Ideal Shopping Direct PLC
04 May 2006
Ideal Shopping Direct Plc ("the Company")
4 May 2006
AGM Trading Update
At its Annual General Meeting today the Chairman of Ideal Shopping Direct will
give the following update on trading performance over the first 17 weeks of
2006:
The first 17 weeks of 2006 have shown ongoing tough retail market conditions
generally, but we have continued to generate both headline and underlying
growth.
Overall product sales are 14% ahead of 2005, or 12% on a like-for-like basis
excluding Jewellery Vault.
The growth in membership of the Create and Craft Club, which was launched last
year, has accelerated in the first quarter of 2006. This growth has contributed
to the continuing strong performance of our web business.
Building on the success of our club concept, we will this month launch two new
initiatives, an interactive online general merchandise catalogue and a second
online club concept designed for new and expectant mothers.
Our latest channel, Jewellery Vault, which launched last July, has performed
disappointingly and has still not reached the level of sales required to break
even. We are therefore conducting a thorough review of the financial viability
of the channel.
Following discussions with a number of well known High Street brands about a
presence on our TV shopping channels, we have started a trial with Next, which
commenced last week. It is too early to speculate on the outcome of this trial
but we await the results with interest.
Finally, the Company will implement FRS 20 "Share Based Payments" in its 2006
Financial Statements. The standard requires that the estimated fair value of
share option grants be expensed through the Profit and Loss account in the
period from grant to vesting. As the Company has historically used share options
as a part of executive incentivisation, this treatment will lead to the
recognition of additional operating expenses, which we estimate at £0.4m for
2006.
Enquiries:
Ideal Shopping Direct Plc Tel: 08700 780 704
Jim Hodkinson, Chairman
Andrew Fryatt, CEO
Mike Camp, Finance Director
ReputationInc Tel: 020 7758 2800
Tom Wyatt
Teather & Greenwood Tel: 020 7426 9000
Fred Walsh
This information is provided by RNS
The company news service from the London Stock Exchange
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