The Sanctuary Group is considering whether to put some of its businesses up for sale after preliminary results for 2006 revealed another full year of losses.

In a statement, the group announced that “the board is currently considering a number of opportunities that may enable it to realise value from the disposal of parts of the group.” 

Despite reducing operating losses to £56.7m, compared to £136m a year ago, the group's turnover was down £14.9m to £133.2m this year. Sanctuary attributed this in part to restructuring and refinancing costs.

A prime candidate for disposal is Sanctuary's 50% stake in indie label Rough Trade, which was a key cause of the losses last year.

Sanctuary is one of the world's largest record labels and artist management companies, and artists on its books include Sir Elton John, Morrissey and the Libertines. The group first ran into financial difficulty after a failed move into the US urban market. 

The group does not expect a return to profitability until 2008.