Elton's £27m in the red

He is famous for his lavish expenditure. And just a few days ago he was lauded for his generosity to charity.

But his latest company accounts show that Sir Elton John may need to curb his considerable outgoings.

The figures reveal that the star's company has an overdraft of nearly £27million. The 2004 accounts for William A Bong, which is the parent company of Sir Elton's businesses, showed a fall in turnover of more than £5million.

But the biggest change was in the company's overdraft which rose from £14,880,265 to £26,818,728 in the space of 12 months.

Pop music accountant Cliff Dane said he believed that the figures meant Sir Elton, 58, would have to carry on working for some time if the company was to avoid being in trouble.

'Everything is big with Elton John,' he said. 'He makes a lot of money and he needs to keep on making it. He is borrowing more than he is earning for the company at the moment and that is why it has the overdraft. He has taken a lot of money out of the company and if he suddenly stopped working he could be in trouble.'

Sir Elton, a thrower of extravagant parties, once admitted saving was not his strong point. 'I have a flair for writing songs but I don't have a flair for business,' he said. 'I don't have any people to leave money to. I am a single man. I like to spend money.'

Last year he went out wearing £ 5million of diamonds and he once admitted spending nearly £300,000 on flowers. At the weekend he was named at the country's biggest giver to charity, with £22million of his personal wealth going to good causes last year.

Despite a hugely prolific career, he has run into financial difficulties in the past. At a court case in 2000 it emerged that aides were so worried about his spending that they tried to limit it to £200,000 a quarter.

Sir Elton has continued to draw a large wage despite the huge over-draft. His declared income from the company was £5,333,471 - double what he took the year before. It is also likely that he is taking a large slice of the £18million William A Bong paid its 20 employees. The latest accounts could explain the star selling off his management company, Twenty-First Artists, last week for £16million.