Interim Results

Ideal Shopping Direct PLC
8 October 2001


For release at 07h00 on Monday 8 October 2001


IDEAL SHOPPING DIRECT PLC


                         INTERIM FINANCIAL STATEMENTS

                    FOR THE SIX MONTHS ENDED 30 JUNE 2001



CHAIRMAN'S STATEMENT



On 6 March 2001 a fire destroyed the TV studio, offices and warehouse premises
from which the Company traded.  Through the hard work and dedication of a
committed workforce, work began immediately in the lengthy process of
re-establishing the business and though subsequent sales levels were highly
encouraging, inevitably against this background, trading in the first half of
the year was significantly affected.



The results for the period show turnover of £7,028,000 (2000 £6,110,000).  The
operating loss was £3,626,000 (2000 loss £2,783,000) and the loss for the
financial period was £3,813,000 (loss £2,672,000).  Loss per share was 19.3p
(2000 loss 14.5p).



An interim trading statement was released on 14 August 2001.  This stated that
turnover in the first half year for Ideal World, the Company's Home Shopping
Channel, launched in April 2000, showed a considerable increase over the
comparative period despite the impact of the fire, and now accounts for the
majority of the Company's sales.   The sales performance of the Catalogue
business, after allowing for the impact of the fire, was in line with
expectations.  As stated in the Company's annual report sent to shareholders
on 27 July 2001, the Board intends to dispose of the Catalogue business as
soon as practicable and this is being actively progressed.



The preparation of the interim figures has  been dependent on clarifying the
position with insurers over the timing, extent and classification of payments
with respect to assets destroyed in the fire as well as those due in respect
of additional working costs and gross profit shortfall.  Payments received
since 30 June and further details provided by the insurers have enabled the
financial statements to be prepared in line with the most up-to-date available
information. However because of the size of the potential claim, and the
length of time that is likely to be taken in finalising it, the overall
position will only become clearer in due course.



On 8 August 2001 the Company was very pleased to announce the successful
placing, in difficult market conditions, of 9,250,000 new ordinary shares at
40p each, raising cash resources (after expenses) of approximately £3.5
million. Profit and cash forecasts remain, however, critically dependent upon
assumptions regarding the timing and extent of insurance payments and new
sources of funding may be required in the event that insurance payments do not
occur as forecast.   There can be no certainty regarding the availability of
such funds in future. Whilst the Directors are presently uncertain as to the
outcome of these matters, they believe that it is appropriate for the
financial statements to be prepared on the going concern basis.  If the
assumptions outlined above are not achieved, then the consolidated profit and
loss account and balance sheets would be materially different.



As previously advised the Company's Finance Director, Paul Jephcott, is
leaving at the end of October to pursue other interests and on the behalf of
the Board I would like to thank him for the valuable contribution he has made.
The process of recruiting a successor is already well advanced and appropriate 
transitional arrangements have been put in place.



Despite the fire, Ideal World's product sales for the three month period to 30
September 2001 are approximately 70% ahead of the comparable three month
period in 2000, and it is hoped that current month-on-month sales growth will
continue into the important pre-Christmas trading season.  We are continuing
to attract new customers at a very encouraging rate and our existing customers
are showing a high level of propensity to repurchase.  We have already taken
steps to improve our product offering through making further investment in the
key area of buying and management attention is now being directed to a tight
control of operating costs and improvement in gross margins as sales levels
increase.  Following agreement with the insurers on the cost of reinstating
the building and the replacement of the broadcasting equipment, the Company
anticipates the rebuilding of the office and broadcasting studios to commence
shortly.



Despite the problems that the Company has faced and overcome, and the inherent
uncertainties relating to insurance as outlined above, the Board views the
future with cautious optimism.



Paul Wright: Chairman and Chief Executive

8 October 2001



                  NOTES TO THE INTERIM FINANCIAL STATEMENTS

                    FOR THE SIX MONTHS ENDED 30 JUNE 2001



(1)        The interim financial statements have been prepared on the basis of
the accounting policies set out in the Company's 2000 statutory financial
statements.



(2)            Debtors includes an amount of £4.84 million due from insurers
representing the net of: additional working costs incurred as a result of the
fire; estimated shortfall in profits to 30 June 2001; the book value of
written off fixed and current assets (where such amounts are considered
recoverable or where the assets are likely to be replaced directly by the
insurer); amounts received from the insurer by 30 June 2001.  As the final
determination of the insurance claim is unlikely to be concluded until late
2002, then the overall position will become clearer in due course.



(3)        The calculation of the basic loss per share is based on the losses
attributable to ordinary shareholders divided by the weighted average number
of shares in issue during the period.


                Losses attributable to    Weighted average       Basic loss per
                 ordinary shareholders    number of shares      share amount in
                                     £                                    pence
                                     

Six months                 (3,813,000)          19,775,570              (19.3p)
ended 30 June
2001

Six months                 (2,672,000)          18,469,437              (14.5p)
ended 30 June
2000

Year ended 31              (5,824,000)          19,133,113              (30.4p)
December 2000


During the periods ended 30 June 2001 and 30 June 2000, there was no
anti-dilutive effect of securities on the loss per share calculation.  During
the year ended 31 December 2000, options existed which had the anti-dilutive
effect of increasing the weighted average number of shares by 23,567 to
19,156,680.  The diluted loss per share for the year ended 31 December 2000
was 30.4p.



(4)       The financial information set out above does not constitute the
Company's financial statements for the year ended 31 December 2000.  The
statutory financial statements for the year ended 31 December 2000 have been
delivered to the Registrar of Companies and the auditors report on those
financial statements was unqualified (although it did contain an emphasis of
matter regarding going concern issues) and did not contain statements under
Section 237(2 or 3) of the Companies Act 1985.  The financial statements for
the six months ended 30 June 2001 and 30 June 2000 are unaudited.



(5)        This statement will be sent to all shareholders and can be obtained
from the Company's registered office: Ideal Home House, Newark Road,
Peterborough,

PE1 5WG



                      CONSOLIDATED CASH FLOW STATEMENTS



Six months to 30 June 2001:


                               Six months to     Six months to       Year to 31
                                30 June 2001      30 June 2000    December 2000
                                       £'000             £'000            £'000
                                 (Unaudited)       (Unaudited)      (Unaudited)

Net cash outflow from                (3,282)             (290)
operating activities
                                                                        (1,391)
Returns on investments and
servicing of finance
Net interest paid                      (163)              (25)            (190)

Capital expenditure
Purchase of tangible fixed             (485)           (3,412)          (1,803)
assets
Disposal of tangible fixed             1,750                 -                2
assets
                                       1,265           (3,412)          (1,801)

Financing
Repayment of borrowings                    -                 -            (128)
Receipts from borrowings                   -             2,716              171
Net proceeds from issue of                 -             6,919            6,906
shares
Capital element of finance             (117)             (478)            (591)
lease payments
                                       (117)             9,157            6,358

(Decrease)/Increase in cash          (2,297)             5,430            2,976



                    CONSOLIDATED PROFIT AND LOSS ACCOUNTS



Six months to 30 June 2001:


                           Six months to 30   Six months to 30       Year to 31
                                  June 2001          June 2000    December 2000
                                      £'000              £'000            £'000
                                (Unaudited)        (Unaudited)      (Unaudited)

Turnover                              7,028              6,110           16,355

Operating loss                      (3,626)            (2,783)          (5,780)
Net interest payable                  (187)               (34)            (190)

Loss on ordinary                    (3,813)            (2,817)          (5,970)
activities before taxation
Taxation                                  -                145              146

Loss for the financial              (3,813)            (2,672)          (5,824)
period
Dividends                                 -                  -                -
Retained loss                       (3,813)            (2,672)          (5,824)

Loss per share:
Basic                               (19.3p)            (14.5p)          (30.4p)
Fully diluted                       (19.3p)            (14.5p)          (30.4p)



There were no recognised gains or losses other than the loss of the six months
ended 30 June 2001.

                         CONSOLIDATED BALANCE SHEETS

                                      30 June 2001   30 June 2000   31 Dec 2000
                                             £'000          £'000         £'000
                                       (Unaudited)    (Unaudited)   (Unaudited)

Fixed assets
Intangible assets                                -              3             -
Tangible assets                              1,527          6,523         7,086
                                             1,527          6,526         7,086
Current assets
Stock                                          423          1,494         1,981
Debtors                                      5,228          1,338           525
Cash                                         1,554          6,328         3,851
                                             7,205          9,160         6,357
Creditors: amounts falling due within      (6,576)        (6,311)       (7,287)
one year

Net current assets /liabilities)               629          2,849         (930)

Total assets less current liabilities        2,156          9,375         6,156
Creditors: amounts falling due after       (3,694)        (3,955)       (3,811)
more than one year
Provision for liabilities and charges        (120)          (100)         (190)

Net assets                                 (1,658)          5,320         2,155

Capital and reserves
Called up share capital                        598            593           598
Share premium account                        6,758          6,776         6,758
Profit and loss account                    (9,014)        (2,049)       (5,201)
Shareholders funds                         (1,658)          5,320         2,155