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.

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

Still looks a bit iffy.

Down and down and down they go, I think thats one of theirs

Underwriting Announcement

1. Introduction

Your Board can today confirm that it proposes to raise approximately #110.0
million (gross) by way of a Placing and Open Offer of, in aggregate, 219,931,148
new Ordinary Shares at 50 pence per new Ordinary Share conditional, inter alia,
upon the passing by Shareholders of the Resolutions at the EGM referred to
further below, the publication of a Prospectus by 14 February 2006 and Admission
occurring by 13 March 2006. The Issue Price on a pre-consolidated basis is 0.25
pence which values the Existing Ordinary Shares at approximately #927,000. The
equity fundraising will result in substantial dilution to existing Shareholders
with the Existing Ordinary Shares accounting for less than 1 per cent. of the
Enlarged Share Capital. The Placing and Open Offer comprises 180,000,000 Placing
Shares to be conditionally placed with institutional investors and 39,931,148
Open Offer Shares to be conditionally placed with institutional investors
subject to clawback to satisfy valid applications by Qualifying Shareholders.
The Placing Shares are not available for subscription under the Open Offer.
Qualifying Shareholders and the holder of the BMG Warrants will be given the
opportunity to participate in the fundraising by way of the Open Offer, which,
following the publication of a Prospectus, will be made by Evolution Securities
on the Company's behalf. Under the Open Offer, new Ordinary Shares will be
offered to Qualifying Shareholders on the basis of:


8 Open Offer Shares for every 75 Existing Ordinary Shares or BMG Warrants held
at the Record Date


and so in proportion to any number of Existing Ordinary Shares or BMG Warrants
then held.

The Issue Price, which is stated on a post-consolidated basis, represents an
effective discount of 66.67 per cent. to the prevailing Closing Price of 0.75
pence per Existing Ordinary Share on 2 February 2006, being the latest
practicable date prior to the publication of this announcement. The Directors
were advised by Evolution Securities that an equity fundraising could only be
carried out successfully if priced at a significant discount to the prevailing
Closing Price of an Existing Ordinary Share. The Directors therefore propose to
seek specific approval of the Issue Price and the above-mentioned discount from
Shareholders at an EGM, in accordance with the Listing Rules. Since the Company is not permitted under English company law to issue shares for less than their nominal value (which for the Company is currently 12.5p), and to avoid having a very large number of shares in issue which would be quoted at a very low price, the Board has decided that it should undertake the Sub-division and
Consolidation in order to be able to effect the Placing and Open Offer at a
price of 50 pence per New Ordinary Share.

I think I have missed the boat here 176% up at 1300hrs

still going up now nearly reaching 2p

Well it reached 203% looks like down from here.

It's going to make 5 pence next resistance if a positive start tomorrow.

+40% so far today and climbing. 5p is the target.

1000000 buy@2.75

clears 3 and this will rocket on short covering

anyone think its a good time to buy now or wait for further drop in sp? dont think company likely to go bust so surely the only way is up.[i am not after advice merely other peoples opinions]

anyone think its a good time to buy now or wait for further drop in sp? dont think company likely to go bust so surely the only way is up.[i am not after advice merely other peoples opinions]

the company has effectively in last chance saloon...has raised some cash but if looses remain in the next 9-12 months they will be out of business....buying a share because you think it cannot go down any further is daft...look at the fundamentals of this comany they are terrible........do not listen to some of the jokers on this board here they were tipping it at 50p.

will give it a miss then, cheap buys for someone else maybe but too risky for a bit player like me

i've been in situation like this before and have always made some profit. it can't go any lower, its time to BUY ! even a small increase would make profit. I'm buying 4000000 @ 0.47p