Cost Reduction Programme

10 Oct 2005 07:00

Sanctuary Group PLC10 October 2005 10 October 2005 The Sanctuary Group plc UPDATE ON COST REDUCTION PROGRAMME As announced previously the Board of The Sanctuary Group plc (the "Company" orthe "Group") is progressing with a fundamental review of its business. As part of that review, the Group today announces that it has now taken steps toreduce headcount worldwide across the Group by 175, which represents 25% of thetotal headcount as at 31st March 2005.The Board does not expect to undertake anyfurther significant headcount reductions. The Board is keen to stress that the new cost structures and staffing levels inplace across the Group will not compromise our high level of service andcommitment to our artists and customers, and that the Group intends to benefitfrom an exciting programme of Recorded Product, Merchandising, Artist Managementand Live Agency activity worldwide. The Board will continue to update the market with progress as appropriate overthe next few months. Executive Chairman, Andy Taylor, commented: "I am pleased with the rapid progress we have made in addressing the key issuesand costs in our business and we will continue to restructure the Group over thenext few weeks and months. Although I am sad to be losing Sanctuary people, I amconfident that we have a high quality business and, with a much reduced costbase, I believe we are well-placed to rapidly return to profitability goingforward." Ends For further information, please contact: Andy Taylor, Executive Chairman 0207 602 6351The Sanctuary Group plc Mike Miller, Finance Director 0207 602 6351The Sanctuary Group plc Philip Ranger, Director, Corporate & Investor 07768 534641/020 7300 1323Relations The Sanctuary Group plc Eddy Leviten 020 7300 6542Head of Corporate CommunicationsThe Sanctuary Group plc Paul Downes 07900 244888/020 7653 6620Merlin This information is provided by RNS The company news service from the London Stock Exchange