Before Elton sold off his management company to Sanctuary for 16 million pounds, there were rumours about how fit he was financially.
Now Sanctuary itself seems to be in trouble, reported the Evening Standard on June 17, 2005.
Yesterday, shares plunged 27% to a two-year low after the company warned this year’s profits would be well below 2004’s. They blamed ”significant slippage of record releases” for some of their woes. And there were extra costs incurred during their expansion overseas.
So the board, led by executive chairman Andy Taylor, will now undertake a review of all its operating divisions in order to improve cash flow and reduce debt. This will include merchandising, touring and recording.