Trading Update, Board Appt &

RNS Number : 8442J

Ideal Shopping Direct PLC

10 December 2008

For Immediate Release

10 December 2008

Ideal Shopping Direct PLC

(the 'Company')

Trading Update, Board Appointment & Change of Auditors

Following the trading update on 5 November 2008, market conditions continue to remain extremely challenging. During the critical final quarter of the year, when trading has traditionally been strong, sales have been volatile with large weekly variations, but the overall trend has been substantially down.

Overall, revenues in November were substantially below expectations and whilst the first nine days of December were broadly in-line with last year, November's shortfall is unlikely to be made up. Accordingly, total net revenue for the six weeks from 26 October 2008 to 7 December 2008 was 17% lower than in the comparable period last year and as a result cumulative net revenues for the 49 week period to 7 December 2008 are well below management expectations. There remain nearly three more weeks before the year end, but given the above sales performance and on the basis that gross margins from the sales mix for the 49 week period to 7 December 2008 have been at lower levels than in the previous corresponding period, together with higher overheads, your Board now expects a trading loss for the 52 weeks to 28 December 2008 of around £4 million before taking charges for one offs and exceptional costs.

In response to the Company's current trading difficulties the Company's new Chief Executive, Mike Hancox, has reviewed each department within the business since his appointment on 3 November 2008 to improve efficiency and reduce costs. Overall headcount is being reduced by 15% resulting in the loss of approximately 70 full-time positions with an additional programme to phase out the majority of temporary staff by the end of the financial year. As a consequence, redundancy costs of approximately £400,000 will be incurred in the current financial year with an annual saving in employment costs of £1.5 million.

The Board has also appointed KPMG to assist in a review of the Company's internal accounting processes, and to conduct a full balance sheet review. It is the Company's intention to appoint KPMG as auditors for the 52 weeks to 28 December 2008.

Ideal Shopping Direct also announces the appointment of Ian Jebson, 54, FCA, as Finance Director to replace Steve Mensforth who will be stepping down as Interim Finance Director. Ian, who qualified with KPMG, has worked across a number of sectors including retail and consumer products both in the corporate and private equity environment. He joins Ideal Shopping Direct on 1 March 2009 from Charles Tyrwhitt, the mail order, retail and internet business, where he has been Finance Director since 2006. Prior to Charles Tyrwhitt, Ian was Group Finance Director at Littlewoods Shop Direct Group, and previously held a number of senior management positions including Group Finance Director of UKS Group Limited and Chief Operating Officer of Vax Group.

Commenting on trading and the appointment of Ian Jebson, Mike Hancox said:

"We are taking radical action to improve sales, efficiency and reduce costs. We remain focused on generating improved returns from our home shopping and internet channels to achieve the best possible results in the current economic climate.

Separately, we are delighted to have secured the appointment of Ian Jebson. His restructuring skills, extensive experience and knowledge of the retail sector will be invaluable to the Company going forward."

For further information please contact:

David Williams, Chairman Mike Hancox, Chief Executive
Ideal Shopping Direct	020 7466 5000
Michael Meade, Oliver Cardigan - Nominated Adviser Mark Lander - Corporate Broking Numis Securities	020 7260 1000
Richard Darby, Miranda Higham
Buchanan Communications	020 7466 5000