Sheila Roche is to leave Principle Management, the company responsible for the management of U2. She is to step down from the role of Managing Director, which she has held for the past number of years, in April of 2004.

The move is likely to take the industry by surprise, given the duration of Roche's involvement with the biggest band ever to emerge from Ireland: she has been with Principle, the company founded by Paul McGuinness to handle the management of U2, for the past 18 years. As Managing Director, she has latterly had the responsibility for the day-to-day management of U2 and P.J.Harvey.

The announcement was made by Paul McGuinness, who remains at the heart of what is one of the most successful management companies in rock'n'roll.

"After 17 years of a great working relationship at Principle Management in Dublin and New York, I have reluctantly accepted Sheila Roche’s resignation as Managing Director of Principle Management," McGuinness told Hot Press. "Sheila will stay until April before setting out on what she is describing as her gap year. The band and Polly (Harvey) join with me in wishing Sheila all the best in the future."

There is no doubt that Roche, who has been close to the members of the band over a very long period of time, will be missed by U2, and indeed by Polly Harvey, for whom she was the main point of contact at Principle, even before she stepped up to the role of Managing Director. However, a new appointment has already been made, with Steve Matthews leaving Island Records – where he has been Director of Island International Group – to join Principle.

"I am delighted to announce that Steve Matthews is joining the company with effect from 5 January 2004," Paul McGuinness added. "He will be taking over day to day responsibility for the management of U2 and Polly Harvey from Sheila."

Mathews has already enjoyed an intense working relationship with U2, and clearly knows the inner workings of the label that handles the band's recording fortunes – potentially a major asset with a new U2 album scheduled for the spring of next year.

"Steve will bring a new dimension to the company," McGuinness said. "We have worked very closely with him over the last eight years, so the transition from record company to artist management will be an easy move for Steve.”

“I have had such a great time over the years working with Paul, U2 and PJ Harvey," Sheila Roche said. "This feels more like graduation than resignation. I wish Steve all the best. He’s been an integral part of our campaigns in recent years. He’ll be great in this job.”

Matthews will start at what is certain to be a crucial time for the company and their artists. 2004 is shaping up to be a very busy year!

"Having had the pleasure and privilege of working with Sheila Roche since 1995 on campaigns for U2 and PJ Harvey," Steve Matthews said, "and having witnessed first-hand the amazing job she does at Principle Management, I feel very honoured and slightly daunted at the prospect of following in her footsteps.

"With new studio albums from U2 and PJ Harvey set for release next year," he added, "I am looking forward to working even more closely with these great artists, at an incredibly exciting time in their career – while being able to continue working very closely with the world’s most successful record company."