DF Concerts, the Scottish-based promoter of T in the Park, has plunged deep into the red after making a �significant� investment in establishing the Hydro Connect Festival in Inveraray, where discerning music lovers this year plunged equally deep in the mud.
DF Concerts, the Scottish-based promoter of T in the Park, has plunged deep into the red after making a "significant" investment in establishing the Hydro Connect Festival in Inveraray, where discerning music lovers this year plunged equally deep in the mud.
In the year to the end of March - the year in which the Inveraray music festival was first set up - the Glasgow-headquartered firm reported pre-tax losses of almost £1.1m, compared with pre-tax profits of £21,267 the previous year.
The company also said it had invested heavily in its "infrastructure and a new accounting system".
At the same time, the group's gross profits slipped £2.9m, compared with £3.5m the year before - but no turnover figure was provided in the abbreviated accounts.
Geoff Ellis, DF's managing director, was in London yesterday for the UK Festival Awards and could not be reached for comment.
However, in a statement issued to The Herald, he said: "We've made considerable and necessary investments this year to ensure the future success and development of the company.
"The outlay to establish Connect in year one was significant, but there were other costs, including investment in our infrastructure and a new accounting system, which will strengthen our business going into 2009."
The Hydro Connect Festival, which bills itself as the antidote to T in the Park, is a boutique gathering on the grounds of Inveraray Castle.
The Duke of Argyll, who described himself as "the most rock'n'roll Duke in the UK", picked Amy Macdonald and Kasabian as his highlights of the festival.
Meanwhile, Ellis said: "The figures posted were expected and don't obviously represent how positive this year has actually been for us. Gig-going figures in Scotland remain similar to last year and are as robust as ever.
"As we'd also projected, our sister company, Big Day Out, is performing very well and our core shows, such as T in the Park, remain profitable and strong."
During the period of these latest accounts, DF was majority-owned by Irish promoter Denis Desmond's Dublin company, Gaiety Investments.
However, in April, Desmond sold his company's 67% holding to US entertainment giant Live Nation, which acquired the stake through LN-Gaiety Holdings, its UK joint venture with Desmond.
The price that Live Nation paid for the stake was not disclosed.
The remaining 33% shareholding in DF was retained by Ellis and promoter Simon Moran.
Meanwhile, T in the Park, which is now in its 15th year, was last month named the 4Music Festival of the Year, beating off competition from the likes of Glastonbury and Leeds.
DF also owns King Tut's Wah Wah Hut, the Glasgow venue famous for being the place where Manchester band Oasis was discovered in 1993.
Live Nation, which is listed on the New York Stock Exchange, has signed multi-million dollar concert deals with U2, Madonna and Jay-Z over the last year, strengthening its control of the live music scene.
Ellis added: "The nature of our business is cyclical and the next year is going to be a fantastic one - it's already particularly busy, with an increase in big-name artists touring the country, such as Take That.
"We've already planned a brilliant programme of massive stadium gigs and impressive shows for the coming months, which will excite music fans throughout Scotland. We feel very confident and positive about the year ahead."
