Luxury fashion brand Burberry has refused to confirm reports that Romeo Beckham, 12-year-old son of David and Victoria Beckham was paid £45,000 for its Christmas advert as profits and shares dropped in the first half.

In the six months to September 30th, Burberry reported a 12% drop in pre-tax profits from £159 million to £142 million as currency woes hit its financials. Currency took £31 million from its profit and £75 million from sales. The results come amidst an overall softening of the luxury sector thanks to weak demand in Asia, the ongoing political uncertainties in Russia and the falling oil price hitting sales in the Middle East.

Rumour has it that Romeo Beckham made £45,000 for being the face of Burberry’s Christmas campaign. The deal, which works out at £93.75 a minute for an eight-hour day, was negotiated by former Spice Girls manager, Simon Fuller. But Carol Fairweather, Burberry's finance director and the Burberry team wouldn’t comment on his pay, and avoided questions from journalists.

Carol Fairweather, finance director, said she was “very happy” with the marketing department’s decision to hire Romeo, and said there had been almost 5m hits on You Tube.