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Richer Sounds suffers fifth consecutive fall in annual profits

Richer Sounds

Richer Sounds is the latest electronics retailer to be hit by the economic downturn, posting its fifth consecutive drop in profits for the year to April 2011.

Founder and owner Julian Richer has again passed on paying himself a dividend.

Accounts filed at Companies House, for the year ending April 2011, show that pre-tax profits at Richer Sounds fell from £2.79m to £2.63m, on turnover down 5%. Profit per employee has now fallen from £11,481 two years ago to £7,737.

Richer Sounds is not the only consumer electronics chain feeling the pinch. Carphone Warehouse is expected to pull the plug on its 11 joint-venture UK Best Buy stores when it releases its half year results this week.

Best Buy has racked up losses of £83m, and is expected to announce a further half-year loss of £35m, according to The Daily Telegraph.

A spokesman for Best Buy Europe told The Telegraph: "We always said we would open 11 stores and then conduct a strategy review. We are now conducting our evaluation with our partners and will provide an update in due course.”

Best Buy has been considering scaling back its operations in the UK for some time, as we reported back in June.

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Andy Clough

Andy is Global Brand Director of What Hi-Fi? and has been a technology journalist for 30 years. During that time he has covered everything from VHS and Betamax, MiniDisc and DCC to CDi, Laserdisc and 3D TV, and any number of other formats that have come and gone. He loves nothing better than a good old format war. Andy edited several hi-fi and home cinema magazines before relaunching whathifi.com in 2008 and helping turn it into the global success it is today. When not listening to music or watching TV, he spends far too much of his time reading about cars he can't afford to buy.