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Last Updated: Friday, 23 June 2006, 08:51 GMT 09:51 UK
Sanctuary warns of looming losses
Beyonce Knowles
Beyonce is on Sanctuary's rosta of music artists
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.




SEE ALSO
Sanctuary sacks boss over figures
26 May 06 |  Business
Sanctuary outlines rescue plans
30 Jan 06 |  Business
Sanctuary cuts a quarter of staff
10 Oct 05 |  Business
Sanctuary ends its takeover talks
26 Sep 05 |  Business
Sanctuary shares slump on warning
17 Jun 05 |  Business
Sanctuary confirms 'offer' talks
03 Jun 05 |  Business

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