5		299.7
Revolving loan under credit facilities (committed until April 2014)		-		40.3
Net obligations under finance leases and other short term borrowings		9.1		41.7
Total amounts falling due within one year		54.6		381.7
Amounts falling due after more than one year
Term loans under senior credit facilities(b)		3,200.4		3,876.6
Net loans and other borrowings		3,255.0		4,258.3
Cash and cash equivalents		(160.4)		(51.1)
Net debt at end of period		3,094.6		4,207.2

(a) Balances are shown net of deferred financing fees of £21.4 million (31 March 2009 - £23.5 million).

(b) Balances are shown net of deferred financing fees of £65.4 million (31 March 2009 - £25.4 million).

The movement in net debt for the year ended 31 March 2010 arose as follows:

Net debt
Year ended 31 March
£ millions		2010
At 31 March 2009		4,207.2
Operating cash flow		(724.1)
Proceeds of share issues		(661.1)
Currency movements		(172.9)
Pre-exceptional interest and tax payments		326.6
Cash payments of exceptional costs		51.2
Expenses associated with share issues		23.3
Amortisation of financing fees paid in previous periods		22.0
Purchase of own shares		18.3
Purchase of subsidiary undertakings, net of cash acquired (Note 8)		4.1
At 31 March 2010		3,094.6

Our extended bank facilities became effective on 30 November 2009 and are committed until 2014.

Our old facilities contained and extended facilities contain covenants over net cash interest cover and debt cover. The net cash interest cover covenant requires that the ratio of adjusted EBITDA for the latest 12 month period to net cash interest payable for the latest 12 month period does not fall below specific threshold ratios at specific test dates. The debt cover covenant requires that the ratio of net debt, excluding deferred financing fees, at the testing date to adjusted EBITDA for the latest 12 month period should not exceed specific threshold ratios at specific test dates.

We operated within our debt covenants for all periods presented in this financial information.

YELL GROUP PLC AND SUBSIDIARIES

UNAUDITED NOTES TO THE FINANCIAL INFORMATION (continued)

15. Loans and other borrowings, net debt (continued)

Amounts outstanding under our old and extended debt facilities at 31 March 2010 were as follows:

At 31 March	A tranches		B tranches
	Old facilities	Extended facilities	Old facilities	Extended facilities	Other	Total
£ millions
Pounds sterling	24.1	926.2	-	-	-	950.3
US dollars (a)	33.6	680.5	29.6	808.5	2.6	1,554.8
Euro (a)	26.7	445.4	40.3	317.8	6.5	836.7
Total principal	84.4	2,052.1	69.9	1,126.3	9.1	3,341.8
Deferred financing fees						(86.8)
Cash and cash equivalents						(160.4)
Net debt						3,094.6

(a) The closing rate for the US dollar at 31 March 2010 was $1.5169 : £1.00 and for the Euro was €1.121: £1.00.

16. Trade and other payables

At 31 March
£ millions	2010		2009
Amounts falling due within one year
Trade payables	51.5		77.6
Other taxation and social security	16.6		18.4
Accruals and other payables	213.7		224.0
Deferred income	252.3		270.8
Trade and other payables falling due within one year	534.1		590.8
Amounts falling due after more than one year
Trade payables	10.1		13.0
Accruals and other payables	3.5		6.2
Trade and other payables falling due after more than one year	13.6		19.2
Total trade and other payables	547.7		610.0

 

17. Retirement benefits

At 31 March
£ millions	2010		2009
Net retirement benefits (obligation) surplus at 1 April 2009 and 2008	(21.9)		14.0
Net actuarial loss on defined benefit pension schemes(a)	(58.8)		(31.6)
Contributions in excess of (less than) charges	17.4		(4.3)
Net movement in retirement benefits obligation	(41.4)		(35.9)
Net retirement benefits obligation at period end	(63.3)		(21.9)

(a) The loss in the year ended 31 March 2010 was primarily a result of a decrease in the discount rate combined with an increase of future inflation and in the year ended 31 March 2009 was largely the result of the effect of increased mortality rates and decreased asset values net of the effect of increased real interest rates and decreased number of active members.

YELL GROUP PLC AND SUBSIDIARIES

UNAUDITED NOTES TO THE FINANCIAL INFORMATION (continued)

18. Financial commitments, litigation and contingent liabilities

A lawsuit filed by Verizon against Yellowbook was settled in October 2004. Yellowbook was later served with complaints filed as class actions in five US states and the District of Columbia. In these actions, the plaintiffs alleged violations of consumer protection legislation and placed reliance on findings of the court in the settled Verizon suit. These class actions were consolidated into a single class action before a New Jersey state court. In the year ended 31 March 2005, we accrued $45 million as an estimate of the likely costs arising from the class action.

 

On 26 August 2005, the New Jersey court approved a comprehensive national settlement, with no admission of liability. However, several appeals were subsequently lodged against the approved settlement, the most significant of which were resolved by 30 June 2007. With resolution of these appeals, Yellowbook was able to reassess the likely costs of the settlement, and we reversed $23.6 million (£11.8 million) of the originally accrued settlement obligation as an exceptional credit through the income statement in the year ended 31 March 2008. We reversed a further $12.7 million (£8.9 million) of the obligation as an exceptional credit in the year ended 31 March 2009. We reversed a further $3.9 million (£2.6 million) of the obligation as an exceptional credit in the year ended 31 March 2010 (note 6). At 31 March 2010 the remaining $0.2 million of accrued settlement obligation represented our best estimate of the remaining amounts to be settled.

 

We also have £36.0 million of restructuring provisions expensed but not yet paid at 31 March 2010 as our best estimate of remaining amounts to be settled.

 

There are no contingent liabilities or guarantees other than those referred to above and those arising in the ordinary course of the Group's business.

 

No material losses are anticipated on liabilities arising in the ordinary course of business.

 

Website for viewing information about your holding:

www.shareview.co.uk

 

Equiniti telephone line for shareholders:

0871 384 2049*

 

Equiniti telephone line for employee shareholders:

0871 384 2130*

 

Text phone for the hard of hearing:

0871 384 2255*

 

Equiniti Limited

Aspect House

Spencer Road

Lancing

West Sussex

BN99 6DA

 

Yell Group plc

 

Yell Group plc

Queens Walk

Reading

Berkshire RG1 7PT

 

www.yellgroup.com

 

 

* Calls to these numbers are charged at 8p per minute from a BT landline. Other telephony providers' costs may vary.

 

NOTES TO EDITORS

 

Yell Group

 

Yell is a leading international classified advertising publisher operating in the UK, US, Spain and certain countries in Latin America through printed, online and telephone-based media.

 

In the year ended 31 March 2010, Yell published 105 directories in the United Kingdom, 1,002 in the United States, and 86 Paginas Amarillas directories in Spain. In the United Kingdom, where it is a leading provider in the classified advertising market, it served 335,000 unique advertisers. In the United States, where it is the largest independent classified directory publisher, it served 546,000 unique advertisers. In Spain, the Paginas Amarillas directories served 253,000 unique advertisers.

 

Yell's principal brands include: in the United Kingdom - Yellow Pages, Yell.com and 118 24 7; in the United States - Yellowbook and Yellowbook.com; and in Spain - Paginas Amarillas and PaginasAmarillas.es.