REGISTERED NUMBER: 06805107 (England and Wales)

Strategic Report, Report of the Director and

Audited Financial Statements for the Year Ended 31 January 2026

for

Sonic Megastore Limited

Page

Company Information

1

Strategic Report

2

Report of the Director

3

Report of the Independent Auditors

4

Statement of Comprehensive Income

7

Balance Sheet

8

Statement of Changes in Equity

9

Notes to the Financial Statements

10

DIRECTOR:

P Showan

REGISTERED OFFICE:

Sonic Megastore

Ingleby Road

Bradford

West Yorkshire

BD8 9AN

REGISTERED NUMBER:

06805107 (England and Wales)

AUDITORS:

KJA Kilner Johnson Ltd (Statutory Auditors)

Woodland House

Woodland Park

Bradford Road

Cleckheaton

BD19 6BW

The director presents his strategic report for the year ended 31 January 2026.

REVIEW OF BUSINESS

The results of the company as set out on page 9 show a profit on ordinary activities before tax of £560,669 (2025: £203,197).

The Company's statement of financial position set out on page 10, remains strong with positive cash reserves.

Higher inflation, interest rates and fuel costs during the year have continued to create difficult economic conditions. This has negatively impacted consumers, resulting in a decrease in turnover of 0.2% during the year. Post year end the company has seen some increased consumer confidence due to the reduction in interest rates and inflation which is expected to continue for the oncoming year, however increased wages and national insurance costs may offset any expected increases in profitability.

PRINCIPAL RISKS AND UNCERTAINTIES

Financial, credit, liquidity and cashflow risk are considered low. Working capital is managed and constantly reviewed on a weekly basis. The company maintains a healthy balance sheet which remains strong due to continued investment in the Company's assets that allow the business to run efficiently.

BUSINESS ENVIRONMENT

Since the year end, the company has seen positive results and anticipates similar trading levels in the oncoming year.

STRATEGY

The business strategy for the oncoming year sees the company continuing to concentrate on delivering profitable and sustainable growth through investments in key personnel, sales and marketing and improving efficiencies in distribution and returns management.

KEY PERFORMANCE INDICATORS

The board monitors the progress of the company by reference to the following KPI's :

2026

2025

£

£

Turnover

13,152,537

13,176,723

Gross profit percentage

34.4%

30.5%

Operating profit percentage

4.3%

1.5%

The main non-financial KPI is customer reviews which the company monitor online.

FUTURE DEVELOPMENTS

The company feels that it is well placed to continue to grow its customer base and profitability.

ON BEHALF OF THE BOARD:

Parshotam Showan - Director

29 October 2026

The director presents his report with the financial statements of the company for the year ended 31 January 2026.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of the supply of domestic electrical appliances and consumer electronics both regionally and nationwide.

DIVIDENDS

The total distribution of dividends for the year ended 31 January 2026 was £568,402 (2025 - nil).

DIRECTOR

P Showan held office during the whole of the period from 1 February 2025 to the date of this report.

DURING THE YEAR

During the year, the shares in Sonic Megastore Limited were acquired by Sonic Direct Holdings Limited on 24 March 2025.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES

The director is responsible for preparing the Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the director is required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The director is responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable him to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, KJA Kilner Johnson Ltd (Statutory Auditors), will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Parshotam Showan - Director

29 October 2026

Opinion

We have audited the financial statements of Sonic Megastore Limited (the 'company') for the year ended 31 January 2026 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 January 2026 and of its profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report.

Other information

The director is responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Director, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Director have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Director.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

-	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-	the financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of director's remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of director

As explained more fully in the Statement of Director's Responsibilities set out on page three, the director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the director determines necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the director is responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

While planning our audit, we have made enquiries of management and those charged with governance around any actual or potential litigation and claims against the company for non-compliance with specific laws and regulations. The same has been done in respect of any instances of fraud or irregularities. The responses received have been communicated with the engagement team at the planning stage.

We have not been informed of any specific laws or regulatory related issues that could materially impact the financial statements in addition to this, there has been no suspected fraud or irregularities reported to us.

While planning our audit the engagement partner selected appropriately trained staff to be engaged in the audit and the team are allocated based on their competence and capabilities.

The audit work undertaken is a substantive work based audit approach, reviewing to source documentation where appropriate and includes a review and walkthrough of the systems which management have put in place. These tests are directional. Therefore, they are designed in away to maximise audit effectiveness and the possible identification of any material fraud, irregularities, or instances of systems and procedure breaches. Our testing did not identify any issues that requires any additional reporting.

These tests and other areas of our audit work are designed to enhance our ability to detect cases of material fraud and certain irregularities. It should be noted that our audit is carried out using a material based approach and therefore does not test every transaction, as such it would not detect all instances of irregularities and specifically fraud which is inherently more difficult to detect.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Raza Effendi MBA FCA (Senior Statutory Auditor)

for and on behalf of KJA Kilner Johnson Ltd (Statutory Auditors)

Woodland House

Woodland Park

Bradford Road

Cleckheaton

BD19 6BW

29 October 2026

TURNOVER

3

13,152,537

13,176,723

Cost of sales

8,632,182

9,159,125

GROSS PROFIT

4,520,355

4,017,598

Administrative expenses

4,051,231

3,860,323

469,124

157,275

Other operating income

91,545

45,918

OPERATING PROFIT

5

560,669

203,193

Interest receivable and similar income

-

4

560,669

203,197

Interest payable and similar expenses

6

10,409

19,237

PROFIT BEFORE TAXATION

550,260

183,960

Tax on profit

7

131,860

50,084

PROFIT FOR THE FINANCIAL YEAR

418,400

133,876

OTHER COMPREHENSIVE INCOME

Fair value movement

27,456

18,258

Income tax relating to other comprehensive income

(6,864

)

(4,565

)

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

20,592

13,693

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

438,992

147,569

FIXED ASSETS

Tangible assets

9

262,894

298,476

Investments

10

597,106

569,651

860,000

868,127

CURRENT ASSETS

Stocks

11

4,534,628

4,673,874

Debtors

12

597,299

776,340

Cash at bank and in hand

2,438,355

1,864,183

7,570,282

7,314,397

CREDITORS

Amounts falling due within one year

13

2,601,463

2,189,274

NET CURRENT ASSETS

4,968,819

5,125,123

TOTAL ASSETS LESS CURRENT LIABILITIES

5,828,819

5,993,250

CREDITORS

Amounts falling due after more than one year

14

(119,976

)

(152,965

)

PROVISIONS FOR LIABILITIES

18

(213,979

)

(216,011

)

NET ASSETS

5,494,864

5,624,274

CAPITAL AND RESERVES

Called up share capital

19

268,000

268,000

Capital redemption reserve

20

132,000

132,000

Fair value reserve

20

446,787

426,195

Retained earnings

20

4,648,077

4,798,079

SHAREHOLDERS' FUNDS

5,494,864

5,624,274

The financial statements were approved by the director and authorised for issue on 29 October 2026 and were signed by:

Parshotam Showan - Director

Called up

Capital

Fair

share

Retained

redemption

value

Total

capital

earnings

reserve

reserve

equity

£

£

£

£

£

Balance at 1 February 2024

268,000

4,664,203

132,000

412,502

5,476,705

Changes in equity

Total comprehensive income

-

133,876

-

13,693

147,569

Balance at 31 January 2025

268,000

4,798,079

132,000

426,195

5,624,274

Changes in equity

Dividends

-

(568,402

)

-

-

(568,402

)

Total comprehensive income

-

418,400

-

20,592

438,992

Balance at 31 January 2026

268,000

4,648,077

132,000

446,787

5,494,864

1.	STATUTORY INFORMATION

Sonic Megastore Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

•

the requirements of Section 7 Statement of Cash Flows;

•

the requirement of paragraph 3.17(d);

•

the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);

•

the requirements of paragraphs 12.26, 12.27, 12.29(a), 12.29(b) and 12.29A;

•

the requirements of paragraphs 26.18(b), 26.19 to 26.21 and 26.23;

•

the requirements of paragraphs 29.28(b) and 29.29;

•

the requirement of paragraph 33.7;

•

the requirements of paragraph 24(b) of IFRS 6.

Significant judgements and estimates

In the application of the company's accounting policies, which are described in note 2, the directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised id the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

Critical accounting judgements and key sources of estimation uncertainty

The preparation of the accounts requires management to make judgements, estimates and assumptions that affects the amount reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Plant and machinery

-

20% reducing balance

Motor vehicles

-

20% reducing balance

Computer equipment

-

20% reducing balance

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Unlisted investments

Unlisted investments are measured at fair value. The annual fair value adjustment is recognised in the profit and loss account.

3.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by class of business is given below:

2026

2025

£

£

Sale of goods

13,139,575

13,156,266

Commissions

12,962

20,457

13,152,537

13,176,723

4.	EMPLOYEES AND DIRECTORS

2026

2025

£

£

Wages and salaries

1,733,761

1,824,678

Social security costs

193,283

177,252

Other pension costs

131,393

81,030

2,058,437

2,082,960

The average number of employees during the year was as follows:

2026

2025

Total

52

58

2026

2025

£

£

Director's remuneration

69,533

190,833

Director's pension contributions to money purchase schemes

100,000

-

5.	OPERATING PROFIT

The operating profit is stated after charging:

2026

2025

£

£

Hire of plant and machinery

16,361

24,354

Depreciation - owned assets

15,163

13,717

Depreciation - assets on hire purchase contracts

50,361

54,613

Loss on disposal of fixed assets

10,751

20,031

Auditors' remuneration

11,500

11,672

Other non- audit services

4,570

6,020

Rent

566,537

409,937

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

2026

2025

£

£

Bank loan interest

250

6,547

HMRC charges and interest

-

2,687

Hire purchase

10,159

10,003

10,409

19,237

7.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

2026

2025

£

£

Current tax:

UK corporation tax

144,558

65,062

Prior year provision movement

(3,802

)

-

Total current tax

140,756

65,062

Deferred tax

(8,896

)

(14,978

)

Tax on profit

131,860

50,084

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2026

2025

£

£

Profit before tax

550,260

183,960

Profit multiplied by the standard rate of corporation tax in the UK of 25% (2025 - 25%)

137,565

45,990

Effects of:

Expenses not deductible for tax purposes

(2,344

)

4,094

Adjustments to tax charge in respect of previous periods

(673

)

-

Group relief

(2,688

)

-

Total tax charge

131,860

50,084

Tax effects relating to effects of other comprehensive income

2026

Gross

Tax

Net

£

£

£

Fair value movement

27,456

(6,864

)

20,592

2025

Gross

Tax

Net

£

£

£

Fair value movement of investments

18,258

(4,565

)

13,693

8.

DIVIDENDS

2026

2025

£

£

Allotted,called up and fully paid: shares of £1 each

Final

568,402

-

9.	TANGIBLE FIXED ASSETS

Plant and

Motor

Computer

machinery

vehicles

equipment

Totals

£

£

£

£

COST

At 1 February 2025

156,606

356,159

14,661

527,426

Additions

-

55,318

-

55,318

Disposals

(146

)

(83,201

)

-

(83,347

)

At 31 January 2026

156,460

328,276

14,661

499,397

DEPRECIATION

At 1 February 2025

102,561

117,839

8,550

228,950

Charge for year

11,901

52,401

1,222

65,524

Eliminated on disposal

(147

)

(57,824

)

-

(57,971

)

At 31 January 2026

114,315

112,416

9,772

236,503

NET BOOK VALUE

At 31 January 2026

42,145

215,860

4,889

262,894

At 31 January 2025

54,045

238,320

6,111

298,476

The Net Book Value of assets held under Hire Purchase Agreements was £210,663 (2025: £218,454). The depreciation charge for the year on assets held under Hire Purchase Agreements was £50,361 (2025: £54,614).

10.	FIXED ASSET INVESTMENTS

Unlisted

investments

£

COST

At 1 February 2025

569,651

Additions

27,455

At 31 January 2026

597,106

NET BOOK VALUE

At 31 January 2026

597,106

At 31 January 2025

569,651

11.

STOCKS

2026

2025

£

£

Finished goods

4,534,628

4,673,874

12.

DEBTORS

2026

2025

£

£

Amounts falling due within one year:

Trade debtors

148,758

282,807

Other debtors

-

53,300

Prepayments

48,541

40,233

197,299

376,340

Amounts falling due after more than one year:

Amounts owed by associates

400,000

400,000

Aggregate amounts

597,299

776,340

13.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2026

2025

£

£

Bank loans and overdrafts (see note 15)

-

29,630

Hire purchase contracts (see note 16)

65,478

51,039

Trade creditors

1,592,134

1,592,460

Tax

144,558

69,040

Social security and other taxes

140,086

88,505

VAT

319,028

110,984

Other creditors

6,301

6,280

Wages creditor

122,144

120,471

Accrued expenses

211,734

120,865

2,601,463

2,189,274

14.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2026

2025

£

£

Hire purchase contracts (see note 16)

119,976

152,965

15.

LOANS

An analysis of the maturity of loans is given below:

2026

2025

£

£

Amounts falling due within one year or on demand:

Bank loans

-

29,630

Loans are repayable in equal monthly instalment over the borrowing term at an interest rate of 2.5%.