4th May 2006 12:05
Ideal Shopping Direct PLC04 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 willgive the following update on trading performance over the first 17 weeks of2006: The first 17 weeks of 2006 have shown ongoing tough retail market conditionsgenerally, but we have continued to generate both headline and underlyinggrowth. Overall product sales are 14% ahead of 2005, or 12% on a like-for-like basisexcluding Jewellery Vault. The growth in membership of the Create and Craft Club, which was launched lastyear, has accelerated in the first quarter of 2006. This growth has contributedto the continuing strong performance of our web business. Building on the success of our club concept, we will this month launch two newinitiatives, an interactive online general merchandise catalogue and a secondonline club concept designed for new and expectant mothers. Our latest channel, Jewellery Vault, which launched last July, has performeddisappointingly and has still not reached the level of sales required to breakeven. We are therefore conducting a thorough review of the financial viabilityof the channel. Following discussions with a number of well known High Street brands about apresence on our TV shopping channels, we have started a trial with Next, whichcommenced last week. It is too early to speculate on the outcome of this trialbut we await the results with interest. Finally, the Company will implement FRS 20 "Share Based Payments" in its 2006Financial Statements. The standard requires that the estimated fair value ofshare option grants be expensed through the Profit and Loss account in theperiod from grant to vesting. As the Company has historically used share optionsas a part of executive incentivisation, this treatment will lead to therecognition of additional operating expenses, which we estimate at £0.4m for2006. 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 ExchangeRelated Shares:
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