Music company Sanctuary said on Friday (June 23) that trading at its recorded music division would be below previous expectations and forecast a loss for its financial year to Sept. 30, hitting its sh
Music company Sanctuary said on Friday (June 23) that trading at its recorded music division would be below previous expectations and forecast a loss for its financial year to Sept. 30, hitting its shares.
Sanctuary, hammered by losses from a company it bought from the father of R&B diva Beyonce, also said the planned sale of certain "non-core" assets would take longer than expected and that further restructuring would be required.
"As a result ... the group is likely to deliver a full-year EBITDA (earnings before interest, tax, depreciation and amortisation) loss in the region of £17 million ($30 million) to £22 million ($40 million)," the company said in a statement.
The majority of the loss would be made up of one-off exceptional items including further restructuring costs.
"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," chief executive Frank Presland, who has been in the job for just under a month, said in the statement.
Sanctuary, whose artists include Morrissey and recent Eurovision Song Contest winner Lordi, nearly collapsed earlier this year, with its shares once tumbling to below a penny.
At 8:15 a.m., the shares were down 28.7% at 26.75 pence, valuing the firm at about £59 million ($107 million).
In February, Sanctuary unveiled details of a deeply discounted £110 million ($200 million) equity fundraising to help it recover from the costly acquisition of Urban Records from Matthew Knowles, the father of Beyonce.
After a series of delayed, rescheduled and cancelled releases from Urban Records, Sanctuary said earlier this year it would issue no more from the label. Knowles later announced that he and the company had parted ways.