The stock traded at more than 45p at the start of last year.Andy Taylor, the executive chairman, said: "The past 12 months have been the most difficult and challenging period that Sanctuary has ever had. We have had to make fundamental changes and difficult decisions, but it was essential to make them and we acted quickly to do so."Sanctuary cut jobs and non-core businesses in 2005 amid profits warnings stemming from troubles at Urban. The company said: "The effect of various announcements during the year and the circumstances referred to were particularly damaging to the company's standing in the industry due to the uncertainty it created over the financial viability of the company."Analysts at Investec Securities said Sanctuary's future depended largely on how badly its reputation had been hurt. "Will this prove a pyrrhic victory, if the company goes ex-growth?" they asked in a research note.Sanctuary said last month it was in talks to sell its music publishing and studios businesses. Buyout talks, thought to have been held with EMI and Warner Music, failed in August.. "I think we've turned a corner on that this week," Mr Mandelson said.Ministers have given themselves until the end of April to resolve a list of 33 issues and agreed to hold bilateral meetings to speed up the process. The EU trade commissioner will hold a a two-hour meeting with Kamal Nath, the Indian minister for Commerce, at the High Commission to discuss the world trade talks and specific bilateral issues.Mr Nath has said the deadline gives about two working days for each of the 33 issues.

He said tomorrow's meeting was aimed at exploring "what is your problem, what is your last line".Observers are optimistic that India and the UK can provide a powerful axis in pushing forward talks that have broken down over deep mistrust between rich and poorer countries.Amit Mitra, the secretary general of the Federation of Indian Chambers of Commerce and Industry (Ficci), said there was lot of common ground between the two nations. He said this included ending trade-distorting farm subsidies, opening up services and allowing the free movement of workers. "We have a very close working relationship with the UK," Mr Mitra said.Ficci is in London for two days of meetings with UK ministers, MPs, think-tanks and business leaders to promote India as a destination for export and investment. It is baffled that less than 1 per cent of the UK's total £294bn of overseas sales in 2004 went to India.. Sanctuary, the world's biggest independent music label and home to stars including Sir Elton John, announced a rescue deal yesterday designed to save it from losses stemming from a disastrous acquisition.

The company said its Urban Records, bought from Mathew Knowles, the father of the R&B singer Beyonc?would release no more records after contribut-ing to a group loss for the year of £143m, more than five times bigger than in the previous year. Sanctuary said it had received "indications" of support for an equity fundraising of £110m from institutional investors. Iranian Foreign Ministry spokesman Hamid Reza Asefi said in Tehran on Sunday that IAEA inspectors trying to gain access to the site for more than a year had been given the information they sought. The United States alleges Iran had conducted high-explosive tests that could have a bearing on developing nuclear weapons at the site. The State Department said in 2004 that Lavizan's buildings had been dismantled and topsoil had been removed in attempts to hide nuclear weapons-related experiments.. Peter Mandelson, Europe's Trade commissioner, will meet his Indian counterpart in London tomorrow in the first significant development since ministers claimed a breakthrough in world trade talks over the weekend. Trade ministers at the World Economic Forum in Davos agreed a new timetable to strike a deal by the summer after four years of troubled negotiations. The most important step was a deal to move simultaneously on all key issues - agriculture, services and manufacturing - after months of deadlock over the thorny issue of farm subsidies. Tehran said the research would involve what it called limited uranium enrichment, but the action raised fears Tehran was using its pursuit of atomic power as a front for a nuclear weapons program.

European foreign ministers met with Iran's deputy nuclear negotiator in Brussels on Monday but said they failed to make progress. The EU said a Russian proposal to enrich uranium and send the fuel back to Iran, allowing more oversight of the process, could be the solution, but Rice has questioned the drawn out negotiations over the offer "This has now been several months. So when the Iranians now evince interest in the Russian proposal, one has to wonder if that isn't because they now face the prospect of referral to the Security Council," Rice said before the dinner meeting. In Vienna, a diplomat familiar with the Iran probe said IAEA inspectors were allowed access to the Lavizan-Shian site believed to be the repository of equipment bought by the Iranian military that could be used in a nuclear weapons program.

The diplomat demanded anonymity in exchange for discussing confidential information about the status of the IAEA probe. It's just diplomacy in a different, more robust context." Iran broke UN seals at a uranium enrichment plant Jan. 10 and said it would resume nuclear fuel research after a two-year freeze. "We believe that there is a lot of life left in the diplomacy," Rice said. "After all, going to the Security Council is not the end of diplomacy. "It was very important to make sure they are all together on this issue and all agree on the same position." "This is in the hands of the IAEA," UN spokesman Stephane Dujarric said of the agreement. "We're not going to say anything at this point." Yesterday, Rice said the world agreed that Iran should not have the means of developing a nuclear weapon, and she criticized Iran's response to Russian attempts to mediate in the standoff.