TROUBLED music management company Sanctuary suffered a fresh blow yesterday when it revealed that changes to its accounting policies may significantly alter its balance sheet.

Sanctuary, whose portfolio includes Sir Elton John and Beyonce, saw its shares plunge almost 11 per cent after the update.

Following a string of profit warnings, Sanctuary said it was likely to make changes to its accounting that may lead to exceptional costs. It said the impact was still not known.

Sanctuary, which employs about 300 people in the UK, runs a global management business for artists such as Manic Street Preachers, Nelly, Morrissey and Iron Maiden.

Shares have slumped dramatically, from 43p in mid-June to yesterday's closing price of 4.99p