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22 May 2012 | Adam Leach
Yellow Pages publisher Yell cut its costs by more than £200 million – but still reported a loss of £1.19 billion for the past year.
In its annual results for the year ended 31 March 2012, the company said it had exceeded its target to deliver £100 million savings in two years. It actually delivered more than £200 million, partly as a result of streamlining its supply chain and procurement.
The group has changed from being a federation of national companies into a global organisation, which has meant sharing best practice and delivering synergies. Cutting staff numbers by 700, lowering IT costs and a 2.6 per cent drop in bad debt expense were identified as prime contributors to the higher- than-forecast savings.
The results statement said: “Yell has reorganised the group from a federation of national companies into one global organisation that shares best practice and takes full advantage of international synergies in the areas of supply chain, product development, information technology and procurement. Yell has already significantly exceeded the cost reduction target it set last July for the following two years.”
However, the reduction was outweighed by the group’s loss in revenues, which dropped by 14 per cent to £1.61 billion. The group reported a post-tax loss of £1.189 billion. The company said that advertising revenues from both its print and digital directory offerings has declined faster than expected.