Hipgnosis Songs Fund has said it will not pay any dividends for at least another six months as it fights for its survival.
The company offers investors the chance to make money from the royalties of tracks by famous artists such as Justin Bieber and Shakira.
But it said it does not expect to make shareholder payouts until the start of the next financial year in April as a result of ongoing pressure on its finances and underperforming catalogues.
Struggles: Hipgnosis offers investors the chance to make money from the royalties of tracks by famous artists such as Justin Bieber (pictured with wife Hailey)
It follows warnings last month that US earnings would not be as lucrative as it would have hoped – pushing the group to scrap its interim dividend.
Hipgnosis is in the middle of a strategic review that was prompted by a major shareholder revolt last month.
Investors snubbed plans to carry on with business as usual. They voted against the re-election of the company’s chairman.
They also rejected a £355million deal to sell about a fifth of Hipgnosis’s music catalogues that bosses hoped would raise much-needed cash.
Hipgnosis shares fell 1.9 per cent.
