Morrissey is back with a new album at no 1 in the album charts out on Sanctuary Records (SGP). This is a big deal for a pretty small company. Added to this the first half results out today should show improvements in first half sales - their niche strategy is working. Expectations of an upbeat trading statement with double digit growth bucking the trend in the music industry. Share should tick up today.

A few things to add !

Look at this :

Executive Chairman, Andy Taylor, commented:

"I am well aware that Sanctuary has disappointed the market significantly this
year and, with hindsight, it is clear we grew too fast.
I am totally focused on repairing the short-term damage to what is fundamentally
a robust business. We will be restructuring our business and supporting our
artists throughout. The Board and I are determined to steer a company that has
an extremely strong roster of artists back to a profitable trading position and
back to sustainable long term growth."

Well if he really means this he should be buying a large chuck of stock to show
his commitment and in his words determination to put this company right, this
would be a show of confidence which is badly needed right now.

Must stress again it's a high risk punt, all or nothing stuff.

3 hours and still no AT trade.

Didnt expect it to be this slow this morning.

Picked up late in the day.

Dont be deceived by the trade data, there was a lot more buying
than selling again today, price was cut in the morning but was rising
steadily in the afternoon.

I would be expecting some holding news soon and maybe tomorrow
to account for the large trades from yesterday and today.

Article in Saturdays FT not helping SGP today.

Whats happening today - high volume of buys going through inside last 30 mins?

joehargan1 can,t find news phoned my broker no one seems to know perhaps tipped in a share mag i,m holding 200k @8p.someone gives us a clue,perhaps they have found a buyer or maybe the volume is the shorters buying

Agree 700202 - buyer is still most likely scenario. This has been dragged down by bad news story upon bad news...most of it speculation and opinion. It is the classic case of a small - medium size player trying to get into the big leagues too quickly and over extending themselves in the process. When the facts are reviewed they show that they are worth much much more than this on the assets alone and the financials have to look good to the industry big boys looking for a tuck-in acquisition. Don't bet the mortgage on it but a seriously good moderate risk - high return investment at these levels. I fondly recall buying into Corus at 6p...it's an omen.

This looks like a positive step and commentary:-

Music publisher and band management company, Sanctuary Group said it has taken steps to cut its worldwide headcount by 175, or 25% of its workforce as of end March.

In a statement, the company said it does not expect to undertake any further significant headcount reductions.

Executive chairman Andy Taylor said he is confident the company is 'well-placed to rapidly return to profitability going forward.

'I am pleased with the rapid progress we have made in addressing the key issues and costs in our business and we will continue to restructure the group over the next few weeks and months.

Sanctuary said the new cost structures and staffing levels in place will not compromise its level of service and commitment to its artists and customers.

Mistimed the bottom by a fraction but it has been reached !

The market loves a recovery story so if you have not got any SGP
shares yet then get some tomorrow before the price races away, lots
of smart money buying in late on today, i have a feeling that SGP will
be in the top 3 risers tomorrow, very strong finish and worth checking
for the after hours auction trades to see if anything large is purchased
at a nice high price for size.

Cannot see why SGP cant reach 10p this week.

spot on Mackem. The banking support is still all there as are the assets. Like you, I see no reason why this should not be another dramatic recovery play.

Traders are involved now so expect some short term volatility but trend should be in the right direction.

Just finished work, i see moneyam has a high traded of 8p so
it's come off a bit but still a good rise and i wonder if it will have
another late run, got to be a good play on a combination of lots
of fresh recovery buyers + shorters closing at these levels.

Institutions are buying - 2 trades of 2million each today.

I have to admit i got this one totally wrong, some idiots posting on
advfn but also some clued up accountants and it looks like a debt
for equity swap is on the cards and if so it wont be at 4-5p, it will
be at 2p or lower so it might be best to cut and run here, they have
valuable assets as in golden oldies such as Elton John but why sell
him on if the business can survive with him, Sgp will survive and make
money again but all the debt with the banks will probably be converted
into shares at rock bottom prices, could be wrong but there's more chance
of making 50% here by shorting than going long now i'm afraid.

I reckon short term if a DFE is done the shares will fall to 2p or lower,
if they do this then that is the time to maybe buy some and wait for
the recovery.

I think if they were going to sell on their best earning singers etc etc
it would have started by now to get the bank debt down.

SGP is not looking good at all now...would say 2 pence on the price beckons as D4E seems the only way out now...my short position opened at 5.51 pence on 450,000 shares in the Champion Investor game is looking rather good:

In today's Sunday Times:

The Sunday Times October 30, 2005

Business Digest

SANCTUARY GROUP, the crisis-hit music firm that manages Sir Elton John, will be forced to convene an extraordinary meeting in the wake of its latest statement that the company is facing a serious loss of capital. Sanctuary is considering a debt-for-equity swap among the options for repairing its balance sheet.

http://www.timesonline.co.uk/newspaper/0,,2769-1848996,00.html

Fidelity that usually are bottom fishers are now selling or at least
that RNS suggests that after they sold appox 3mil shares, do they
fear the worst, from being bullish to recovery i cannot see any light
right now and fear a DFE is a strong possibility.
And 36 million shares are not going to be shifted too easily either and
i think the market and punters have finally noticed what is happening.

Very brave to hold or buy on what we know right now.

Unfortunately the MoneyAM newsfeed has become clogged-up with medical info (due to Scheering having a "similar" EPIC) - but has Sanctuary made any ann about DFE?
If they are in such a dire position wouldn't they have advised the Market, to be sure all the News is out?
Earlier posters (here) have been quite bullish about the business - just what has changed to make the sp dive about 90% (ie was 40p only months ago - now 4p)
Like Mackem, I don't like the look of this - any comments anyone?

They made the classic mistake of trying to grow too quickly and became massively over capitalised weakening their balance sheet considerably in anticipation of the revenues to come. Their asset base is still strong however and their founder is fighting hard to save the business from liquidation. A DFE is possible certainly but not certain and they still have a lot of banking support but the real issue is whether they can continue to absorb the crippling cost of capital - they are desperately looking to offset costs and recently down-sized their workforce by 25%. They will also look at selling off the business (or arms of it) to right-size the business and return to profit. I would not give up on the possibility of a recovery just yet.

Still out bad news for holders.

Sanctuary says will need to secure extra funding near-term
AFX

LONDON (AFX) - Sanctuary Group PLC, the crisis-torn British music publishing and band management company, responded to press speculation over the weekend with a statement this morning confirming that the group will need to secure extra funding in the near term.

Whilst it continues to enjoy the support of its bankers, Sanctuary said it needs to secure further funding from them in the near future and, with debt 'too high', it is exploring other options including a significant equity funding.

Sanctuary is facing a massive 130-170 mln stg charge in the full year for provisions and write-downs and said it still expects to record a negative EBITDA for the year, before any of these charges.

Executive chairman Andy Taylor said the board has acknowledged that Sanctuary expanded too rapidly and it is working very hard to re-set the business for future sustainable growth.

Since late summer this year, the group has implemented substantial annualised costs savings, principally by reducing headcount worldwide by some 25 pct.

In addition, Sanctuary has focused its business on its core areas of expertise which consists of Recorded Product, Merchandising, Artist Management and Live Agency activity worldwide. It has sold its Book Publishing arm and its mobile recording studios and is in active discussions regarding the disposal of its music publishing and studios businesses.

The board said it is confident that the actions taken to cut costs and focus on the core activities of the group will allow it to continue to trade over the medium term.

newsdesk@afxnews.com