Interim Results

Ideal Shopping Direct PLC 13 September 2002 IDEAL SHOPPING DIRECT PLC CHAIRMAN'S STATEMENT The results for the first six months of this year are encouraging with turnover up 67% at £11,762,000 (2001 £7,028,000). Profit before taxation, which is stated after a Business Interruption claim net of irrecoverable fire costs of £1,226,000, was £284,000 compared to a loss in 2001 of £3,813,000. Earnings per share are 1.0p compared to a loss in the corresponding period of 19.3p. Gross profit margins and operating costs remain under constant review as the company continues to expand its sales base. During the first half of 2002 our TV Shopping Channel business recovered strongly despite the difficult physical conditions in which we continued to operate. In addition I am pleased to report we were also able to re-establish and recommence trading our mail order catalogues in order to maximise shareholder value. Ideal Shopping Direct Plc has entered the second half of the 2002 trading year without being dependent upon its insurers. The insurance claims relate to the fire on 6th March 2001, which devastated the business. As previously announced the Business Interruption element of our claim, against which we have already received interim payments, was settled in a final one off payment of £5.25 million in respect of the restitution of our business after the fire and loss of profits. Depending on the costs that are still to be incurred in relation to restoring the business to its pre-fire state, a further proportion of this sum will be recognised in the Company's profit and loss account for the six months ended 31 December 2002. In addition we have now settled in full with our insurers the claim for the loss of our original premises and all essential leased assets. The only remaining aspect of our claim is for replacement of both computers and contents and these claims are being submitted on an ad hoc basis and are being met by insurers as the assets are replaced. We anticipate all assets to be re-instated, will coincide with the completion of the move into our new premises. After eighteen months of life in our 'cabin city' our transfer to the new building is nearly complete. The massive challenges of the move and the attendant disruption have adversely impacted, on a temporary basis, the quality of our service to our customers causing deterioration below our high standards. However, I am pleased to confirm that the situation is improving daily as our operational efficiency is re-established. Despite the considerable and varying frustrations and challenges we have experienced and continue to face on a day to day basis, we are attracting new customers who, having received their first orders, are proving to be loyal with the propensity to repeat purchase being encouragingly high. In addition during August we have enhanced our sales opportunities as a result of extending our transmission to the estimated 1.1 million digital cable customers of NTL. Trade in the first two months of the second half remain encouraging, the second half, the months of October and November remain critical pre Christmas sales periods. I am pleased with our performance in what has been an extremely difficult operational environment. I remain confident that the opportunity for continued growth remains undiminished. IDEAL SHOPPING DIRECT PLC CONSOLIDATED PROFIT AND LOSS ACCOUNTS Six months to 30 June Six months to 30 June Year to 31 December 2002 2001 2001 £'000 £'000 £'000 (Unaudited) (Unaudited) (Audited) Turnover 11,762 7,028 17,651 Operating profit/(loss) 419 (3,626) (3,244) Net interest payable (135) (187) (340) Profit/(loss) on ordinary activities before taxation 284 (3,813) (3,584) Taxation - - - Profit/(loss) for the financial period 284 (3,813) (3,584) Dividends - - - Retained profit/(loss) 284 (3,813) (3,584) Basic profit/(loss) per share 1.0p (19.3p) (15.3p) Diluted profit/(loss) per share 1.0p (19.3p) (15.3p) There were no recognised gains or losses other than the profit of the six months ended 30 June 2002 IDEAL SHOPPING DIRECT PLC CONSOLIDATED BALANCE SHEETS 30 June 2002 30 June 2001 31 December 2001 £'000 £'000 £'000 (Unaudited) (Unaudited) (Audited) Fixed assets Tangible assets 6,413 1,527 3,209 6,413 1,527 3,209 Current assets Stock 2,230 423 1,766 Debtors 653 5,228 4,706 Cash 7,484 1,554 3,745 10,367 7,205 10,217 Creditors: amounts falling due within one year (11,242) (6,576) (7,929) Net current assets/(liabilities) (875) 629 2,288 Total assets less current liabilities 5,538 2,156 5,497 Creditors: amounts falling due after more than one year (2,876) (3,694) (3,132) Provision for liabilities and charges (304) (120) (300) Net (liabilities)/assets 2,358 (1,658) 2,065 Capital and reserves Called up share capital 875 598 875 Share premium account 9,975 6,758 9,975 Profit and loss account (8,492) (9,014) (8,785) Shareholders funds 2,358 (1,658) 2,065 IDEAL SHOPPING DIRECT PLC CONSOLIDATED CASH FLOW STATEMENTS Six months to 30 June Six months to 30 June Year to 31 2002 2001 December 2001 £'000 £'000 £'000 (Unaudited) (Unaudited) (Audited) Net cash inflow/(outflow) from operating activities 7,673 (3,282) (3,296) Returns on investments and servicing of finance Interest received - - 106 Interest paid (136) (163) (446) Net cash outflow from returns on investments and servicing of finance (136) (163) (340) Capital expenditure Purchase of tangible fixed assets (3,541) (485) (1,187) Disposal of tangible fixed assets - 1,750 - Insurance proceeds in respect of tangible fixed assets - - 1,825 Net cash inflow/(outflow) from capital expenditure (3,541) 1265 638 Financing Issue of shares - - 3,700 Expenses paid in connection with share issues - - (206) Capital element of finance lease and loan payments (257) (117) (602) Net cash inflow from financing (257) (117) 2,892 Increase/(Decrease) in cash 3,739 (2,297) (106) IDEAL SHOPPING DIRECT PLC NOTES TO THE INTERIM FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2002 1 The interim financial information has been prepared on the basis of the accounting policies set out in the company's 2001 statutory financial statements. The treatment of insurance proceeds is further explained in note 2. 2 The treatment of insurance claims and proceeds in the financial statements, which is consistent with the treatment in the company's 2001 financial statements, is as follows: i Amounts received (or receivable) in respect of shortfall of profits for the period are included within other operating income. To the extent that these amounts have been received at 30 June 2002, but relate to the period after that date, the amounts have been included as creditors at 30 June 2002. The operating profit/(loss) for the period is stated after the following amounts in respect of insurance claims: Six months to Six months to Year to 31 December 2001 30 June 2002 30 June 2001 £'000 £'000 £'000 Audited Unaudited Unaudited Business interruption claim income net 1,226 629 2,878 of irrecoverable fire costs ii Amounts received (or receivable) in respect of additional working costs have been matched against relevant expenditure. To the extent that these amounts have been received at 30 June 2002, but relate to the period after that date, the amounts have been included as creditors at 30 June 2002. iii Amounts estimated as being due from the insurers for payments in respect of replacement of owned fixed assets lost in the fire are included within debtors. iv In respect of leased fixed assets lost in the fire, the insurers have settled the due amounts directly with the lessor. The lessor had replaced some of these assets during the period to 31 December 2001 after the fire. Debtors include an amount representing the remainder of the assets to be supplied to the company by the lessor. 3 The calculation of the basic earnings/loss per share is based on the profits/losses attributable to ordinary shareholders divided by the weighted average number of shares in issue during the period. Profits/losses attributable Weighted average number of Basis earnings/ to ordinary shareholders shares loss per share amount in pence £ Six months ended 30 June 2002 284,000 29,025,570 1.0p Six months ended 30 June 2001 (3,813,000) 19,775,570 (19.3p) Year ended 31 December 2001 (3,584,000) 23,475,570 (15.3p) During the period ended 30 June 2001 there was no anti-dilutive effect of securities on the loss per share calculations. During the year ended 31 December 2001, options existed which had the anti-dilutive effect of increasing the weighted average number of shares by 65,616 to 23,541,186. The diluted loss per share for the year ended 31 December 2001 was 15.3p. During the period ended 30 June 2002, options existed which had the anti-dilutive effect of increasing the weighted average number of shares by 141,847 to 29,167,417. The diluted profit per share for the period ended 30 June 2002 was 1p. The financial information set out above does not constitute the company's financial statements for the year ended 31 December 2001. The statutory financial statements for the year ended 31 December 2001 have been delivered to the Registrar of Companies and the auditors' report on those financial statements was unqualified and did not contain statements under Section 240 of the Companies At 1985. The financial statements for the six months ended 30 June 2002 and 30 June 2001 are unaudited. 4 This statement has been sent to all shareholders and can be obtained from the company's registered office: Ideal Home House, Newark Road, Peterborough PE1 5WG. This information is provided by RNS The company news service from the London Stock Exchange

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