Red Letter Days announces its results for the year to September 2007
The company was incorporated on 7th June 2005 and commenced trading on 1st August 2005 when it acquired the brand and goodwill of Red Letter Days from the administrators. Following the acquisition the Directors made the decision to honour an estimated 135,000 vouchers, to a value of approximately £17m, all of which had been sold by, and monies received by, the previous company. The cost of providing the experiences relating to these vouchers is the major reason for the losses reported to date. The Directors regard the losses as a necessary investment in the interest of the long term development of the Red Letter Days brand.
During the twelve month period up to 30th September 2007 the shareholders and directors continued to invest substantial time, effort and money in the company and as a result the company has continued to grow and the losses have reduced significantly, from an initial loss of £7.2m in 2006 to £2.8m in 2007. The company is now far more efficient with the majority of its sales and almost 50% of bookings taking place online.
The Directors are pleased with the performance of the company during this period, which is trading in line with expectations and this provides a strong platform for successful future expansion. Turnover in the key Christmas period of 2007 rose by over 50% on the previous year and 46% in the nine months to June 2008, further reflecting the continued growth and strength of the Red Letter Days brand.
Exciting key developments in 2008 include the expansion of the Red Letter Days corporate offering, providing a fully rounded service from bespoke events and overseas incentives to traditional and elegant gifts. Team building and incentivising staff has never been more integral than during this current economic climate and the extensive service that is now being offered has been very well received.
Red Letter Days prides itself on being a pioneer in its business sector, and has now commenced building the first global consortium of experience businesses targeting both the corporate and consumer sectors. Now known as The Global Experience Alliance it boasts among its members Red Balloon Days in Australia and Elation in Italy*. All the Alliance members are recognised in their respective countries for providing an outstanding service. This Alliance looks to provide its customers with the opportunity to enjoy impeccable service and once in a lifetime experiences wherever they may be in the world.
The Directors would like to thank all of our customers, suppliers, partners and staff for their continued support through what is an exciting period of growth for the Red Letter Days company and remain fully committed to providing the support necessary for the business to achieve its full potential.
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*The Global Experience Alliance at time includes Germany, Italy, Spain, New Zealand, Australia and North America. Companies across the rest of Europe are predicted to have joined the Alliance by the end of the year.
Press Contact: Bill Alexander
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