Victoria Beckham’s fashion brand continues to lose money, but it’s narrowing as sales rise, a new account to be filed with Company’s House shows.
The 14-year-old company has been in the red for nine years, and its accounts have another going-concern warning from auditors about its future.
However, there is little concern that the business will fail as wealthy owners, including Victoria and David Beckham and Neo Investment Partners, are understood to be ready to help the company with further cash injections. However, no specific commitments have been made in this regard.
A loss of £5.9m in 2021 was higher than the previous year’s loss of £8.6m, but turnover increased by 14% to £41m.
The previous year was dented by the pandemic, which both its wholesale business and its London flagship store suffered.
CEO Marie Leblanc also attributed the latest results to strong sales of beauty products as the company expanded its business in this important growth area. She added that the 2022 numbers will be stronger as the company focuses on “a new chapter and … accelerating growth.”
A House of Companies filed with DB Ventures also shows that Victoria Beckham’s highest-paid director received £2.1m, believed to be David Beckham. David and Victoria Beckham received his £6.3m dividend from the holding company.
The couple have very broad business interests and operate through several companies. According to reports, Beckham Brands Holdings, which controls the business empire, posted her £10.1m net profit on her £34.3m earnings for the year. The previous year’s figure was a profit of £11.6m on sales of £11.4m, a broader profit figure from the investment income generated from the partnership.
David Beckham has enormous global earning power, including his recent controversial deal to promote Qatar. In conclusion, Beckham became a shareholder of ABG.
He also has long-standing sponsorship deals with Adidas, Tudor watches and other brands.
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