The woes of Hipgnosis Songs Fund, which owns the streaming rights to artists ranging from Beyoncé to Neil Young, have deepened, as it delayed the publication of its half-year results at the last minute. Hipgnosis said it was postponing its results because the company valuation by its independent valuer was “materially higher” than the valuation implied by proposed and recent transactions in the sector, in particular its recent sale of song rights at a steep discount. The fund last week sold 20,000 “non-core” songs for $23.1m (£18.4m), at a 14% discount to their previous valuation. Tuesday’s statement also referred to a proposed sale of assets for $417.5m at a 24% discount to their previous valuation, when Hipgnosis failed in its attempt to sell almost a fifth of its back catalogue to the private equity group Blackstone. Blackstone had previously invested in Hipgnosis Song Management, the entity that decides on investments in the fund. Shareholders in the Hipgnosis fund voted against the deal in late October. The board sought advice from Hipgnosis Song Management on its opinion on the independent valuer’s valuation. “Hipgnosis Song Management eventually provided an opinion, which was heavily caveated, such that the board has concerns as to the valuation of the company’s assets in its interim results,” the fund said. It now expects to publish its results for the six months to 30 September, which were originally scheduled to be published on Tuesday, by 31 December. Higher interest rates have plunged the fund into turmoil, making the prospect of future income from streaming royalties less attractive to investors and forcing changes to how the fund calculates the value of future revenues. The company cancelled dividend payments to shareholders in October, saying that changes to US royalties had reduced its income. It said paying a dividend would force it to breach its covenants – agreements with lenders. Hipgnosis was founded in 2018 by Merck Mercuriadis, who believed that online streaming had made the rights to long-lasting music hits an attractive investment proposition. Mercuriadis previously managed artists including Elton John, Guns N’ Roses, Morrissey and Iron Maiden, and used his contacts to snap up the rights to song catalogues in a series of deals. He built up a portfolio of almost 61,000 songs worth $2.2bn. The fund announced in October that Andrew Wilkinson and Paul Burger had resigned as non-executive directors the day before its AGM, in which its chair, Andrew Sutch, was ousted. The investment specialist Rob Naylor and music industry executive Francis Keeling were later made chairman and non-executive director, respectively. Analysts at JP Morgan Chase said: “This is an early blow to the credibility of the new board, and casts further doubt over the credibility of the independent valuer, Citrin Cooperman. Given all that has occurred over recent months we are surprised that another party had not been hired to provide a valuation.” Hipgnosis Song Management said that it had “fulfilled its duties to the company with respect to both the independent valuation and preparation of the interim results in a timely and efficient manner. “Notwithstanding the board’s decision to delay publication of the interim financial statements, the investment adviser will continue to work in a constructive manner to support the interests of the company and its shareholders.”