U2 see company losses top €10.5m

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By Gordon Deegan, Irish Examiner

Accumulated losses at U2's main Irish firm increased by over €2m last year to nearly €10.5m.

New figures for the band's Not Us Ltd show that the firm plunged further into the red, with accumulated losses going from €8.35m to €10.49m in the 12 months to the end of December last.

The firm is being supported by Bono, The Edge, Larry Mullen Jr, and Adam Clayton, who provided a directors' loan of €2.25m last year. A note attached to the accounts states that the directors' loan attracts an annual interest rate of 3% per annum.

The figures, recently lodged with the Companies Office, show that the cash pile at the band's firm last year dropped from €545,706 to €160,196.

The downturn in the company's fortunes coincided with a period of inactivity by U2 on the music front. The band's last major revenue-generating year was 2011. That year, their 360° tour grossed $231.9m, a figure shared between artist, promoter, and venue owner after 2.38m music fans paid to see the band in 34 gigs across 26 cities.

Prior to Songs of Innocence this year, the band's last album release was in 2009 when they released No Line on the Horizon.

The accounts -- signed off by Paul Hewson (Bono), Adam Clayton, and David Evans (The Edge) -- include a note from the auditors, Mazars, confirming that the firm was loss-making last year.

The four band members each have a 25% share in the firm. A note attached to the accounts states that the company meets its day-to-day working capital requirements by way of loans from subsidiary undertakings and related party creditors, which are unsecured and interest free.

The note states: "These parties have confirmed that they will provide additional funds if required. On the basis of this information, the directors consider it appropriate to prepare the financial statements on a going concern basis."

The figures show that the firm owed €4.5m to connected firms and €2.7m to related parties at year end. The company didn't owe any corporate tax at the end of last year, while it owed €120,650 in PAYE and PRSI taxes at year end.

Separate accounts lodged by a subsidiary of Not Us Ltd, U2 Ltd, show that accumulated losses at the firm increased marginally last year -- rising from €3.107m to €3.115m. The cash pile at the firm declined from €1.02m to €150,038.

The figures show that the firm's largest creditor is called 'employee current accounts', which is owed a total of €6.5m, having risen from the €5.5m owed at the end of 2012.

© Irish Examiner Ltd. All rights reserved.

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This page contains a single entry by Jonathan published on December 16, 2014 2:21 AM.

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