The vultures could soon be circling over the carcass of Sanctuary. Warner and EMI, who have previously looked at its books, may now return at the current share price with a view to snapping up its key artist management division.
The anaemic group rolled out yet another major profit warning today and revealed it may book another £18 million in provisions, indicating there may have been further accounting irregularities.
Investors, sick of management’s never-ending profit warnings and provisions, wiped 30 per cent off Sanctuary’s share price immediately after the news.
Sanctuary has flagged that it is mulling the sale of underperforming businesses. Its 49 per cent stake in Rough Trade appears certain to be sold off and further asset sales could lead to a full break-up of the embattled group.
However, the fiercely independent artist manager, music label and publisher has already rejected advances from rival Mama just last month.
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Despite all of this, Sanctuary remains upbeat. In today’s trading update, it cheerfully predicted that all major divisions would make a positive net contribution in 2007.