Richer Sounds saw profits growth ahead of handing control to staff

Electronics retailer Richer Sounds defied High Street gloom to notch up sales and profits growth ahead of staff being handed a majority stake in the business this year, new accounts show.

The chain, which was founded in London Bridge in 1978 and today has over 50 shops, said turnover rose to £171.2 million in the 53 weeks to May 4. That was up from £157.5 million in the 52 weeks to April 28.

Pre-tax profits increased 18.6% to £8.3 million.

The results cover the 12 months period just before Richer Sounds’ founder Julian Richer gave 520 staff over £3.5 million in cash bonuses to share and transferred 60% of his shares into an employee ownership trust.

Founder Richer, who turned 60 in March, said at the time he wanted to create an employee-owned company similar to the John Lewis Partnership.

He said in May: “I felt the time was right, rather than leaving it until I’m not around, to ensure that the transition goes smoothly and I can be part of it.”