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David and Victoria Beckham were paid almost R822k a day in 2019

By Bang Showbiz Time of article published18m ago

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David and Victoria Beckham paid themselves almost R822 000 a day in 2019, but the fashion designer’s company has continued to lose money.

The couple’s total dividends for that year rose by R69 million on 2018, and accounts filed at Companies House on Thursday noted that, as well as paying themselves R298 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 R333 million, an increase of R12.3 million.

The company – which has been completely owned by the couple since they bought out Simon Fuller’s 33% stake for R781 million in 2019 – also made donations totalling R20 million to Unicef over the course of the year.

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.

While it reported a R51 million increase in sales to R787 million, pre-tax losses for Victoria Beckham Holdings Limited (VBHL) increased to R341.3 million in 2019, up from losses of R257 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.”

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 R189 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.”

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