Sanctuary Eyes Profitability By 2008, Or Later

British independent music firm Sanctuary Group Plc today warned that its recorded product division "continues to suffer," adding that it would not achieve overall profitability until 2008 or later.

In a trading update to the London Stock Exchange, Sanctuary said its merchandising and artist services divisions "continue to be successful," and their trading stays in-line with management's expectations.

"I am pleased to say that our artist services and merchandising divisions are performing well and have been able to offset the effect of the weakening U.S. dollar through better than expected trading," comments group CEO Frank Presland in the statement.

The company noted that steps were being taken to adjust operations in an effort to address current market conditions at the under-performing recorded product division.

Stock in Sanctuary was down 0.5 pence to 10.75 pence at the close of trading.