Red Letter Days is back in the black

Red Letter Days, the adventure gifts company founded by Dragons’ Den judge Rachel Elnaugh, has been on a rocky road. But now it is back in the black.

Red Letter Days, the adventure gifts company founded by Dragons’ Den judge Rachel Elnaugh, has been on a rocky road. But now it is back in the black.

The company which sells gifts – such as Ferrari driving, watersports and sightseeing – was sold by Elnaugh to fellow Dragons’ Den panellists Jones and Paphitis in 2005 after going into administration with debts of around £12 million.

At the time the company, which was launched by Elnaugh in 1989, was being bombarded with angry calls from customers unsure if their vouchers would be honoured and from companies providing the services anxious to receive their cash.

Jones and Paphitis have announced Red Letter Days, which made a loss of more than £500,000 in 2009, made a profit of more than £350,000 last year.

Overall sales grew by 19 per cent to £12.2m in 2010, with an increase in the second half of 27 per cent. They say the company’s growth during 2010 is a result of strong sales and technology developments, with more than 80 per cent of bookings now taking place online.

Paphitis says: ‘We bought Red Letter Days five years ago, firm in the knowledge that it would once again become a profitable business. We have seen this happen in 2010 as a result of a fantastic team of people whose hard work, creativity and passion for the brand has translated into a healthy profit.’

Jones adds: ‘Red Letter Days continues to reinvent the experiences industry and with the recent expansion into the entire leisure sector through the launch of a new lifestyle voucher, we expect the company to continue its growth in terms of profitability and increased market share.’