Dragon’s Den star Sara Davies’ firm is £1million in the red as entrepreneur continues to feel the effects of Covid
She grills up and coming business owners on the financials of their companies every week on BBC’s Dragon’s Den.
But all is not well at Sara Davies’ own company Crafter’s Companion which is more than £1million in the red.
In notes to the accounts for the year to March 2022, the directors describe the period as ‘challenging’, noting that one major customer went into administration and that the effects of Covid continue to affect the business.
High freight costs and tariffs on Chinese imports have also had an impact.
The company’s auditors say: ‘The group and the company has suffered from reduced sales orders post year end and is in breach of banking covenants.
Financials: All is not well at Sara Davies’ company Crafter’s Companion which is more than £1million in the red
Difficulties: In notes to the accounts for the year to March 2022, the directors describe the period as ‘challenging’, noting that one major customer went into administration
‘As stated … these events or conditions indicate that material uncertainty exists that may cast doubt on the group and company’s ability to continue as a going concern.’
A loan was taken out to prop up Crafter’s Companion in July 2023. Accounts show a loss for the year of £1.27 million, compared with the previous year’s £231,000 profit.
Sara joined Dragons’ Den in 2019, when she was only 35, becoming the youngest dragon.
Crafter’s Companion was founded when she was a university student and spotted a gap in the market for an envelope-making tool which could be used by card makers.
She designed the gadget and had a local joiner make them from MDF. The company now employs more than 190 staff.
Davies has won more than 25 business awards and in 2016 was recognised for services to the economy with an MBE.
She appeared on Strictly Come Dancing in 2021 and this year was a judge on The Ultimate Wedding Planner for the BBC.
A spokesperson said: ‘Whilst these are incredibly challenging trading times, there is significant confidence in Crafter’s Companion; hence the financial investment. This will support the company’s next stage of growth without passing any cost on to the consumer.’
The company’s auditors say: ‘The group and the company has suffered from reduced sales orders post year end and is in breach of banking covenants’
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