Interim Results

Ideal Shopping Direct PLC
25 September 2000



Interim results for the six months to 30 June 2000

Chairmans's Statement

The results for the six months to June 2000 are the first since
the successful flotation of the Company on AIM in February 2000
and the subsequent launch of Ideal World, our TV shopping
channel.

The results for the period show turnover of £6,110,000 (1999
£5,351,000).  The operating loss of £2,783,000 (1999 operating
profit of  £155,000) reflects the heavy start up costs of the TV
shopping channel. The loss on ordinary activities before tax was
£2,817,000 (1999 profit £158,000).  Earnings per share were a
loss of 14.5 pence (1999 earnings 0.8p).

I have been extremely encouraged by the initial success of Ideal
World which launched, as scheduled, on 17 April 2000. In August,
daily live transmissions were increased from 4 hours to 16 hours
as planned. To put together such a complex operation in such a
short space of time, recruit and train the right number of
quality people and create a customer base with a propensity to
buy has been a tremendous achievement, particularly when
combined with the resulting pressures on management resources

The sales performance to date for Ideal World TV has comfortably
exceeded initial expectations and has been underpinned by an
encouraging level of both new customers and, more importantly,
repeat business. Such early success has caused some costs, in
particular within our call centre and warehouse, to increase
ahead of sales. These cost increases are essential in allowing
us to establish an operational structure which is able to
deliver a high quality response and delivery service to our
customer base. All revenue costs incurred in establishing the TV
operations facility are being fully written off in 2000 in line
with UITF 24: Accounting for Start-Up Costs. 

The catalogue business has found the trading environment
challenging and this has affected both product sales and
advertising revenue. There has also been more pressure on gross
margins than had been anticipated. In the short term these
factors have therefore impacted profitability.

During the period, the Company has invested over £3 million in
studio equipment and information systems. In addition, the rapid
sales growth in Ideal World has lead the Board to anticipate an
early need for further warehouse space, and since the half year,
an additional six acres of freehold land has been purchased
adjacent to the current premises.

The remainder of the year will see strong growth in TV revenues
however it is envisaged that the pressure on catalogue sales and
margins experienced in the first half year will continue and
that the loss for the year will therefore be greater than that
originally anticipated. 

The challenge for the future is to ensure that the management
team has the breadth and expertise to optimise the TV sales
opportunity whilst ensuring that the established catalogue
business also delivers profitable growth. To facilitate this
objective, a detailed management review has been undertaken and
as a significant first step in strengthening the management, I
am pleased to announce the immediate appointment of Paul
Jephcott as Finance Director. Other changes are due to be in
place by the end of the calendar year. 

With the completion of the new management structure and an
increasing customer base for both the catalogue and TV
businesses, the immediate and future prospects remain
encouraging with the Company expecting to report a profit for
the year to December 2001.

 
Peter Ridsdale
Chairman
25th September 2000


Ideal Shopping Direct Plc

Consolidated Profit and Loss Accounts



Six months to 30 June 2000



                    Six months           Six months              Year to
                    to 30 June           to 30 June              31 December
                    2000                 1999                    1999
                    £'000                £'000                   £'000


Turnover            6,110                5,351                   11,767

Operating (loss)
/profit            (2,783)                 155                      420

Net interest 
(payable)
/receivable          (34)                    3                       31



(Loss)/profit on 
ordinary           (2,817)                 158                      451       
       
activities before
taxation

Taxation              145                  (47)                    (135)

(Loss)/profit      (2,672)                 111                      316
for the                                      
financial period

Dividends               -                   -                      (100)

Retained (loss)
/profit            (2,672)                 111                       216

                            
Earnings per share:

Basic               (14.5p)               0.8p                       2.1p

Fully diluted       Note 2               Note 2                      2.1p


Ideal Shopping Direct Plc

Consolidated Balance Sheets


                     30 June            30 June              31 December
                     2000               1999                 1999
                     £'000              £'000                £'000


Fixed assets                            

Intangible assets        3                  6                    5       

Tangible assets      6,523                285                3,317

                     6,526                291                3,322


Current assets       

Stock                1,494                 655                801
Debtors              1,338               1,264              1,295
Cash                 6,328               1,133                881

                                   
                     9,160               3,052              2,977


Creditors: amounts 
falling due
within one year     (6,311)             (2,364)            (2,744)



Net current assets   2,849                 688                233

Total assets less 
current liabilities  9,375                 979              3,555

Creditors: amounts 
falling due
after more 
than year           (3,955)                  -             (2,308)


Provision for 
liabilities and 
charges               (100)                (11)              (174)


Net assets            5,320                968               1,073

                            

Capital and reserves

Called up share 
capital                 593                450                 450
Share premium 
account               6,776                  -                   -
Profit and loss 
account              (2,049)               518                 623

Shareholders' 
funds                 5,320                968               1,073

                                   
Ideal Shopping Direct Plc

Consolidated Cash Flow Statements

Six months to 30 June 2000

                                                                            

                 Six months              Six months              Year to      
                 to 30 June              to 30 June              31 December  
                 2000                    1999                    1999
                 £'000                   £'000                   £'000



Net cash 
(outflow)/                                           
inflow from 
operating 
activities       (290)                  (407)                      33 



Returns on 
investments and 
servicing of 
finance

Net interest 
(paid)/
received          (25)                      3                       31

Capital expenditure

Purchase of 
tangible                
fixed assets   (3,412)                     (70)                 (3,194)

Sale of tangible
 fixed assets       -                        -                     104        
      
                (3,412)                     (70)                (3,090)       


Acquisitions and disposals       

Cash from 
purchase
of subsidiary 
undertaking         -                      1,040                  1,040


Equity dividends
paid               -                        (50)                  (150)

Financing       

Repayment of 
borrowings      (478)                         -                     -

Receipts from 
borrowings      2,716                         -                  2,394

Net proceeds 
from issue
of shares       6,919                         -                      -       
                9,157                         -                  2,394       


  
Increase in 
cash            5,430                       516                    258

                                                                              
                     
Ideal Shopping Direct Plc

Notes       

NOTES TO THE FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30
JUNE 2000



1.       The interim financial statements have been prepared on the
         basis of the accounting policies set out in the Company's 1999       
         statutory financial statements.

2.       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 period, as     
         adjusted for the subdivision of shares on 8 February 2000, whereby   
         each of the issued and un-issued shares of £1 each in the capital of 
         the Company were subdivided into 33 ordinary shares of 3p each and 1 
         deferred share of 1p each. 'A' ordinary shares have been included in 
         this calculation as they were converted into ordinary shares of £1   
         each on 21 January 2000.



                  Earnings              Weighted              Basic earnings  
                  attributable          average               per share
                  to ordinary           number of             amount
                  shareholders          shares                in pence
                  £



Six months 
ended 30 
June 2000         (2,672,000)         18,469,437              (14.5p)

Six months 
ended 30 
June 1999         111,000             14,704,144              0.8p


Year ended 31
December 1999     316,000              14,777,664             2.1p

       

       There are no diluted earnings per share for the six month periods ended
       30 June 2000 and 30 June 1999.  For the year ended 31 December 1999 the
       dilutive effect of securities was 430,584 share options, and diluted   
       earnings per share were 2.1p.

3.      There were no recognised gains or losses other than the loss of the   
        six months ended 30 June 2000.

4.       The financial information set out above does not constitute
         the Company's statutory financial statements for the year ended 31   
         December 1999.  The statutory financial statements for the year ended
         31 December 1999 have been delivered to the Registrar of Companies   
         and the auditors' report on those financial statements was
         unqualified and did not contain statements under Section 237(2) or   
         (3) of the Companies Act 1985.  The financial statements for the six 
         months ended 30 June 2000 and 30 June 1999 are unaudited.