Electric Picnic organiser on the ball as finances improve
The Live Nation-controlled EP Republic Ltd runs the three-day festival at Stradbally, Co Laois, and new accounts show that the 2013 loss was an 89% decrease on the €1.18m trading loss in 2012.
The firm recorded combined losses of €2.1m in 2011 and 2010.
This year’s festival sold out six weeks in advance and, over the three days, was attended by over 41,000 revellers, with Hozier and St Vincent being just two of the highlight acts.
According to a note attached to the EP Republic accounts just filed with the Companies Office “trading performances and cash flow improved in 2014 and is expected to improve further in 2015”.
The firm’s liabilities last year reduced by €919,000 from €3.68m to €2.76m “primarily due to a reversal of a previous impairment charge of €855,000 and recognition of a deferred tax asset of €95,356”.
The note states: “Net liabilities include a loan of €4.19m due to its parent company, EP Festivals Ltd. The parent company has given assurances that it will not seek repayment of the loan until the company is in a position to finance repayments.”
Through the combination of the parent company’s assurances and the improved performance, “the directors are satisfied that the company will continue as a going concern and have prepared the financial statements on this basis”.
Earlier this year, Festival Republic reached a settlement with music promoter, John Reynolds and his POD Music Organisation concerning Electric Picnic.
Having founded Electric Picnic in 2004, Mr Reynolds sold a 71% stake in the event to Festival Republic in 2009 for €4.2m.
As part of the agreement, POD Music agreed to divest its remaining stake to Festival Republic Dublin.
Zach Desmond has taken Mr Reynolds’s place on the board and he joins Melvyn Benn.
The accounts show that that the firm’s cash pile reduced from €187,630 to €172,238.
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