AGM Statement

29 Mar 2007 07:02

Sanctuary Group PLC29 March 2007 Sanctuary Group PLC 29 March 2007: For immediate release THE SANCTUARY GROUP AGM STATEMENT The Sanctuary Group plc announces that at its Annual General Meeting today, itwill provide the following update: " Under the business strategy we adopted last year, the Group is now dividedinto three autonomous divisions: Recorded Product, Merchandising and ArtistServices. Each division is now focused on its own profit and cash generation,supported by more cost-efficient Group services. As we stated in our annualreport, our emphasis is on profitability. Sanctuary continues to make progressbut much work still needs to be completed." "In response to the significant changes currently underway in the US musicmarket, to which our US operations have not been immune, the Board has approveda proposal to restructure the Recorded Product division's US operations. The USdivision will now concentrate on growing its higher margin digital and licensingbusinesses and continue to exploit out catalogue rights. The net financial costof the restructuring is not expected to be material in the current fiscal year" "We confirm that we are making good progress with our programme of strategicdisposals. As we have previously stated, it will be 2008 or later before thereis a return to overall profitability." Enquiries: James Hogan / Craig Breheny / Ash Spiegelberg Brunswick +44 (0) 20 7404 5959 Note to Editors Sanctuary is a UK listed international music group, encompassing recordedproduct, merchandising, and artist services (which encompasses artist managementand arranging and negotiating live performances). Sanctuary owns one of theworld's largest catalogues of recorded product outside of the major recordcompanies. This information is provided by RNS The company news service from the London Stock Exchange