Business Irish

Friday 26 May 2017

Bum note...One Direction dispute could cost almost €29m to fix

Niall Horan
Niall Horan

Gordon Deegan

Accumulated profits at the music firm owned by Mullingar's Niall Horan and the other members of pop group One Direction doubled to £70.1m (€81.07m) in 2015.

That is according to new accounts filed by 1D Media Ltd, which show that the firm recorded pre-tax profits of £39.86m in 2015 after recording revenues of £63.37m that year.

The accounts, lodged with Companies House in the UK, also show that at the end of 2015, the band members were sitting on a cash pile of £41.5m.

Giving One Directioners fresh hope that the band will reform someday, the directors' report states that the band members "have undertaken a hiatus from December 2015".

The accounts also show that the then directors of the firm - Niall Horan, Zayn Malik, Liam Payne, Harry Styles and Louis Tomlinson - took out loans totalling £45m in 2015, making repayments of £11m during 2015.

Mr Malik left the band in March 2015 and at the end of the year, the directors owed the firm £28m.

The accounts also reveal that the firm is involved in a dispute that may be the matter of litigation.

The note states that if successful, the maximum to be paid out arising from the dispute will be around £24.7m.

The firm has indemnity against third parties in relation to such an event and £18.4m could be re-reimbursed to the company.

All of the band members resigned as directors from 1D Media Ltd on April 4 2016 and the only director on the board now is Limerick-based accountant to the stars, Alan McEvoy.

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