Ultimate Rugby app ‘could have loan forgiven’ as company records €656,000 loss

Ultimate Rugby, a sports app co-founded by rugby legend Brian O’Driscoll, has said a loan that helped launch the business could be “forgiven in due course” as losses continued to mount.

The company, also founded by tech entrepreneur Ray Nolan in 2012, indicated in its financial accounts for 2022 that a material uncertainty casting doubt over its future existed. O’Driscoll stepped down as director in 2020.

The financial accounts also showed that Ultimate Rugby recorded a loss of over €656,600 for the year. Reserved losses were €4.48m at the end of 2022.

A spokesman for Ultimate Rugby said the company’s operating losses were “minimal” and were reducing steadily as its revenues increased.

He added that the bulk of Ultimate Rugby’s losses related to interest on a loan given to fund its start-up. He said the loan and the accrued interest may be “forgiven in due course”.

The company received a letter of support from Nolan indicating he would continue to support it

The financial accounts for Ultimate Rugby were prepared on a going concern basis, which assumes the business will continue to operate for the foreseeable future.

However, in the accounts, the company said the validity of its status as a going concern “depends on the retention or replacement of its financing facilities”.

Ultimate Rugby’s accounts said the financing facilities during the year were provided by loans from Innovai Limited, which Nolan controls.

​The company received a letter of support from Nolan indicating he would continue to back it over the year.

Nolan launched app in 2012 to provide rugby fans with news of professional matches worldwide

Based on the support, Nolan concluded Ultimate Rugby had a “reasonable expectation” that it would be able to continue as a going concern. However, the accounts added that these conditions indicated a material uncertainty existed that could cast doubt on the going concern status.

According to Ultimate Rugby’s annual return for 2022, O’Driscoll held shares in the company.

Nolan launched Ultimate Rugby in October 2012 to provide rugby fans with news of professional matches worldwide.

In 2012, O’Driscoll told Silicon Republic the partnership came about when the tech entrepreneur won the Ernst & Young Emerging Entrepreneur of the Year Award in 2003.

Nolan has been a founder of numerous technology companies, including Hostelworld.

Reporting on:independent.ie