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More Bad News For Sanctuary

Friday 23 June 2006 @ 18:10 - GMT

Shares in Sanctuary, the world's biggest music company, responsible for the merchandising of artists like Elton and Robbie Williams, have slipped after it issued another profits warning today.

The company nearly collapsed earlier this year, with its shares at one point, falling to below a penny.

It has said that trade at its recorded music division will be below previous forecasts and it could make an annual loss of up to £22m.

Sanctuary has been hammered by losses from a company it bought from the father of Beyonce Knowles.

It also said the planned sale of certain "non-core" assets would take longer than expected and that further restructuring would be required.

Chief Executive Frank Presland, in the job for less than a month, said: "It is disappointing to have to bring this news to the market.

"But what I've seen ... is a business that can prosper if it faces up to the new realities."

The firm is worth just under £60m at its current share price.

In February, Sanctuary unveiled details of a deeply-discounted £110m equity fund-raising to help it recover from the costly acquisition of Urban Records from Matthew Knowles.

After a series of delayed, rescheduled and cancelled releases from Urban Records, Sanctuary announced it would issue no more from the label.

 

Story filed: 09:07 Friday 23rd June 2006 -->