Friday, March 24, 2023

Beckhams pay themselves healthy dividend even as losses mount

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David and Victoria Beckham have paid themselves nearly £ 21million on their sports and media activities since 2019, even as their fashion empire has suffered mounting losses and breach of financial commitments after being hit by the pandemic.

The pre-tax profit of David Beckham Ventures Limited, the global brand management company 100% owned by the multi-millionaire former footballer and his fashion designer wife, fell to £ 11.3million in 2019, from £ 14, 8 million pounds the previous year. This reflected increased costs to help grow the business and adverse currency effects, as well as charitable donations.

The two shareholders of the company nonetheless received a dividend of £ 14.5million, up from £ 11.1million in 2018. A further £ 7million was paid to the celebrity couple in 2020, he said. he declares.

The Beckhams in 2019 redeemed the 33 percent stake in DBVL owned by XIX Entertainment, the media group run by music entrepreneur Simon Fuller, although Mr. Fuller retained a stake in Victoria Beckham’s fashion business.

Revenue rose from £ 600,000 to £ 16.2 million, boosted by new licensing and brand partnership agreements. DBVL controls the David Beckham brand and its partnerships in commercial and marketing activities, notably with Adidas, Diageo, Tudor, Coty, AIA and the Sands hotel group. The company owns a line of DB eyewear and a stake in the new Major League Soccer Inter Miami FC squad. Accounts for the year ending December 2019 must be posted to Companies House.

Meanwhile, pre-tax losses at Victoria Beckham’s eponymous luxury fashion firm widened to £ 16.5million, from £ 12.4million last year. Launched in 2008, Victoria Beckham Holdings Limited is owned by Beckhams, XIX Entertainment and NEO Investment Partners, a private equity firm.

The group said last year it violated financial covenants on a loan with HSBC, which led to a £ 9.2million cash injection to settle the debt. This was in addition to the £ 15.8million from shareholders to fund working capital and reduce an HSBC loan facility in 2019.

The company said it had launched “a broad cost-cutting program” to help deal with the pandemic and that the restructuring in September had streamlined operations.

Victoria Beckham was forced to reverse the decision to lay off 30 staff at her fashion label last year after public criticism.

Sales increased 7% to £ 38.3million thanks to continued growth in the loss-making fashion business and the launch of the Victoria Beckham Beauty brand in the last quarter of 2019.

The fashion firm halved its loss based on adjusted profit to £ 4.6m in 2019, from a loss of £ 10.5m the year before.

The Covid-19 pandemic and lockdown restrictions – after the financial reporting period – have led to the closure of its Dover Street store in London and will hurt its income.

Online sales, however, have increased by more than a fifth in the UK compared to the previous year. Internationally, the brand increased its sales by more than a third in Europe and by 44% in Australia.


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