As mentioned in a 'breaking news' fashion last Friday, Sanctuary Group have announced they have "removed" Group Chief Executive Andy Taylor from both his CEO role and his position as a director of the company. I think this is city code for "we've sacked him", but don't quote me on that. Frank Presland of Twenty-First Artists, which Sanctuary acquired last year, will take on the CEO role until the end of the year when the position will be reviewed.
In a statement to the City, Sanctuary's board said that Taylor had been removed because they had reached the "conclusion that certain of the prior year adjustments made in the 2005 accounts should have been presented as a correction of fundamental errors and not as changes in accounting policy". That conclusion was reached after the company's Board reviewed its 2005 financial statements in response to questions raised by the UK's regulatory Financial Reporting Review Panel.
The Board continued: "As a result of this review, the Board confirms that the accounting policies adopted by the Company in the 2005 financial statements in respect of the items under review were appropriate and no adjustments are required to be made to the consolidated balance sheet of the Group as at 30 September 2005 as a result of the review. The P&L account for the year to 30 September 2005 may be adjusted as a result of certain exceptional items being recognised in prior years". But no one heard that bit, they were too busy gossiping about Taylor's departure.
It's a departure, after all, which means the end of an era at the once mighty independent music company. Taylor co-founded Sanctuary with Rod Smallwood in 1976, rising to prominence a few years later through their management of Iron Maiden. Smallwood stood down from the Sanctuary board last year as the company tried to combat its financial woes. With neither Taylor nor Smallwood now on the board, while Sanctuary will no doubt survive its recent financial hardships, it may prove to be a very different company as it moves forward.
Bob Ayling, the Group's recently appointed chairman, welcomed the appointment of Presland to the role of Chief Executive at the company, telling reporters: "I am delighted that Frank Presland has agreed to step up to the role of CEO. He is a hugely experienced and respected industry figure and knows the Group well. He will help drive the business to deliver appropriate levels of performance."