Sanctuary Records warns of losses

[codenameninja]

The new chief of UK music group Sanctuary has warned losses will be wider than expected this year, after poor trading at its recorded music arm.

Frank Presland, who took over after the sacking of chief executive Andy Taylor, said the firm would make a pre-tax loss of ?17-22m in the year to 30 September.

Sanctuary said the majority of the loss would come from one-off exceptional items, including restructuring costs.

The news hit the firm's shares, sending them down 28% in early trading.

Rescue deal

Sanctuary Records is the world's largest independent music group.

As well as releasing music from artists including Morrissey and The Strokes, Sanctuary manages Destiny's Child, Iron Maiden, Groove Armada and other acts.

"It is disappointing to have to bring this news to the market," said Mr Presland.

"But what I've seen having been chief executive for just under a month, is a business that can prosper if it faces up to the new realities."

Mr Taylor was fired in May over the way he handled the company's accounts, after an investigation into Sanctuary's 2005 financial statements found mistakes had been made.

He had unveiled a ?110m rescue deal in January after the company reported that losses in the previous year had soared fivefold from ?26.7m to ?142.6m.


Guess Guns N'Roses or Axl+Co. will save the day around November time  

[godiva]

I thought Sanctuary was only management for GNR???

[Tomorrows]

Shit, they have some good artists signed to them judging by that short list.

Whats going wrong? They got a whole lot of duds signed? People fucking off too much in G?