David and Victoria Beckham paid themselves almost £40,000 a day in 2019.

The couple’s total dividends for that year rose by £3.4 million on 2018, and accounts filed at Companies House on Thursday (21.01.21) noted that, as well as paying themselves £14.5 million in 2019, they also collected an additional £7 million in interim dividend payments in 2020.

The boost in income was largely thanks to the performance of the former footballer’s image rights sales, with David Beckham Ventures Limited (DBVL) – which manages his brand and partnerships with various companies including clothing firm Adidas and Haig Club whisky – declaring an annual revenue of £16.2 million, an increase of £600,000.

The company – which has been completely owned by the couple since they bought out Simon Fuller’s 33% stake for £38 million in 2019 – also made donations totalling £1 million to Unicef over the course of the year.

Fashion brand loses cash

But it wasn’t all good news for the couple – who have four children together – because Victoria’s eponymous fashion brand continued to lose money.

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While it reported a £2.5 million increase in sales to £38.3 million, pre-tax losses for Victoria Beckham Holdings Limited (VBHL) increased to £16.6 million in 2019, up from losses of £12.5 million the previous year.

The company – which is owned by Beckham Brand Holdings, Simon Fuller’s XIX Entertainment and private equity firm NEO investment Partners – did not pay out dividends.

Their filing noted: “Directors continue to focus on taking the company to break even.”

Covid-19 impact

The company also warned the coronavirus pandemic have had a significant impact on 2020, particularly because a London store has been closed for large parts of the year, though sales were boosted in the final quarter thanks to the launch of Victoria Beckham Beauty, and online sales were up around the world.

Auditors BDO, who signed off the accounts, warned the business – which has reported losses for the last seven years – is relying on shareholders’ support to stay afloat, which could “cast significant doubt on the company’s ability to continue as a going concern”.

In 2019, VBHL borrowed £9.2 million from shareholders to repay an outstanding bank loan after breaking its debt covenants.

However, the company insisted they are doing all they can to “navigate” the pandemic, including taking “all actions possible to conserve cash”.

They added: “All non-essential expenditure is being deferred and hiring freezes have been implemented for open positions.to enable the company to navigate through this pandemic.”

 

Author: BANG Showbiz