Final Results

Ideal Shopping Direct PLC
26 March 2004


                           IDEAL SHOPPING DIRECT PLC

                         ANNOUNCEMENT OF FINAL RESULTS
                      FOR THE YEAR ENDED 31 DECEMBER 2003

                                   Highlights

Financial

     -    Turnover up 35.3% to £44.1 million (2002: £32.6 million).

     -    Second half sales of £24.4 million against £19.7 million for first
          half.

     -    Gross profit margin 39.6% (2002: 41.4%)

     -    Operating costs up 45% to £17.6 million (2002: £12.1 million)
          reflecting full year's occupation of new premises, set up of call 
          centre in India and increasing staffing and efficiency of critical 
          areas of buying and logistics to support the rapid growth in sales.

     -    Profit before tax £123,000 (includes insurance credit of £0.5
          million) (2002: £3.2 million; includes insurance credit of £2.2 
          million).

     -    Earnings per share 1.3p (2002: 15.5p).

     -    Cash at year end of £6.3 million (2002: £6.2 million).


Operational
          
     -    Actions taken to address operational issues created as a result of
          rapid growth to ensure maximum efficiency and high levels of service 
          are maintained:
               
          o    Call centre - ordering operations transferred to India a year 
               earlier than planned.

          o    Buying - recruited new head of buying and enhanced buying team.

          o    Logistics and Warehouse - new management introduced, 7 day 
               operating now in place.

               Full benefits of above expected to come through during second 
               half.
          
     -    Ceased trading catalogue business following strategic decision to
          focus management time on TV channels where margins are significantly 
          higher. Buyers for this business being sought.

Television
     
     -    Ideal World channel sales up 33% to £32 million (2002 £24 million)

     -    Create and Craft channel successfully launched in April 2003,
          utilising existing capital assets. Sales focussed web site including 
          web streaming of channel came on line in August 2003, profitable from 
          inception.

     -    Ideal Vitality launched in Jan 2004, selling healthy lifestyle
          products using same business model as Create and Craft. Replaces 
          Vitality channel, a turnkey operation for Goldshield Plc which 
          terminated at end of 2003.

Corporate
          
     -    Jim Hodkinson to become Non-executive Chairman from 1 April 2004. He
          was on the board of Kingfisher Plc where he was Chairman and Chief 
          Executive of B&Q.
Outlook
          
     -    Results from investment in buying, call centre and warehouse 
          operations already showing through - sales for first two months of 
          year 13% ahead on like for like basis and gross margins being 
          maintained.
          
     -    Uniquely placed to reinforce competitive position in television
          shopping and to take advantage of opportunities in this high growth 
          market.

Commenting on these results and future prospects Paul Wright, Chairman and Chief
Executive said:

     " 2003 was a challenging year for Ideal Shopping as we have had to contend 
     with a number of critical operational issues that have resulted from our 
     rapid growth, including the most important area of buying. However, we have 
     taken rapid action and now have in place a much improved and more robust
     infrastructure that is already delivering significant benefits and has the
     capacity to support the anticipated expansion of the business.

     "We have a clear focus on television shopping, which is a fast expanding 
     and still embryonic form of retailing, where we have built up a strong and
     competitive position underpinned by a substantial and loyal customer base. 
     I therefore believe the Company has genuinely attractive prospects for 
     sustainable growth and profitability going forward".


                                      ENDS

Attached are the Chairman's statement, Finance Director's report, profit and
loss account, balance sheet, cash flow statement and associated notes to the
accounts.

For further information contact:

Ideal Shopping Direct Plc
www.idealshoppingdirect.co.uk
-----------------------------

Paul Wright, Chairman and Chief    Tel: [phone]
Executive                          E-mail: [e-mail]

IKON Associates

Adrian Shaw                        Tel: [phone]
                                   Mobile: [phone]
                                   E-mail: [e-mail]

KBC Peel Hunt
Adam Hart                          Tel: [phone]

Notes for editors
          
     •    Ideal Shopping Direct runs one of the UK's leading live TV Home 
          shopping channels, Ideal World on digital satellite channel 635 and      
          digital cable NTL channel 855. Ideal World broadcasts 24 hours a day 
          including 16 hours of live programmes daily. The channel can 
          currently be accessed by an estimated household population of 
          approximately 8.3 million homes (digital satellite 7.0 million; 
          digital cable NTL 1.3 million). The Create and Craft Channel runs 24 
          hours a day on digital satellite channel 695 and Ideal Vitality is on 
          digital satellite channel 667.


     •    The Company serves the "direct to home" market via TV home shopping. 
          The Company's branding has a quintessentially British feel focussed on 
          providing a wide variety of products in an entertaining and appealing 
          way, building on three basic principles: family, friendship and fun.

          
     •    Ideal Shopping Direct Plc has been listed on AIM since February 2000.
          Its market capitalisation as at close of business on Thursday 25 March 
          2004 at a share price of 46.5 was £13.5 million.

IDEAL SHOPPING direct plc

FINAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2003

CHAIRMAN'S STATEMENT

INTRODUCTION

Calendar 2003 has been an interesting year for Ideal Shopping Direct Plc being
the first full year in our newly built headquarters "Ideal Home House" and a
year during which we have incurred costs in re-engineering parts of the business
to set it up for our anticipated future growth.

We look forward to improving trading during 2004.

TRADING REVIEW

Results

Turnover was £44.1 million - an increase of 35.3% when compared to the £32.6
million achieved last year. The percentage gross profit achieved was 39.6%
compared to 41.4% for the prior year. Total operating costs increased from £12.1
million to £17.6 million - an increase of 45% reflecting a full year's
occupation of our new premises coupled with the one off parallel running costs
relevant to the move of our call centre operations to India.

In addition, our staffing levels increased in the critical areas of buying and
logistics as we addressed the requirements to ensure continued sales growth. We
now have a facility that will allow the business to continue to expand.

Our continuing operations made a profit of £56,000. However, after allowing for
the attributable operating loss of the discontinued catalogue business, total
operating losses were £113,000 compared to a profit of £3,440,000 for last year,
which was struck after an insurance credit of £2,213,000. Profit before tax was
£123,000 against £3,238,000 for last year giving rise to earnings per share of
1.3p (2002: 15.5p).

During the second half of 2003, the business was able to continue to focus on
increasing sales and I am pleased to tell you that during this period sales
totalled £24.4 million (against £19.7 million for the first six months), despite
very poor levels of sales achieved in July and August which, we believe, were
partly attributable to the unusually hot summer, but which were followed by a
good level of trading unexpectedly late into December, which underlines the fact
that we are subject to the same vagaries of seasonality and weather as the more
traditional bricks and mortar retailers. Sales in the second half were driven
primarily through the growth in sales via our TV shopping channels, Ideal World
and Create & Craft. We ceased trading our historic catalogue business, Ideal
Home Home Shopping, at the half year as advised in my interim statement because
we felt that management time would be best spent focussing on our TV channels
where significantly better margins are available so the second half sales are
not flattered by its turnover.

I shared with you whilst commenting on our interim results that our continued
rapid growth throughout 2003 had exerted operational pressures on certain key
areas of our business. These pressures highlighted potential operational
weaknesses, which, if they were left unaddressed, could swiftly have had long
term damaging consequences for the business. The specific areas that required
and received a rapid response were crucially in our call centre, buying
department and logistics and warehouse operations.

Call Centre

As previously reported, we took the decision a year earlier than planned to
transfer our inbound call centre to India where there is a ready and plentiful
supply of skilled labour. This is in stark contrast to Peterborough where we
found it hard to recruit the quantity of staff we needed to capture inbound
sales calls as well as having to endure unacceptable levels of absenteeism.
These issues became intolerable with little prospect of relief given the local
'full employment' conditions. This decision necessitated a substantial period of
parallel running of the call centre and our incurring costs associated with
closing it down in accordance with UK employment law. In addition, it took
several months to bridge the cultural gap between Indian and UK mindsets, which,
with hindsight, was longer than anticipated. During this period our customer
churn increased. I am pleased to tell you that these issues are now fully
resolved and customer satisfaction levels and churn levels are both back to
those enjoyed prior to the transfer and are continuing to improve.

Logistics and Warehouse

With a rapidly expanding level of sales, the business inevitably needs
constantly to review its logistics and warehousing functions. As sales rose, we
began to experience a significant deterioration in the levels of delivery
service that our customers had historically come to expect.

We took decisive action on a number of fronts. Management of our entire
logistics and warehouse operations was reviewed and regrettably we had to let
some of our longer serving people go to be replaced by a more widely experienced
and forward thinking team. Additionally, we have altered our working practices
to ensure we have a 7 day rather than a 5 day warehouse operation which more
closely will match order receipt with physical despatch. This has and will
continue to dramatically improve customer service levels. Other changes are
still being implemented and forward planning for our anticipated continued
growth is also underway.


Buying

The key driver of our business and effectively the heart of our operations is
the sourcing of viable products at good margins and that customers want to buy.
As volumes of individual products have continued to grow, the necessity for
careful advanced pre-planning and negotiation with suppliers becomes paramount.
As with our logistics and warehouse operations, a thorough review was undertaken
to ensure we had the requisite skill sets to meet the expanding product needs of
the business. Our inability to attract the right people as a result of the
Company's situation associated with the aftermath of the fire became painfully
evident in July and August. Senior personnel changes were made and we have since
recruited an experienced and seasoned new Head of Buying. Following a detailed
review of our pre-existing buying expertise, further changes have proved
necessary. Over the last few months and particularly in the first quarter of
2004, a number of buyers have been replaced and the team bolstered by fresh
talent. We are already seeing the benefits of the new buying management team
through improved processes and disciplines, although I do not anticipate that
the Company will enjoy the full financial benefits of recent actions until the
focus and reorganisation of our supply chain is fully felt which I anticipate
will be in the second half and beyond.


TELEVISION SHOPPING

IDEAL WORLD: SKY DIGITAL SATELLITE CHANNEL 635 NTL DIGITAL CABLE CHANNEL 855 

We have always believed that shopping via television is the new convenient way
for people to buy products about which they are uniquely, comprehensively and
properly informed which are then delivered to their door. This relatively new
and embryonic form of retailing, especially through Ideal World, our live and
truly interactive shopping channel, we believe continues to represent our
current, medium and long term growth opportunity. Our year on year sales growth
in this exciting new retail environment demonstrates the potential future growth
for the Company. Despite the factors, which will no doubt have had a
constraining effect on growth, described above, turnover through Ideal World
grew by 33% from £24 million in 2002 to £32 million in 2003. Underpinning the
growth was our ability to attract a significant number of new customers during
the year to further bolster our existing loyal and devoted customer base.

NICHE SHOPPING CHANNEL : CREATE AND CRAFT - SKY DIGITAL SATELLITE CHANNEL 695

Having successfully identified a niche shopping audience for craft products sold
via Ideal World, we identified an opportunity for a new 24 hour dedicated craft
channel. In April 2003, we launched the Company's second digital channel, called
Create and Craft with Ideal World, dedicated to this niche market. The costs
associated with this channel have been minimised by using our existing capital
assets during our downtime to produce tested pre-recorded material for later
broadcast. From the inception of the channel, this different business model has
proven successful and continues to grow at a satisfactory rate. In 2003 the
Create and Craft digital channel generated £2.3 million in revenue.

This innovation was further enhanced in August 2003 through the launch of Create
and Craft on the worldwide web by video streaming the pre-recorded output, which
has been augmented by a fully interactive sales focused web site. This activity
has been profitable from its inception with viewers and customers being directed
to the site via cross promotion of the site on Ideal World and on Create and
Craft.

NICHE SHOPPING CHANNEL : IDEAL VITALITY - SKY DIGITAL SATELLITE CHANNEL 667

Shareholders will be aware that we had been commissioned to provide a turnkey
operation for Goldshield Plc to provide a dedicated healthcare channel, which
would focus on selling Goldshield's core healthcare products. Regrettably, after
operating for some 12 months, this venture did not prove to be successful for
Goldshield and the project was, by mutual agreement, abandoned on 31 December
2003.

From January this year, the Company took over the channel and has operated it as
"Ideal Vitality" selling health and beauty products which had first been tested
on Ideal World. This business model uses pre-recorded material in the same way
as Create and Craft. Initial results for our third new channel remain
encouraging and we anticipate the channel will break even during Q3 in 2004.

CATALOGUE

During June 2003, we decided not to publish any more Ideal Home Home Shopping
catalogues in order to concentrate management resources on our growing TV
shopping business. We took the view that our catalogues no longer represented
core business or a significant profit or growth opportunity. We are looking to
dispose of the goodwill associated with the catalogue business although no
offers have been received to date.

BOARD CHANGES

I am pleased to announce that with effect from 1 April 2004, Jim Hodkinson will
be joining the Board as Non-executive Chairman. Jim was a main board director of
Kingfisher Plc with specific responsibility for the B & Q operation where he was
Chairman and Chief Executive. He brings to the Board a wealth of experience
within a fast moving retailing environment.

STAFF

On behalf of the Board, I would like to thank my fellow directors, senior
managers, managers and employees throughout the Company for their continued
commitment and hard work throughout this year.

future

The main challenge in the retail sector is the buying and sourcing of product to
satisfy the demands of our customers. We have invested and continue to invest in
improving the quality of our buying team and the buying processes whilst still
retaining entrepreneurial flair.

Considerable effort and investment has been made in our call centre and
warehouse operations in preparation for our continued growth in 2004 and beyond.
The first two months of the current year show sales 13% ahead on a like for like
basis with profit margins maintained and our operating costs and stocks closely
monitored.

Looking ahead, I believe we are now uniquely placed to be able to reinforce our
competitive position in the television shopping market and take advantage of the
growth opportunities available in our chosen market place.

I would like to thank our shareholders for their loyalty and patience through
this difficult period.

Paul C Wright
Chairman and Chief Executive
26 March 2004


FINANCE DIRECTOR'S REPORT

PERFORMANCE

This report and financial information are for the year ended 31 December 2003.

Sales grew in total by 35% to £44.1m (2002: £32.6m).

The gross margin achieved was 39.6% (2002: 41.4%).

The company achieved a profit before taxation of £0.1m (2002: £3.2m). Adjusting
this for insurance-related income of £0.5m (2002: £2.2m) results in an adjusted
loss of £0.4m (2002: profit of £1.2m) which is in line with market expectations.

The distribution and administrative costs to sales ratio increased to 39.9%
(2002: 37.1%) reflecting the funding of 2002 costs from the insurers and the
increased expenditure of operating within the new premises.

The benefit of the insurance claims and proceeds is included within the
Consolidated Profit and Loss Account. The amount received net of irrecoverable
fire costs in 2003 was £0.5m (2002: £2.0m)

TAXATION

As in the prior year, the company has continued to adopt Financial Reporting
Standard 19 (FRS 19 - Deferred tax). The standard requires the provision for
future tax liabilities, which arise mainly as a consequence of capital
allowances in excess of depreciation. The standard also requires the recognition
of deferred tax assets to the extent that they are regarded as recoverable.

The continued adoption of FRS 19 has resulted in an increase to the profit and
loss account of £273,000 (2002: £1,309,000) due to the tax losses carried
forward which will be recoverable in future years. This is further explained in
note 2 of this statement.


INTEREST

The net interest charge during the year increased from £0.2m to £0.3m mainly due
to the reduced amount of interest received from monies held on deposit with the
banks

BALANCE SHEET

During the year the company invested £0.7m in the replacement and upgrading of
its fixtures, fittings and equipment and £0.3m in completion of the building.
The investment was funded through finance leases and cash.

The stocking levels remained at the same level as 2002 at £4.4m, despite
promoting increased sales levels.

CASH FLOW AND WORKING CAPITAL

The net increase in cash was £0.1m, which was due to the receipt of £0.5m in
insurance proceeds as a full and final settlement, offset by the repayment of
borrowings and finance leases.

TREASURY AND RISK MANAGEMENT

The principal risks to the company arise from interest rate fluctuations. No
transactions of a speculative nature are entered into. The company finances its
operations through a mixture of retained profits and medium and long-term asset
backed finance. The debt instruments used for fixed asset purchase are all at
fixed rates of interest. Cash deposits during the year were placed at fixed
rates of interest with varying maturity periods.

Mike Creedon
Finance Director
26 March 2004

CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2003

                                   2003       2003       2002       2002
                                  £'000      £'000      £'000      £'000
Turnover
Continuing operations            41,506                28,871
Discontinued operations           2,624                 3,763
                                --------              --------
                                            44,130                32,634

Cost of sales                              (26,653)              (19,128)
                                           --------              --------

Gross profit                                17,477                13,506
                                           --------              --------

Distribution costs                          (2,364)               (1,498)

Administrative expenses         (15,226)              (10,611)
Business interruption claim           -                 2,213
income
Irrecoverable fire costs             -                  (170)
                                --------              --------

Total net administrative                   (15,226)               (8,568)
expenses                                   --------              --------

Net operating expenses                     (17,590)              (10,066)
                                           --------              --------

Operating (loss)/profit
Continuing operations                56                 3,449
Discontinued operations            (169)                   (9)
                                 --------              --------
                                              (113)                3,440

Exceptional item
Profit on disposal of fixed                    537                     -
assets

Net interest                                  (301)                 (202)
                                           --------              --------

Profit on ordinary
activities
before taxation                                123                 3,238

Tax on profit on ordinary                      252                 1,273
activities                                 --------              --------

Profit for the financial year                  375                 4,511

Dividends                                        -                     -
                                           --------              --------

Retained profit transferred to                 375                 4,511
reserves                                   --------              --------

Basic earnings per share                       1.3p                 15.5p
                                           --------              --------

Diluted earnings per share                     1.3p                 15.4p
                                           --------              --------

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


CONSOLIDATED BALANCE SHEET AT 31 DECEMBER 2003

                                2003       2003       2002       2002
                               £'000      £'000      £'000      £'000
Fixed assets
Tangible assets                           8,884                 8,984

Current assets
Stocks                         4,410                 4,373
Debtors: amounts falling
due
within one year                1,249                   766
Debtors: amounts falling
due
after more than one year       1,582                 1,309
Cash                           6,347                 6,241
                             --------             ---------

                              13,588                12,689
                                                   ---------
Creditors: amounts falling
due
within one year              (10,597)               (9,562)
                             --------             ---------

Net current assets                        2,991                 3,127
                                        --------             ---------

Total assets less current                11,875                12,111
liabilities

Creditors: amounts falling
due
after more than one year                 (3,863)               (4,395)

Provisions for liabilities                 (991)               (1,140)
and charges                             --------             ---------
                                          7,021                 6,576
                                        ========             =========

Capital and reserves
Called up share capital                     881                   875
Share premium account                        64                 9,975
Special reserve                           5,709                     -
Profit and loss account                     367                (4,274)
                                        --------             ---------
Shareholders' funds                       7,021                 6,576
                                        ========             =========



CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2003

                                                    2003        2002
                                                   £'000       £'000

Net cash inflow from operating activities          1,225       5,204
                                                ---------   ---------

Returns on investments and servicing of
finance
Interest received                                    110         184
Interest paid                                       (207)       (170)
Finance lease interest paid                         (204)       (216)
                                                ---------   ---------

Net cash outflow from returns on investments
and servicing of finance                            (301)       (202)
                                                ---------   ---------

Capital expenditure
Purchase of tangible fixed assets                   (703)     (5,145)
Insurance proceeds in respect of tangible            537       1,939
fixed assets                                    ---------   ---------

Net cash outflow from capital expenditure           (166)     (3,206)
                                                ---------   ---------

Financing
Issue of shares                                       70           -
Receipts from borrowings                             200       1,395
Repayment of borrowings                             (263)       (264)
Capital element of finance lease payments           (659)       (431)
                                                ---------   ---------

Net cash (outflow)/inflow from financing            (652)        700
                                                ---------   ---------

Increase in cash                                     106       2,496
                                                =========   =========

NOTES
     
1     BASIS OF PREPARATION

     The financial information set out above in respect of 31 December 2003 does 
     not constitute statutory accounts as defined in Section 240 of the 
     Companies Act 1985. The financial information contained in this 
     announcement has been extracted from the 2003 statutory financial 
     statements upon which the auditors opinion is unqualified and does not 
     include any statement under Section 237 of the Companies Act 1985.
     
2    TAX CREDIT

The tax credit represents:
                                                               2003      2002
                                                              £'000     £'000

     Corporation tax at 30% (2002: 30%)                          21        36
                                                            --------  --------

     Total current tax                                           21        36
                                                            ========  ========

     Deferred tax:
     Origination and reversal of timing differences              40       849
     
     Adjustments in respect of prior year                      (313)   (2,158)
                                                            --------  --------

     Total deferred tax                                        (273)   (1,309)
                                                            ========  ========
                                                            ========  ========
     Tax on profit on ordinary activities                      (252)   (1,273)
                                                            ========  ========

     The movement of £273,000 (2002: £1,309,000) on deferred tax results 
     principally in respect of changes in the Company's accelerated capital 
     allowances and other timing differences. It is regarded as more likely than 
     not that there will be suitable taxable profits to permit the utilisation 
     of such losses. The asset has been disclosed within other debtors falling 
     due after more than one year because the directors cannot be certain as to 
     the timing of the use of the losses.
     
3    DIVIDENDS

     No dividends have been declared or paid in respect of 2003 or 2002.
          
4    EARNINGS PER SHARE

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

     Reconciliations of the earnings and weighted average number of shares used 
     in the calculations are set out below:
                                                                 
                                          Earnings            2003    Per share
                                                 £          shares        Pence

     Earnings attributable to ordinary
     shareholders                          375,000      29,200,570          1.3
     Dilutive effect of securities:
     Options                                     -         388,068           -
                                        ----------      ----------   ----------
     Diluted earnings per share            375,000      29,588,638          1.3
                                        ==========      ==========   ==========

                                          Earnings            2002    Per share
                                                 £          shares        Pence

     Earnings attributable to ordinary
     shareholders                        4,511,000      29,025,570         15.5
     Dilutive effect of securities:
     Options                                     -         283,666            -
                                        ----------      ----------   ----------
     Diluted earnings per share          4,511,000      29,309,236         15.4
                                        ==========      ==========   ==========

     
5    SHAREHOLDERS' FUNDS

     Shareholders' funds reflect the court-approved restructuring of reserves
     undertaken on 27 June 2003.
     
6    REPORT AND ACCOUNTS

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



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