11th Jan 2007 07:00
Ideal Shopping Direct PLC11 January 2007 Ideal Shopping Direct Plc 11 January 2007 The Board of Ideal Shopping Direct ("Ideal") today issues the following updateon trading: Set against a mixed consumer spending background, and a later and shorter peakin pre-Christmas orders than in previous years, Ideal's sales in the 18 weeks to31 December 2006 grew by 3.2% on a like-for-like basis, taking full year salesgrowth to 7.3%. Gross margins have been solid, and costs have been controlled. However, with apredominantly fixed cost base, the slower than forecast sales means that theBoard now expects profit for the year to be below the current range of marketexpectations. Looking ahead to 2007, we continue to be committed to making our contentaccessible via all available mainstream channels, and, as digital TV penetrationcontinues to build, are pleased to announce two new developments. Ideal has reached agreement with ntl:Telewest to extend the reach of the IdealWorld channel onto the full combined ntl:Telewest digital cable platform. IdealWorld has been broadcast on ntl cable since July 2002, and the inclusion of theTelewest base will extend the channel's potential audience by c.1.35m householdswith effect from the end of January 2007. Although it will take some time tobuild a customer base from the new audience, the Board anticipates that thisagreement will result in a positive contribution in 2007. Furthermore, with a view to the future opportunity for delivery of TV over theinternet, we have also recently signed a Memorandum of Understanding with BT,which may lead to the inclusion of some of the Group's content on the recentlylaunched BT Vision platform by the end of 2007. The Group enters 2007 with a strong market position and robust balance sheet.The Board is confident that our ongoing business initiatives will enable Idealto make further sales progress in the year ahead. The announcement of Ideal's 2006 preliminary results is scheduled for 5 March2007. 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 Jeff Keating Fred Walsh This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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