Global 'drama' forces Yell to halve divi

Yellow Pages operator Yell today stunned the market by halving its dividend and refusing any guidance on trading beyond the current quarter.

The shares, which had already slumped by two-thirds over the last year, crashed nearly 25% this afternoon as investors bolted.

Chief exec John Condron said the global downturn has hit core small- to medium-sized business customers, changing Yell's position "quite dramatically".

While underlying profits rose 9% to £738.9 million last year, analysts said the indebted company could be forced to make a cash call on investors.