CRO cannot dismantle all U2 accounts

LOSSES at Not Us Limited, a company owned by the members of U2 increased last year.

But the myriad of accounts lodged at the Companies Registration Office (CRO) in the past couple of weeks by the band's companies, sheds little light on the net worth of Bono, Larry Mullen, Adam Clayton and The Edge.

Dismantling the documents reveals around 20 subsidiaries and a huge number of transactions between each of these companies.

Not Us Limited, one of the principal holding company's for the band's activities, shows a deficit of €18.8 million at the end of 2004, up from €18.2 million in 2003.

However, the money is not owed to outside creditors, but to other companies owned by U2. The negative balances in the various companies have been running for years and many loans, some dating back to 1999, have yet to be repaid.

Of the €18.8 million owed to Not Us, some €8.8 million was due from a company called Thengal owned by the band and their manager Paul McGuinness. Remond Limited, a tour agent, owed €10.4m to Not Us, down from €10.7m in 2003.

Eventcorp, showed a deficit of almost €6m and Mother Records a deficit of €1.2m. SAMS Tours, an American registered company, retained losses of half a million at the end of 2004.

But U2 Limited saw its retained losses fall from €11.3m in 2003 to €3m in 2004, indicating that the company made a profit of €8m for the year. This would be no surprise as the band's last album, How to Dismantle an Atomic Bomb, would have been recorded in the year.

At the same time there was a 900% increase in the amount of cash generated by the company in the year to €5m.

According to sources, the true value of U2's wealth vastly exceeds the amounts contained in the documents filed at CRO as much of their income is funnelled through partnerships, whose accounts do not have to be disclosed to the public.

Much of their wealth is derived simply from music sales as their royalty payments is believed to the highest in the music business at close to 30%. Touring and merchandise income are also substantial.

The band are believed to be worth somewhere between €500 and €700 million when the current Vertigo tour and personal investments are added in.

It is conceivable that the band's earnings could reach €1 billion if the next album and tour are as successful.