Final Results

Ideal Shopping Direct PLC
29 May 2002

IDEAL SHOPPING DIRECT PLC

PRELIMINARY STATEMENT OF ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2001

Ideal Shopping Direct PLC, whose principal activity is the operation of the
Ideal World TV home shopping channel today announces its preliminary results for
the year ended 31 December 2001.



Chairman and Chief Executive's Statement

INTRODUCTION

I am pleased to present my report for the year ended 31 December 2001, a year of
massive disruptions to both the TV and catalogue business.

FIRE

On 6 March 2001 a catastrophic fire took place, which destroyed our offices,
warehouse, call centre, and TV and broadcasting  facilities.  It is difficult
for me to describe the total destruction that the Company faced on the morning
of 7 March 2001.   Virtually every asset was destroyed as a result of the fire
other than essential records maintained by the Company off site to mitigate the
effects of such a catastrophe.   The Company was however fully insured and the
insurers accepted liability.   The process of rebuilding the business from
nothing has been a gargantuan feat and the efforts of both my co-directors and
staff cannot be ignored.

As a direct result of this sustained effort, the Company has not only rebuilt a
substantial business as detailed further below, but I am pleased to announce
that the Company has now reached agreement with its insurer to finally settle
the outstanding insurance claim.  Thank you to all those involved in achieving
what is a significant result for all shareholders.  The detailed receipts from
the insurance claim are described in further detail below.  We currently
anticipate that the premises will be rebuilt and assets replaced by the end of
August 2002.  I foresee that these replacement assets will enhance the continued
growth of our customer base, which even continued to grow through 2001, a period
of tremendous turmoil.

TRADING REVIEW

The consolidated loss for the year after taxation of £3,584,000 demonstrates  an
improvement  in the Company's trading when compared with the interim results to
30 June 2001, which reported consolidated losses of £3,813,000.

The market expectations for the Company was a consolidated loss for the year
after taxation of £3,200,000.  The Company reported a better position of
£3,029,000 excluding £555,000 irrecoverable fire costs which were not
anticipated when the forecast was issued.

The net operating loss before insurance monies and irrecoverable fire costs
improved significantly during the financial year, to the extent that the Company
reported net operating losses of £4,255,000 in the six month period to 30 June
2001, whilst a loss of £1,867,000 was made  in the latter six months to 31
December 2001,   representing a significant improvement.

Turnover increased during the latter six months,  with the Company reporting
sales  of £10,623,000 compared to £7,028,000 in the six month period to 30 June
2001.  The Company's  turnover for  the year of £17,651,000 exceeded  market
expectations  of £16,200,000.  This increase was achieved in the latter six
months of the year, which re-enforces my belief in the Company's growing success
by demonstrating significant sales growth through this period of turmoil.

Television (Ideal World - Digital Channel 635)

Although the fire has delayed the Company from achieving its original  growth
expectations at the time of its flotation on AIM in late 2000,  the Ideal World
TV business  has  held its  audience through providing shows to our customers
that  offered them a range of products that service their needs.

As the year progressed and we became acclimatised to operating from  our new
Portable Cabin environment whilst the rebuilding of the office and broadcast
studios was underway, we became more optimistic of our future.

This can be illustrated when comparing sales income in the months January/
February 2001 (before the fire in March) to January/February 2002.


                       January                        February


      £000              £000             Growth             £000              £000             Growth

      2001              2002                %               2001              2002                %


       842              1378               64%               793              1410               78%




The sales figures above in respect of 2002 are unaudited.



Any further monthly comparisons to last year will be distorted due to the
disruption caused by the fire.  Trading in the following three months is healthy
and in line with expectations.



This growth rate only enhances my belief in the potential for Ideal World when
the results for the current year are taken in the context of the Company
operating in such challenging operating conditions.



CATALOGUE



Following the fire the resources of the Company were directed towards
resurrecting the Ideal World TV business and not focused on seeking to
re-establish the catalogue division.  As previously announced to shareholders,
the performance of the catalogue division had suffered in what is a highly
competitive market.  Attempts to dispose of our catalogue division have failed
to attract an acceptable offer.  The Board has therefore reviewed the situation.
  We believe that the catalogue division can become profitable and we have
decided to recommence trading this division and as such we have recruited
specialist expertise to help accomplish our objectives, and anticipate that it
will provide a positive contribution to the Group in the short term.



BOARD CHANGES



As previously announced there have been a number of board changes during the
year.  Peter Ridsdale resigned on 3 July 2001 as Non-executive Chairman.  Paul
Jephcott resigned as Finance Director on 26 October 2001 to be replaced by Mike
Creedon on 26 March 2002.



STAFF



On behalf of the shareholders I would like to thank my fellow directors and in
particular, Terry Donovan, our Non-executive Director for his guidance and
experience during this difficult time and Val Kaye without whose dedication, our
recovery would probably not have happened.  I would also like to thank all the
Company's  employees for their continued efforts in the recovery programme at
Ideal Shopping Direct,   without their dedication and support, an already
seemingly impossible task would have been all the more daunting.



INSURANCE



The management and staff have found dealing with insurance claims a particularly
time consuming and stressful exercise, but of crucial importance as the Company
has,  since the fire,  been reliant upon payments received  from its insurers
and on  £3.7million (before expenses of £188,500)  of new funds raised from
certain shareholders and new investors raised in a placing at 40p per share in
August 2001.   I am therefore delighted to inform shareholders that the Board
has now reached agreement with the Company's insurers  and has settled all of
the outstanding insurance claims.  This has been agreed as follows:



(i)         Stock



             Claims in respect of the Company's stock have been agreed
and  £2.3 million has been  received in respect of the stock claim.



(ii)        Buildings



             The insurers  have re-imbursed  an agreed  amount in respect of the
premises claim to allow  the construction of a replacement building.



(iii)       Contents



             An additional £0.5 million has been received to date in respect of
contents, particularly fixtures and equipment, destroyed in the fire and this
element of the claim will continue as fixed assets are replaced.  Certain
broadcast equipment was leased to the Company and the insurers have settled the
due amounts directly with the lessor.



(iv)       Business Interruption



             As part of the insurance policy, the insurers have reimbursed the
additional increased costs of working incurred by the Company in reinstating the
business and to date this has resulted in insurance payments of £2.7 million for
items  such as temporary premises and warehouse, studio and equipment hire and
short term additional staff costs.



             The biggest element of the claim, however, was  in respect of the
shortfall in profits that has occurred as a result of the fire.  This  carried a
significant degree of subjectivity particularly in the context of assessing the
trading of a young but rapidly expanding business.



In recent weeks I have been in discussion with our insurers with a view  to
agreeing a full and final settlement for the Business Interruption Claim in
order to secure the Company's future trading position and to end the significant
distraction to management's focus.   I am pleased to tell you that an agreement
has been reached at a settlement figure of £5.25 million.  This sum includes the
costs of moving all staff and equipment into the new building when complete.



The settlement of the Business Interruption Claim has removed the financial
uncertainty faced by the Company  and will allow  the Board and  employees to
focus on  pursuing the Company's  growth plans and build on its significant
achievements to date.



Although the Company was fully insured and the insurers have accepted liability,
there are nevertheless costs relating to the fire that are irrecoverable. These
irrecoverable fire costs have been highlighted in the Consolidated Profit and
Loss Account.



CONCLUSION



The Company has received a clean audit report which  demonstrates the removal of
a material uncertainty which existed when the accounts for the year ended 31
December 2000 were signed and provides a basis for the business's continued
recovery. Finally, now that the Business Interruption Claim has been settled
management resources can be totally focused on the continuing improvement and
controlled growth of Ideal Shopping Direct Plc.



I remain optimistic about the growth of Home Shopping delivered via both our
live interactive TV Shopping Channel, Ideal World Digital Satellite Channel 635
and our catalogues, and believe the company is uniquely placed to continue to
exploit this exciting and expanding market.



Paul C Wright

Chairman and Chief Executive



Consolidated Profit and Loss Account

For the year ended 31 December 2001


                                            Note            2001              2001           2000                  2000

                                                           £'000             £'000          £'000                 £'000

Turnover                                                                    17,651                               16,355


Cost of sales                                                             (12,030)                             (12,518)


Gross profit                                                                 5,621                                3,837


Distribution costs                                                         (1,145)                                (897)
Administrative expenses                                 (10,598)                                                (8,720)
Business interruption claim income                         3,433                                                      -
Irrecoverable fire costs                                   (555)                                                      -


Total net administrative expenses                                          (7,720)                              (8,720)
Net operating expenses                                                     (8,865)                              (9,617)
Operating loss                                                             (3,244)                              (5,780)
Net interest                                                                 (340)                                (190)
Loss on ordinary activities before                                         (3,584)                              (5,970)
taxation
Taxation on loss on ordinary activities                                          -                                  146
Loss for the financial year                                                (3,584)                              (5,824)
Dividends                                                                        -                                    -


Retained loss transferred from reserves                                    (3,584)                              (5,824)


Basic loss per share                           2                           (15.3)p                              (30.4)p
Diluted loss per share                         2                           (15.3)p                              (30.4)p



There were no recognised gains or losses other than the loss for the financial
year.






Consolidated Balance Sheet

At 31 December 2001


                                                                          2001       2001           2000           2000

                                                                         £'000      £'000          £'000          £'000

Fixed assets
Tangible assets                                                                     3,209                         7,086

Current assets
Stock                                                                    1,766                     1,981
Debtors                                                                  4,706                       525
Cash                                                                     3,745                     3,851
                                                                        10,217                     6,357


Creditors: amounts falling due within one year                         (7,929)                   (7,287)


Net current assets / (liabilities)                                                  2,288                         (930)


Total assets less current liabilities                                               5,497                         6,156


Creditors: amounts falling due after more than one year                           (3,132)                       (3,811)


Provisions for liabilities and charges                                              (300)                         (190)
                                                                                    2,065                         2,155

Capital and reserves


Called up share capital                                                               875                           598
Share premium                                                                       9,975                         6,758
Profit and loss account                                                           (8,785)                       (5,201)
Shareholders' funds                                                                 2,065                         2,155








Consolidated Cash Flow Statement

For the year ended 31 December 2001


                                                                                               2001                2000

                                                                                              £'000               £'000

Net cash outflow from operating activities                                                  (3,296)             (1,391)

Returns on investments and servicing of finance
Interest received                                                                               106                 258
Interest paid                                                                                 (173)               (227)
Finance lease interest paid                                                                   (273)               (221)

Net cash outflow from returns on investments and servicing of finance                         (340)               (190)

Capital expenditure
Purchase of tangible fixed assets                                                           (1,187)             (1,803)
Insurance proceeds in respect of tangible fixed assets                                        1,825                   2
Net cash inflow/(outflow) from capital expenditure                                              638             (1,801)

Financing
Issue of shares                                                                               3,700               7,505
Expenses paid in connection with share issues                                                 (206)               (599)
Receipts from borrowings                                                                          -                 171
Repayment of borrowings                                                                       (264)               (128)
Capital element of finance lease payments                                                     (338)               (591)
Net cash inflow from financing                                                                2,892               6,358
(Decrease)/increase in cash                                                                   (106)               2,976



Notes:



1.       BASIS OF PREPARATION



          The financial information herein does not constitute statutory
accounts as defined in Section 240 of the Companies Act 1985.  The financial
information has been extracted from the Company's 2001 statutory financial
statements.





2.       LOSS PER SHARE



The calculation of the basic loss per share is based on the earnings
attributable to ordinary shareholders divided by the weighted average number of
shares in issue during the year.



The calculation of diluted loss per share is based on the basic loss per share
adjusted to allow for the issue of shares on the assumed conversion of dilutive
options.



Reconciliation of the earnings and weighted average number of shares used in the
calculations are set out below:


                                                                                 2001

                                                                     Weighted average            Per share
                                                                     number of shares
                                                        Earnings                                    amount

                                                               £                                     pence


Earnings attributable to ordinary                    (3,584,000)           23,475,570               (15.3)
shareholders
Anti-dilutive effect of securities:
Options                                                        -               65,616                    -

Diluted loss per share                               (3,584,000)           23,541,186               (15.3)




                                                                                 2000

                                                                     Weighted average            Per share
                                                                     number of shares
                                                        Earnings                                    amount

                                                               £                                     pence


Earnings attributable to ordinary                    (5,824,000)           19,133,113               (30.4)
shareholders
Anti-dilutive effect of securities:
Options                                                        -               23,567                    -

Diluted loss per share                               (5,824,000)           19,156,680               (30.4)





3.       RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS


                                                                                  2001                2000

                                                                                 £'000               £'000
The Group


Loss for the financial year                                                    (3,584)             (5,824)

Issue of shares in the year                                                      3,494               6,906

Net (decrease) / increase in shareholders' funds                                  (90)               1,082
Shareholders' funds at 1 January 2001                                            2,155               1,073

Shareholders' funds at 31 December 2001                                          2,065               2,155

Attributable to:
Equity shareholders                                                              2,065               2,155


The Company


Loss for the financial year                                                    (3,584)             (5,814)

Issue of shares in the year                                                      3,494               6,906

Net (decrease) / increase in shareholders' funds                                  (90)               1,092
Shareholders' funds at 1 January 2001                                            2,163               1,071

Shareholders' funds at 31 December 2001                                          2,073               2,163

Attributable to:
Equity shareholders                                                              2,073               2,163



4.       NET CASH OUTFLOW FROM OPERATING ACTIVITIES
                                                                                  2001                2000

                                                                                 £'000               £'000

Operating loss                                                                 (3,244)             (5,780)
Depreciation                                                                       650                 592
Amortisation                                                                         -                   5
Profit on sale of fixed assets                                                       -                 (1)
Decrease / (increase) in stocks                                                    215             (1,180)
(Increase) / decrease in debtors                                               (1,592)                 770
Increase in creditors                                                              675               4,203

Net cash outflow from operating activities                                     (3,296)             (1,391)




5.       DIVIDENDS



No dividends have been declared or paid in respect of 2001 or 2000.



6.      OTHER INFORMATION



Copies of the annual report and accounts will be posted to shareholders shortly.







Dated 29 May 2002



End





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