RNS Number:4539D
Kleeneze PLC
29 September 2004
Immediate Release 29 September 2004
KLEENEZE plc
Expansion into Television Shopping
Kleeneze plc ("Kleeneze" or the "Group"), the home shopping specialist, is
pleased to announce an investment of some #4 million over two years in a joint
venture television shopping channel carried on Sky channel 664.
The channel, which the Group has branded eezee TV, will broadcast as a
pre-recorded channel until March 2005. In March 2005 eezee TV will be
re-launched as a live channel with 16 hours live programming and 8 hours
pre-recorded programming daily, giving a 24 hour a day service.
The non-travel television shopping market in the UK is currently estimated to be
#500 million per annum, having more than doubled since 2001, and is forecasted
to grow to #750 million per annum by 2008 (Source: Mintel). Importantly, the
television shopping audience has the same demographic characteristics as the
existing customer base at both Kleeneze UK and Farepak.
The expansion into television shopping presents significant cross-promotional
and cross-selling opportunities for the Group. An example of this is the recent
acquisition of the Cabouchon costume jewellery business, which provides a higher
value, exclusive product for sale in both the Group's catalogues and on
television, where jewellery is already one of the most successful product
ranges.
eezee TV will also be used from the outset as a direct and effective recruitment
and retention tool to grow the Group's distributor numbers.
The joint venture partner, JML, is a well-established retail distributor and
producer of promotional videos and has broadcast the pre-recorded shopping
channel under the name JML Direct since 2002, growing its customer base to over
130,000 during this time.
William Rollason, Chief Executive of Kleeneze, said:
"We are very excited about the growth opportunities from eezee TV, which
represents a significant step in our development of Kleeneze into a home
specialist retailer with an increasing range of products and channels to market.
"
John Mills, Managing Director of JML, said:
"We believe the inherent synergies between JML and Kleeneze in terms of product
range, customer service and a value for money consumer proposition make this
joint venture an extremely exciting and unique product. We very much look
forward to making eezee TV a great success."
Contacts:
Kleeneze plc 01793 606 000
W P Rollason - Chief Executive
C J S Hulland - Finance Director
Buchanan Communications 020 7466 5000
Richard Oldworth
Catherine Miles
JML 020 7691 3800
John Mills - Managing Director
Pete Mills - Commercial Director
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCPUUAPBUPCGRR
|