Saturday 1 October 2016

Cash pile at U2 firm rises 19-fold as hotel performs

Gordon Deegan

Published 08/12/2015 | 02:30

Irish band U2 singer Bono (R) and guitarist The Edge (L)perform on stage at the Bercy Accordhotels Arena in Paris on December 6, 2015. / AFP / THOMAS SAMSONTHOMAS SAMSON/AFP/Getty Images
Irish band U2 singer Bono (R) and guitarist The Edge (L)perform on stage at the Bercy Accordhotels Arena in Paris on December 6, 2015. / AFP / THOMAS SAMSONTHOMAS SAMSON/AFP/Getty Images

The cash pile at Dublin-based U2 firm, U2 Ltd increased 19-fold to €2.86m last year, new figures show.

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Currently, the band is adding to its coffers with the European leg of its Innocence + Experience tour following the US leg that grossed $76m from 650,582 tickets sold.

Last month, the Dublin leg of the tour resulted in U2's four-star boutique Clarence hotel being booked out for the week the band performed here and new accounts show that the hotel recorded profits of €400,000 last year.

The hotel employs 64 and general manager Michael O'Connor said yesterday: "I'm very happy with the level of business."

Mr O'Connor said occupancy levels "increased tremendously and the growth in occupancy has continued into this year. I am very pleased and repeat is increasing as well".

Separate figures just lodged with the Companies Office show that while the cash pile at U2 Ltd increased sharply, the firm's accumulated losses also increased going up by €1m to €4.16m.

The main activity of the firm is the creation, protection and licensing of intellectual property and the loss partly arose from the amount owed by the firm going up from €9.4m to €10m.

U2 Ltd counts Bono, The Edge, Larry Mullen and Adam Clayton as four of its eight employees and the amount the firm owed to its employees last year reduced from €6.5m to €5.4m.

The parent firm of U2 Ltd is Not Us Ltd where the members of U2 also serve as employees along with nine others.

The figures show that the total wage bill between the two companies last year amounted to €748,000.

The amount paid to the four members of U2 last year by Not Us Ltd amounted to €176,945.

At the end of December last the firm owed €4.5m to subsidiary firms and an additional €4.2m to related parties.

A note attached to the accounts states that the company's subsidiary undertakings and related parties have confirmed that the outstanding loan balances are unsecured and interest free and that repayment will not be sought in the foreseeable future.

The firm's accumulated losses last year increased by just over €2m going from €10.49m to €12.59m.

The accounts - signed off by Paul Hewson (Bono) and Dave Evans (The Edge) - state 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.

Irish Independent

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