Trading Statement

Ideal Shopping Direct PLC 04 May 2006 Ideal Shopping Direct Plc ("the Company") 4 May 2006 AGM Trading Update At its Annual General Meeting today the Chairman of Ideal Shopping Direct will give the following update on trading performance over the first 17 weeks of 2006: The first 17 weeks of 2006 have shown ongoing tough retail market conditions generally, but we have continued to generate both headline and underlying growth. Overall product sales are 14% ahead of 2005, or 12% on a like-for-like basis excluding Jewellery Vault. The growth in membership of the Create and Craft Club, which was launched last year, has accelerated in the first quarter of 2006. This growth has contributed to the continuing strong performance of our web business. Building on the success of our club concept, we will this month launch two new initiatives, an interactive online general merchandise catalogue and a second online club concept designed for new and expectant mothers. Our latest channel, Jewellery Vault, which launched last July, has performed disappointingly and has still not reached the level of sales required to break even. We are therefore conducting a thorough review of the financial viability of the channel. Following discussions with a number of well known High Street brands about a presence on our TV shopping channels, we have started a trial with Next, which commenced last week. It is too early to speculate on the outcome of this trial but we await the results with interest. Finally, the Company will implement FRS 20 "Share Based Payments" in its 2006 Financial Statements. The standard requires that the estimated fair value of share option grants be expensed through the Profit and Loss account in the period from grant to vesting. As the Company has historically used share options as a part of executive incentivisation, this treatment will lead to the recognition of additional operating expenses, which we estimate at £0.4m for 2006. Enquiries: Ideal Shopping Direct Plc Tel: 08700 780 704 Jim Hodkinson, Chairman Andrew Fryatt, CEO Mike Camp, Finance Director ReputationInc Tel: 020 7758 2800 Tom Wyatt Teather & Greenwood Tel: 020 7426 9000 Fred Walsh This information is provided by RNS The company news service from the London Stock Exchange
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