Sonic Megastore Ltd is a multichannel electrical retailing business which was founded in 2009. The Company supplies household electrical appliances and consumer electronics. It operates from a 30,000 sqft site in Bradford which is now the UK’s largest independent electrical store.
HCA’s business planning division worked very closely with Sonic’s Board to compile a business plan and produce key financial forecasts, including balance sheet, P&L account and cash flows. HCA’s thorough analysis of all business processes and market conditions greatly assisted in the production of sound, reliable financials; crucially, this process helped establish new bank account and lending facilities.
Since incorporation, Sonic has continued to perform in-line with expectations and, more recently has exceeded sales and profit targets. By September 2010, Sonic had joined a national buying group, enabling it to source fast-moving, high-demand lines and ultimately pass on the benefit of being a member of a collective purchasing organisation with a buying power in excess of £350m. Sonic also achieved numerous accreditations, including “Investors in People”, and was shortlisted for Hi-Fi Retailer of the Year by ERT (the UK’s leading electrical retailing magazine for independent dealers) and Business of the Year 2011 by ABDN.
HCA’s accounts division produces regular management accounts as well as year-end accounts. They have assisted with the implementation of in-house Sage Accounts systems and work very closely with Sonic’s senior management team, helping to ensure that a first class accounting service is delivered at all times.
Again, as an indication of Sonic’s success, by January 2011 the business had established key partnerships for the development of its B2B operations and had also expanded its consumer business by launching its website, SonicDirect.co.uk. A call centre has also been set-up to drive and manage mail-order sales and to provide customer service support. It’s fleet of vehicles has doubled and surplus space has been redeveloped in order to meet the company’s growing logistical and warehousing requirements.
Crucially, the business has exceeded its sales and profit targets. Up to 30 April 2011, the ROE is 48% and the long-term debt within the business has been reduced to nil. The business has been able to work within its resources and has not needed to utilise agreed bank overdraft facilities.
HCA continues to deliver the highest service standards and has recently taken on Sonic’s payroll management in addition to providing ongoing management accounts and year-end accounts.
