TIDMIDS
RNS Number : 4833Z
Ideal Shopping Direct PLC
23 September 2009
?
+------------------------------------+------------------------------------+
| For Immediate Release | 23 September 2009 |
+------------------------------------+------------------------------------+
Ideal Shopping Direct Plc
Ideal Shopping Direct PLC
(the 'Company' or the 'Group')
Interim Results
For the 26 weeks ended 28 June 2009
Ideal Shopping Direct Plc, the independent TV shopping and online business,
today announces its interim results for the 26 weeks ended 28 June 2009.
Financial Highlights
* Sales revenue broadly flat at GBP47.4m (2008: GBP47.5m)
* Gross margin improved to 40.9% (2008: 38.2%)
* Underlying loss from operations reduced to GBP0.9m (2008: GBP1.2m loss)
* Loss before tax of GBP1.2m after exceptional items of GBP0.3m (2008: GBP1.2m)
* Basic loss per share of 4.1p (2008: 2.9p loss)
* Cash of GBP9.2m at 28 June 2009 (28 December 2008: GBP8.4m)
Operational Highlights
* Major strategic review with significant remedial actions to stabilise the
Company
* Customer service improvements initiated
* Reduction in stock levels by 59%
* Successful broadcast trials with leading retail high street brands
Paul Wright, Chairman, commented:
"During the first half, we have undertaken a major strategic review and we are
pleased that a number of remedial actions have been undertaken to stabilise the
business. We are optimistic that we now have a solid platform from which to
drive top line growth and restore profitability. Current trading in the second
half is in line with management expectations with the critical last quarter
performance yet to unfold."
For further information please contact:
+-------------------------------------------+----------------------------+
| Paul Wright, Chairman | |
+-------------------------------------------+----------------------------+
| Mike Hancox, Chief Executive | |
+-------------------------------------------+----------------------------+
| Ian Jebson, Finance Director | |
+-------------------------------------------+----------------------------+
| Ideal Shopping Direct Plc | +44 (0) 1733 316203 |
+-------------------------------------------+----------------------------+
| | |
+-------------------------------------------+----------------------------+
| Ewan Leggat, Laura Littley | |
+-------------------------------------------+----------------------------+
| Fairfax IS PLC | +44 (0) 207 598 5368 |
+-------------------------------------------+----------------------------+
| | |
+-------------------------------------------+----------------------------+
| Richard Darby, Nicola Cronk, Miranda | |
| Higham | |
+-------------------------------------------+----------------------------+
| Buchanan Communications | +44 (0) 20 7466 5000 |
+-------------------------------------------+----------------------------+
Notes to editors:
Ideal Shopping Direct is one of the UK's leading home shopping retailers,
selling via its TV channels and the internet. Its main channel, Ideal World, is
broadcast on the rapidly expanding Freeview platform as well as on Sky, Virgin
Media and Freesat. It has three other channels on Sky, 'Ideal World 2', 'Ideal
World 3' and 'Create and Craft'.
'Ideal World' offers a broad selection of general merchandise with six product
categories, led by Home, Leisure and Craft along with Fashion, Health & Beauty
and Jewellery. 'Ideal World 2 and 3' repeat selected shows of Ideal World and
'Create and Craft' is a niche channel selling craft products.
Ideal's transactional websites www.idealworld.tv and www.createandcraft.tv carry
a live web stream of the TV broadcasts and offer a wide selection of products
sold on TV as well as web-only deals.
For more information see www.idealshoppingdirect.tv
Chairman's and Chief Executive's Review
Introduction
The first half saw a major strategic review, following a new non-executive Board
and the appointment of Finance Director, Ian Jebson, to join Mike Hancox who was
appointed in November 2008. The new Board is focused and working well and a
number of significant remedial actions have been undertaken to stabilise the
Company. There is, however, still much to do. We are optimistic that we now have
a solid platform from which to drive top line growth and restore profitability.
Our initial focus was to address what had become a poor customer experience with
the Company and the actions implemented so far are already bearing fruit. We now
turn our attention to significantly improving our product range and promotional
strategies and vigorously pursuing a true multi-channel sales offering.
Financial Results
The year on year comparison of key numbers is as follows:
+---------------------------+------------+-------------+----------+----------+
| GBP'000's | | | 26 weeks | 26 weeks |
| | | | ended 28 | ended 29 |
| | | | June | June |
| | | | 2009 | 2008 |
+---------------------------+------------+-------------+----------+----------+
| | Underlying | Exceptional | Total | Total |
+---------------------------+------------+-------------+----------+----------+
| Sales Revenue | 47,419 | 0 | 47,419 | 47,468 |
+---------------------------+------------+-------------+----------+----------+
| Gross Profit | 19,404 | 0 | 19,404 | 18,117 |
+---------------------------+------------+-------------+----------+----------+
| Operating Loss | (965) | (257) | (1,222) | (1,384) |
+---------------------------+------------+-------------+----------+----------+
| Loss from Continuing | (945) | (257) | (1,202) | (1,235) |
| Operations | | | | |
+---------------------------+------------+-------------+----------+----------+
| | | | | |
+---------------------------+------------+-------------+----------+----------+
Total revenues reduced year on year by 0.1% in the first half of 2009,
reflecting a robust performance against a weak retail environment. We saw strong
improvements in our Home category, in particular gardening and kitchen
products. There were, however, reductions in other categories that offset these
increases in revenue.
Gross profit margin increased to 40.9% of sales revenue, up from 38.2% for the
comparative period.
Underlying overheads were 4.5% higher at GBP20.4 million (2008: GBP19.5 million)
and as a consequence the underlying operational gearing of the group rose to
43.0% from 41.1%. The main increases in operating costs were call centre costs
of GBP0.5 million, broadcasting costs of GBP0.3 million, (partially driven by
our new channel Ideal World 3, rebranded in July 2009) and total website and
marketing costs of GBP0.6 million reflecting an improved presence in the market
place. Staff salaries and temporary costs reduced by GBP0.4 million in
accordance with tighter cost controls that have been implemented throughout the
business.
The reported operating loss, before exceptional items, was GBP0.9 million
compared to a loss of GBP1.4 million for the comparative period. Exceptional
costs of GBP0.26 million relate to management restructuring costs together with
associated legal expenses.
In July 2009, we received GBP157,000 in relation to a partial recovery of a lost
deposit with Kaupthing Singer & Friedlander. The total deposit written off as an
exceptional item in 2008 was GBP0.6 million. The recovery will be reported in
our full year 2009 statutory accounts.
The reported loss after exceptional items before tax was GBP1.2 million (2008:
loss GBP1.2 million) and basic earnings per share for the period was 4.1p loss
(2008: 2.9p loss).
Despite the progress made during the first half of the year, the Board is not
recommending an interim dividend (2008: 3.75p). This will be reviewed at the
year end, depending on performance.
Inventory & Cash
At 28 June 2009, inventory stood at GBP3.0m, representing a reduction of GBP4.3
million, 59% lower than the second half of 2008. This was achieved following a
reduction in warehousing from nine units to three and passing more inventory
risk to suppliers.
The closing gross cash balances were GBP9.2 million (H1 2008: GBP9.7 million).
The net cash inflow of GBP0.8 million in the half arose from GBP1.4 million
inflow from operating activities and outflows of GBP0.25 million capital
expenditure, GBP0.2 million payment of dividends and GBP0.2 million from
repayment of finance.
Bank Facilities
On 9 April 2009 bank facilities were renewed with Barclays Bank Plc. These
include a 10 year mortgage which has 5 years to maturity. The mortgage had a
balance of GBP1.7 million at 28 June 2009 and is repayable by quarterly
instalments of GBP0.08 million.
Development
Since the beginning of the second half of the year the management team
has focused on continuing to deliver initiatives that support our multi channel
strategy and improve profitability.
As with any retailer, customer service is key to retaining new and existing
customers and therefore we have focused our efforts on improving their overall
experience. In May 2009, we appointed a new 'final mile' delivery provider, to
ensure professional and efficient delivery.
Also in May, we commenced a contract with Cellcast, selling airtime between the
hours of midnight and 5am on Freeview.
We have continued our successful broadcast trials with a number of leading
retail high street brands allowing our customers to have access to a range of
popular and diverse products. As we do not stock these products ourselves,
revenue is guaranteed without the stock risk.
Board
As previously announced, Graham Cole was appointed as an independent
non-executive director to the PLC Board with effect from 1 July 2009. He joins
our other non-executive directors, Paul Wright and Valerie Kaye who were
appointed on 3 February 2009 and our executive directors, Mike Hancox and Ian
Jebson who joined the Board as Finance Director on 1 March 2009.
Current Trading
Trading in the first 10 weeks of the second half are in line with management
expectations. However, the critical last quarter performance is yet to unfold.
Paul Wright Mike Hancox
Chairman Chief Executive
23 September 2009
Independent Review Report to Ideal Shopping Direct Plc
Introduction
We have been engaged by the Company to review the condensed set of financial
statements in the half-yearly report for the six months ended 28 June 2009 which
comprises the Condensed Consolidated Statement of Financial Position, the
Condensed Consolidated Statement of Comprehensive Income, the Condensed
Consolidated Statement of Changes in Equity, the Condensed Consolidated
Statement of Cashflows and the related explanatory notes. We have read the other
information contained in the half-yearly report and considered whether it
contains any apparent misstatements or material inconsistencies with the
information in the condensed set of financial statements.
This report is made solely to the Company in accordance with the terms of our
engagement. Our review has been undertaken so that we might state to the Company
those matters we are required to state to it in this report and for no other
purpose. To the fullest extent permitted by law, we do not accept or assume
responsibility to anyone other than the Company for our review work, for this
report, or for the conclusions we have reached.
Directors' responsibilities
The half-yearly report is the responsibility of, and has been approved by, the
directors. The directors are responsible for preparing the half-yearly report in
accordance with the AIM Rules.
The annual financial statements of the group are prepared in accordance with
IFRSs as adopted by the EU. The condensed set of financial statements included
in this half-yearly report has been prepared in accordance with the recognition
and measurement requirements of IFRSs as adopted by the EU.
Our responsibility
Our responsibility is to express to the Company a conclusion on the condensed
set of financial statements in the half-yearly report based on our review.
Scope of Review
We conducted our review in accordance with International Standard on Review
Engagements (UK and Ireland) 2410 Review of Interim Financial Information
Performed by the Independent Auditor of the Entity issued by the Auditing
Practices Board for use in the UK. A review of interim financial information
consists of making enquiries, primarily of persons responsible for financial and
accounting matters, and applying analytical and other review procedures. A
review is substantially less in scope than an audit conducted in accordance with
International Standards on Auditing (UK and Ireland) and consequently does not
enable us to obtain assurance that we would become aware of all significant
matters that might be identified in an audit. Accordingly, we do not express an
audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe
that the condensed set of financial statements in the half-yearly report for the
six months ended 28 June 2009 is not prepared, in all material respects, in
accordance with the recognition and measurement requirements of IFRSs as adopted
by the EU and the AIM Rules.
S J Purkess
for and on behalf of KPMG Audit Plc
Chartered Accountants
2 Cornwall
Street
Birmingham
B3 2DL
23 September 2009
Condensed consolidated statement of comprehensive income
+--------------------------------+-------------+-------------+-------------+-------------+------------+-----------+
| | | | 26 weeks | 26 weeks | | 52 weeks |
| | | | ended | ended | | ended |
+--------------------------------+-------------+-------------+-------------+-------------+------------+-----------+
| | | | 28-Jun-09 | 29-Jun-08 | | 28-Dec-08 |
+--------------------------------+-------------+-------------+-------------+-------------+------------+-----------+
| | Underlying | Exceptional | Total | Total | Underlying | Total |
+--------------------------------+-------------+-------------+-------------+-------------+------------+-----------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+--------------------------------+-------------+-------------+-------------+-------------+------------+-----------+
| | (unaudited) | (unaudited) | (unaudited) | (unaudited) | (audited) | (audited) |
+--------------------------------+-------------+-------------+-------------+-------------+------------+-----------+
| Sales revenue | 47,419 | | 47,419 | 47,468 | 94,947 | 94,657 |
+--------------------------------+-------------+-------------+-------------+-------------+------------+-----------+
| Cost of sales | (28,015) | - | (28,015) | (29,351) | (59,126) | (61,884) |
+--------------------------------+-------------+-------------+-------------+-------------+------------+-----------+
| Gross profit | 19,404 | - | 19,404 | 18,117 | 35,821 | 32,773 |
+--------------------------------+-------------+-------------+-------------+-------------+------------+-----------+
| Distribution costs | (2,209) | - | (2,209) | (2,134) | (4,519) | (4,519) |
+--------------------------------+-------------+-------------+-------------+-------------+------------+-----------+
| Administrative expenses | (18,022) | (257) | (18,279) | (17,317) | (34,842) | (41,037) |
+--------------------------------+-------------+-------------+-------------+-------------+------------+-----------+
| Other expenses | (138) | - | (138) | (50) | (62) | (62) |
+--------------------------------+-------------+-------------+-------------+-------------+------------+-----------+
| Operating loss | (965) | (257) | (1,222) | (1,384) | (3,602) | (12,845) |
+--------------------------------+-------------+-------------+-------------+-------------+------------+-----------+
| Finance costs | (24) | - | (24) | - | (643) | (643) |
+--------------------------------+-------------+-------------+-------------+-------------+------------+-----------+
| Finance income | 44 | - | 44 | 149 | 267 | 267 |
+--------------------------------+-------------+-------------+-------------+-------------+------------+-----------+
| Loss from continuing | (945) | (257) | (1,202) | (1,235) | (3,978) | (13,221) |
| operations before taxation | | | | | | |
+--------------------------------+-------------+-------------+-------------+-------------+------------+-----------+
| Taxation | - | - | - | 378 | - | 1,669 |
+--------------------------------+-------------+-------------+-------------+-------------+------------+-----------+
| Loss from continuing | (945) | (257) | (1,202) | (857) | (3,978) | (11,552) |
| operations and for the period | | | | | | |
+--------------------------------+-------------+-------------+-------------+-------------+------------+-----------+
| Other comprehensive income: | | | | | | |
+--------------------------------+-------------+-------------+-------------+-------------+------------+-----------+
| Revaluation of property plant | - | - | - | - | - | (724) |
| and equipment | | | | | | |
+--------------------------------+-------------+-------------+-------------+-------------+------------+-----------+
| Total comprehensive income for | (945) | (257) | (1,202) | (857) | (3,978) | (12,276) |
| the period attributable to | | | | | | |
| owners of the Group | | | | | | |
+--------------------------------+-------------+-------------+-------------+-------------+------------+-----------+
| | | | | | | |
+--------------------------------+-------------+-------------+-------------+-------------+------------+-----------+
| Earnings per share | | | | | | |
+--------------------------------+-------------+-------------+-------------+-------------+------------+-----------+
| From continuing operations: | | | | | | |
+--------------------------------+-------------+-------------+-------------+-------------+------------+-----------+
| Basic | | | (4.1)p | (2.9)p | | (38.9)p |
+--------------------------------+-------------+-------------+-------------+-------------+------------+-----------+
| Diluted | | | (4.0)p | (2.9)p | | (38.9)p |
+--------------------------------+-------------+-------------+-------------+-------------+------------+-----------+
Condensed consolidated statement of financial position
+---------------------------+----------------+--+----------------+--+---------------+
| | 26 weeks ended | | 26 weeks ended | | 52 weeks |
| | | | | | ended |
+---------------------------+----------------+--+----------------+--+---------------+
| | 28-Jun-09 | | 29-Jun-08 | | 28-Dec-08 |
+---------------------------+----------------+--+----------------+--+---------------+
| | GBP'000 | | GBP'000 | | GBP'000 |
+---------------------------+----------------+--+----------------+--+---------------+
| | (unaudited) | | (unaudited) | | (audited) |
+---------------------------+----------------+--+----------------+--+---------------+
| Assets | | | | | |
+---------------------------+----------------+--+----------------+--+---------------+
| Non-current assets | | | | | |
+---------------------------+----------------+--+----------------+--+---------------+
| Property,plant and | 8,229 | | 10,964 | | 8,574 |
| equipment | | | | | |
+---------------------------+----------------+--+----------------+--+---------------+
| Intangible assets | 3,065 | | 3,225 | | 3,302 |
+---------------------------+----------------+--+----------------+--+---------------+
| Goodwill | - | | 1,523 | | - |
+---------------------------+----------------+--+----------------+--+---------------+
| Deferred tax assets | - | | 71 | | 131 |
+---------------------------+----------------+--+----------------+--+---------------+
| Total non-current assets | 11,294 | | 15,783 | | 12,007 |
+---------------------------+----------------+--+----------------+--+---------------+
| | | | | | |
+---------------------------+----------------+--+----------------+--+---------------+
| Current assets | | | | | |
+---------------------------+----------------+--+----------------+--+---------------+
| Inventories | 2,991 | | 7,349 | | 3,872 |
+---------------------------+----------------+--+----------------+--+---------------+
| Trade and other | 4,152 | | 5,883 | | 4,538 |
| receivables | | | | | |
+---------------------------+----------------+--+----------------+--+---------------+
| Current tax assets | - | | 713 | | 1,300 |
+---------------------------+----------------+--+----------------+--+---------------+
| Cash and cash equivalents | 9,193 | | 9,650 | | 8,399 |
+---------------------------+----------------+--+----------------+--+---------------+
| Total current assets | 16,336 | | 23,595 | | 18,109 |
+---------------------------+----------------+--+----------------+--+---------------+
| Total assets | 27,630 | | 39,378 | | 30,116 |
+---------------------------+----------------+--+----------------+--+---------------+
| | | | | | |
+---------------------------+----------------+--+----------------+--+---------------+
| Equity | | | | | |
+---------------------------+----------------+--+----------------+--+---------------+
| Share Capital | 895 | | 894 | | 895 |
+---------------------------+----------------+--+----------------+--+---------------+
| Share premium | 314 | | 310 | | 314 |
+---------------------------+----------------+--+----------------+--+---------------+
| Other reserves | 1,754 | | 2,657 | | 1,666 |
+---------------------------+----------------+--+----------------+--+---------------+
| Retained earnings | 4,811 | | 16,850 | | 5,863 |
+---------------------------+----------------+--+----------------+--+---------------+
| | | | | | |
+---------------------------+----------------+--+----------------+--+---------------+
| Total equity attributable | 7,774 | | 20,711 | | 8,738 |
| to shareholders of Ideal | | | | | |
| Shopping Direct Plc | | | | | |
+---------------------------+----------------+--+----------------+--+---------------+
| Liabilities | | | | | |
+---------------------------+----------------+--+----------------+--+---------------+
| Current liabilities | | | | | |
+---------------------------+----------------+--+----------------+--+---------------+
| Provisions | 269 | | 274 | | 803 |
+---------------------------+----------------+--+----------------+--+---------------+
| Trade and other payables | 17,779 | | 15,560 | | 18,166 |
+---------------------------+----------------+--+----------------+--+---------------+
| Borrowings | 339 | | 339 | | 1,863 |
+---------------------------+----------------+--+----------------+--+---------------+
| Current tax liabilities | 115 | | - | | 94 |
+---------------------------+----------------+--+----------------+--+---------------+
| Dividends payable | - | | - | | 221 |
+---------------------------+----------------+--+----------------+--+---------------+
| Obligations under finance | - | | 96 | | - |
| leases | | | | | |
+---------------------------+----------------+--+----------------+--+---------------+
| Total current liabilities | 18,502 | | 16,269 | | 21,147 |
+---------------------------+----------------+--+----------------+--+---------------+
| | | | | | |
+---------------------------+----------------+--+----------------+--+---------------+
| Non-current liabilities | | | | | |
+---------------------------+----------------+--+----------------+--+---------------+
| Borrowings | 1,354 | | 1,693 | | - |
+---------------------------+----------------+--+----------------+--+---------------+
| Deferred tax liabilities | - | | 705 | | 131 |
+---------------------------+----------------+--+----------------+--+---------------+
| Total non-current | 1,354 | | 2,398 | | 131 |
| liabilities | | | | | |
+---------------------------+----------------+--+----------------+--+---------------+
| Total liabilities | 19,856 | | 18,667 | | 21,278 |
+---------------------------+----------------+--+----------------+--+---------------+
| Total equity and | 27,630 | | 39,378 | | 30,016 |
| liabilities | | | | | |
+---------------------------+----------------+--+----------------+--+---------------+
Condensed consolidated statement of cashflows
+------------------------------------------+--------------+--------------+--------------+
| | 26 weeks | 26 weeks | 52 weeks |
| | ended | ended | ended |
+------------------------------------------+--------------+--------------+--------------+
| | 28-Jun-09 | 29-Jun-08 | 28-Dec-08 |
+------------------------------------------+--------------+--------------+--------------+
| | GBP000 | GBP000 | GBP000 |
+------------------------------------------+--------------+--------------+--------------+
| | (unaudited) | (unaudited) | (audited) |
+------------------------------------------+--------------+--------------+--------------+
| | | | |
+------------------------------------------+--------------+--------------+--------------+
| Cash flows from operating activities | | | |
+------------------------------------------+--------------+--------------+--------------+
| (Loss)/profit for the period | (1,202) | (857) | (11,552) |
+------------------------------------------+--------------+--------------+--------------+
| Depreciation | 392 | 375 | 683 |
+------------------------------------------+--------------+--------------+--------------+
| Amortisation of intangible assets | 443 | 182 | 577 |
+------------------------------------------+--------------+--------------+--------------+
| Impairment of assets | - | - | 324 |
+------------------------------------------+--------------+--------------+--------------+
| Loss on disposal | 4 | - | 745 |
+------------------------------------------+--------------+--------------+--------------+
| Impairment of goodwill | - | - | 1,523 |
+------------------------------------------+--------------+--------------+--------------+
| Equity settled share-based payment | 138 | 36 | 63 |
| transactions | | | |
+------------------------------------------+--------------+--------------+--------------+
| Income tax expense | - | (378) | (1,669) |
+------------------------------------------+--------------+--------------+--------------+
| Net finance (expense) / income | (20) | (149) | (231) |
+------------------------------------------+--------------+--------------+--------------+
| | (245) | (791) | (9,537) |
+------------------------------------------+--------------+--------------+--------------+
| Change in inventories | 881 | (599) | 2,878 |
+------------------------------------------+--------------+--------------+--------------+
| Change in trade and other receivables | 386 | (367) | 978 |
+------------------------------------------+--------------+--------------+--------------+
| Change in trade and other payables | (387) | (1,419) | 1,187 |
+------------------------------------------+--------------+--------------+--------------+
| Change in provisions | (534) | (175) | 354 |
+------------------------------------------+--------------+--------------+--------------+
| Cash generated from operations | 101 | (3,351) | (4,140) |
+------------------------------------------+--------------+--------------+--------------+
| Interest paid | - | - | (36) |
+------------------------------------------+--------------+--------------+--------------+
| Income tax received / (paid) | 1,321 | (559) | (181) |
+------------------------------------------+--------------+--------------+--------------+
| Net cash flows from operating activities | 1,422 | (3,910) | (4,357) |
+------------------------------------------+--------------+--------------+--------------+
| | | | |
+------------------------------------------+--------------+--------------+--------------+
| Cash flows from investing activities | | | |
+------------------------------------------+--------------+--------------+--------------+
| Acquisition of property,plant and | (51) | (706) | (767) |
| equipment | | | |
+------------------------------------------+--------------+--------------+--------------+
| Acquisition of intangible assets | (206) | (1,094) | (1,396) |
+------------------------------------------+--------------+--------------+--------------+
| Proceeds from sale of property, plant | - | 7 | 7 |
| and equipment | | | |
+------------------------------------------+--------------+--------------+--------------+
| Interest received | 20 | 149 | 267 |
+------------------------------------------+--------------+--------------+--------------+
| Net cash flows from investing activities | (237) | (1,644) | (1,889) |
+------------------------------------------+--------------+--------------+--------------+
| | | | |
+------------------------------------------+--------------+--------------+--------------+
| Cash flows from financing activities | | | |
+------------------------------------------+--------------+--------------+--------------+
| Proceeds from issue of share capital | - | 2 | 7 |
+------------------------------------------+--------------+--------------+--------------+
| Repayment of bank loans | (170) | (170) | (339) |
+------------------------------------------+--------------+--------------+--------------+
| Payment of finance lease liability | - | (213) | (309) |
+------------------------------------------+--------------+--------------+--------------+
| Dividends paid | (221) | (1,112) | (1,411) |
+------------------------------------------+--------------+--------------+--------------+
| Net cash flows from financing activities | (391) | (1,493) | (2,052) |
+------------------------------------------+--------------+--------------+--------------+
| | | | |
+------------------------------------------+--------------+--------------+--------------+
| Net increase/(decrease) in cash and cash | 794 | (7,047) | (8,298) |
| equivalents from continuing operations | | | |
+------------------------------------------+--------------+--------------+--------------+
| | | | |
+------------------------------------------+--------------+--------------+--------------+
| Net increase/(decrease) in cash and cash | 794 | (7,047) | (8,298) |
| equivalents | | | |
+------------------------------------------+--------------+--------------+--------------+
| Cash and cash equivalents at the | 8,399 | 16,697 | 16,697 |
| beginning of the period | | | |
+------------------------------------------+--------------+--------------+--------------+
| Cash and cash equivalents at the end of | 9,193 | 9,650 | 8,399 |
| the period | | | |
+------------------------------------------+--------------+--------------+--------------+
Condensed consolidated statement of changes in equity
+------------------------------------+---------+---------+----------+----------+---------+
| For the six months ended 28 June | Share | Share | Other | Retained | Total |
| 2009 | capital | premium | reserves | earnings | |
+------------------------------------+---------+---------+----------+----------+---------+
| | GBP000 | GBP000 | GBP000 | GBP000 | GBP000 |
+------------------------------------+---------+---------+----------+----------+---------+
| | | | | | |
+------------------------------------+---------+---------+----------+----------+---------+
| Balance at 28 December 2008 | 895 | 314 | 1,666 | 5,963 | 8,838 |
+------------------------------------+---------+---------+----------+----------+---------+
| Profit / (loss) for the period | - | - | - | (1,202) | (1,202) |
+------------------------------------+---------+---------+----------+----------+---------+
| Total comprehensive income for the | - | - | - | (1,202) | (1,202) |
| period | | | | | |
+------------------------------------+---------+---------+----------+----------+---------+
| Share based payment transactions | - | - | 88 | 50 | 138 |
+------------------------------------+---------+---------+----------+----------+---------+
| Total transactions with owners | - | - | 88 | 50 | 138 |
+------------------------------------+---------+---------+----------+----------+---------+
| Balance at 28 June 2009 | 895 | 314 | 1,754 | 4,811 | 7,774 |
+------------------------------------+---------+---------+----------+----------+---------+
| | | | | | |
+------------------------------------+---------+---------+----------+----------+---------+
| | | | | | |
+------------------------------------+---------+---------+----------+----------+---------+
| | | | | | |
+------------------------------------+---------+---------+----------+----------+---------+
| For the six months ended 29 June | Share | Share | Other | Retained | Total |
| 2008 | capital | premium | reserves | earnings | |
+------------------------------------+---------+---------+----------+----------+---------+
| | GBP000 | GBP000 | GBP000 | GBP000 | GBP000 |
+------------------------------------+---------+---------+----------+----------+---------+
| | | | | | |
+------------------------------------+---------+---------+----------+----------+---------+
| Balance at 30 December 2007 | 894 | 308 | 2,642 | 18,832 | 22,676 |
+------------------------------------+---------+---------+----------+----------+---------+
| Profit / (loss) for the period | - | - | - | (857) | (857) |
+------------------------------------+---------+---------+----------+----------+---------+
| Other comprehensive income: | | | | | |
+------------------------------------+---------+---------+----------+----------+---------+
| Depreciation transfer on | - | - | (21) | 0 | (21) |
| revaluation of land and buildings | | | | | |
+------------------------------------+---------+---------+----------+----------+---------+
| Total comprehensive income for the | - | - | (21) | (857) | (878) |
| period | | | | | |
+------------------------------------+---------+---------+----------+----------+---------+
| Dividends to equity holders | - | - | - | (1,112) | (1,112) |
+------------------------------------+---------+---------+----------+----------+---------+
| Share based payment transactions | - | 2 | 36 | (13) | 25 |
+------------------------------------+---------+---------+----------+----------+---------+
| Total transactions with owners | - | 2 | 36 | (1,125) | (1,087) |
+------------------------------------+---------+---------+----------+----------+---------+
| Balance at 29 June 2008 | 894 | 310 | 2,657 | 16,850 | 20,711 |
+------------------------------------+---------+---------+----------+----------+---------+
Notes:
1. Basis of preparation
These consolidated Group interim financial statements are for the 26 weeks ended
28 June 2009. The annual consolidated financial statements of the Group have
been prepared in accordance with the recognition and measurement requirements of
International Financial Reporting Standards (IFRS) as adopted by the EU and
under the historical cost convention, except they have been modified to include
the revaluation of certain non-current assets, financial assets and liabilities.
The measurement bases and the principal accounting policies of the Group are set
out below.
Ideal Shopping Direct plc, a public limited company, is the group's ultimate
parent. It is incorporated and dominciled in the UK. The address of Ideal
Shopping Direct Plc's registered office, which is also its principal place of
business;
Ideal Home House
Newark Road
Peterborough
PE1 5WG
Ideal Shopping Direct Plc's shares are listed on the Alternative Investment
Market of the London Stock Exchange
The financial statements set out in these statements in respect of the year to
28 December 2008 does not constitute the Company's financial statements for the
year. The statutory financial statements for the year ended 28 December 2008
have been delivered to the Registrar of Companies and the auditors report
thereon was unqualified and did not contain statements under section 240 of the
Companies Act 1985. The financial statements for the 26 weeks ended 28 June 2009
and the 26 weeks to 29 June 2008 do not constitute statutory statements and are
unaudited.
2. Segmental reporting
At 28 June 2009 the Group was organised into wholesale and retail business
segments, both operating within the UK. Income segment results for the 26 weeks
to 28 June 2009 are as follows;
+---------------+---------------+---------------+----------+-----------+--------------+----------+
| Continuing operations | Retail | Wholesale | Eliminations | Total |
| | | | | |
+-----------------------------------------------+----------+-----------+--------------+----------+
| | | | GBP000 | GBP000 | GBP000 | GBP000 |
+---------------+---------------+---------------+----------+-----------+--------------+----------+
| Revenue | | | | | |
+-------------------------------+---------------+----------+-----------+--------------+----------+
| - from external customers | 45,972 | 1,447 | - | 47,419 |
+-----------------------------------------------+----------+-----------+--------------+----------+
| - from other segments | - | 4,695 | (4,695) | - |
+-----------------------------------------------+----------+-----------+--------------+----------+
| | | | 45,972 | 6,142 | (4,695) | 47,419 |
+---------------+---------------+---------------+----------+-----------+--------------+----------+
| Cost of Sales | | (27,600) | (5,302) | 4,887 | (28,015) |
+-------------------------------+---------------+----------+-----------+--------------+----------+
| | | | | | | |
+---------------+---------------+---------------+----------+-----------+--------------+----------+
| Gross Profit | | 18,372 | 840 | 192 | 19,404 |
+-------------------------------+---------------+----------+-----------+--------------+----------+
| | | | | | | |
+---------------+---------------+---------------+----------+-----------+--------------+----------+
| Administration costs, distribution costs and | (20,168) | (458) | - | (20,626) |
| other expenses | | | | |
+-----------------------------------------------+----------+-----------+--------------+----------+
| | | | | | | |
+---------------+---------------+---------------+----------+-----------+--------------+----------+
| Segment operating profit/(loss) | (1,796) | 382 | 192 | (1,222) |
+-----------------------------------------------+----------+-----------+--------------+----------+
| | | | | | | |
+---------------+---------------+---------------+----------+-----------+--------------+----------+
| Balance sheet segment: | |
| Assets and liabilities as at 28 June 2009 may be summarised as follows; | |
+-------------------------------------------------------------------------------------+----------+
| | | | | | | |
+---------------+---------------+---------------+----------+-----------+--------------+----------+
| Segment assets | | 26,282 | 1,528 | (180) | 27,630 |
+-------------------------------+---------------+----------+-----------+--------------+----------+
| | | | | | | |
+---------------+---------------+---------------+----------+-----------+--------------+----------+
| Segment impairment losses | | | | |
+-----------------------------------------------+----------+-----------+--------------+----------+
| Depreciation and amortisation | 791 | 44 | - | 835 |
+-----------------------------------------------+----------+-----------+--------------+----------+
| Impairment losses | | | | | - |
+-------------------------------+---------------+----------+-----------+--------------+----------+
| | | | | | | |
+---------------+---------------+---------------+----------+-----------+--------------+----------+
Income segment results for the 26 weeks to 29 June 2008 are as follows;
+---------------+---------------+---------------+----------+-----------+--------------+----------+
| Segmental revenue and profit | | | | |
+-----------------------------------------------+----------+-----------+--------------+----------+
| Continuing operations | Retail | Wholesale | Eliminations | Total |
+-----------------------------------------------+----------+-----------+--------------+----------+
| | | | GBP000 | GBP000 | GBP000 | GBP000 |
+---------------+---------------+---------------+----------+-----------+--------------+----------+
| Revenue | | | | | |
+-------------------------------+---------------+----------+-----------+--------------+----------+
| - from external customers | 45,980 | 1,488 | - | 47,468 |
+-----------------------------------------------+----------+-----------+--------------+----------+
| - from other segments | - | 4,013 | (4,013) | 0 |
+-----------------------------------------------+----------+-----------+--------------+----------+
| | | | 45,980 | 5,501 | (4,013) | 47,468 |
+---------------+---------------+---------------+----------+-----------+--------------+----------+
| Cost of Sales | | (29,130) | (221) | 4,007 | (29,351) |
+-------------------------------+---------------+----------+-----------+--------------+----------+
| | | | | | | |
+---------------+---------------+---------------+----------+-----------+--------------+----------+
| Gross Profit | | 16,850 | 5,280 | (6) | 18,117 |
+-------------------------------+---------------+----------+-----------+--------------+----------+
| | | | | | | |
+---------------+---------------+---------------+----------+-----------+--------------+----------+
| | | | | | | |
+---------------+---------------+---------------+----------+-----------+--------------+----------+
| Administration costs, distribution costs and | (18,691) | (810) | - | (19,501) |
| other expenses | | | | |
+-----------------------------------------------+----------+-----------+--------------+----------+
| | | | | | | |
+---------------+---------------+---------------+----------+-----------+--------------+----------+
| Segment operating profit/(loss) | (1,841) | 4,470 | (6) | (1,384) |
+-----------------------------------------------+----------+-----------+--------------+----------+
| | | | | | | |
+---------------+---------------+---------------+----------+-----------+--------------+----------+
Balance sheet segment; assets and liabilities as at 28 June 2008 may be
summarised as follows;
+--------+--------+-----------------------------+-----------+-----------+----------+----------+
| Segment assets | | 36,845 | 2,741 | (208) | 39,378 |
+-----------------+-----------------------------+-----------+-----------+----------+----------+
| | | | | | | |
+--------+--------+-----------------------------+-----------+-----------+----------+----------+
| Segment impairment losses | | | | |
+-----------------------------------------------+-----------+-----------+----------+----------+
| Depreciation and amortisation | (550) | (7) | - | (557) |
+-----------------------------------------------+-----------+-----------+----------+----------+
| Impairment | | - | - | - | - |
| losses | | | | | |
+--------+--------+-----------------------------+-----------+-----------+----------+----------+
Income segment results for the 52 weeks to 30 December 2008 are as follows;
+---------------+---------------+---------------+----------+-----------+--------------+----------+
| Segmental revenue and profit | | | | |
+-----------------------------------------------+----------+-----------+--------------+----------+
| | | | | | | |
+---------------+---------------+---------------+----------+-----------+--------------+----------+
| | | | | | | |
+---------------+---------------+---------------+----------+-----------+--------------+----------+
| Continuing operations | Retail | Wholesale | Eliminations | Total |
+-----------------------------------------------+----------+-----------+--------------+----------+
| | | | GBP000 | GBP000 | GBP000 | GBP000 |
+---------------+---------------+---------------+----------+-----------+--------------+----------+
| Revenue | | | | | |
+-------------------------------+---------------+----------+-----------+--------------+----------+
| - from external customers | 91,222 | 3,435 | - | 94,657 |
+-----------------------------------------------+----------+-----------+--------------+----------+
| - from other segments | - | 8,728 | (8,728) | 0 |
+-----------------------------------------------+----------+-----------+--------------+----------+
| | | | 91,222 | 12,163 | (8,728) | 94,657 |
+---------------+---------------+---------------+----------+-----------+--------------+----------+
| Cost of Sales | | (60,853) | (9,590) | 8,559 | (61,884) |
+-------------------------------+---------------+----------+-----------+--------------+----------+
| | | | | | | |
+---------------+---------------+---------------+----------+-----------+--------------+----------+
| Gross Profit | | 30,369 | 2,573 | (169) | 32,773 |
+-------------------------------+---------------+----------+-----------+--------------+----------+
| | | | | | | |
+---------------+---------------+---------------+----------+-----------+--------------+----------+
| | | | | | | |
+---------------+---------------+---------------+----------+-----------+--------------+----------+
| Administration costs, distribution costs and | (43,084) | (2,534) | - | (45,618) |
| other expenses | | | | |
+-----------------------------------------------+----------+-----------+--------------+----------+
| | | | | | | |
+---------------+---------------+---------------+----------+-----------+--------------+----------+
| Segment operating profit/(loss) | (12,715) | 39 | (169) | (12,845) |
+-----------------------------------------------+----------+-----------+--------------+----------+
| | | | | | | |
+---------------+---------------+---------------+----------+-----------+--------------+----------+
Balance sheet segment; assets and liabilities as at 30 December 2008 may be
summarised as follows;
+--------+--------+-----------------------------+-------------+-----------+----------+----------+
| | | | | | | |
+--------+--------+-----------------------------+-------------+-----------+----------+----------+
| Segment assets/(liabilities) | 28,689 | 1,557 | (130) | 30,116 |
+-----------------------------------------------+-------------+-----------+----------+----------+
| | | | | | | |
+--------+--------+-----------------------------+-------------+-----------+----------+----------+
| Segment impairment losses | | | | |
+-----------------------------------------------+-------------+-----------+----------+----------+
| Depreciation and amortisation | (1,240) | (20) | - | (1,260) |
+-----------------------------------------------+-------------+-----------+----------+----------+
| Impairment | | (1,016) | - | - | (1,016) |
| losses | | | | | |
+-----------------+-----------------------------+-------------+-----------+----------+----------+
| | | | | | | |
+--------+--------+-----------------------------+-------------+-----------+----------+----------+
3. Share issues
During the period under review 3,280,000 share options were granted. No share
options granted under the Company's share based compensation plan have been
exercised.
4. Earnings per share
To calculate the diluted earnings per share figure, the weighted average of
dilutive employee share options expected to vest have been added. The number
represents management's best estimate at the balance sheet date, which is also
used for calculating employee remuneration expense relating to share based
payment transactions.
+--------------------------------------+-----------+----------+------------+------------+------------+
| | | | 26 weeks | 26 Weeks | 52 weeks |
| | | | ended 28 | ended 29 | ended 30 |
| | | | June 2009 | June 2008 | December |
| | | | | | 2008 |
+--------------------------------------+-----------+----------+------------+------------+------------+
| Reconciliation of average number of shares used for basic | | | |
| and diluted earnings per share | | | |
+-------------------------------------------------------------+------------+------------+------------+
| Weighted average number of ordinary shares used for basic | 29,669,505 | 29,664,102 | 29,665,428 |
| earnings per share | | | |
+-------------------------------------------------------------+------------+------------+------------+
| Weighted average number of dilutive shares under option | 143,078 | 273,955 | 30,327 |
+-------------------------------------------------------------+------------+------------+------------+
| Weighted average number of ordinary shares for diluted | 29,812,583 | 29,938,057 | 29,695,755 |
| earnings per share | | | |
+--------------------------------------+-----------+----------+------------+------------+------------+
5. Exceptional items
Exceptional items during the interim period under review relate to board
restructuring costs.
During the year to 28 December 2008 the following exceptional items were
incurred:
+------------------------------------------------+--------------+------------+
| | 52 weeks | 52 weeks |
| | ended 28 | ended 28 |
| | December | December |
| | 2008 | 2008 |
+------------------------------------------------+--------------+------------+
| | GBP'000 | GBP'000 |
+------------------------------------------------+--------------+------------+
| Included in sales revenue: | | |
+------------------------------------------------+--------------+------------+
| Sales returns | | 290 |
+------------------------------------------------+--------------+------------+
| | | |
+------------------------------------------------+--------------+------------+
| Included in costs of sales: | | |
+------------------------------------------------+--------------+------------+
| Stock write downs | | 2,758 |
+------------------------------------------------+--------------+------------+
| | | |
+------------------------------------------------+--------------+------------+
| Included in administrative expenses: | | |
+------------------------------------------------+--------------+------------+
| Restructuring costs | | 746 |
+------------------------------------------------+--------------+------------+
| Doubtful debt provisions | | 752 |
+------------------------------------------------+--------------+------------+
| Legal and professional fees in respect of | | 355 |
| restructuring | | |
+------------------------------------------------+--------------+------------+
| Bank deposit loss | | 614 |
+------------------------------------------------+--------------+------------+
| Write off planning permission costs | 432 | |
| (historical) | | |
+------------------------------------------------+--------------+------------+
| Write off planning permission costs (acquired | 260 | |
| in the year) | | |
+------------------------------------------------+--------------+------------+
| Impairment of IT system values | 245 | |
+------------------------------------------------+--------------+------------+
| Write off of IT expenditure (acquired in the | 884 | |
| year) | | |
+------------------------------------------------+--------------+------------+
| Assets written off under new capitalisation | 79 | |
| policy | | |
+------------------------------------------------+--------------+------------+
| Assets written off after physical audit | 305 | |
+------------------------------------------------+--------------+------------+
| Impairment of goodwill | 1,523 | |
+------------------------------------------------+--------------+------------+
| Asset write off's | | 3,728 |
+------------------------------------------------+--------------+------------+
| | | 9,243 |
+------------------------------------------------+--------------+------------+
None of these exceptional items were incurred during the first half of 2008.
6. Dividends
The Directors do not propose an interim dividend for 2009 ( 2008:GBP519,216
(1.75p per share)). The GBP221,000 balance remaining on the 2008 interim
dividend was paid on 29th December 2008.
7. Principal accounting policies
The following principal accounting policies have been applied consistently.
Use of estimates and judgements
The preparation of financial statements, in conformity with adopted IFRSs,
requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting period.
Although these estimates are based on management's best knowledge of the amount,
event or actions, actual results ultimately may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis.
Revisions to accounting estimates are recognised in the period in which the
estimate is revised if the revision affects only that period, or in the period
of the revision and future periods if the revision affects both current and
future periods.
Judgements made by the directors in the application of accounting policies that
have significant effect on the financial statements and estimates with a
significant risk of material adjustment in the next year are discussed below.
Revenue
Revenue represents the total invoice value (which includes postage & packing),
excluding value added tax, of goods sold. The total invoice value equates to the
fair value of consideration receivable. Revenue is recognised for the sale of
goods on dispatch to the customer. Provision is made for the impact of
anticipated returns. Agency fees are earned on sold airtime, this revenue is
recognised at the point that the sold airtime is broadcast.
Exceptional Items
Exceptional items are those significant items which are separately disclosed by
virtue of their size or incidence to enable a full understanding of the group's
financial performance.
Provisions
Provisions are recognised when present obligations will probably lead to an
outflow of economic resources from the Group and they can be estimated reliably.
Timing or amount of the outflow may still be uncertain. A present obligation
arises from the presence of a legal or constructive commitment that has resulted
from past events.
Taxation
Current tax is the tax currently payable based on taxable profit for the year
together with any adjustments to tax payable in respect of prior years.
Deferred tax is calculated using the liability method on temporary differences.
Deferred tax is generally provided on the difference between the carrying
amounts of assets and liabilities in the financial statements and the
corresponding tax bases used in the computation of taxable profit. Deferred tax
liabilities are provided in full, with no discounting.
Deferred tax assets are recognised to the extent that it is probable that the
underlying deductible temporary differences will be able to be offset against
future taxable income. Tax losses available to be carried forward are assessed
for recognition as a deferred tax asset.
Current and deferred tax assets and liabilities are calculated at tax rates
ruling at balance sheet date that are expected to apply to their respective
period of realisation, provided they are enacted or substantively enacted at the
balance sheet date.
Changes in deferred tax assets or liabilities are recognised as a component of
tax expense in the income statement, except where they relate to items that are
charged or credited directly to equity in which case the related deferred tax is
also charged or credited directly to equity.
8. Taxation
No tax charge has been provided for the period to 28 June 2009 as the Group has
significant unrecognised losses which are considered to exceed any potential tax
charge for the full year period based on current management forecasts.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR ILFFSAVIFFIA
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