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Ideal Shopping Direct Plc Annual Report and Accounts 2008
www.idealworld.tv
www.createandcraft.tv
Ideal Shopping Direct Plc
Ideal Home House
Newark Road
Peterborough
PE1 5WG
United Kingdom
Tel: 08700 777 002
www.idealshoppingdirect.tv
Ideal Shopping Direct Plc
Annual Report and Accounts 2008
12177_Ideal_Shop_AR_CVR.indd   1 28/4/09   16:36:56 Overview
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Ideal Shopping Direct Plc is a 
leading multi-channel retailer, 
selling products to consumers 
via its television shopping 
channels and the internet.
Contents
Overview
01  Ideal Shopping Direct at a glance
02  Chairman’s Statement
01
Business Review
04
04 Chief Executive’s Review
08  Finance Director’s Review
12  Corporate Responsibility Review
13 Board of Directors 
14 Directors’ Report
Governance
19
19  Corporate Governance
22  Remuneration Report
25  Independent Auditors’ Report
Financial Statements
26
26 Consolidated Income Statement
27 Consolidated Balance Sheet
28 Company Balance Sheet
29  Consolidated Statement of Recognised  
Income and Expense
29  Company Statement of Recognised  
Income and Expense
30 Consolidated Statement of Cash Flows
31 Company Statement of Cash Flows
32 Notes to the Financial Statements
65 Notice of 2009 Annual General Meeting
68 Directors and Advisers
 Form of Proxy
Greased Lightning 
Showroom Shine 
“Showroom Shine” is  
a great example of the 
type of demonstrable, 
innovative product that 
has become a best seller 
on Ideal World. No need 
for water, just a bottle of 
Showroom Shine and  
two microfibre cloths can 
make a car, van, caravan 
or motorcycle shine  
“like new”.
FSC LOGO TO GO  
IN HERE
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Overview
 Operational Highlights 
 Financial Highlights
Restructuring of Board and Senior Management team •	
Craft was largest and best performing category with  •	
sales up 23% to £21.0m
Strategic business review undertaken by new management •	
Focus on improved delivery times and overall  •	
customer experience
Relocation of call centre to the UK from India to improve  •	
customer service
Reintroduced customer agents for call handling from  •	
March 2009
Review of sourcing strategies and logistics solutions have •	
reduced stock levels and warehouse facilities
Introduction of new branded products to continue;  •	
gardening and food categories extended
Trials with a number of high street and catalogue retailers  •	
taking place
Sales declined by 2.0% to £94.7m (2007: £96.6m) •	
Underlying trading loss of £4.0m (2007: Profit  •	
£5.8m) before exceptional charges of £9.2m  
(2007: £0.57m)
Cash of £8.4m at 28 December 2008 (2007: £16.7m) •	
At a glance
Ideal World
www.idealworld.tv
Freeview channel 22
Sky Digital channel 644
Virgin TV channel 747
Freesat channel 816
Ideal World 2
Sky Digital channel 651
Ideal World 3
Sky Digital channel 668
Create and Craft
www.createandcraft.com
Sky Digital channel 671
Papercrafts
Adopting the latest trends and 
popular techniques we offer  
quality, value for money papercrafts 
at affordable price points. In the 
niche craft market we are a 
destination point for crafters 
interested in this genre.
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Overview
Paul Wright Chairman
“2008/2009 has seen significant change within Ideal, and 
a complete restructuring of the Board and Senior 
Management team. The business has quickly stabilised, 
with strong and experienced managers joining the 
Company, and we have a real depth of home shopping 
knowledge.” 
“We remain a business that is strategically 
well placed to take advantage of market 
trends towards a genuine multi-channel 
business in TV shopping and  
e-commerce.”
Chairman’s Statement
Against a backdrop of difficult trading 
conditions and poor decisions by the previous 
management, I am deeply disappointed to 
report that the financial results for 2008 show  
a record loss of £13.2m and a sales decline of 
2.0%. As previously anticipated in the 23 March 
trading update, excluding exceptional charges 
of £9.2m the trading loss was £4.0m.  
The exceptional costs include many non-cash 
provisions that write down the value of our 
balance sheet, together with a number of 
restructuring costs. These charges have been 
incurred to put us in a clearer position from 
which to return the Company to profitability.
Given these results the Board is not in a position to recommend 
payment of a final dividend.
On 3 February 2009, the Board was restructured and I returned 
to the Company as Non-executive Chairman. Valerie Kaye  
also joined the Board as a Non-executive Director. Together  
we have considerable experience and a deep knowledge and 
understanding of the business and opportunities for future 
growth. We are excited at the prospect of working with  
Mike Hancox our new Chief Executive, who joined the Board on  
3 November 2008, Ian Jebson who joined the Board as Finance 
Director on 1 March 2009, and the rest of the management 
team in restoring the business to growth and profitability.  
David Williams, Terry Donovan and Susan Ellis all stepped down 
from the Board on 3 February 2009. Pam Aujla stepped down 
from the Board on 23 March 2009. 
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Overview
On behalf of the Board and shareholders I would like to thank 
colleagues for their hard work during 2008. The financial 
performance does not reflect the effort and commitment that 
many people have put into the business and if we can remain 
focused on the strategy of the new management team, I am 
confident of an improvement in performance.
Strategy
To grow the business profitably, we will refocus on the business 
fundamentals that made it successful. The Board is focused  
on increasing customer loyalty, improving customer service, 
extending the diversity of product whilst avoiding stock risk,  
and demonstrating these products across a range of price 
points within a convenient and entertaining shopping 
environment. Controls are being significantly improved with a 
focus on cash management. We will be driving our existing TV 
shopping audience towards multi-channel retailing using our 
websites and other established marketing tools including 
e-commerce, whilst at the same time reinforcing our brand 
values of family, friendship and fun. 
Tom Tom
Tom Tom is arguably the best known 
brand of satellite navigation devices. Our 
range includes a number of models from 
the simple Tom Tom One which can get 
you from A to B with ease to the top 
specification models such as the Tom Tom 
Go940 Live that can update you on the 
cheapest petrol prices.
Garden products
Our popular range of fruit, vegetables 
and flowers is being expanded in 2009 
to increase the variety of products on 
offer to our customers. The direct 
dispatch model for these products is 
also in line with our strategy to reduce 
stock risk.
Outlook
In a very tough retail environment, 2009 has begun with sales 
slightly ahead of our expectations. Importantly, we continue to 
acquire a substantial number of new customers and we are 
introducing commercial and best practice home shopping 
initiatives during the first half of 2009, which will have a 
significant and I believe positive impact on the business.  
The new management has hit the ground running and is  
already making a strong contribution to trading performance. 
With this in mind I am cautiously optimistic that we can return 
the business to profitability. 
Paul Wright
Chairman
16 April 2009
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Business Review
“The turnaround in profitability of Ideal will 
be based on the business fundamentals 
that made it successful – retail 
entertainment, great products and 
customer service.” 
Chief Executive’s  
Review
The 2008 financial year witnessed a very 
challenging economic environment and sales 
fell by 2.0%. This is a disappointing 
performance given the optimism that existed 
through the first three quarters of 2008. At the 
end of the financial year, Fashion and Jewellery 
categories had declined with sales down 18% 
to £9.0m and 45% to £3.8m respectively. Home, 
Leisure, Health and Beauty remained broadly 
flat at £47.3m and Craft showed strong sales 
growth, up 23% to £21.0m.
Profitability declined during the year to a net loss of £13.2m: this 
includes an underlying trading loss of £4.0m and exceptional 
costs of £9.2m. The exceptional items include stock, doubtful 
debt and returns provision increases following policy review, 
costs associated with decisions made by previous management 
such as investments in IT systems not deemed to be wholly  
fit for purpose, impairment of goodwill associated with the 
acquisition of Superstore TV (since renamed Ideal Sourcing 
Limited) and costs associated with the aborted planned building 
of a new warehouse. They also include legal, professional  
and staff costs in the restructuring of the Board and Senior 
Management and ensuring that the business is appropriately 
structured for the future. Finally, they include the expected loss 
of deposits with Kaupthing, Singer and Friedlander.
Strategy
Focus on retail entertainment, great •	
products and customer service
Focus on great value, branded and •	
innovative products
Improve customer retention and increase •	
frequency and value of purchase
Grow internet sales •	
Grow craft business •	
Maintain financial controls and cash •	
management
Mike Hancox Chief Executive
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13 in 1 ladder 3 rung version 
One of our own range of do it yourself tools, the 
professional multi-functional three rung folding 
ladder has the versatility of 13 ladders in one. It 
can be used as a straight ladder, step ladder, 
stair ladder and workbench, and folds easily for 
storage or transportation. 
Pocket surfer
For the ultimate in portable web surfing, 
the Pocket Surfer is the answer. No 
need to find a wireless hotspot or lug a 
heavy laptop around, this innovative 
product can fit in your pocket and 
connect to the internet wherever there is 
a phone signal.
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Business Review
Market trends
TV shopping as a market continued to grow at c.3% during 
2008 (source: Electronic Retailers Association). The market is 
driven primarily by consumers gaining access to TV shopping 
channels as they switch over from analogue to digital television. 
We estimate that the size of the market is now approximately  
£1.4bn at retail sales value of which we have a share of 
approximately 6%. 
Our internet sales in 2008 were £22.7m. Our customer profile is 
predominantly in the age 50+ category, which in internet sales is 
the fastest growing consumer area of the market. We see this as 
a significant area of potential growth and a key part of our 
strategy is to reposition the business as a multi-channel retailer, 
rather than predominantly as a TV shopping company.
Craft is now the largest category at Ideal Shopping, representing 
26% of total product sales in 2008. The market for crafting in 
the UK exceeds £2bn and we see this as a major area of 
opportunity in a fragmented market place.
Operational review
During 2008 our Ideal World channel was launched on Freesat, 
thereby increasing our potential audience. Our Sky Vitality 
channel was also re-branded as Ideal World 2 and Ideal World 3 
was launched on Sky. Together with Freeview, Sky and Virgin 
Cable we now broadcast to approximately 23 million homes, 
representing 89% of all UK households.
The Ideal World and Create and Craft websites were 
re-launched in mid 2008. Both sites however will require  
further investment and operational focus to establish them  
as destination sites.
The introduction of new IT systems in 2007 caused significant 
operational problems throughout 2008. The systems fall short  
of the functionality required for the range of products that we 
offer and options, including possible replacement, are currently 
under consideration.
We have had success with a number of products during  
the year but have become over reliant on a small number  
of successful lines. More airtime has been given to products 
that sold well but this has resulted in a lack of variety in our 
scheduling. We have already started to address this, by 
expanding our branded range and broadening our categories.
We continue to recruit new customers to our TV channels  
and websites at the rate of almost 1000 new customers  
a day. 330,000 new customers were recruited in 2008,  
up 6% on 2007. 
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Brother 
sewing machine
Our Brother 
computerised sewing 
machine is both 
convenient and easy to 
use. As our customers 
look for ways of saving 
money, we demonstrate 
how even the most 
inexperienced sewing 
machine can customise 
clothing, spice up scatter 
cushions, and create 
off-the-catwalk inspired 
outfits in no time.
Fly Flots
The Italian brand of Fly Flot shoes have been 
developed with the specific aim of creating 
footwear that is stylish, comfortable and 
durable. Fly Flots have been with Ideal World 
since 2001 and continue to be one of our 
flagship brands.
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Business Review
Chief Executive’s  
Review continued
To improve our poor customer service experience our call 
centre operation was moved back to the UK from India in 
October 2008. An automated phone ordering system was 
introduced in September 2008 and customer feedback has 
indicated that this is an unpopular initiative. As a result we have 
reintroduced the option of customer agents for call handling 
from March 2009. Improving service to customers will be a key 
focus of the management team in order to increase customer 
retention in 2009. For example, a revised process for handling 
new customers will be introduced in April 2009 and improved 
delivery times are expected from May 2009.
We have reviewed our sourcing strategies and logistics 
solutions. With regard to sourcing we are now minimising firm 
sale purchases and proactively working with suppliers on sale  
or return, direct dispatch and supplier held stock business 
models. This strategy reduced our reliance on Ideal Sourcing 
Limited and has reduced gross stock levels to £6.1m in  
February 2009 from £9.5m in February 2008.
By reducing stock levels we have been able to withdraw from  
a number of warehouse facilities and now operate from 3 sites 
compared to a maximum of 9 sites in 2008. Annualised cost 
savings from this are around £0.5m.
During 2009 we will work with our ‘final mile’ delivery carriers  
to improve delivery times and the overall customer experience. 
Throughout 2008, promotions offering free postage and 
packaging were consistently run to drive sales. In contrast, 
during 2009, free postage and packaging will be restricted as  
a promotional tool and consequently overall gross margins will 
show improvement.
In order to maximise profit, some overnight airtime is sold  
to third parties. During 2008, overnight Freeview airtime was 
sold to Smart TV Broadcasting but this arrangement ended in 
November 2008. A new contract with Game Network BV has 
been agreed to replace the Smart TV contract and this should 
begin in May 2009.
Future prospects
The scale of losses in 2008 has led to a re-evaluation of strategy 
and direction. We have restructured our Board and Senior 
Management team, and strategically we remain well placed to 
exploit the convergence of broadcast and online media. Our 
Create and Craft brand is showing exciting growth potential. 
To grow our business profitably we need to focus on the 
business qualities that initially made the Company successful: 
customer service, retail entertainment and excellent product.  
In doing this we will ensure that the Company operates with the 
appropriate controls and with a focus on cash management.
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Business Review
We know that our customers want us to provide engaging  
and demonstrable products, exclusive deals and a convenient 
shopping experience across a range of price points. We have 
already introduced new branded products such as Sony, Apple, 
Ann Harvey, Littlewoods, Vitamix and Polti, and this activity  
will continue in 2009. We are also extending our gardening and 
food categories and trialling broadcasts with a number of other 
high street and catalogue retailers. This enables us to offer our 
customers extended ranges of branded products without 
stocking the products ourselves, thereby avoiding stock risk.
Our primary growth opportunity lies with the internet, and we 
will focus on driving our existing TV shopping audience to our 
websites, as well as employing other established marketing  
and e-commerce tools. As Ideal Shopping develops from a  
TV shopping business to being a multi-channel retailer, we  
will implement best practice home shopping strategies that 
maximise sales from all customer touch points, whilst at the 
same time reinforcing our brand values of family, friendship  
and fun. 
Mike Hancox
Chief Executive
16 April 2009
Key performance indicators 2008
Sales growth
2008 -2.0%
2007 12.8%
2006 8.1%
 
Gross margin
(excl. exceptional items)
2008 37.7%
2007 41.8%
2006 41.3%
Core operating costs 
(excl. exceptionals items) 
2008 £39.4m
2007 £35.3m 
2006 £29.8m 
 
Core operating costs  
% to sales
(excl. exceptionals items)
2008 41.5%
2007 36.6% 
2006 34.8% 
Total customer file 
2008 2.1m
2007 1.73m
2006 1.37m
New customers
2008 0.33m
2007 0.31m
2006 0.29m
Stock turn 
2008  9.2
2007 7.7 
2006 8.4 
 
ASA adjudications 
2008 2
2007 2
2006 3
My Craft Studio CD ROMs
My Craft Studio provide a wide range of products 
(including exclusive deals for Ideal Shopping) ranging 
from paper crafts to CD Roms. They have with a 
growing fan and customer base due to innovative, 
inspirational designs and content.
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Business Review
Finance Director’s  
Review
Accounting policies
The Group’s results for the year have been prepared under 
International Financial Reporting Standards.
Financial results
It has been necessary to conduct a detailed financial review  
of certain areas of the Group’s balance sheet which has led to 
significant exceptional items.
In the interim results announcement made on 15 September 
2008 a prior year adjustment was made as a result of an 
understatement of net liabilities in the opening balance sheet 
position for 2008. This adjustment of £0.4m arose from errors 
arising during a computer system upgrade, implemented in 
June 2007. Consequently the comparative figures for 2007 have 
been restated.
The year on year comparison of key numbers is:
 
52 weeks ended 28 December 2008 – £000    
  Underlying Exceptional Total
Sales Revenue  94,947 (290) 94,657
Gross Profit  35,821 (3,048) 32,773
Operating (Loss)/Profit  (3,602) (9,243) (12,845)
(Loss)/profit from Continuing  
 Operations  (3,978) (9,243) (13,221)
52 weeks ended 30 December 2007 – £000    
  Underlying Exceptional Total
Sales Revenue  96,631  96,631
Gross Profit  40,403  40,403
Operating Profit  5,019 (570) 4,449
Profit from Continuing  
 Operations  5,767 (570) 5,197
Sales revenue declined by 2.0% year on year in total.
Exceptional charges of £3.0m made against gross profit 
comprised £2.7m (2007: £nil) from a review of the stock 
provisioning policy to adequately reflect markdown of slow 
moving and obsolete items and £0.3m (2007: £nil) for sales 
returns. Underlying gross profit before non-underlying charges 
was 37.7% of sales revenue (2007: 41.8%). The reduction in 
gross profit of 4.1% was due to increase in free postage and 
packing promotions during the year, as well as increased low 
margin technology sales and jewellery clearance activity.
Underlying overheads were 11.4% higher at £39.4m  
(2007: £35.4m) and as a consequence the underlying 
operational gearing of the group rose to 41.5% from 36.6%.  
The main increases in operating costs were salary, temporary 
staff and recruitment costs of £1.9m, broadcasting costs of 
£1.5m, (partially due to the purchase of Ideal World 3 
broadcasting rights) and call centre costs of £0.5m driven by  
the repatriation of our customer services team to the UK.
The reported operating loss, before exceptional items, was 
£3.6m compared to a profit of £5.0m for 2007. Exceptional 
operating costs of £6.2m were significantly driven by an 
impairment review of the Group’s IT systems resulting in a write 
off of £1.1m (2007: £nil), a review of physical assets and policy 
adjustment resulting in a £0.4m write off (2007: £nil) an 
investment made in a planning permission application of £0.7m 
(2007: £nil), and goodwill written off amounting to £1.5m  
(2007: £nil) arising from the acquisition of Ideal Sourcing Limited 
(formerly Superstore TV Limited) in 2006. This write off has been 
taken after a strategic review following the loss of a key account 
in 2008, an increased cost base primarily due to exchange rate 
movements, and reduced dependency on direct imported 
Ian Jebson Finance Director
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Business Review
product. We have also incurred legal and professional fees  
of £0.4m (2007: £nil) and doubtful debt provisions of £0.7m  
(2007: £nil). Finally, there was a loss of £0.6m deposit with 
Kaupthing Singer & Friedlander deemed irrecoverable and 
restructuring costs of £0.8m (2007: £0.6m).
Total exceptional costs of £9.2m include a £1.8m cash cost 
arising from the Kaupthing, Singer & Friedlander deposit of 
£0.6m, restructuring costs of £0.8m and legal and professional 
fees of £0.4m.
From an underlying trading loss of £4.0m (2007: £5.8m profit), 
the reported loss after exceptional items before tax was £13.2m 
compared to a profit of £5.2m in the previous year.
Taxation
There was a tax credit of £1.7m for the financial year  
(2007: charge £1.5m). The accounts for 2008 do not reflect  
the benefit of a deferred tax asset in respect of the anticipated 
tax losses carried forward of £4.0m. On 26 March 2009 the 
Company received a repayment of tax paid relating to the 2007 
taxable profits amounting to £1.3m.
Earnings per share
Basic earnings per share (EPS) were a loss of 38.9p  
(2007: Earnings 12.6p) with diluted EPS being a loss of 38.9p 
(2007: Earnings 12.5p).
Cash flow, debt and capital structure
The closing gross cash balances were £8.4m (2007: £16.7m). 
The net cash outflow of £8.3m arose from the following;  
£4.1m cash outflow from operating activities, £2.1m capital 
expenditure, £1.4m payment of dividends, £0.6m payment  
of finance and bank loans and £0.2m income tax paid.
Bank facilities
On 9 April 2009 bank facilities were confirmed with  
Barclays Bank Plc. These include a 10 year mortgage which  
has 5 years to maturity. The mortgage had a balance of £1.86m 
at 28 December 2008 and is repayable by quarterly instalments  
of £0.08m. Furthermore, there are bank guarantees of £0.35m 
with a renewal date of 30 April 2010.
Capital expenditure and revaluations
Capital expenditure for the year was £2.1m of which £1.1m 
relates to the purchasing of rights to broadcast on Ideal World 3, 
£0.5m was spent on computer equipment, £0.3m on website 
upgrades and the remaining £0.2m being spent on TV 
equipment and other fixtures and fittings. The accounts reflect 
the downward revaluation of land and buildings completed on 
7 January 2009 which indicated values for the distribution,  
TV and offices at £5.7m and land, earmarked for potential 
expansion, at £1.1m. As part of the impairment review of the  
IT system referred to previously the remaining life of that asset 
was revised to 27 months at the 2008 year end compared to its 
original useful life assessment of 45 months.
Dividend
The Board is not recommending a final dividend (2007: 3.75p) 
giving a total dividend of 1.75p (2007: 5.5p).
Ian Jebson
Finance Director
16 April 2009
Karcher pressure washer
Washing the car, cleaning patios and 
paving and 101 other uses are made 
easier with one of Karcher’s range of 
pressure washers. One of our best 
sellers, we offer a range of Karcher 
products to suit all budgets.
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Business Review
Risk Measures in place to manage risk
2008 financial performance
Addressing the reasons for and consequences of the 2008 financial 
performance.
A business overview has been undertaken to address short to 
medium term “quick wins” and the longer term strategy. A strong 
focus has been placed on the control of working capital and cash 
management.
Market
We operate in a highly competitive retail market.
As consumer spending slows we will face increasing pressure on 
sales volumes and margin.
TV shopping and online sales continue to be attractive routes to 
market with growth prospects.
Our Ideal World Freeview channel alone gives us access to over  
22m homes in the UK.
We focus on offering a range of new, great value products and 
are continually improving our customer service.
We do not hold significant “in stock” items, have few long term 
purchase commitments, so can adapt our offers quickly.
Increased marketing activity is helping us drive consumers to our 
TV channels and websites.
Access to consumers
Access to digital television is primarily via Freeview, Sky Digital  
and Virgin Media, there is limited availability on the Freeview  
and Sky platforms. 
The pace of technological change in TV and internet retailing 
is rapid.
We have long term agreements with all of our platform providers  
and maintain good relationships with them.
We are a member of the Electronic Retailer’s Association (ERA),  
and maintain industry relationships to keep abreast of changes.
In 2008 Ideal World gained access to Freesat and and a third Sky 
channel and we also upgraded our transactional websites.
Products and suppliers
The quality of our product and service offer is paramount.
We source some products direct from the Far East (at enhanced 
margins) which means we bear the stock and product liability risk.
We trade with a large number of suppliers, some on long term 
agreements. Suppliers are required to sign our conditions of 
purchase. We are now managing our supply chain to minimise our 
stock risk and exposure.
We employ compliance and quality assurance officers in the UK  
and China to ensure that products meet their specification and  
are safe and correctly labelled.
Finance Director’s  
Review continued
Vibrapower
Vibration training is the  
current buzz word in the 
health and fitness industry,  
it works by generating high 
volume vibrations that are 
transferred to the body and 
result in a quick and effective 
way to train and tone 
muscles. Our own brand 
Vibrapower product enables 
customers to have this 
professional technology at  
an affordable price in their 
own homes.
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Vostok Watch
Vostok (Russian: Boctok, meaning 
“East”) has been Ideal World’s most 
popular men’s watch collection over 
the past 4 years. Its rugged, military 
and diver mechanical pieces are 
extremely collectable.
Risk Measures in place to manage risk
Employees
We rely on our employees to execute our strategy. Employees are recruited and regularly appraised against a formal 
job and person specification.
Formal policies cover all material aspects of employment and we are 
committed to high standards of health and safety at work, effective 
communication with employees and employee development. 
Legislation and regulation
Our Ofcom licence requires us to comply with the Advertising 
Standards Authority’s (ASA’s) Television Advertising Standards 
Code and other relevant legislation.
Our activities are regulated by distance selling, consumer,  
data protection and environmental legislation. 
Our policy is to meet or exceed all applicable legal and  
regulatory requirements.
There is a good level of awareness of the ASA code throughout 
the business.
Managers have specific responsibility for keeping up to date with 
legislation, advising senior management of required actions and 
putting in place appropriate procedures.
Financial
Availability of funding.
Credit insurance has been withdrawn which has affected 
supplier relationships.
The principal treasury risks to the Group arise from exchange 
rate and interest rate fluctuations. 
A reducing proportion of the purchases of goods for resale 
are denominated in foreign currencies.
The business does not require an overdraft. It has renegotiated its 
bank facilities and will be engaging with credit insurers and seeking 
to improve that element of risk management for our suppliers. 
The Group’s policy is to seek to hedge substantially all the risks 
of currency fluctuations with respect to committed transactions 
in foreign currency. The Group may also take forward positions in 
foreign currency. No such positions were in place at year end.
Business continuity
We are dependent on information technology for all aspects 
of our business operations.
We have business continuity arrangements in place which seek 
to protect us from single points of failure in our operations, for 
example by having standby transmission arrangements in the event 
of a broadcast communications failure. In 2009 we are looking to 
strengthen the business continuity planning in force.
Outsourcing
We outsource our product delivery and call centre operations. We have contractual arrangements with our outsource partners 
which contain service levels.
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Corporate Responsibility  
Review
We have policies and procedures in place to 
manage our corporate responsibilities to third 
parties. A description of our policy and recent 
activity is set out below:
Customers
Our policy is to:
Provide quality, safe products at a fair price. •	
Market our products accurately and fairly, in accordance with •	
the law and the codes of practice issued by the Advertising 
Standards Authority (ASA) and the Direct Marketing 
Association.
Deal with customer queries promptly and in accordance with •	
our published terms and conditions, which should be fair and 
easily available.
Safeguard our customers’ personal information. •	
In 2008 we moved our customer service call centre operations 
back to the UK from India and have increased the resource  
for our order line operations in India. We have also focused 
attention on the average delivery times to our customers. This 
has resulted in an improvement in customer service which we 
intend to continue in 2009. 
Employees and health & safety
We have approximately 500 employees, based primarily at  
our premises in Peterborough, across a range of disciplines 
including television operations, product sourcing and 
development and warehouse operations. We aim to provide  
a working environment in which employees are valued and 
encouraged to fulfil their potential. We are a dynamic, growing 
business and provide our employees with good opportunity to 
grow and develop with us.
We require all employees to treat each other with respect. 
Discrimination, bullying and other forms of harassment are not 
tolerated. We recruit and promote our employees on the basis of 
their ability to meet the requirements of their role, without regard 
to sex, sexual orientation, ethnic origin, religion and belief, 
disability or age.
We consult with our employees through the Employee Forum, 
which meets quarterly.
Our activities in 2008 included:
Enhanced communication via monthly departmental updates •	
on the internet and quarterly CEO broadcast. 
Training programmes for middle and junior managers and •	
television operations.
Workshops on capability management, absence •	
management, appraisals, equal opportunities and ageism.
Company wide skills analysis and introduction of individual •	
training plans.
We are responsible for the health and safety of our employees 
and visitors to our premises, and employ a full time health and 
safety co-ordinator who is very active in the business, with the 
full support of senior management.
In 2008:
The absolute number of accidents was static, but there was •	
an increase in reportable accidents from 3 to 6 in 2008. 
Although still below the industry average for this type of 
business we aim to reverse this trend in 2009.
During the year we updated our manual handling training  •	
and our fork lift operator procedures and training.
We have commenced a review of our health and safety  •	
policy and will implement this in 2009 as part of our ongoing 
commitment in this area.
Suppliers and supply chain 
Our policy is to be open and honest in our dealings with our 
suppliers and other business partners, and to honour our 
contractual obligations; and we expect others to do so. 
We maintain a good relationship with our service providers, and have 
contracts with them which set our mutual rights and obligations.
We do business with hundreds of product suppliers; we ask 
them to sign our conditions of purchase, which are available on 
our website. These conditions include a commitment to ensure 
that products are sourced only from businesses which comply 
with minimum employee welfare standards, such as freedom  
of association, working conditions, safety, working hours and 
pay. We do not presently audit these for third party suppliers. 
However, when products are sourced by us direct from the  
Far East we ask the supplier to complete a questionnaire, and 
employee welfare standards are one of the quality measures 
that we check on factory inspections. 
Environment
The main areas in which our business operations affect the 
environment are:
Use of energy, packaging and disposal of waste at our site  •	
in Peterborough.
Use of transport to source and deliver our products. •	
Recycling and re-use of electrical products that we sell. •	
Our policy is to comply with all relevant legislation and, in 
addition, to seek to reduce our environmental impact in the 
areas identified above. We are part of the Valpak compliance 
scheme in respect of packaging waste and compliance with 
Waste Electrical and Electronic Equipment (WEEE) legislation.
In May 2008 we negotiated a new electricity contract which 
involves sourcing all of our supply from good quality combined 
heat and power sources with CO
2
 emissions that are 30% lower 
than the national average. We also replaced 60% of our studio 
lighting with low energy bulbs which use 85% less energy.
Community
We employ around 500 people in Peterborough, and respect 
the needs and views of our local community. We promote open 
dialogue with the local community on all issues and encourage 
our employees to support local community initiatives. We are 
members of the Cambridgeshire Chambers of Commerce,  
and also maintain a dialogue with Opportunity Peterborough  
to support local development.
In conjunction with the local authority Connexions programme 
we provided a work experience programme to 22 young people 
in 2008 and are seen as a leader in this area, we will develop 
this further in 2009.
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Board of Directors
Paul Wright
Non-executive Chairman
Paul is a co-founder of the 
Company. Prior to its formation 
he gained valuable experience 
in the fast-moving consumer 
goods industry, having 
begun his career running the 
Hong Kong office of Reed 
International, selling printing 
and graphic arts equipment 
to the local market. 
In 1980, he founded Wrightway 
Marketing with Val Kaye, initially 
as a marketing consultancy, 
which developed into a 
successful mail order business.
In 2000, after seeing the 
potential of TV shopping, 
Wrightway Marketing changed 
its name to Ideal Shopping 
Direct, was listed on the 
AIM market and launched 
the Ideal World channel.
Paul was Chief Executive 
Officer until 2005 (having also 
acted as Chairman from 2001 
until 2004). He held the post 
of Executive Deputy Chairman 
until March 2006 when he 
became a Non-executive 
Director. He resigned from 
this role in May 2007 and was 
reappointed as Non-executive 
Chairman in February 2009.
Paul is Chairman of the 
Nominations Committee, 
Remuneration Committee 
and Audit Committee.
Mike Hancox
Chief Executive Officer 
Mike joined the Board as 
Chief Executive Officer on 
3 November 2008. Prior to 
joining the Company, Mike 
was Chief Executive of Otto 
UK, the world’s largest home 
shopping retailer, where he was 
responsible for operations in the 
UK, Ireland and Spain. He held 
this position from December 
2005 until 31 August 2008 and 
during this time led a significant 
turnaround in the business’s 
profitability. Prior to this, he 
was Chief Operating Officer of 
Littlewoods Shop Direct Group 
following the merger of the 
Littlewoods and Shop Direct 
businesses. He has also held 
other senior positions including 
Chief Executive of Shop Direct 
and Finance Director at ARG 
Equation, a division of GUS plc. 
Mike is a Non-executive Director 
of Manchester Airport Group 
plc and Character World 
Limited. He is also a Fellow 
of the Chartered Institute of 
Management Accountants. 
Mike is a member of the 
Nominations Committee.
 
Ian Jebson FCA
Finance Director
Ian was appointed to the 
Board as Finance Director on 
1 March 2009. Ian qualified 
with KPMG, and has worked 
across a number of sectors 
including retail and consumer 
products both in the corporate 
and private equity environment.
He joined the Company 
from Charles Tyrwhitt, the 
mail order, retail and internet 
business, where he has been 
Finance Director since 2006. 
Prior to Charles Tyrwhitt, Ian 
was Group Finance Director 
at Littlewoods Shop Direct 
Group, and previously held a 
number of senior management 
positions including Group 
Finance Director of UKS Group 
Limited and Chief Operating 
Officer of Vax Group. 
 
Valerie Kaye
Non-executive Director
Val is a co-founder of 
the Company. Prior to its 
formation she held senior sales 
promotional roles at Bowater 
Scott and Dorland Advertising.
She actively managed the 
Company with Paul Wright 
as an Executive Director 
until May 2005, when she 
became a Non-executive 
Director. She resigned from 
this role in June 2007 and was 
reappointed as Non-executive 
Director in February 2009.
Val is a member of the 
Nominations Committee, 
Remuneration Committee 
and Audit Committee.
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Directors’ Report
The Directors present their report together with the audited 
financial statements for the year ended 28 December 2008. The 
information which fulfils the requirement of the Companies Act 
2006 to produce a Business Review is set out in this report and 
also in the Chief Executive’s Review and the Finance Director’s 
Review on pages 4 to 11 respectively, in the Corporate 
Responsibility Review on page 12 and the Directors’ biographies  
on page 13, these sections being incorporated into this report  
by reference. 
The purpose of the Business Review is to provide to shareholders a 
review of the Group’s business over the period, and to describe the 
principal risks and uncertainties facing the Group.
Principal activity
The principal activity of the Group is that of distance selling to 
consumers through television home shopping channels and  
the internet.
The Group also has a small number of employees working in China.
Results and dividends
The results are discussed in the Finance Director’s Review on  
pages 8 and 9. The Directors do not propose a final dividend in 
respect of the year end 28 December 2008 (2007: 3.75p). The 
interim dividend was 1.75p per share (2007: 1.75p) making a total 
for the year of 1.75p per share (2007: 5.5p).
Directors
Details of the Directors in office at the date of this report are set out 
on page 13. 
During 2008 there were the following changes to the Board:
3 June 2008  David Blake resigned
4 July 2008  Pam Aujla appointed
10 October 2008  Andrew Fryatt resigned
3 November 2008  Mike Hancox appointed.
Since 28 December 2008 there have also been the following 
changes to the Board:
3 February 2009  David Williams resigned
3 February 2009  Terry Donovan resigned
3 February 2009  Susan Ellis resigned
3 February 2009  Paul Wright appointed
3 February 2009  Val Kaye appointed
1 March 2009  Ian Jebson appointed
23 March 2009  Pam Aujla resigned.
At the 2009 Annual General Meeting, all Directors will offer 
themselves for election by shareholders as they have all been 
appointed since the date of the last Annual General Meeting.
Directors serving at the year end and their interests in the shares of 
the Company were:
  At 28 At 31 
  December December 
  2008 2007 
  3p ordinary 3p ordinary 
  shares shares
D Williams  25,000 –
T W Donovan  10,000 10,000
S Ellis  – –
M Hancox  – –
P Aujla  25,000 5,000
There were no changes in the above shareholdings between the 
year end and 16 April 2009.
Details of share options held by Directors at the year end are given 
in the Remuneration Report.
Share capital and substantial shareholders
The share capital of the Company has increased during the year 
due to the exercising of share options.
Although the Company obtained shareholder authority at the 2008 
Annual General Meeting to purchase its own shares, it did not 
make any purchases during the period. 
At 16 April 2009 the following had notified the Company of a 
disclosable interest in 3% or more of the nominal value of the 
Company’s ordinary shares: 
   Issued 
  3p ordinary share capital 
  shares %
Paul Wright   5,280,000 17.80
Fidelity Investments   4,385,705 14.78 
Val Kaye   3,449,853 11.63
Artemis Investment Management   2,500,000 8.43
Ennismore Fund Management   1,730,000 5.83
Prem Nath Anand  1,545,000 5.21
Forum Investment Management   1,426,700 4.81
Majedie Asset Management   1,188,703 4.01
Aviva Investors  1,048,878 3.54
Up to date details are available on the Company’s website,  
www.idealshoppingdirect.tv.
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Employee involvement
The Group recognises its responsibilities towards keeping 
employees informed of matters affecting them as employees and 
the economic factors affecting the performance of the Group. This 
is conducted primarily through the Employee Forum which meets 
regularly. Further details relating to our employees are set out on 
page 12.
Disabled employees
It is Group policy that training, career development and promotion 
opportunities should be available to all employees and this is 
reflected in our Equal Opportunities Policy.
The Group recognises its obligations towards disabled people and 
endeavours to provide employment where possible having regard 
to the physical demands of the Group’s operations and the abilities 
of the disabled person. In the event of an employee becoming 
disabled, every effort is made to retrain them in order that their 
employment with the Group may continue.
Payment policy and average payment period
The Group’s and Company’s policy concerning the payment of 
suppliers is to agree terms of payment at the start of business  
with each supplier or to ensure the supplier is made aware of the 
standard payment terms. The Company’s standard policy is to pay 
suppliers at the end of the ninth week following the week in which 
the goods are received. The number of days’ purchases 
outstanding for payment at 28 December 2008 was 51.9 days 
(2007: 54.2 days).
Treasury and risk management
The Group’s treasury and financial risk management objectives are 
detailed in the Finance Director’s Review. Details in respect of the 
Group’s exposure to interest rate risk, liquidity risk and currency 
risk are detailed in note 27 to the Financial Statements.
Going concern
The Directors have made appropriate enquiries and formed  
a judgement at the time of approving the financial statements  
that there is a reasonable expectation that the Group has  
adequate resources to continue in operational existence for  
the foreseeable future. 
The Directors consider that the accounts should be prepared on a 
going concern basis for the following reasons: 
Full detailed profit and loss, balance sheet and cash flow •	
forecasts have been prepared for the period to April 2010. 
These forecasts show that the Company can operate as a •	
going concern within its current banking facility.
Barclays Bank have renewed current banking facilities  •	
to 30 April 2010. This includes a commercial mortgage, 
secured by a charge and cross guarantees over the assets  
of Group companies. 
Directors’ indemnities
A qualifying third party indemnity (“QTPI”) as permitted by  
section 234 of the Companies Act 2006, has been granted by the 
Company to each of the Directors of the Company. In the QTPI the 
Company indemnifies each Director against liability to third parties 
(excluding criminal and regulatory penalties) and to pay costs as 
they are incurred, so long as they are reimbursed if the Director is 
convicted or, in an action brought by the Company, judgement is 
given against the Director.
Disclosure of information to auditors
The Directors who held office at the date of approval of this 
Directors’ Report confirm that, so far as they are each aware, there 
is no relevant audit information of which the Company’s auditors 
are unaware; and each Director has taken all the steps that he or 
she ought to have taken as a director to make himself aware of any 
relevant audit information and to establish that the Company’s 
auditors are aware of that information.
Statement of directors’ responsibilities in respect of 
the annual report and the financial statements
The Directors are responsible for preparing the Annual Report and 
the Group and Parent Company financial statements in accordance 
with applicable law and regulations.
Company law requires the Directors to prepare Group and Parent 
Company financial statements for each financial year. Under that 
law they are required to prepare the Group financial statements  
in accordance with IFRSs as adopted by the EU and applicable  
law and have elected to prepare the Parent Company financial 
statements on the same basis.
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The Group and Parent Company financial statements are required 
by law and IFRSs as adopted by the EU to present fairly the 
financial position of the Group and the Parent Company and the 
performance for that period; the Companies Act 1985 provides in 
relation to such financial statements that references in the relevant 
part of that Act to financial statements giving a true and fair view 
are references to their achieving a fair presentation.
In preparing each of the Group and Parent Company financial 
statements, the Directors are required to:
select suitable accounting policies and then apply them •	
consistently
make judgments and estimates that are reasonable and •	
prudent
state whether they have been prepared in accordance with •	
IFRSs as adopted by the EU; and
prepare the financial statements on the going concern basis •	
unless it is inappropriate to presume that the Group and the 
Parent Company will continue in business.
The Directors are responsible for keeping proper accounting 
records that disclose with reasonable accuracy at any time the 
financial position of the Parent Company and enable them to 
ensure that its financial statements comply with the Companies Act 
1985. They have general responsibility for taking such steps as are 
reasonably open to them to safeguard the assets of the Group and 
to prevent and detect fraud and other irregularities.
Under applicable law and regulations, the Directors are also 
responsible for preparing a Directors’ Report, Directors’ 
Remuneration Report and Corporate Governance Statement that 
complies with that law and those regulations. The Directors are 
responsible for the maintenance and integrity of the corporate  
and financial information included on the Company’s website. 
Legislation in the UK governing the preparation and  
dissemination of financial statements may differ from legislation  
in other jurisdictions.
Disclaimer
This Directors’ Report and Business Review and this Report and 
Accounts contain certain forward-looking statements with respect 
to the financial condition, results, operations and businesses of 
Ideal Shopping Direct Plc. These statements and forecasts involve 
risk and uncertainty because they relate to events and depend 
upon circumstances that will occur in the future. There are a 
number of factors that could cause actual results or developments 
to differ materially from those expressed or implied by these 
forward-looking statements and forecasts. Nothing in this Directors’ 
Report and Business Review or in this Annual Report and 
Accounts should be construed as a profit forecast.
Annual General Meeting
The Annual General Meeting will be held on Wednesday 10 June 
2009 at 9.30 am, at Ideal Home House, Newark Road, 
Peterborough PE1 5WG. Notice is sent to shareholders separately 
with this report.
Special business at the Annual General Meeting will be:
Requesting authority to increase the authorised ordinary share •	
capital from 38,000,000 ordinary shares of 3p each to 
55,000,000 ordinary shares of 3p each.
Requesting authority to distribute shares to the value of one •	
third of the issued ordinary share capital of the Company;  
and to distribute shares equivalent to a further one third of the 
issued ordinary share capital on a fully pre-emptive basis. If the 
authorised share capital is increased as set out above the 
unissued ordinary share capital covered by these authorities will 
constitute a total of 19,779,670 shares, 66.7% of the issued 
ordinary share capital at 16 April 2009. This authority will lapse 
at the 2010 Annual General Meeting. The Directors have no 
present intention to exercise this authority except to issue 
shares pursuant to the Company’s employee share schemes.
Requesting authority to distribute ordinary shares to the value •	
of £44,504 (1,483,475 ordinary shares), which constitutes 5%  
of the Company’s issued ordinary share capital at 28 December 
2008, without offering them to existing shareholders. This 
authority will lapse at the 2010 Annual General Meeting. 
Authorising the Directors to buy up to 2,966,950 (approximately •	
10% ) of its ordinary shares in the Company. The Directors will 
only exercise this authority if it enhances earnings per share 
and is in the interests of shareholders generally. Shares 
purchased may be cancelled or held in treasury. If held in 
treasury and used to satisfy share options, the NAPF’s 
guidelines would be complied with.
Approving new Articles of Association – details of these •	
changes are set out on pages 17 and 18.
Authorising the Board to convene a general meeting other  •	
than an annual general meeting on at least 14 days’ notice.  
The Shareholders’ Rights Directive, which is intended to be 
implemented in the UK in August 2009, will require that all 
general meetings must be held on at least 21 days’ notice 
unless shareholders agree to a shorter period. Under the 
Companies Act 2006 and the New Articles which the Company 
is proposing to adopt at the Annual General Meeting, we can 
call general meetings other than an Annual General Meeting on 
14 days’ notice. This resolution will allow us to continue to do 
so after the Directive is implemented. It will be effective until the 
next Annual General Meeting when it is intended that a similar 
resolution will be proposed. The Company will also need to 
meet the requirements for electronic voting under the Directive 
before it can call a meeting on 14 days’ notice.
Directors’ Report continued
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Business Review
Proposed changes to the Articles of Association
The proposed new articles (New Articles) update the Company’s 
current Articles of Association (the Current Articles) primarily to  
take account of changes in English company law brought about by 
certain provisions of the Companies Act 2006 (CA 2006) that are  
in force by or on 1 October 2008.
The principal changes introduced in the New Articles are set out 
below. Other changes, which are of a minor, technical or clarifying 
nature have not been noted.
Articles which duplicate statutory provisions
 Provisions in the Current Articles which replicate provisions 
contained in the CA 2006 are in the main amended to bring 
them into line with the CA 2006.
Extraordinary resolutions
 The Current Articles contain a provision that, where for any 
purpose an ordinary resolution is required, a special or 
extraordinary resolution is also effective and that, where an 
extraordinary resolution is required, a special resolution is  
also effective. This provision is being amended as the concept 
of extraordinary resolutions has not been retained under the  
CA 2006.
Convening and notice of general meetings
 It is proposed that the provisions in the Current Articles dealing 
with the convening of general meetings and the length of notice 
required to convene general meetings be amended to conform 
to the new provisions in the CA 2006. In particular, a general 
meeting (other than an annual general meeting) to consider a 
special resolution can be convened on 14 days’ notice whereas 
previously 21 days’ notice was required.
Quorum at a general meeting
 The CA 2006 provides that in general terms the quorum for  
a general meeting be calculated by reference to the numbers  
of “qualifying persons” who are present at the meeting, which 
includes an individual who is a member of the Company, a 
person authorised under section 323 of the CA 2006 to act as 
the representative of a corporation, and a person appointed as 
proxy of a member. As before, it is proposed that the quorum 
for a general meeting will be two but, in line with the CA 2006, 
the New Articles make clear that there will be no double 
counting for qualifying persons who are representatives of the 
same corporation or proxies of the same member.
Proxies
 Under the CA 2006, proxies are entitled to speak at general 
meetings and to vote on a show of hands. The CA 2006 allows 
multiple proxies to be appointed provided that each proxy is 
appointed to exercise the rights attached to a different share or 
shares held by the shareholder. The New Articles reflect these 
new rules.
Vacation of office of director
 The New Articles tighten up the circumstances in which a 
director must vacate office where the director has become 
physically or mentally ill. The changes apply a test of whether  
in the opinion of a medical practitioner the director is rendered 
incapable by his illness of acting as a director for more than 
three months or is personally prevented from exercising any 
powers or rights by a court order.
Directors’ interests
 The CA 2006 sets out directors’ general duties. The provisions 
largely codify the pre-existing law, but with some changes. 
Under the CA 2006, a director must avoid a situation where  
he has, or can have, a direct or indirect interest that conflicts,  
or possibly may conflict with the Company’s interests. The 
requirement is very broad and could apply, for example, if a 
director becomes a director of another company or a trustee  
of another organisation. The CA 2006 allows directors of public 
companies to authorise conflicts and potential conflicts where 
the articles of association contain a provision to this effect. The 
CA 2006 also allows the articles of association to contain other 
provisions for dealing with directors’ conflicts of interest to 
avoid a breach of duty. The New Articles give the Directors 
authority to approve such situations and to include other 
provisions to allow conflicts of interest to be dealt with in a 
similar way to the previous position.
 The CA 2006 and the New Articles contain safeguards which 
will apply when directors decide whether to authorise a conflict 
or potential conflict. These include, first, only independent 
directors (i.e. those who have no interest in the matter being 
considered) will be able to take the relevant decision, and 
second, in taking the decision the directors must act in a way 
they consider, in good faith, will be most likely to promote the 
Company’s success. The Directors will be able to impose limits 
or conditions when giving authorisation or subsequently if they 
think this is appropriate.
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 The New Articles include provisions relating to confidential 
information, attendance at Board meetings and availability  
of Board papers to protect a director from being in breach of 
duty if a conflict of interest or potential conflict of interest arises. 
These provisions will only apply where the position giving rise  
to the potential conflict has previously been authorised by  
the Directors.
 Two of the Company’s Directors, Paul Wright and Val Kaye are 
also major shareholders of the Company and directors of a 
company which is a supplier to the Company. Subject to 
approval of the New Articles by shareholders, the other 
Directors intend to authorise this conflict. 
 It is the Board’s intention to report annually on the Company’s 
procedures for ensuring that the Board’s powers of 
authorisation of conflicts are operated effectively and that the 
procedures have been followed.
Electronic and web communications
 A resolution was passed at the Company’s Annual General 
Meeting in 2007 enabling the Company to take advantage of 
provisions in the CA 2006 to communicate with members by 
electronic and/or website communications. The relevant 
provisions are incorporated into the New Articles. So far the 
Company has not implemented this. If it decides to do so, each 
member must be asked individually to agree that the Company 
may send or supply documents or information to him by means 
of a website, and the Company must either have received a 
positive response or have received no response within the 
period of 28 days beginning with the date on which the request 
was sent. The Company will notify the member (either in writing, 
or by other permitted means) when a relevant document or 
information is placed on a website and a member can always 
request a hard copy version of the document or information.
Directors’ Report continued
Directors’ indemnities
 The CA 2006 has widened the powers of a company to 
indemnify directors. A company can now indemnify a director 
of a company that is a trustee of an occupational pension 
scheme against liability incurred in connection with the 
company’s activities as trustee of that scheme. This is reflected 
in the New Articles. The opportunity is also being taken to 
clarify that, subject to the applicable legislation, the Company 
may grant indemnities to directors of associated companies.
 Copies of the New Articles will be available for inspection 
during normal business hours at the Company’s registered 
office from the date of this circular until the close of the Annual 
General Meeting; and at the Annual General Meeting for at least 
15 minutes before and during the meeting.
The Notice of Annual General Meeting is set out on pages 65 to 67.
Auditors
During the year, Grant Thornton LLP resigned as auditors and the 
directors appointed KPMG Audit Plc to fill the casual vacancy.
In accordance with Section 487 of the Companies Act 2006,  
a resolution for the re-appointment of KPMG Audit Plc as auditor  
of the Company is to be proposed at the forthcoming Annual 
General Meeting.
BY ORDER OF THE BOARD
Ian Jebson
Company Secretary
16 April 2009
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Corporate Governance
The Board is committed to high standards of corporate 
governance. The Company complied with the voluntary Corporate 
Governance Guidelines issued by the Quoted Companies Alliance 
(QCA), and the Corporate Governance Guidelines and Voting Policy 
issued by the National Association of Pension Funds (NAPF) in 
2008 (except in one respect as mentioned below). The Board is 
also aware of the Combined Code on Corporate Governance to 
which fully listed companies must “comply or explain” and seeks  
to apply it where appropriate.
The Board does not comply with the NAPF requirement that  
the Chairman may not chair the Remuneration Committee or 
Nominations Committee (although he may attend meetings if he 
was independent on appointment). Given the overall size and 
balance of the Board, and that during 2008 each of these 
committees comprised two other independent Non-executive 
Directors, the Board does not consider that the Chairman 
exercised undue influence over these committees.
Following the Board changes which took place in February 2009, 
with the support of shareholders, the Board does not now comply 
with the QCA and NAPF guidelines as it does not have sufficient 
independent Non-executive Directors. Paul Wright, the Non-
executive Chairman, and Val Kaye the other Non-executive Director 
are not considered independent in view of the fact that they hold 
17.8% and 11.63% respectively of the issued share capital of the 
Company. In addition, Paul Wright and Val Kaye are directors of 
Lead The Good Life Limited ( LTGL), a supplier to the Company. 
These conflicts have been fully disclosed to the Board and dealings 
between LTGL and the Company take place on arm’s length terms 
and the Directors are not directly involved. The Board is actively 
seeking to appoint an additional independent Non-executive 
Director as soon as possible.
The Board
The Board has overall responsibility for controlling the Group, 
making decisions relating to the Group’s strategic direction and 
measuring progress towards strategic goals.
The Board has eleven scheduled meetings per annum, including 
one strategy meeting which is usually held off site. There was full 
attendance at all Board and Committee meetings during 2008, 
except that Terry Donovan missed one Board meeting and one 
Audit Committee meeting.
There is a schedule of matters reserved to the Board for decision  
or approval, the full list is available from the Company Secretary. 
Examples of these include Group strategy and budget, Group 
capital structure, approval of financial results and report and 
accounts, significant capital or contractual commitments, 
maintaining internal control and risk management, and approval  
of Group wide policies.
At each meeting, the Chief Executive and the Finance Director 
issue formal reports. The Board also receives a monthly report 
containing information on health and safety, shareholder register, 
regulatory compliance and corporate governance developments. 
Other matters are discussed by the Board as required, supported 
by a presentation or briefing paper where a decision is to be made 
by the Board.
Minutes of all Board and Committee meetings are taken and 
circulated for approval. Any unresolved concerns raised by a 
Director are recorded in the minutes.
The Non-executive Directors have regular dialogue outside  
Board meetings. 
Directors
The Board comprises a Non-executive Chairman, Paul Wright, one 
Non-executive Director, Val Kaye, and two executive Directors, 
Mike Hancox is the Chief Executive Officer, and Ian Jebson is the 
Finance Director and Company Secretary. Biographical details are 
set out on page 13.
In general terms, the Chairman is responsible for running the Board 
and the Chief Executive Officer is responsible for running the 
Company’s business.
Directors are required by the Company’s Articles of Association  
to retire from the Board by rotation and offer themselves for 
re-election at least every three years.
Since the beginning of 2008 the composition of the Board has 
changed significantly. David Blake, Finance Director, stepped down 
on 3 June 2008; and an interim Finance Director (not a director of 
the Company) was appointed; Pam Aujla was appointed to the 
Board on 4 July 2008 and Andrew Fryatt resigned on 10 October 
2008. On 3 February 2009, David Williams, Terry Donovan and 
Susan Ellis resigned from the Board and Paul Wright and Val Kaye 
were appointed in their place. Ian Jebson joined the Board on 
1 March 2009 and Pam Aujla resigned on 23 March 2009.
Board Committees
The Audit Committee is chaired by Paul Wright, the other 
member is Val Kaye. During 2008 the Chairman of the Committee 
was Terry Donovan and the other member was David Williams.  
The Chief Executive and the Finance Director usually attend 
meetings by invitation, along with a representative from the 
Company’s auditor.
The Committee is scheduled to meet at least twice a year, to 
coincide with key dates in the Company’s financial reporting  
and audit cycle, during 2008 it met in March, September  
and December. 
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The principal responsibilities of the Committee are to:
Monitor the integrity of the Group’s financial statements and •	
public announcements relating to financial performance
Oversee the external audit process, including the appointment •	
of the auditors, their objectiveness and independence and the 
scope and effectiveness of the audit
Monitor the effectiveness of internal controls. •	
The Remuneration Committee is chaired by Paul Wright,  
the other member is Val Kaye. Mike Hancox usually attends 
meetings by invitation. During 2008 the Committee Chairman  
was David Williams and the other members were Terry Donovan 
and Susan Ellis.
The Committee’s responsibilities include:
Recommending to the Board the specific pay and benefits •	
packages for the executive Directors and the Chairman, 
including bonus, pensions and any compensation payments
Approval of awards made to Directors and management under •	
share incentive schemes.
During the year the Committee met four times.
The Nominations Committee is chaired by Paul Wright and  
the other members are Val Kaye and Mike Hancox. During 2008  
the Chairman was David Williams and the other members were 
Terry Donovan, Susan Ellis and Andrew Fryatt (before his 
resignation) and Mike Hancox (from his appointment).
The Committee’s responsibilities include:
Reviewing the composition and balance of the Board (including •	
succession planning)
Making recommendations on appointments to the Board. •	
Advice and insurance
All Directors have access to the advice and services of the 
Company Secretary. In addition Directors may seek legal advice  
at the Company’s cost if they consider it necessary in connection 
with their duties.
The Company purchases Directors’ and Officers’ Liability  
insurance cover for its Directors. Details of the qualifying third  
party indemnity given to Directors by the Company are set out  
in the Directors’ Report.
Shareholder relations
As required by Rule 26 of the AIM Rules for Companies, we have  
a corporate website which contains up to date information relevant 
to shareholders and potential shareholders. Please see 
www.idealshoppingdirect.tv. 
Shareholders are invited to contact the Chief Executive Officer  
or Finance Director with any questions or concerns, on 08700 
780704. We also have a dedicated contact email address for 
questions, ir@idealshoppingdirect.co.uk, this goes direct to the 
Finance Director and members of his team. 
There is a formal investor relations programme based around 
results presentations and trading statements. In addition analyst/
shareholder visits are arranged. The Chairman and executive 
Directors feed back the results of meetings with shareholders  
to the Board.
All Directors will be available at the Annual General Meeting to meet 
with shareholders and answer their questions. 
Risk management and internal control
The Board is ultimately responsible for the Group’s system of 
internal control and for reviewing its effectiveness. However such  
a system is designed to manage rather than eliminate the risk of 
failure to achieve business objectives and can provide only 
reasonable, and not absolute, assurance against material loss  
and misstatement.
The key elements of the Group’s system of internal control are as 
follows:
The Board has adopted a risk-based approach to establishing •	
the system of internal control. This risk management approach 
is used to focus available resources on the Group’s most 
significant areas of risk and to determine key control objectives. 
The Group has in place an organisational structure with clearly •	
defined lines of responsibility, delegation of authority and 
reporting requirements.
The executive Directors are closely involved in the management •	
of the business at a detailed level. This is supported by reviews 
of daily, weekly and monthly analyses of the performance of the 
business and key performance indicators associated with the 
trading risks facing the Group.
Detailed annual budgets are prepared, reviewed in detail and •	
agreed by the Board, and actual performance is reported 
against these budgets on a regular basis. Major commercial, 
technological and financial risks are assessed as part of  
this process.
The Group has established controls and procedures over  •	
the security of the data held on its computer systems and  
also has in place disaster recovery plans for certain key areas  
of the business.
2008 was a significant year for the Group and a programme of •	
reviewing controls will be introduced in the second half of 2009.
Corporate Governance continued
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Auditor independence
It is the responsibility of the Audit Committee to review and  
monitor the external auditor’s independence and objectivity and  
the effectiveness of the audit process, taking into consideration 
relevant UK professional and regulatory requirements; and to 
develop and implement policy on the engagement of the external 
auditor to supply non-audit services, taking into account relevant 
ethical guidance regarding the provision of non-audit services by 
the external audit firm.
The Audit Committee reviews the nature and extent of non-audit 
services supplied by the external auditors to the Group, seeking to 
balance objectivity and value for money. In determining policy, the 
Audit Committee has taken into account relevant ethical guidance 
regarding the provision of non-audit services by the external audit 
firm, and does not agree to the auditor providing a service if, having 
regard to the ethical guidance, the result is that:
the external auditor audits its own firm’s work •	
the external auditor makes management decisions for  •	
the Company
a mutuality of interest is created; or •	
the external auditor is put in the role of advocate for  •	
the Company.
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Unaudited information
Procedures for developing policy and fixing 
remuneration
Remuneration policy for Directors is set by the Remuneration 
Committee of the Board.
Policy on Executive Directors’ remuneration
The Group’s policy is to attract, motivate and retain high calibre 
individuals and to reward them for enhancing shareholder value. 
Remuneration for executive Directors is made up of the following 
elements:
A fixed annual salary set by reference to the market, and •	
reviewed annually subject to satisfactory performance.
Other benefits such as car allowance and medical insurance. •	
A contribution of 10%–20% of basic salary to the Company •	
pension scheme or a personal pension scheme held by the 
relevant executive Director.
Where considered appropriate, the participation in an annual •	
cash bonus scheme based on the achievement of profit and 
individual performance targets.
Where considered appropriate, the provision of share options. •	
Share option schemes
The Board believes that the grant of share options to employees 
motivates them and aligns their interests with shareholders.
There are currently two option schemes in place. The 2000  
Share Option Scheme is a discretionary scheme with both an 
Inland Revenue approved and an unapproved section. Options  
are granted to executive Directors and senior employees under  
the approved and unapproved sections of the scheme, at the 
discretion of the Remuneration Committee. Options may also  
be granted to Non-executive Directors and individuals providing 
services to the Company under the unapproved section of  
the scheme.
Options are granted at the mid market price of the Company’s 
shares on the business day preceding the day of grant. The options 
vest between one and three years after grant, normally subject  
to the fulfilment of a performance condition set by the Committee, 
and remain open for exercise for up to 10 years from date of grant. 
There is no provision for retesting of performance criteria. 
Remuneration Report
The second scheme is the 2005 Save as You Earn Scheme. This is 
an Inland Revenue approved scheme, whereby all employees are 
invited to apply for options at a discount of up to 20% to market 
value at date of grant, and enter into a simultaneous savings 
contract. The options are exercisable after three or five years and 
remain open for exercise for 6 months from maturity. There are no 
performance criteria other than continued employment and Inland 
Revenue savings limits (£250 per month across all schemes) apply. 
Invitations are issued normally annually.
Executive Directors’ service contracts and 
remuneration
Mike Hancox and Ian Jebson each have a full time service contract 
with the Company. In addition to their salaries, each of them is 
entitled to a number of other benefits including private medical 
cover, motor vehicle allowance and pension contributions as 
outlined above. The notice required to be given by the Company  
to terminate these service contracts is twelve months for  
Mike Hancox, and for Ian Jebson nine months in the first year of his 
appointment and six months after that.
 
Executive Directors may also be entitled to an annual cash bonus, 
granted in the discretion of the Remuneration Committee. This 
bonus would be subject to Group performance meeting agreed 
profit targets, and would pay 30% of basic salary for on target 
performance, rising to 150% of salary for exceptional performance.
Remuneration of the executive Directors in 2008 is set out in the 
audited section below.
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Audited information
Details of the remuneration paid to Directors in 2008 are set out in the table below. 
     2008 2007   
     Total Total   
     (Excl (Excl 2008 2007 
  Salary Benefits Bonus pension) pension) Pensions Pensions 
  £000 £000 £000 £000 £000 £000 £000
P Aujla   159   9  –  168  –  19  –
D Blake   145   5  32   182   62  – –
T Donovan   37  – –  37   34  – –
S Ellis   33  – –  33   30 – –
A Fryatt   455  11    466   192   27  25 
M Hancox   42   1  –  43  –  4  –
J Hodkinson  – – – –  84  – –
V Kaye  – – – –  25  – –
M Camp  – – – –  175  –  10 
D Williams   85  – –  85   40  – –
P Wright  – – – –  65  –  16 
   956   26   32   1,014   707   50   51 
2008 remuneration in respect of Andrew Fryatt and David Blake includes £298,014 and £91,000 respectively relating to compensation for loss  
of office.
The Directors did not exercise any share options during 2008.
The cost to the Company of Directors’ options under IFRS2 in 2008 were: David Williams £16,747, Pam Aujla £4,314.
Non-executive Directors’ appointments and remuneration
The Non-executive Directors all have letters of appointment. The term of each appointment is set out below:
     Notice period (may be 
   Term Expiry given at any time)
Paul Wright   3 years 2 February 2012 6 months
Val Kaye   3 years 2 February 2012 6 months
The appointment letters of David Williams, Terry Donovan and Susan Ellis were terminated on 3 February 2009.
The remuneration for the Chairman and Non-executive Directors is determined by the Board on the recommendation of the Remuneration 
Committee, based on the level of fees paid to Non-executive Directors of similar companies. No Director votes on his own remuneration.
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Details of share options granted to Executive and Non-executive Directors are set out in the tables below.
Share options
Options granted to Directors remaining exercisable at 28 December 2008:
   Option price    Number of 
   per share   Date exercisable Options
2000 Share Option Scheme
A Fryatt   £1.565 8 November 2007–9 November 2010 95,847
D Williams   £1.995 3 February 2009–2 February 2010 100,000
P Aujla   £2.385 7 March 2008–22 March 2010 62,247
2005 Save As You Earn Share Option Scheme
T Donovan   £2.78 1 July 2011–31 December 2011 5,791
P Aujla   £1.94 1 August 2001–1 February 2009 4,844
During 2008 the following options granted to Directors lapsed:
   Option price    Number of 
   per share   Date exercisable Options
2000 Share Option Scheme
J Hodkinson   £2.415 4 March 2008–12 July 2008 100,000
A Fryatt   £2.415 4 March 2008–4 March 2015 124,224
A Fryatt   £3.65 19 September 2008 –19 September 2015 42,329
Since 28 December 2008, the following options have been granted to Directors:
   Option price    Number of 
   per share   Date exercisable Options
2000 Share Option Scheme
Mike Hancox   £0.34 March 2011–March 2013 833,333
Mike Hancox   £0.34 March 2012–March 2014 833,333
Mike Hancox   £0.34 March 2013–March 2015 833,334
A commitment has also been made to issue 500,000 options to Ian Jebson under the 2000 Share Option Scheme as soon as possible 
after the announcement of the Company’s 2008 results.
The mid market price of the 3p ordinary shares was £0.36 at 28 December 2008. The mid market price ranged from £0.335 to £2.555 
during the year.
Remuneration Report continued
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Independent Auditors’ Report
to the Members of Ideal Shopping Direct Plc
We have audited the Group and Parent Company financial 
statements (the “financial statements’’) of Ideal Shopping Direct Plc 
for the year ended 28 December 2008 which comprise the Group 
Income Statement, the Group and Parent Company Balance 
Sheets, the Group and Parent Company Cash Flow Statements, 
the Group and Parent Company Statements of Recognised Income 
and Expense and the related notes. These financial statements 
have been prepared under the accounting policies set out therein.
This report is made solely to the Company’s members, as a body, 
in accordance with section 235 of the Companies Act 1985. Our 
audit work has been undertaken so that we might state to the 
Company’s members those matters we are required to state to 
them in an auditor’s 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 and the Company’s members 
as a body, for our audit work, for this report, or for the opinions we 
have formed.
Respective responsibilities of directors and auditors
The Directors’ responsibilities for preparing the Annual Report and 
the financial statements in accordance with applicable law and 
International Financial Reporting Standards (IFRSs) as adopted by 
the EU are set out in the Statement of Directors’ Responsibilities on 
pages 15 and 16.
Our responsibility is to audit the financial statements in accordance 
with relevant legal and regulatory requirements and International 
Standards on Auditing (UK and Ireland).
We report to you our opinion as to whether the financial statements 
give a true and fair view and are properly prepared in accordance 
with the Companies Act 1985. We also report to you whether in our 
opinion the information given in the Directors’ Report is consistent 
with the financial statements. The information given in the Directors’ 
Report includes that specific information presented in the Business 
Review that is cross referred from the Directors’ Report.
In addition we report to you if, in our opinion, the Company has  
not kept proper accounting records, if we have not received all  
the information and explanations we require for our audit, or if 
information specified by law regarding directors’ remuneration  
and other transactions is not disclosed.
We read the other information contained in the Annual Report and 
consider whether it is consistent with the audited financial 
statements. We consider the implications for our report if we 
become aware of any apparent misstatements or material 
inconsistencies with the financial statements. Our responsibilities 
do not extend to any other information.
Basis of audit opinion
We conducted our audit in accordance with International Standards 
on Auditing (UK and Ireland) issued by the Auditing Practices 
Board. An audit includes examination, on a test basis, of evidence 
relevant to the amounts and disclosures in the financial statements. 
It also includes an assessment of the significant estimates and 
judgments made by the Directors in the preparation of the financial 
statements, and of whether the accounting policies are appropriate 
to the group’s and company’s circumstances, consistently applied 
and adequately disclosed.
We planned and performed our audit so as to obtain all the 
information and explanations which we considered necessary  
in order to provide us with sufficient evidence to give reasonable 
assurance that the financial statements are free from material 
misstatement, whether caused by fraud or other irregularity or 
error. In forming our opinion we also evaluated the overall adequacy 
of the presentation of information in the financial statements.
Opinion
In our opinion:
the Group financial statements give a true and fair view, in •	
accordance with IFRSs as adopted by the EU, of the state of 
the Group’s affairs as at 28 December 2008 and of its loss for 
the year then ended
the Parent Company financial statements give a true and fair •	
view, in accordance with IFRSs as adopted by the EU as 
applied in accordance with the provisions of the Companies 
Act 1985, of the state of the Parent Company’s affairs as at 
28 December 2008
the financial statements have been properly prepared in •	
accordance with the Companies Act 1985; and
the information given in the Directors’ Report is consistent with •	
the financial statements.
KPMG Audit Plc
Chartered Accountants
Registered Auditor
Birmingham
16 April 2009
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Financial Statements
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Consolidated Income Statement
        Restated 
     28 December   30 December 
    Exceptional 2008  Exceptional 2007 
   Underlying (Note 3) Total Underlying (Note 3) Total 
  Note £000 £000 £000 £000 £000 £000
Sales revenue  1 94,947 (290) 94,657 96,631 – 96,631
Cost of Sales   (59,126) (2,758) (61,884) (56,228) – (56,228)
Gross profit   35,821 (3,048) 32,773 40,403 – 40,403
Distribution costs    (4,519) – (4,519) (3,639) – (3,639)
Administrative expenses   (34,842) (6,195) (41,037) (31,462) (570) (32,032)
Other expenses   (62) – (62) (283) – (283)
Operating (loss)/profit  3 (3,602) (9,243) (12,845) 5,019 (570) 4,449
Finance costs  6 (643) – (643) (69) – (69)
Finance income  7 267 – 267 817 – 817
(Loss)/profit from continuing operations   (3,978) (9,243) (13,221) 5,767 (570) 5,197
Tax credit/(expense) net  8   1,669   (1,462)
Net (loss)/profit for the period     (11,552)   3,735
Attributable to equity shareholders of Ideal
Shopping Direct Plc     (11,552)   3,735
(Loss)/earnings per share
Continuing operations:
 Basic   9   (38.9)    12.6 
 Diluted   9   (38.9)    12.5 
The Company has not presented its own income statement as permitted by section 230 of the Companies Act 1985. The Parent 
Company’s loss attributable to shareholders amounted to £10.6m (2007: profit of £3.2m).
The accompanying accounting policies and notes form an integral part of these financial statements.
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Financial Statements
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Consolidated Balance Sheet
        30 December 
        2007 
       28 December (as restated 
       2008 – note 28) 
      Note £000 £000
Assets
Non-current
Property, plant and equipment      10 8,574 9,904
Intangible assets      11 3,302 3,083
Goodwill      12 – 1,523
Deferred tax assets      14 131 71
Total non-current assets       12,007 14,581
Current
Inventories      15 3,872 6,750
Trade and other receivables      16 4,538 5,516
Current tax assets       1,300 97
Cash and cash equivalents      17 8,399 16,697
Total current assets       18,109 29,060
Total assets       30,116 43,641
Equity
Share capital      19 895 894
Share premium      19 314 308
Other reserves      19 1,666 2,642
Retained earnings      19 5,963 18,832
Total equity attributable to equity holders of the company      8,838 22,676
Liabilities
Non-current
Loan and borrowings      21 – 1,863
Deferred tax liabilities      14 131 705
Total non-current liabilities       131 2,568
Current
Provisions      23 803 449
Trade and other payables      24 18,166 16,979
Loans and borrowings      21 1,863 339
Current tax liabilities       94 321
Dividends payable       221 –
Obligations under finance leases      21 – 309
Total current liabilities       21,147 18,397
Total liabilities       21,278 20,965
Total equity and liabilities       30,116 43,641
The financial statements were approved by the Board of Directors on 16 April 2009.
Mike Hancox Ian Jebson
Chief Executive Finance Director
The accompanying accounting policies and notes form an integral part of these financial statements.
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Financial Statements
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Company Balance Sheet
        30 December 
        2007 
       28 December (as restated 
       2008 – note 28) 
      Note £000 £000
Assets
Non-current
Property, plant and equipment      10 8,496 9,876
Intangible assets      11 3,302 3,083
Investments      13 – 743
Deferred tax assets      14 118 14
Total non-current assets       11,916 13,716
Current
Inventories      15 3,660 6,255
Trade and other receivables      16 4,857 6,937
Current tax assets       1,300 97
Cash and cash equivalents      17 8,397 16,671
Total current assets       18,214 29,960
Total assets       30,130 43,676
Equity
Share capital      19 895 894
Share premium      19 314 308
Other reserves      19 1,666 2,585
Retained earnings      19 6,766 18,661
Total equity attributable to equity holders of the company      9,641 22,448
Liabilities
Non-current
Loan and borrowings      21 – 1,863
Deferred tax liabilities      14 118 705
Total non-current liabilities       118 2,568
Current
Provisions      23 774 449
Trade and other payables      24 17,513 17,216
Loans and borrowings      21 1,863 339
Current tax liabilities       – 347
Dividends payable       221 –
Obligations under finance leases      21 – 309
Total current liabilities       20,371 18,660
Total liabilities       20,489 21,228
Total equity and liabilities       30,130 43,676
The financial statements were approved by the Board of Directors on 16 April 2009.
Mike Hancox Ian Jebson
Chief Executive Finance Director
The accompanying accounting policies and notes form an integral part of these financial statements.
 
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Financial Statements
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Consolidated Statement of Recognised  
Income and Expense
        52 weeks 
        ended 
       52 weeks 30 December 
       ended 2007 
       28 December (as restated 
       2008 – note 28) 
       £000 £000
Revaluation of property, plant and equipment       (938) 439
Income tax on income and expense recognised directly in equity      214 (62)
Income and expense recognised directly in equity       (724) 377
(Loss)/profit for the period       (11,552) 3,735
Total recognised income and expense for the period attributable to equity holders of the Company  (12,276) 4,112
Impact of prior year adjustments on retained earnings at start of year      (591) 
Total income and expense recognised since last annual report     (12,867) 
Company Statement of Recognised  
Income and Expense
        52 weeks 
        ended 
       52 weeks 30 December 
       ended 2007 
       28 December (as restated 
       2008 – note 28) 
       £000 £000
Revaluation of property, plant and equipment       (938) 439
Income tax on income and expense recognised directly in equity      271 (97)
Income and expense recognised directly in equity       (667) 342
(Loss)/profit for the period       (10,578) 3,133
Total recognised income and expense for the period attributable to equity holders of the Company  (11,245) 3,475
Impact of prior year adjustments on retained earnings at start of year      (519) 
Total income and expense recognised since last annual report     (11,764) 
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Financial Statements
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Consolidated Statement of Cash Flows
For the 52 weeks ended 20 December 2008
        52 weeks 
        ended 
       52 weeks 30 December 
       ended 2007 
       28 December (as restated 
       2008 – note 28) 
      Note £000 £000
Cash flows from operating activities
(Loss)/profit for the period       (11,552) 3,735
Depreciation       683 763
Amortisation of intangible assets       577 301
Impairment of assets       324 –
Loss on disposal       745 –
Impairment of goodwill       1,523 –
Equity settled share-based payment transactions       63 230
Income tax expense       (1,669) 1,462
Net finance (expense)/income       (231) (416)
       (9,537) 6,075
Change in inventories       2,878 (1,369)
Change in trade and other receivables       978 (2,921)
Change in trade and other payables       1,187 1,837
Change in provisions       354 109
       (4,140) 3,731
Interest paid      6 (36) (69)
Income tax paid       (181) (1,482)
Net cash (used in)/from operating activities       (4,357) 2,180
Cash flows from investing activities
Acquisition of property, plant and equipment      10 (767) (808)
Acquisition of other intangible assets      11 (1,396) (1,860)
Proceeds from sale of property, plant and equipment       7 –
Interest received      7 267 485
Net cash used in investing activities       (1,889) (2,183)
Cash flows from financing activities
Proceeds from issue of share capital       7 121
Repayment of bank loans       (339) (339)
Payment of finance lease liability       (309) (433)
Dividends paid      9 (1,411) (1,333)
Net cash used in financing activities       (2,052) (1,984)
Net decrease in cash and cash equivalents       (8,298) (1,987)
Cash and cash equivalents at beginning of period      17 16,697 18,684
Cash and cash equivalents at end of period      17 8,399 16,697
 
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Company Statement of Cash Flows
        52 weeks 
        ended 
       52 weeks 30 December 
       ended 2007 
       28 December (as restated 
       2008 – note 28) 
      Note £000 £000
Cash flows from operating activities
(Loss)/profit for the period       (10,578) 3,214
Depreciation       663 752
Amortisation of intangible assets       577 301
Impairment of assets       324 –
Write off of Investment in Ideal Sourcing Ltd       743 –
Loss on disposal       745 –
Equity settled share-based payment transactions       63 230
Income tax expense       (1,764) 1,434
Net finance income       (373) (573)
       (9,600) 5,358
Change in inventories       2,595 (1,256)
Change in trade and other receivables       2,080 (1,860)
Change in trade and other payables       297 1,240
Change in provisions       325 109
       (4,303) 3,591
Interest paid      6 (17) (69)
Income tax paid       (207) (1,403)
Net cash (used in)/from operating activities       (4,527) 2,119
Cash flows from investing activities
Acquisition of property, plant and equipment      10 (697) (779)
Acquisition of other intangible assets      11 (1,396) (1,860)
Proceeds from sale of property, plant and equipment       7 –
Interest received       390 642
Net cash used in investing activities       (1,696) (1,997)
Cash flows from financing activities
Proceeds from issue of share capital       8 121
Repayment of bank loans       (339) (339)
Payment of finance lease liability       (309) (433)
Dividends paid      9 (1,411) (1,333)
Net cash used in financing activities       (2,051) (1,984)
Net decrease in cash and cash equivalents       (8,274) (1,862)
Cash and cash equivalents at beginning of period      17 16,671 18,533
Cash and cash equivalents at end of period      17 8,397 16,671
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Notes to the Financial Statements
1) Accounting policies
Ideal Shopping Direct Plc, a public limited company, is the Group’s ultimate parent. It is incorporated and domiciled in the UK. Ideal 
Shopping Direct Plc’s shares are listed on the Alternative Investment Market of the London Stock Exchange.
(a) Accounting reference dates
For operational reasons the financial statements of the Group are prepared to the fourth Saturday in December. The financial statements of the 
Group and its subsidiary are for the 52 weeks ended 28 December 2008 and are compared with a 52 week period to 30 December 2007.
(b) Statement of compliance
The financial statements of the Group and Company have been prepared in accordance with International Financial Reporting Standards 
as adopted by the EU (“adopted IFRSs”).
The financial statements were authorised for issue by the Board of Directors on 16 April 2009.
(c) Basis of measurement
The financial statements are prepared on an historical cost basis as modified by the revaluation of property, plant and equipment.
The Directors consider that the accounts should be prepared on a going concern basis for the following reasons: 
Full detailed profit and loss, balance sheet and cash flow forecasts have been prepared for the period to April 2010. •	
These forecasts show that the company can operate as a going concern within its current banking facility •	
Barclays Bank have renewed current banking facilities to April 2010. This includes a commercial mortgage, secured by a charge and •	
cross guarantees over the assets of group companies. 
(d) 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.
Goodwill impairment
The carrying value of goodwill is tested annually for impairment by using cash flow projections for each cash generating unit. These 
projections are based upon actual and short term planned results extrapolated over a 5 year period. A discount rate of 8% is used.
Valuation of property, plant and equipment
Items of property, plant and equipment that qualify for recognition as an asset are initially measured at cost. Cost includes any expenditure 
that is directly attributable to the acquisition of the asset. After initial recognition classes of assets valued under the cost model are carried 
at cost less any accumulated depreciation and any accumulated impairment losses. Classes of assets valued under the revaluation model 
are carried at a revalued amount, being the fair value at the date of the revaluation, less any subsequent accumulated depreciation and 
subsequent impairment losses.
Trade receivables
An appropriate allowance for estimated irrecoverable trade receivables is derived where there is an identified event which, based on 
previous experience, is evidence of a potential reduction in the recoverability of future cash flows. This estimation is based on assumed 
collection rates which, although based on the Group’s historical experience of customer repayment patters, remains inherently uncertain.
Inventory
Provision is made for those items of inventory where the net realisable value is estimated to be lower than cost. Net realisable value is based 
on both historical experience and assumptions regarding future selling values, and is consequently a source of estimation uncertainty.
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1) Accounting policies continued
Deferred tax
Deferred tax assets and liabilities require management judgement. In determining the amounts to be recognised. In particular, judgement  
is used when assessing the extent to which deferred tax assets should be recognised with consideration given to the timing and level of 
future taxable income.
(e) Basis of consolidation
The consolidated financial statements incorporate the financial statements of the Company and its subsidiaries made up to 28 December 
2008. Consistent accounting policies have been applied in the preparation of all such financial statements.
(i) Subsidiaries 
Subsidiaries are entities controlled by the Group. Control exists when the Group has the power, directly or indirectly, to govern the financial 
and operating policies of an entity so as to obtain benefits from its activities. In assessing control, potential voting rights that presently are 
exercisable or convertible are taken into account. The financial statements of subsidiaries are included in the consolidated financial 
statements from the date that control commences until the date that control ceases.
(ii) Transactions eliminated on consolidation
Inter-company transactions, balances and unrealised gains on transactions between Group companies are eliminated on consolidation. 
Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
(f) 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.
(g) 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.
(h) Intangible assets and goodwill
(i) Goodwill
All business combinations are accounted for by applying the purchase method.
Goodwill represents the excess of the acquisition cost in a business combination over the fair value of the group’s share of the identifiable 
net assets acquired. The goodwill is allocated to cash generating units and an impairment test is performed annually. Goodwill is carried at 
cost less accumulated impairment losses. 
(ii) Other intangible assets 
Intangible assets are measured initially at cost and are amortised on a straight-line basis over their estimated useful lives. Carrying amounts 
are reduced by provisions for impairment where necessary.
Amortisation is provided on the straight line basis, at the following rates, in order to write off the cost, less estimated residual value, of each 
asset, over its expected useful economic life.
Software (other than bespoke) 20%
Software (bespoke) 16.7% - 50%
Licences of channel rights 5% - 9%
Acquired computer software licences are capitalised on the basis of the costs incurred to acquire and bring into use the specific software. 
Directly attributable costs relating to software development include employee costs and an appropriate portion of relevant overheads. The 
costs of internally generated software developments are recognised as intangible assets and are subsequently measured in the same way 
as externally acquired licences. However, until completion of the development project, the assets are subject to impairment testing only. 
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1) Accounting policies continued
In respect of directly attributable costs on software development projects, the costs incurred on specific projects are capitalised when all 
the following conditions are satisfied:
Completion of the project is technically feasible so that it will be available for use. •	
The Group intends to complete the intangible asset and use it. •	
The Group has the ability to use the asset. •	
The intangible asset will generate probable future economic benefits. This requires that the asset will be used in generating  •	
such benefits.
There are adequate technical, financial and other resources to complete the development and to use the intangible asset. •	
The expenditure attributable to the intangible asset during its development can be measured reliably. •	
Amortisation of the asset commences when it is fully implemented or operational, and is shown within, “Administrative expenses”.
Costs associated with maintaining computer software programmes in use are recognised as an expense when incurred. 
(i) Property, plant and equipment
Property, plant and equipment comprise freehold land and buildings, fixtures, fittings and equipment and are stated at historical cost less 
accumulated depreciation, except for land and buildings which have been revalued. Historical cost includes expenditure that is directly 
attributable to the acquisition of the items.
Depreciation is provided on the straight line basis, at the following rates, in order to write off the cost or valuation less estimated residual 
value, of each asset, other than freehold land, over its expected useful economic life:
Buildings 2%
Motor vehicles 25%
Plant and equipment 10%–33%
Assets held under finance leases are depreciated over their expected useful economic lives on the same basis as owned assets.
Depreciation methods, residual values and useful lives are re-assessed annually and, if necessary, changes are accounted for 
prospectively.
The gain or loss arising on the disposal or retirement of an asset is determined as the difference between the sales proceeds and the 
carrying amount of the asset and is recognised in the income statement. 
(j) Investments
In the Company’s financial statements, investments in subsidiary undertakings are stated at cost less amounts written off.
(k) Inventories
Inventories are stated at the lower of cost and net realisable value. Cost comprises direct materials and the costs incurred in bringing 
inventories to their present location and condition. Net realisable value means estimated selling price less all costs to be incurred in 
marketing, selling and distribution.
(l) Trade and other receivables
Trade receivables are measured at initial recognition at fair value, and are subsequently measured at amortised cost using the effective 
interest rate method. Appropriate allowances for estimated irrecoverable amounts are recognised in profit or loss when there is objective 
evidence that the asset is impaired. The allowance recognised is measured as the difference between the asset’s carrying amount and the 
present value of estimated future cash flows discounted at the effective interest rate computed at initial recognition.
(m) Trade and other payables 
Trade payables are not interest bearing and are stated at their nominal value.
(n) Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and demand deposits, together with other short-term, highly liquid investments that are 
readily convertible into known amounts of cash and which are subject to an insignificant risk of changes in value. 
Notes to the Financial Statements continued
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1) Accounting policies continued
(o) 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. 
(p) Leases
(i) Finance leases
Assets financed by leasing arrangements, which transfer substantially all the risks and rewards of ownership to the lessee, are capitalised 
in the balance sheet at their fair value or, if lower, at the present value of the minimum lease payments, each determined at the inception  
of the lease. The corresponding liability is shown as a finance lease obligation to the lessor. 
Leasing repayments comprise both a capital and a finance element. The finance element is written off to the income statement so as to 
produce an approximately constant periodic rate of charge on the outstanding obligation. Such assets are depreciated over the shorter  
of their estimated useful lives and the period of the lease.
(ii) Operating leases
Leases where the lessor retains substantially all the risks and rewards of ownership are classified as operating leases. Rentals are charged 
to the income statement on a straight line basis over the period of the lease. 
(q) 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.
(r) Financial assets 
Financial assets are divided into trade and other receivables and cash and cash equivalents. All financial assets are recognised when the 
group becomes a party to the contractual provisions of the instrument. Financial assets are recognised at fair value plus transaction costs. 
Loans and receivables are measured subsequent to initial recognition at amortised cost using the effective interest method, less provision 
for impairment. Any change in their value through impairment or reversal of impairment is recognised in the income statement.
Impairment of trade receivables is made when there is objective evidence that the Group will not be able to collect all amounts due to it in 
accordance with the original terms of those receivables. The amount of the write-down is determined as the difference between the asset’s 
carrying amount and the present value of estimated future cash flows.
The designation of financial assets is re-evaluated at every reporting date at which a choice of classification or accounting treatment  
is available.
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1) Accounting policies continued
(s) Financial liabilities 
Financial liabilities are obligations to pay cash or other financial assets and are recognised when the Group becomes a party to the 
contractual provisions of the instrument. All financial liabilities are recorded initially at fair value, net of direct issue costs.
At each reporting date all financial liabilities are recorded at amortised cost using the effective interest method, with interest-related 
charges recognised as an expense in finance cost in the income statement. Finance charges, including premiums payable on settlement  
or redemption and direct issue costs, are charged to the income statement on an accruals basis using the effective interest method and 
are added to the carrying amount of the instrument to the extent that they are not settled in the period in which they arise.
A financial liability is derecognised only when the obligation is extinguished, that is, when the obligation is discharged or cancelled  
or expires. 
(t) Derivative financial instruments 
Derivative financial instruments comprise forward contracts for foreign currencies and are recognised at fair value. Any gain or loss on 
re-measurement of fair value is recognised immediately in the income statement.
Where a derivative financial instrument is used to hedge economically the foreign exchange exposure of a recognised monetary asset  
or liability, no hedge accounting is applied. 
(u) Foreign currencies
Transactions in foreign currencies are translated into sterling at the Group’s monthly exchange rate ruling at the date of the transaction. 
Monetary assets and liabilities in foreign currencies are translated into sterling at the rate of exchange ruling at the balance sheet date 
except where there are matching contracts where the asset or liability is translated at the contracted rate, and no gain or loss results.  
All exchange differences subject to the above are dealt with through the income statement for the year.
(v) Equity and dividend payments 
Equity comprises the following:
“Share capital” represents the nominal value of equity shares. •	
“Share premium” represents the excess over nominal value of the fair value of consideration received for equity shares, net of expenses •	
of the share issue.
“Other reserves” represents equity-settled share-based employee remuneration until such share options are exercised and gains and •	
losses due to the revaluation of certain financial assets and property, plant and equipment.
“Retained earnings” represents retained profits. •	
(w) Employee and retirement benefits
The Group operates defined contribution pension schemes. Contributions payable are charged to the income statement in the period to 
which they relate. These contributions are invested separately from the Group’s assets.
(x) Share based compensation arrangements 
The Company operates an equity settled share based compensation plan.
In accordance with the transitional provisions, IFRS 2 has been applied to all grants of equity instruments after 7 November 2002 that were 
unvested as of 1 January 2006.
Equity-settled share-based payments are measured at fair value at the date of grant. The fair value is expensed on a straight-line basis over 
the vesting period, based on estimates of the number of options that are expected to vest. 
Fair value is determined by reference to Binomial probability models.
The expected life used in the model is adjusted, based on management’s estimate for the effects of attrition rates and behavioural conditions.
At each balance sheet date, the Company revises its estimate of the number of options that are expected to become exercisable with the 
impact of any revision being recognised in the income statement, and a corresponding adjustment to equity over the remaining vesting 
period. The proceeds received net of any directly attributable transaction costs are credited to share capital (nominal value) and share 
premium when the options are exercised. Further details are provided in note 20.
Notes to the Financial Statements continued
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1) Accounting policies continued
(y) New standards and interpretations not yet adopted
A number of new standards and interpretations are not yet effective for the year ended 28 December 2008, and have not been applied  
in preparing these financial statements for both the Group and the Company:
IFRS 8 “Operating segments” – Effective for the period commencing 1 January 2009. •	
Amendment to IAS 1 Presentation of financial statements’ – Effective for the period commencing 1 January 2009. •	
Amended IAS 27 ‘Consolidated and separate financial statements’ – Effective for the period commencing 1 January 2009. •	
Revised IFRS 3 “Business combinations” – effective periods commencing 1 July 2009, though not yet endorsed. •	
The group has considered the impact of these standards and believes there will be no impact on profit or loss, only disclosures (on the 
assumption that there are no business combinations).
2) Segment reporting
Business segments
The Group operates two business segments, the Retail segment and the Wholesale segment. All inter-segment transfers are priced and 
carried out at arm’s length. These operating segments are monitored and strategic decisions are made on the basis of adjusted segment 
operating results, which are considered as a measure of the individual segment’s profit or loss.
Geographical segments
Over 95% of external customers revenues are based in the UK and there are no substantial assets or liabilities held outside of the UK.
Revenues from external customers have been identified on the basis of the internal reporting systems, which are also used for  
VAT purposes.
Business segments 
28 December 2008
     Retail Wholesale Eliminations Group 
     £000 £000 £000 £000
Revenue
From external customers     91,222 3,435 – 94,657
From other segments     – 8,728 (8,728) –
     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
Distribution costs     (4,519) – – (4,519)
Administrative expenses     (38,503) (2,534) – (41,037)
Other expenses     (62) – – (62)
Segmental operating loss     (12,715) 39 (169) (12,845)
Other items included in the income statement are as follows:
Depreciation and amortisation     (1,240) (20) – (1,260)
Impairment losses     (1,016) – – (1,016)
Further information on each segment’s assets and liabilities as at 28 December 2008 may be summarised as follows:
Gross assets     28,689 1,557 (130) 30,116
Gross liabilities     (19,140) (2,127) (11) (21,278)
Net assets/(liabilities)     9,549 (570) (141) 8,838
Capital expenditure     2,093 70 – 2,163
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2) Segment reporting continued
Comparative information on each segment’s assets and liabilities as at 30 December 2007 may be summarised as follows:
Business segments 
30 December 2007
 All amounts are presented in £000
     Retail Wholesale Eliminations Group 
     £000 £000 £000 £000
Revenue
From external customers     92,871 3,760 – 96,631
From other segments     – 4,275 (4,275) –
     92,871 8,035 (4,275) 96,631
Cost of sales     (54,461) (6,042) 4,275 (56,228)
Gross profit     38,410 1,993 – 40,403
Distribution costs     (3,639) – – (3,639)
Administrative expenses     (30,886) (1,146) – (32,032)
Other expenses     (283) – – (283)
Segmental operating profit     3,602 847 – 4,449
Other items included in the income statement are as follows:
Depreciation and amortisation     (1,054) (9) – (1,063)
Impairment losses     – – – –
Further information on each segment’s assets and liabilities as at 30 December 2007 may be summarised as follows:
Gross assets     40,902 2,739 – 43,641
Gross liabilities     (17,535) (3,430) – (20,965)
Net operating assets/(liabilities)     23,367 (691) – 22,676
Capital expenditure     2,639 29 – 2,668
3) Operating (loss)/profit and exceptional items
Expenses and income incurred or received during the year, which due to their size and nature of being items that are typically  
non-recurring, are drawn out for separate disclosure as exceptional items.
      2008 2008 2007 
      £000 £000 £000
Included in sales revenue:
Sales returns       290 –
Included in costs of sales:
Stock write downs       2,758 –
Included in administrative expenses:
Restructuring costs       746 570
Doubtful debt provisions       752 
Legal and professional fees in respect of restructuring       355 
Bank deposit loss       614 
Write off planning permission costs (historical)      432  
Write off planning permission costs (acquired during the year)     260  
Impairment of IT system values      245  
Write off of IT expenditure (acquired during the year)      884  
Assets written off under new capitalisation policy      79  
Assets written off after physical audit      305  
Impairment of goodwill       1,523  
Asset write off’s       3,728 –
       9,243 570
Notes to the Financial Statements continued
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3) Operating (loss)/profit and exceptional items continued
The following items have been charged to the income statement as operating expenses during the year:
       2008 2007 
       £000 £000
Depreciation of property, plant and equipment
 Owned       667 472
 Held under finance leases       16 291
Amortisation of other intangible assets       577 301
Operating lease rentals payable
 Hire of plant and machinery       63 67
 Property rentals       73 20
Broadcasting fees       12,499 12,603
Auditors’ remuneration payable to KPMG Audit Plc:
Audit of these financial statements       47 –
Amounts receivable by the auditors and their associates in respect of:
 Audit of financial statements of subsidiaries pursuant to legislation      8 –
 Other services relating to taxation       18 –
 All other services       35 –
       108 –
Auditors’ remuneration payable to Grant Thornton LLP:
Audit of these financial statements       – 48
Amounts receivable by the auditors and their associates in respect of:
 Audit of financial statements of subsidiaries pursuant to legislation      – 6
 All services relating to taxation       – 10
 All other services       107 53
       107 117
4) Employees
The average number of people employed by the Group in the following areas was:
       2008 2007 
       Number Number
Management       12 10
Operations       508 507
       520 517
Costs incurred in respect of these employees were:
       2008 2007 
       £000 £000
Wages and salaries       12,031 11,962
Social security costs       1,154 1,163
Contributions to defined contribution plans       200 165
Compensation for loss of office for directors (included within exceptional restructuring costs)   389 –
Share-based payments       63 230
       13,837 13,520
5) Directors
Total emoluments of directors (including pension contributions) amounted to £1,071,000 (2007: £758,000).
Information relating to directors’ emoluments, share options and pension entitlements is set out in the Remuneration Report.
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6) Finance expenses
       2008 2007 
       £000 £000
Interest payable on finance leases       9 40
Interest expense in respect of financial liabilities measured at amortised cost     27 21
Net foreign exchange loss       607 –
Loss on foreign currency financial liabilities       – 8
Finance expenses       643 69
7) Finance income
       2008 2007 
       £000 £000
Interest income on bank deposits       267 485
Net foreign exchange gain       – 332
       267 817
8) Income tax expense
        2007 
        (as restated 
       2008 – note 28) 
       £000 £000
Current tax (credit)/expense
Current period       (1,206) 1,357
Adjustment for prior periods       (43) (14)
       (1,249) 1,343
Deferred tax (credit)/expense
Origination and reversal of temporary differences       (420) 119
Total income tax expense       (1,669) 1,462
Reconciliation of effective tax rate
     2007 
   2008 
|
 (as restated – note 28)
     % £000 % £000
(Loss)/profit for the period      (11,552)  3,735
Total income tax (credit)/expense      (1,669)  1,462
(Loss)/profit excluding income tax      (13,221)  5,197
Income tax using the Group’s domestic tax rate     (28.50%) (3,768) 30.00% 1,559
Adjustment in respect of prior periods     (0.33%) (43) (0.27%) (14)
Non-deductible expenses     7.30% 965 1.83% 95
Unrecognised losses carried forward     8.91% 1,177 (3.43%) (178)
     (12.62%) (1,669) 28.13% 1,462
The tax rate applicable to the Group was 28% on 1 April 2008 resulting in an effective tax rate for the period of 28.5%.
Please refer to note 14 for information on the Group’s deferred tax assets and liabilities.
Notes to the Financial Statements continued
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9) (Loss)/earnings per share and dividends
Both the basic and diluted (loss)/earnings per share have been calculated using the net results attributable to shareholders of the Group  
as the numerator. None of the dilutive shares relate to interest or similar expense recognised in profit or loss for 2007 or 2008.
To calculate the diluted earnings per share figure, the weighted average of dilutive employee share options expected to vest has 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. 
Reconciliation of average number of shares used for basic and diluted earnings per share
      2008  2007 
      Number  Number
Weighted average number of ordinary shares used for basic earnings per share    29,665,428  29,663,505
Weighted average number of dilutive shares under option      30,327  235,269
Weighted average number of ordinary shares for diluted earnings per share    29,695,755  29,898,774
The Directors do not propose a final dividend payment for 2008 (2007: £1,112,438 (3.75p per share)). An interim dividend was paid resulting 
in a total dividend for the year of 1.75p (2007: 5.5p). At the year end £221,000 was outstanding and was paid on 29 December 2008.
10) Property, plant and equipment
The Group’s land and property was revalued at the year end by independent valuers. Fair values were calculated based on current market 
transactions at arm’s length which were then adjusted for specific conditions relating to the land and based on market value.
The valuation was carried out by A J Barker BSc FRICS and M A Hughes BSc (Hons) on 7 January 2009. The carrying amount that would 
have been recognised under the cost model for Freehold Land and Buildings would have been £5,531,000 for the Group and Company.
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10) Property, plant and equipment continued
The carrying amounts of property, plant and equipment for the periods presented in the financial statements as at 28 December 2008 are 
reconciled as follows:
      Freehold 
      land and Plant and 
      buildings equipment Total 
Group      £000 £000 £000
Cost or valuation
At 1 January 2007      7,763 6,604 14,367
Additions      251 557 808
Disposals      – (266) (266)
Transfers to intangible assets      – (14) (14)
Revaluation      439 – 439
At 30 December 2007      8,453 6,881 15,334
At 30 December 2007      8,453 6,881 15,334
Additions      – 767 767
Disposals      (432) (988) (1,420)
Transfers (to)/from intangible assets      (96) 532 436
Revaluation      (1,075) – (1,075)
At 28 December 2008      6,850 7,192 14,042
Accumulated depreciation
At 1 January 2007      – 4,947 4,947
Depreciation for the year      – 763 763
Disposals      – (280) (280)
At 30 December 2007      – 5,430 5,430
At 30 December 2007      – 5,430 5,430
Depreciation for the year      137 546 683
Disposals      – (683) (683)
Transfers      – 96 96
Impairment losses      – 79 79
Revaluation      (137) – (137)
At 28 December 2008      – 5,468 5,468
Carrying amount
At 1 January 2007      7,763 1,657 9,420
At 30 December 2007      8,453 1,451 9,904
At 28 December 2008      6,850 1,724 8,574
Plant and equipment include £nil net book amount (2007: £1,507,000) in respect of assets held under finance leases. £16,000 depreciation 
(2007: £291,000) was charged in respect of these assets for the year. 
Freehold land of £1,150,000 (2007: £1,800,000) has not been depreciated.
Notes to the Financial Statements continued
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10) Property, plant and equipment continued
      Freehold 
      land and Plant and 
      buildings equipment Total 
Company      £000 £000 £000
Cost or valuation
At 1 January 2007      7,763 6,588 14,351
Additions      251 528 779
Disposals      – (266) (266)
Transfers to intangible assets      – (14) (14)
Revaluation      439 – 439
At 30 December 2007      8,453 6,836 15,289
At 30 December 2007      8,453 6,836 15,289
Additions      – 697 697
Disposals      (432) (988) (1,420)
Transfers (to)/from intangible assets      (96) 532 436
Revaluation      (1,075) – (1,075)
At 28 December 2008      6,850 7,077 13,927
Accumulated depreciation
At 1 January 2007      – 4,941 4,941
Depreciation for the year      – 752 752
Disposals      – (280) (280)
At 30 December 2007      – 5,413 5,413
At 30 December 2007      – 5,413 5,413
Depreciation for the year      137 526 663
Disposals      – (683) (683)
Transfers      – 96 96
Impairment losses      – 79 79
Revaluation      (137) – (137)
At 28 December 2008      – 5,431 5,431
Carrying value
At 1 January 2007      7,763 1,647 9,410
At 30 December 2007      8,453 1,423 9,876
At 28 December 2008      6,850 1,646 8,496
Plant and equipment include £nil net book amount (2007: £1,507,000) in respect of assets held under finance leases. £16,000 depreciation 
(2007: £291,000) was charged in respect of these assets for the year. 
Freehold land of £1,150,000 (2007: £1,800,000) has not been depreciated.
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11) Intangible assets
Ideal Shopping Direct Plc’s other intangible assets comprise acquired software licences, broadcasting channel rights and own software 
developments. The carrying amounts for the reporting periods under review can be analysed as follows;
      Broadcasting 
      channel rights 
      and licences Software Total 
Group and Company      £000 £000 £000
Cost
At 1 January 2007      33 1,505 1,538
Additions      652 1,208 1,860
Transfers from property, plant and equipment      – 14 14
At 30 December 2007      685 2,727 3,412
At 30 December 2007      685 2,727 3,412
Additions      1,056 340 1,396
Disposals      – (19) (19)
Transfers to property, plant and equipment      – (436) (436)
At 28 December 2008      1,741 2,612 4,353
Amortisation
At 1 January 2007      1 27 28
Amortised during the year      84 217 301
At 30 December 2007      85 244 329
At 30 December 2007      85 244 329
Amortised during the year      53 524 577
Disposals      – (4) (4)
Transfers to property, plant and equipment      – (96) (96)
Impairment losses      3 242 245
At 28 December 2008      141 910 1,051
Carrying amounts
At 1 January 2007      32 1,478 1,510
At 30 December 2007      600 2,483 3,083
At 28 December 2008      1,600 1,702 3,302
12) Goodwill
Group
Goodwill results solely from the acquisition of Ideal Sourcing Limited (formerly Superstore TV Limited) in 2006. The net carrying amount of 
goodwill can be analysed as follows:
        £000
Cost
At 1 January 2007 and 30 December 2007        1,523
At 31 December 2007 and 28 December 2008        1,523
Amortisation
At 1 January 2007 and 30 December 2007        –
At 30 December 2007         –
Impairment        1,523
At 28 December 2008        1,523
Carrying amounts
At 1 January 2007        1,523
At 30 December 2007        1,523
At 28 December 2008        –
Ideal Sourcing Limited’s wholesale profitability diminished in 2008 following a strategic review of the business. Sales reduced following the 
loss of a key account in 2008 and costs increased primarily due to exchange rate movements.
Notes to the Financial Statements continued
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12) Goodwill continued
In accordance with IAS 36 a full impairment review was carried out which showed that the value in use of the post tax discounted 
cashflows (using a post tax discount rate of 8% and over a period of 3 years with no growth assumed) was less than the carrying value  
of the goodwill and accordingly the goodwill was fully written off in the year. 
Apart from the considerations described in determining the value in use of the cash-generating unit described above, the management  
of Ideal Shopping Direct Plc is not currently aware of any other probable changes that would necessitate changes in its key estimates.
13) Investments
        Shares in 
        subsidiary 
        undertakings 
        £000
Cost
At 31 December 2007 and 28 December 2008        743
Amounts written off
At 31 December 2007        –
Impairment        (743)
At 28 December 2008        (743)
Net book amount
At 28 December 2008        –
At 30 December 2007        743
An amount due from Group undertakings of £231,000 (2007: £231,000) has been reclassified as cost of investment upon initial recognition, 
at fair value, of the intra-group loan established at acquisition.
Given the impairment of goodwill in respect of Ideal Sourcing Ltd (see note 12) the cost of investment in this subsidiary undertaking has 
also been impaired.
The principal subsidiary undertakings of the Company, all of which are wholly owned, are:
    Parent 
    company 
    interest 
    in ordinary  Country of 
    shares and  incorporation Principal 
Subsidiary    voting rights  and operation activity
Create and Craft Limited (formerly iChild Limited)   100% Great Britain Dormant
Ideal Home Mail Order Limited   100% Great Britain Dormant
Ideal World Home Shopping Limited   100% Great Britain Dormant
Wrightway Marketing Limited   100% Great Britain Dormant
Ideal Sourcing Limited (formerly known as Superstore TV Limited)  100% Great Britain Product design,  
     sourcing and  
     wholesale
The above companies described as dormant did not trade during 2008 or 2007.
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14) Deferred tax assets and liabilities
(a) Deferred taxes arising from temporary differences and unused tax losses can be summarised as follows:
Group
Recognised deferred tax assets and liabilities
   2008 
|
 2007
     Deferred Deferred Deferred Deferred 
     tax tax tax tax 
     assets liabilities assets liabilities 
     £000 £000 £000 £000
Non-current assets
Other intangible assets     108  – (236)
Property, plant and equipment      (131) – (469)
Tax losses carried forward     4   
Current assets
Inventories     13 – 57 –
Non-current liabilities
Pension and other employee obligations     6 – 2 –
Current liabilities
Other liabilities     – – 12 –
Total     131 (131) 71 (705)
       2008 2007 
       £000 £000
Unrecognised deferred tax asset
Tax losses       1,177 –
Company
Recognised deferred tax assets and liabilities
   2008 
|
 2007
     Deferred Deferred Deferred Deferred 
     tax tax tax tax 
     assets liabilities assets liabilities 
     £000 £000 £000 £000
Non-current assets
Other intangible assets     108 – – (236)
Property, plant and equipment     – (118) – (469)
Tax losses carried forward     4 – – –
Non-current liabilities
Pension and other employee obligations     6 – 2 –
Current liabilities
Other liabilities     – – 12 –
Total     118 (118) 14 (705)
       2008 2007 
       £000 £000
Unrecognised deferred tax asset
Tax losses       1,177 –
In June 2007, the government enacted a change in the main rate of corporation tax from 30% to 28%, with effect from 1 April 2008.
Notes to the Financial Statements continued
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14) Deferred tax assets and liabilities continued
(b) Movement in temporary difference during the year:
Group
Recognised deferred tax assets and liabilities
      (Charged)/ 
      credited to 
     At Consolidated (Charged)/ At 
     1 January Income credited 30 December 
     2007 Statement to equity 2007 
     £000 £000 £000 £000
Intangible assets     (155) (81) – (236)
Property, plant and equipment     (331) (138) – (469)
Inventories     – 57 – 57
Retirement benefit obligations     7 (5) – 2
Provisions     11 (11) – –
Other liabilities     76 (64) – 12
     (392) (242) – (634)
      (Charged)/ 
      credited to 
     At Consolidated (Charged)/ At 
     30 December Income credited 28 December 
     2007 Statement to equity 2008 
     £000 £000 £000 £000
Intangible assets     (236) 344 – 108
Property, plant and equipment     (469) 67 271 (131)
Inventories     57 13 (57) 13
Retirement benefit obligations     2 4 – 6
Provisions     – 4 – 4
Other liabilities     12 (12) – –
     (634) 420 214 –
Company
Recognised deferred tax assets and liabilities
      (Charged)/ 
      credited to 
     At Consolidated (Charged)/ At 
     1 January Income credited 30 December 
     2007 Statement to equity 2007 
     £000 £000 £000 £000
Intangible assets     (155) (81) – (236)
Property, plant and equipment     (331) (138) – (469)
Inventories     – 57 – 57
Retirement benefit obligations     7 (5) – 2
Provisions     11 (11) – –
Other liabilities     76 (64) – 12
     (392) (242) – (634)
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14) Deferred tax assets and liabilities continued
      (Charged)/ 
      credited to 
     At consolidated (Charged)/ At 
     30 December income credited 28 December 
     2007 statement to equity 2008 
     £000 £000 £000 £000
Intangible assets     (236) 344 – 108
Property, plant and equipment     (469) 80 271 (118)
Inventories     – – – –
Retirement benefit obligations     2 4 – 6
Provisions     – 4 – 4
Other liabilities     12 (12) – –
     (691) 420 271 –
15) Inventories
   Group 
|
 Company
      2007  2007 
      (as restated  (as restated 
     2008 – note 28) 2008 – note 28) 
     £000 £000 £000 £000
Goods for resale     6,735 7,289 6,007 6,794
Write down on inventories     (2,863) (539) (2,347) (539)
Inventories     3,872 6,750 3,660 6,255
In 2008, a total of £51,091,000 (£50,229,000 for the Company) inventories were included in the income statement as an expense  
(2007: £45,449,000 for the Group and £43,884,000 for the Company). This includes an amount of £4,957,000 for both the Group 
(£4,757,000 for the Company) resulting from write down of inventories (2007: £392,000 for both the Group and the Company)
No reversal of previous write-downs was recognised as a reduction of expense in 2007 or 2008. None of the inventories are pledged as 
securities for liabilities.
In determining net selling prices of inventories, management takes into account the most reliable evidence available at the time the 
estimates are made. Ideal Shopping Direct Plc’s core business is continually subject to rapid changes in consumer demands which may 
cause inventory obsolescence. Both aspects are considered key sources of estimation uncertainty and may cause significant adjustments 
to the Group’s inventory assets within the next financial year.
16) Trade and other receivables
   Group 
|
 Company
      2007  2007 
      (as restated  (as restated 
     2008 – note 28) 2008 – note 28) 
     £000 £000 £000 £000
Trade receivables     2,579 2,412 1,763 1,108
Other receivables     478 531 398 531
Amounts due from group undertakings     – – 1,214 2,725
Prepayments and accrued income     1,481 2,573 1,482 2,573
     4,538 5,516 4,857 6,937
The carrying value of trade receivables is considered a reasonable approximation of fair value. 
The Group and Company’s exposure to credit risk and impairment losses related to trade and other receivables are disclosed in note 27.
Within amounts due from Group Company in the Company Balance Sheet is £889,000 (2007: £891,000) which falls due after more than 
one year.
Notes to the Financial Statements continued
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17) Cash and cash equivalents
Cash and cash equivalents include the following components:
       2008 2007 
Group       £000 £000
Cash at bank and in hand       8,399 16,697
       2008 2007 
Company       £000 £000
Cash at bank and in hand       8,397 16,671
Of the £8,397,000 of cash at the year end, £1,863,000 was held in a cash offset account against the mortgage. As the Company had 
breached their covenants on the loan, the cash is no longer available for use at that date. Covenants were re-set in April 2009.
18) Share capital
   2008 
|
 2007
     Number  Number 
     000 £000 000 £000
Shares issued and fully paid
3p Ordinary shares     29,670 890 29,664 889
1p Deferred shares     455 5 455 5
Shares issued and fully paid     30,125 895 30,119 894
Shares authorised
3p Ordinary shares     38,000 1,140 38,000 1,140
1p Deferred shares     1,000 10 1,000 10
Total equity shares authorised at year end     39,000 1,150 39,000 1,150
All ordinary shares are equally eligible to receive dividends and the repayment of capital and represent one vote at the shareholders’ 
meeting of Ideal Shopping Direct Plc. There is no dividend or voting rights associated with the deferred shares.
The shares issued during the year relate only to share options. Further information on share options is included in note 20.
The authorised shares that have not yet been issued have been authorised solely for use in the Group’s remuneration programme.
Proceeds received in addition to the nominal value of the shares issued during the year have been included in share premium, less 
registration and other regulatory fees and net of related tax benefits.
The company made allotments of 6,000 ordinary 3p shares during the year on the exercise of various share options.
Share premium
An amount of £6,410 (2007: £115,000), being the difference between the total consideration of £6,590 (2007: £121,000) and the total 
nominal value of £180 (2007: £6,000) for shares issued during the year has been included in the share premium account.
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19) Capital and reserves
Reconciliation of movement in capital and reserves:
  Attributable to equity holders of the company
    Share Share Other Retained Total 
    capital premium reserves earnings equity 
Group    £000 £000 £000 £000 £000
Balance at 1 January 2007 (as restated – note 28)    888 193 2,166 16,299 19,546
Total recognised income and expense for 2007    – – 399 3,713 4,112
Issue of share capital    6 115 – – 121
Dividends    – – – (1,333) (1,333)
Increase in share option reserve    – – 77 153 230
Balance at 30 December 2007 (as restated – note 28)    894 308 2,642 18,832 22,676
Balance at 31 December 2007 (as restated – note 28)    894 308 2,642 18,832 22,676
Total recognised income and expense for 2008    – – (724) (11,552) (12,276)
Issue of share capital    1 6 – – 7
Dividends    – – – (1,632) (1,632)
Increase in share option reserve    – – (252) 315 63
Balance at 28 December 2008    895 314 1,666 5,963 8,838
  Attributable to equity holders of the company
    Share Share Other Retained Total 
    capital premium reserves earnings equity 
Company    £000 £000 £000 £000 £000
Balance at 1 January 2007 (as restated – note 28)    888 193 2,166 16,708 19,955
Total recognised income and expense for 2007    – – 342 3,133 3,475
Issue of share capital    6 115 – – 121
Dividends    – – – (1,333) (1,333)
Increase in share option reserve    – – 77 153 230
Balance at 30 December 2007 (as restated – note 28)    894 308 2,585 18,661 22,448
Balance at 31 December 2007 (as restated – note 28)    894 308 2,585 18,661 22,448
Total recognised income and expense for 2008    – – (667) (10,578) (11,245)
Issue of share capital    1 6 – – 7
Dividends    – – – (1,632) (1,632)
Increase in share option reserve    – – (252) 315 63
Balance at 28 December 2008    895 314 1,666 6,766 9,641
Other reserves
Other reserves comprise equity settled share based employee remuneration until such share options are exercised (£347,000 at  
28 December 2008) and gains and losses due to the revaluation of certain assets and property, plant and equipment (£1,319,000  
at 28 December 2008).
Notes to the Financial Statements continued
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20) Share based employee remuneration
As at 28 December 2008 the Group and Company maintained two types of share based payment schemes for employee remuneration, 
discretionary schemes and a Save As You Earn scheme. All share based employee remuneration will be settled in equity. Neither the 
Group nor Company has a legal or constructive obligation to repurchase or settle the options. 
The right to exercise share options is subject in all cases to service conditions as specified in the detailed scheme rules, and in addition 
certain of the grants made under the discretionary 2000 Share Options Schemes are subject to profit or earnings per share performance 
conditions. The market price of the 3p ordinary shares was 36p at 28 December 2008 (30 December 2007: 183.5p). The market price 
ranged from 33.5p to 255.5p during the year.
In total, £63,000 (2007: £230,000) of employee remuneration expense has been included in the consolidated income statement.  
No liabilities were recognised due to share-based payment transactions.
The following share options were outstanding over 3p ordinary shares in respect of Ideal Shopping Direct Plc share option schemes:
  2008 
|
  2007
    Weighted   Weighted 
  Average  average Average  average 
  exercise  remaining exercise  remaining 
  price  contractual price  contractual 
  per share Options life per share Options life 
Date option granted Date exercisable p Number Months p Number Months
Discretionary schemes
30 May 2002 30 May 2005 – 30 May 2012 33.5 20,000 41.1 33.5 20,000 53.0
15 May 2003 15 May 2006 – 15 May 2013 47.0 15,000 52.6 47.0 15,000 64.5
2 July 2004 2 July 2007 – 2 July 2014 85.0 31,000 66.2 85.0 37,000 78.1
8 November 2004 8 November 2007 – 8 November 2014 156.5 95,847 70.4 156.5 95,847 82.3
4 March 2005 4 March 2008 – 4 March 2015 – – – 241.5 224,224 86.1
7 March 2005 7 March 2008 – 7 March 2015 238.5 92,250 74.3 238.5 92,250 86.2
19 September 2005 19 September 2008 – 19 September 2015 – – – 365.0 42,329 92.6
28 September 2005 28 September 2008 – 28 September 2015 364.0 20,000 81.0 364.0 20,000 92.9
3 May 2006 3 May 2009 – 3 May 2016 368.5 8,141 88.2 368.5 8,141 100.1
11 July 2007 11 July 2012 – 11 July 2017 199.5 21,053 103.6 199.5 181,474 115.1
11 September 2007 11 September 2012 – 11 September 2017 199.5 100,000 103.6 199.5 100,000 115.1
 Total Discretionary schemes  403,291   836,265
 
Save As You Earn schemes 
3 June 2005 1 August 2008 – 1 February 2009  194.0 51,271 12.7 194.0 60,451 19.0
3 June 2005 1 August 2010 – 1 February 2011  194.0 47,694 12.7 194.0 60,979 19.0
8 May 2006 1 July 2009 – 31 December 2009  278.0 9,073 12.7 278.0 14,452 31.1
8 May 2006 1 July 2011 – 31 December 2011  278.0 6,022 12.7 278.0 6,022 31.1
8 May 2007 1 July 2010 – 31 December 2010  178.0 22,500 36.0 178.0 37,146 47.2
8 May 2007 1 July 2012 – 31 December 2012  178.0 22,628 36.0 178.0 32,562 47.2
6 May 2008 1 July 2011 – 31 December 2012  162.0 33,297 47.2 – – –
6 May 2008 1 July 2013 – 31 December 2014  162.0 28,530 47.2 – – –
 Total Save As You Earn schemes   221,015   211,612
 Total options   624,306   1,047,877
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20) Share based employee remuneration continued
Movements in the number of share options outstanding and their related weighted average exercise prices are as follows:
   2008 
|
   2007
 Weighted average   Weighted average    
 exercise price per share  Options exercise price per share  Options 
 p  Number p  Number
Outstanding at beginning of year  209.2  1,047,877  195.5  1,091,158
Granted  162.0  63,388  194.9  323,107
Lapsed  238.0  (480,959)  287.0  (155,300)
Exercised  85.0  (6,000)  57.4  (211,088)
Outstanding at end of year  187.2  624,306  209.2  1,047,877
Exercisable at end of year  179.0  325,326  116.3  167,847
The weighted average share price at date of exercise of options exercised during the year was 85.0p (2007: 223.1p). 
The weighted average fair value of options issued during the year was 162.0p (2007: 74.1p).
The fair value of options granted was determined using the Binomial valuation model. Significant inputs into the model include a weighted 
average share price of 265.1p (2007: 221.3p) at the grant date, exercise prices shown above, weighted average share price volatility of 
28.29% (2007: 28.38%), weighted average dividend yield of 2.66% (2007: 1.98%), an expected option life based on the historical pattern  
of option exercise of between 3.5 and 5.5 years (2007 3.65 and 5.65 years) and a weighted average annual risk free interest rate of 6.11% 
(2007: 5.26%).
Share price volatility was calculated as the average of annualised standard deviations of daily continuously compounded returns calculated 
back over 3 years from the date of grant.
21) Loans and borrowings
Group and Company
This note provides information about the contractual terms of the Group and Company’s interest bearing loans and borrowings, which are 
measured at amortised cost.
       2008 2007 
       £000 £000
Non-current liabilities
Secured bank loans       – 1,863
Current liabilities
Current portion of secured bank loans       1,863 339
Current portion of finance lease liabilities       – 309
       1,863 648
Bank borrowings are secured by a first legal charge and debenture over certain freehold land and buildings and a fixed and floating charge 
over the other assets of the Group. The loan is repayable in quarterly instalments of £85,025 over its ten year term, and interest is charged 
at a rate of 1.5% over Barclays Base rate to the extent that the loan is not covered by a corresponding cash balance.
In the period the covenants on the loan were breached, consequently, the secured bank loan has been reclassified as current liabilities at 
the year end in line with IAS 1. This breach was rectified before the financial statements were approved. The loan is repayable in quarterly 
installments over a period of 5.25 years.
Fair values of long term financial liabilities have been determined by calculating their present values at the balance sheet date, using fixed 
effective market interest rates available to the Group. No fair value changes have been included in profit or loss for the period as financial 
liabilities are carried at amortised cost in the balance sheet.
At 28 December 2008, the fair value of bank borrowings has been determined as £1,246,000 (2007: £1,467,000).
For more information about the Group and Company’s exposure to interest rate, foreign currency and liquidity risk, see note 27.
Notes to the Financial Statements continued
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21) Loans and borrowings continued
Finance leases liabilities
The Group’s finance leases relate to distribution of the TV signal and warehouse contracts.
Future minimum finance lease payments for the Group and the Company at the end of each reporting period under review were as follows:
     Within 2 to 5 More than  
     1 year years 5 years Total 
     £000 £000 £000 £000
28 December 2008
Lease payments     – – – –
Net present values     – – – –
30 December 2007
Lease payments     309 – – 309
Net present values     262 – – 262
22) Operating lease commitments
Group and Company
The Group and the Company’s future minimum operating lease payments were as follows:
     Within 2 to 5 More than  
     1 year years 5 years Total 
     £000 £000 £000 £000
28 December 2008
Lease payments     12,981 39,577 41,567 94,125
30 December 2007
Lease payments     12,670 42,523 51,653 106,846
Ideal Shopping Direct Plc has a number of operating leases in respect of property, equipment and services which expire between 2009 
and 2018.
None of the operating lease agreements contain renewal or purchase options or escalation clauses or any restrictions regarding dividends, 
further leasing or additional debt.
Operating lease payments recognised as an expense during the period amounted to £12,635,000 (2007: £12,690,000). No sublease 
income is expected as all assets held under lease agreements are used exclusively by the Group.
23) Provisions
All provisions are considered current as the timing of their settlement is not at the Group or Company’s discretion.
      Sales returns Restructuring Total 
Group      £000 £000 £000
Carrying amount at beginning of year      449 – 449
Provisions made during the year      463 746 803
Provisions used during the year      (449) (406) (449)
Carrying amount at end of year      463 340 803
      Sales returns Restructuring Total 
Company      £000 £000 £000
Carrying amount at beginning of year      449 – 449
Provisions made during the year      463 311 774
Provisions used during the year      (449) – (449)
Carrying amount at end of year      463 311 774
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24) Trade and other payables
   Group 
|
 Company
      2007  2007 
      (as restated  (as restated 
     2008 – note 28) 2008 – note 28) 
     £000 £000 £000 £000
Trade payables     10,970 11,406 10,572 11,919
Social security and other taxes     892 1,714 636 1,463
Other payables     – 327 – 302
Accruals and deferred income     6,304 3,532 6,305 3,532
Trade and other payables – current     18,166 16,979 17,513 17,216
All amounts are short term. The carrying values are considered to be a reasonable approximation of fair value. 
25) Related party transactions
There were no material related party transactions between Ideal Shopping Direct Plc (including its subsidiaries) and key management 
personnel, other than that disclosed in the Corporate Governance Report.
The Board consider that they are the key management personnel. 
The following purchases were carried out between Ideal Sourcing Limited (formerly known as Superstore TV Limited) and Ideal Shopping 
Direct Plc:
       2008 2007 
       £000 £000
Purchases from Ideal Sourcing Limited       8,728 4,281
Recharges (from)/to Ideal Sourcing Limited       1,084 1,088
The outstanding balance of £1,214,409 (2007: £2,725,000) due to Ideal Shopping Direct Plc from Ideal Sourcing Limited is included in the 
Company Balance Sheet under trade receivables and payables.
26) Contingent assets and other contingent liabilities
There are no material contingent assets or liabilities as at 28 December 2008 and 30 December 2007 for the Group. The Company 
guarantees, on behalf of its subsidiary, an amount of £200,000 in respect of a supplier contract.
27) Financial instruments
(a) Fair values of financial instruments
Trade and other receivables
The fair value of trade and other receivables, is estimated as the present value of future cash flows, discounted at the market rate of interest 
at the balance sheet date if the effect is material.
Trade and other payables
The fair value of trade and other payables is estimated as the present value of future cash flows, discounted at the market rate of interest at 
the balance sheet date if the effect is material.
Cash and cash equivalents
The fair value of cash and cash equivalents is estimated as its carrying amount where the cash is repayable on demand. Where it is not 
repayable on demand then the fair value is estimated at the present value of future cash flows, discounted at the market rate of interest  
at the balance sheet date.
Interest-bearing borrowings
Fair value, which after initial recognition is determined for disclosure purposes only, is calculated based on the present value of future 
principal and interest cash flows, discounted at the market rate of interest at the balance sheet date. For finance leases the market rate  
of interest is determined by reference to similar lease agreements.
Notes to the Financial Statements continued
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27) Financial instruments continued
Derivative financial instruments
The fair value of forward exchange contracts is based on their listed market price, if available. If a listed market price is not available, then 
fair value is estimated by discounting the difference between the contractual forward price and the current forward price for the residual 
maturity of the contract using a risk-free interest rate (based on government bonds).
The Group does not currently use interest rate swaps.
The interest rates used to discount estimated cash flows, where applicable are based on a market rate and were as follows:
       2008 2007 
       % %
Loans and borrowings       8% 18%
Fair values
The fair values for each class of financial assets and financial liabilities together with their carrying amounts shown in the balance sheet are 
as follows:
Group and Company
Management have reviewed the fair values of the Group’s assets and liabilities and consider these to be consistent with the carrying amounts.
A summary of financial assets and liabilities is set out below:
   Group 
|
 Company
     2008 2007 2008 2007 
     £000 £000 £000 £000
Cash and cash equivalents (note 17)     8,399 16,697 8,397 16,671
Trade receivables (note 16)     2,579 2,412 1,763 1,108
Total financial assets     10,978 19,109 10,160 17,779
Other interest-bearing loans and borrowings (note 21)     1,863 2,202 1,863 2,202
Trade payables (note 24)     10,970 11,406 10,572 11,919
Other financial liabilities measured at amortised cost (note 21)    – 309 – 309
Total financial liabilities measured at amortised cost, being total financial liabilities  12,833 13,917 12,435 14,430
Total financial instruments     (1,855) 5,192 (2,275) 3,349
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27) Financial instruments continued
(b) Credit risk
Financial risk management 
Credit risk is the risk of financial loss to the Group and Company if a customer or counterparty to a financial instrument fails to meet  
its contractual obligations, and arises principally from the Group’s receivables from customers and investment securities.
Ideal Shopping Direct Plc continuously monitors defaults of customers and other counterparties, identified either individually or  
by group, and incorporates this information into its credit risk controls. Where available at reasonable cost, external credit ratings  
and/or reports on customers and other counterparties are obtained and used. Ideal Shopping Direct Plc’s policy is to deal only with  
creditworthy counterparties. 
Ideal Shopping Direct Plc’s management considers that all the above financial assets for each of the reporting dates under review are  
of good credit quality, including those that are past due and are not impaired.
In respect of trade and other receivables, Ideal Shopping Direct Plc is not exposed to any significant credit risk exposure to any single 
counterparty or any group of counterparties having similar characteristics. The credit risk for liquid funds and other short-term financial 
assets is considered negligible, since the counterparties are reputable banks with high quality external credit ratings.
Exposure to credit risk
The carrying amount of financial assets represents the maximum credit exposure. Therefore, the maximum exposure to credit risk for the 
Group at the balance sheet date was £13,768,000 (2007: £22,313,000) being the total of the carrying amount of financial assets, excluding 
equity investments, shown in the table above. The maximum exposure to credit risk for the Company at the balance sheet date was 
£13,566,000 (2007: £23,766,000).
Credit quality of financial assets and impairment losses
The ageing of trade receivables at the balance sheet date was:
     Gross Impairment Gross Impairment 
     2008 2008 2007 2007 
Group     £000 £000 £000 £000
Not past due     2,005 – 824 –
Not more than 3 months     560 (72) 875 –
More than 3 months but not more than 6 months     24 (21) 277 –
More than 6 months but not more than 1 year     252 (252) 320 –
More than 1 year     568 (568) 318 (202)
     3,409 (913) 2,614 (202)
     Gross Impairment Gross Impairment 
     2008 2008 2007 2007 
Company     £000 £000 £000 £000
Not past due     1,423 – 150 
Not more than 3 months     304 (47) 642 
More than 3 months but not more than 6 months     21 (21) 89 
More than 6 months but not more than 1 year     43 (43) 110 
More than 1 year     285 (285) 275 (158)
     2,076 (396) 1,266 (158)
Notes to the Financial Statements continued
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27) Financial instruments continued
The movement in the allowance for impairment in respect of trade receivables during the year was as follows:
       2008 2007 
Group       £000 £000
Balance at start of year       202 321
Impairment loss recognised       677 264
Impairment loss reversed       34 (383)
Balance at end of year       913 202
       2008 2007 
Company       £000 £000
Balance at start of year       158 314
Impairment loss recognised       185 140
Impairment loss reversed       53 (296)
Balance at end of year       396 158
The allowance account for trade receivables is used to record impairment losses unless the Group or Company is satisfied that  
no recovery of the amount owing is possible; at that point the amounts considered irrecoverable are written off against the trade 
receivables directly. 
c) Liquidity risk analysis
Liquidity risk is the risk that the Group and Company will not be able to meet its financial obligations as they fall due. 
Ideal Shopping Direct Plc manages its liquidity needs by carefully monitoring scheduled debt servicing payments for long-term financial 
liabilities as well as cash outflows due in day-to-day business and banking covenants. Liquidity needs are monitored in various time bands, 
on a day-to-day and week-to-week basis, as well as on the basis of a rolling 30-day projection. Long-term liquidity needs for a 180-day and 
a 360-day lookout period are identified monthly.
As at 28 December 2008, the Group’s liabilities have contractual maturities which are summarised as follows. 
   Current 
|
 Non-current
     Within 6 6 to 12 1 to 5 Later than 
     months months years 5 years 
     £000 £000 £000 £000
28 December 2008
Long-term bank loans     1,863 – – –
Finance lease obligations     – – – –
Trade payables     18,166 – – –
     20,029 – – –
This compares to the maturity of the Group’s financial liabilities in the previous reporting period as follows:
   Current 
|
 Non-current
     Within 6 6 to 12 1 to 5 Later than 
     months months years 5 years 
     £000 £000 £000 £000
30 December 2007
Long-term bank loans     170 169 1,360 503
Finance lease obligations     155 154 – –
Trade payables     16,979 – – –
     17,304 323 1,360 503
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27) Financial instruments continued
As at 28 December 2008, the Company’s liabilities have contractual maturities which are summarised as follows:
   Current 
|
 Non-current
     Within 6 6 to 12 1 to 5 Later than 
     months months years 5 years 
     £000 £000 £000 £000
28 December 2008
Long-term bank loans     1,863 – – –
Finance lease obligations     – – – –
Trade payables     17,513 – – –
     19,376 – – –
This compares to the maturity of the Company’s financial liabilities in the previous reporting period as follows:
   Current 
|
 Non-current
     Within 6 6 to 12 1 to 5 Later than 
     months months years 5 years 
     £000 £000 £000 £000
30 December 2007
Long-term bank loans     170 169 1,360 503
Finance lease obligations     155 154 – –
Trade payables     17,216 – – –
     17,541 323 1,360 503
The above Group and Company contractual maturities reflect the gross cash flows, which may differ to the carrying values of the liabilities 
at the balance sheet date.
(d) Market risk
Financial risk management 
Market risk is the risk that changes in market prices will affect the Group’s income or the value of its holdings of financial instruments.
Ideal Shopping Direct Plc is exposed to market risk through its use of financial instruments and specifically to currency risk, interest rate 
risk and certain other price risks, which result from both its operating and investing activities.
The Group’s risk management is coordinated at its headquarters, in close co-operation with the Board of Directors, and focuses on 
actively securing the Group’s short to medium term cash flows by minimising the exposure to financial markets.
Ideal Shopping Direct Plc does not actively engage in the trading of financial assets for speculative purposes nor does it write options.  
The most significant financial risks to which the Group is exposed are described in the following sections.
Market risk – Foreign currency risk
The Group and Company’s exposure to foreign currency risk is as follows. This is based on the carrying amount for monetary financial 
instruments except derivatives when it is based on notional amounts.
The Group’s exposure to currency rates arise from overseas purchases, which are primarily dominated in US Dollars and Euros.
To mitigate the Group’s exposure to foreign currency risk, forward exchange contracts are entered into, in accordance with the Group’s  
risk management policy. Forward exchange contracts are mainly entered into for long-term foreign currency exposures, where there is not 
expected to be a further amount to offset against.
Notes to the Financial Statements continued
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27) Financial instruments continued
Group and Company foreign currency denominated financial assets and liabilities, translated into Sterling at the closing rate, are as follows:
   2008 
|
 2007
     £000  £000  
Nominal amounts     US$ € US$ €
Financial assets     37 25 295 263
Financial liabilities     (243) (59) (246) (295)
Short-term exposure     (206) (34) 49 (32)
Financial assets     – – – –
Financial liabilities     – – – –
Long-term exposure     – – – –
Sensitivity analysis
The following table illustrates the sensitivity of the net result for the year and equity in regards to the Group’s financial assets and financial 
liabilities and the US Dollar – Sterling exchange rate and the Euro – Sterling exchange rate. 
It assumes a +/– 5% change of the exchange rates for the year ended at 28 December 2008 and 30 December 2007. The sensitivity 
analysis is based on the Group’s foreign currency financial instruments held at each balance sheet date and also takes into account 
forward exchange contracts that offset effects from changes in currency exchange rates.
£ strengthens by 5%
   2008 
|
 2007
     £000  £000  
Nominal amounts     US$ € US$ €
Net result for the year     (11,087) (11,383) 3,979 3,876
Equity     9,303 9,007 22,920 22,817
£ weakens by 5%
   2008 
|
 2007
     £000  £000  
Nominal amounts     US$ € US$ €
Net result for the year     (12,019) (11,724) 3,492 3,594
Equity     8,371 8,667 22,433 22,535
The following table illustrates the sensitivity of the net result for the year and equity in regards to the Company’s financial assets and 
financial liabilities and the US Dollar – Sterling exchange rate and the Euro – Sterling exchange rate. 
It assumes a +/– 5% change of the exchange rates for the year ended at 28 December 2008 and 31 December 2007. The sensitivity 
analysis is based on the Company’s foreign currency financial instruments held at each balance sheet date and also takes into account 
forward exchange contracts that offset effects from changes in currency exchange rates.
£ strengthens by 5%
   2008 
|
 2007
     £000  £000  
Nominal amounts     US$ € US$ €
Net result for the year     (10,496) (10,446) 3,250 3,338
Equity     9,724 9,744 22,484 22,572
£ weakens by 5%
   2008 
|
 2007
     £000  £000  
Nominal amounts     US$ € US$ €
Net result for the year     (10,663) (10,713) 3,500 3,413
Equity     9,556 9,506 22,412 22,324
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27) Financial instruments continued
Market risk – Interest rate risk
Profile
Ideal Shopping Direct Plc’s policy is to minimise interest rate cash flow risk exposures on long-term financing. Longer-term borrowings are 
therefore usually at fixed rates. 
At the balance sheet date the interest rate profile of the Group’s interest bearing financial instruments was:
       2008 2007 
       £000 £000
Fixed rate instruments
Financial assets       4,600 11,909
Financial liabilities       – (309)
       4,600 11,600
Variable rate instruments
Financial assets       3,799 4,788
Financial liabilities       (1,863) (2,202)
       1,936 2,586
Sensitivity analysis
The following table illustrates the sensitivity of the net result for the year and equity to a reasonably possible change in interest rates of  
+1% and -1% (2007: +/-1%), with effect from the beginning of the year. These changes are considered to be reasonably possible based on 
observation of current market conditions. The calculations are based on the Group and the Company’s financial instruments held at each 
balance sheet date. All other variables are held constant.
   2008 
|
 2007
     £000  £000  
     +1% -1% +1% -1%
Net result for the year     (11,338) (11,769) 3,825 3,645
Equity     9,053 8,621 22,766 22,586
(e) Capital management
The Group and the Company’s capital management objectives are:
To ensure the Group and Company’s ability to continue as a going concern; and •	
To provide an adequate return to shareholders. •	
These objectives are met principally by pricing products and services commensurate with the level of risk.
The Group and Company monitors capital on the basis of the carrying amount of equity less cash and cash equivalents as presented  
on the face of the balance sheet. Capital for the reporting periods under review is summarised below.
The Group and Company sets the amount of capital in proportion to its overall financing structure, i.e. equity and financial liabilities.  
The Group and Company manages the capital structure and makes adjustments to it in the light of changes in economic conditions  
and risk characteristics of the underlying assets. In order to maintain or adjust the capital structure, the Group and Company may adjust 
the amount of dividends paid to shareholders, return capital to shareholders, issue new shares, or sell assets to reduce debt.
The Group’s capital-to-overall financing ratio is calculated as follows:
       2008 2007 
       £000 £000
Total equity       8,837 22,676
– Capital and cash equivalents       (8,399) (16,697)
Capital       438 5,979
Total equity       8,837 22,676
+ Borrowings       1,863 2,202
Overall financing       10,700 24,878
Capital-to-overall financing ratio       1:24.43 1:4.16
Notes to the Financial Statements continued
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27) Financial instruments continued
The Company’s capital-to-overall financing ratio is calculated as follows:
       2008 2007 
       £000 £000
Total equity       9,640 22,448
– Capital and cash equivalents       (8,397) (16,671)
Capital       1,243 5,777
Total equity       9,640 22,448
+ Borrowings       1,863 2,202
Overall financing       11,503 24,650
Capital-to-overall financing ratio       1:9.25 1:4.27
28) Prior year adjustments
In the 52 week period to 28 December 2008, the Group instigated a full review of the Groups financial systems and processes.  
This identified an understatement of liabilities on the balance sheet, the most material of which arose during the transition to our new 
computer system in 2006 and 2007. 
The initial migration of the system on to the new platform took place in 2006, followed by the full transition of all other systems in  
June 2007. This note sets out the impact of the resultant adjustments.
Consolidated Income Statement
 52 weeks ended 30 December 2007
      As previously   
      reported Adjustment As restated 
     Note £000 £000 £000
Revenue     a 96,871 (240) 96,631
Cost of sales     b (56,008) (220) (56,228)
Gross profit      40,863 (460) 40,403
Distribution costs      (3,639) – (3,639)
Administrative expenses     c (31,932) (100) (32,032)
Other expenses      (283) – (283)
Operating profit      5,009 (560) 4,449
Finance expenses      (69) – (69)
Finance income     d 485 332 817
Other financial result     d 332 (332) –
Profit before income      5,757 (560) 5,197
Income tax expense      (1,628) 166 (1,462)
Profit for the period attributable to equity shareholders of the company    4,129 (394) 3,735
Earnings per share – Basic      13.9  12.6
Earnings per share – Diluted      13.8  12.5
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28) Prior year adjustments continued
Consolidated Balance Sheet
 52 weeks ended 30 December 2007
      As previously   
      reported Adjustment As restated 
     Note £000 £000 £000
Assets
Non-current
Goodwill      1,523 – 1,523
Other intangible assets      3,083 – 3,083
Property, plant and equipment      9,904 – 9,904
Deferred tax assets      71 – 71
Total non-current assets      14,581 – 14,581
Current
Inventories     b 6,766 (16) 6,750
Trade and other receivables     c 5,616 (100) 5,516
Current tax assets      97 – 97
Cash and cash equivalents      16,697 – 16,697
Total current assets      29,176 (116) 29,060
Total assets      43,757 (116) 43,641
Equity
Share capital      894 – 894
Share premium      308 – 308
Other reserves      2,642 – 2,642
Retained earnings     a,b,c 19,423 (591) 18,832
Total equity attributable to equity shareholders of the parent     23,267 (591) 22,676
Liabilities
Non-current
Loans and borrowings      1,863 – 1,863
Deferred tax liabilities      705 – 705
Total non-current liabilities      2,568 – 2,568
Current
Provisions      449 – 449
Trade and other payables     a,b 16,253 726 16,979
Loans and borrowings      339 – 339
Current tax liabilities      572 (251) 321
Obligations under finance leases      309 – 309
Total current liabilities      17,922 475 18,397
Total liabilities      20,490 475 20,965
Total equity and liabilities      43,757 (116) 43,641
There are no changes to the reported cash flows as a result of the above adjustments.
Notes to the Financial Statements continued
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Financial Statements
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28) Prior year adjustments continued
Company Balance Sheet
 52 weeks ended 30 December 2007
      As previously   
      reported Adjustment As restated 
     Note £000 £000 £000
Assets
Non-current
Other intangible assets      3,083 – 3,083
Property, plant and equipment      9,876 – 9,876
Investments      743 – 743
Deferred tax assets      14 – 14
Total non-current assets      13,716 – 13,716
Current
Inventories     b 6,271 (16) 6,255
Trade and other receivables      6,937 – 6,937
Current tax assets      97 – 97
Cash and cash equivalents      16,671 – 16,671
Total current assets      29,976 (16) 29,960
Total Assets      43,692 (16) 43,676
Equity
Share capital      894 – 894
Share premium      308 – 308
Other reserves      2,585 – 2,585
Retained earnings     a,b 19,180 (519) 18,661
Total equity attributable to equity shareholders of the parent     22,967 (519) 22,448
Liabilities
Non-current
Borrowings      1,863 – 1,863
Deferred tax liabilities      705 – 705
Total non-current liabilities      2,568 – 2,568
Current
Provisions      449 – 449
Trade and other payables     a,b 16,490 726 17,216
Loans and borrowings      339 – 339
Current tax liabilities      570 (223) 347
Obligations under finance leases      309 – 309
Total current liabilities      18,157 503 18,660
Total liabilities      20,725 503 21,228
Total equity and liabilities      43,692 (16) 43,676
There are no changes to the reported cash flows as a result of the above adjustments.
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Financial Statements
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28) Prior year adjustments continued
        Effect on 
      Effect on Effect on 2007 
      reported reported reserves 
      profit for profit prior carried 
      2007 2007 forward 
Group     Note £000 £000 £000
Reduction in reported profit
Sales revenue     a 240 – 240
Cost of sales     b 220 282 502
Administration expenses     c 100 – 100
Tax effect on the above      (166) (85) (251)
      394 197 591
        Effect on 
      Effect on Effect on 2007 
      reported reported reserves 
      profit for profit prior carried 
      2007 2007 forward 
Company     Note £000 £000 £000
Reduction in reported profit
Sales revenue     a 240 – 240
Cost of sales     b 220 282 502
Tax effect on the above      (138) (85) (223)
      322 197 519
The adjustments are described below:
a) The reduction in sales revenue relates to customer deposits received during 2007. 
b) The cost of sales adjustment relates principally to direct dispatch product not provided for in the period of receipt. 
c) The administration expenses adjustment represents a bad debt provision inadvertently omitted from the Consolidated  
Financial Statements.
d) Other income relates to gains from exchange rate differences now reclassified for reporting purposes in the revised accounts. 
In each of the cases set out above, the Directors are satisfied that the errors made in prior years have been properly identified as to  
the period to which they relate and that in aggregate they meet the definition of material prior period errors that require retrospective 
restatement under International Accounting standard 8 “Accounting policies, changes in accounting estimates and errors”.
Notes to the Financial Statements continued
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Notice of Annual General Meeting
Notice of 2009 Annual General Meeting
THIS DOCUMENT IS IMPORTANT AND REQUIRES YOUR IMMEDIATE ATTENTION
If you are in any doubt as to any aspect of the proposals referred to in the document or as to the action you should take,  
you should seek your own advice from a stockbroker, solicitor, accountant or other professional adviser. 
If you have sold or otherwise transferred all of your shares, please pass this document together with the accompanying 
documents to the purchaser or transferee, or to the person who arranged the sale or transfer, so that they can pass them  
to the person who now holds the shares.
Notice is hereby given that an Annual General Meeting of the Company will be held at Ideal Home House, Newark Road, 
Peterborough PE1 5WG on Wednesday 10 June 2009 at 9.30am at which the following matters will be dealt with:
Ordinary business
To consider and if thought fit pass the following resolutions as ordinary resolutions:
1. That the report of the Directors and Auditors and the Accounts for the financial year ended 28 December 2008 be received and approved.
2.  That Paul Wright, who is retiring in accordance with the Articles of Association of the Company, and being eligible, is offering himself  
for election, be appointed as Non-executive Director of the Company.
3. That Val Kaye, who is retiring in accordance with the Articles of Association of the Company, and being eligible, is offering herself for 
election, be appointed as a Non-executive Director of the Company.
4. That Mike Hancox, who is retiring in accordance with the Articles of Association of the Company, and being eligible, is offering himself 
for election, be appointed as an Executive Director of the Company.
5.  That Ian Jebson, who is retiring in accordance with the Articles of Association of the Company, and being eligible, is offering himself  
for election, be appointed as an Executive Director of the Company.
6. That KPMG Audit Plc be appointed as auditors to the Company and that the Directors be authorised to determine the auditors’ remuneration.
Special business
To consider and if thought fit pass the following resolutions of which the resolutions numbers 7 and 8 will be proposed as an ordinary 
resolution and the resolutions numbered 9, 10, 11 and 12 will be proposed as a special resolution:
7. That the authorised share capital of the Company be increased from £1,150,000 to £1,660,000 by the creation of 17,000,000 ordinary 
shares of 3p each ranking pari passu in all respects with the existing ordinary shares of 3p each in the capital of the Company.
8. (a) That the Board be and it is hereby generally and unconditionally authorised to exercise all powers of the Company to allot relevant 
securities (within the meaning of Section 80 of the Companies Act 1985) up to an aggregate nominal amount of £296,695, provided 
that this authority shall expire at the conclusion of the next Annual General Meeting of the Company after the passing of this 
resolution, save that the Company may before such expiry make an offer or agreement which would or might require relevant 
securities to be allotted after such expiry and the Board may allot relevant securities in pursuance of such offer or agreement as if 
the authority conferred hereby had not expired; and further
(b) That the Board be and it is hereby generally and unconditionally authorised to exercise all powers of the Company to allot equity 
securities (within the meaning of Section 94 of the said Act) in connection with a rights issue in favour of ordinary shareholders 
where the equity securities respectively attributable to the interests of all ordinary shareholders are proportionate (as nearly as may 
be) to the respective numbers of ordinary shares held by them up to an aggregate nominal amount of £296,695, provided that this 
authority shall expire on the date of the next Annual General Meeting of the Company after the passing of this resolution, save that 
the Company may before such expiry make an offer or agreement which would or might require relevant securities to be allotted 
after such expiry and the Board may allot relevant securities in pursuance of such an offer or agreement as if the authority 
conferred hereby had not expired.
9. That subject to the passing of ordinary resolution 8 above, the Board be and it is hereby empowered pursuant to Section 95 of the 
Companies Act 1985 to allot equity securities (within the meaning of Section 94 of the said Act) for cash pursuant to the authority 
conferred by the previous resolution as if sub-section (1) of Section 89 of the said Act did not apply to any such allotment provided  
that this power shall be limited 
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Notice of Annual General Meeting
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Notice of 2009 Annual General Meeting continued
(a) to the allotment of equity securities in connection with a rights issue in favour of ordinary shareholders where the equity securities 
respectively attributable to the interests of all ordinary shareholders are proportionate (as nearly as may be) to the respective 
numbers of ordinary shares held by them and
(b) to the allotment (other than pursuant to sub-paragraph (i) above of equity securities up to an aggregate nominal value of £44,504.
and shall expire on the date of the next Annual General Meeting of the Company after the passing of this resolution save that the Company 
may before such expiry make an offer or agreement which would or might require equity securities to be allotted after such expiry and the 
Board may allot equity securities in pursuance of such an offer or agreement as if the power conferred hereby had not expired.
This authority applies in relation to a sale of shares which is an allotment of equity securities by virtue of section 94(3A) of the Act as if in the 
first paragraph of this resolution the words “pursuant to the authority conferred by the previous resolution” were omitted.
10. That, in accordance with article 56 of the Company’s Articles of Association, the Company be generally and unconditionally authorised 
to make market purchases (within the meaning of section 163(3) of the Companies Act 1985) of ordinary shares of 3p each in the 
capital of the Company (“ordinary shares”) provided that:
(a) the maximum aggregate number of ordinary shares authorised to be purchased is the lesser of 2,966,950, being 10% of issued 
ordinary share capital at 28 December 2008, and 10% of the Company’s issued ordinary share capital at the date of passing of  
this resolution;
(b) the maximum price (not including expenses) which may be paid for each ordinary share is an amount equal to 105% of the average 
of the middle market quotations for an ordinary share, as derived from the London Stock Exchange Daily Official List, for the 5 
business days immediately before the day on which the purchase is made; and
(c) the minimum price which may be paid for each ordinary share is 3p per share.
 This authority shall, unless previously varied, revoked or renewed, expire at the conclusion of the next Annual General Meeting of the 
Company, except in relation to a purchase of ordinary shares the contract for which was concluded before such time and which will  
or may be executed wholly or partly after such time.
11. That the Articles of Association produced to the meeting and signed by the Chairman for the purposes of identification be approved 
and adopted as the Articles of Association of the Company in substitution for and to the exclusion of the current Articles of Association 
of the Company.
12. That with effect from 0.01am on 1 October 2009 a general meeting other than an annual general meeting may be called on not less 
than 14 days’ notice.
Biographies of the Directors who are standing for appointment are set out on page 13 and further explanation in relation to the resolutions 
proposed as Special Business above is provided in the Directors’ Report on pages 14 to 18.
Recommendation
The Directors of the Company consider that all the proposals to be considered at the Annual General Meeting are in the best interests of 
the Company and its members as a whole and are most likely to promote the success of the Company for the benefit of its members as a 
whole. The Directors unanimously recommend that you vote in favour of all the proposed resolutions as they intend to do in respect of their 
own beneficial holdings.
By Order of the Board
Ian Jebson
Company Secretary
16 April 2009
Ideal Home House
Newark Road
Peterborough
PE1 5WG
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Notice of Annual General Meeting
Notes
1. The holders of the ordinary shares are entitled to attend and to speak at the Annual General Meeting and at any adjournment and to vote on all of the resolutions to be 
proposed at the meeting.
2. A member is entitled to appoint a proxy to exercise all or any of his rights to attend, speak and vote instead of him. A proxy need not be a member of the Company. A member 
may appoint more than one proxy to exercise rights attached to different shares. A member may not appoint more than one proxy to exercise rights attached to any one share.
3. The ‘vote withheld’ option is to enable shareholders to abstain on any particular resolution. This is not a vote in law and will not be counted in the votes ‘for’ or ‘against’ any resolution.
4. To be valid, a duly completed Form of Proxy must be sent by post, together with the power of attorney or other authority (if any) under which it is signed (or a notarially certified 
copy), to Capita Registrars Limited, The Registry, 34 Beckenham Road, Beckenham, Kent. BR3 4TU so as to arrive not later than 48 hours before the time fixed for the meeting 
or adjourned meeting or (in the case of a poll taken otherwise than at or on the same day as the meeting or adjourned meeting) for the taking of the poll at which it is to be 
used. A Form of Proxy is enclosed. Completion and return of a Form of Proxy will not preclude a member from attending and voting in person at the meeting.
5. To change your proxy instructions please submit a new proxy appointment in accordance with the instructions above. The appointment received last before the cut-off time 
and date specified above will take precedence.
6. In accordance with Regulation 41 of the Uncertificated Securities Regulations 2001, only those members entered on the Company’s register of members at 6.00pm on the day 
which is two days before the date of the meeting or, if the meeting is adjourned, the shareholders entered on the Company’s register of members on the date two days before 
the date of any adjournment shall be entitled to attend and vote at the meeting.
7. Copies of the executive Directors’ service agreements with the Company, the Non-executive Directors’ terms of appointment and the register of Directors’ interests will be 
available for inspection during normal business hours on each business day at the registered office of the Company from the date of this notice until the date of the meeting  
and also at the place of the meeting for 15 minutes prior to and during the meeting.
8. Copies of the proposed new articles of association will be available for inspection: (a) during normal business hours at the Company’s registered office from the date of this 
circular until the close of the Annual General Meeting; and (b) at the Annual General Meeting for at least 15 minutes before and during the meeting. A summary of the principal 
changes introduced in the proposed new articles is set out in the Directors’ Report above.
9. To appoint a proxy or to give or amend an instruction to a previously appointed proxy via the CREST system, the CREST message must be received by Capita (ID RAI0) by  
48 working hours before the time fixed for the Annual General Meeting. For this purpose, the time of receipt will be taken to be the time (as determined by the timestamp 
applied to the message by the CREST Applications Host) from which the issuer’s agent is able to retrieve the message. After this time any change of instructions to a proxy 
appointed through CREST should be communicated to the proxy by other means.
 CREST Personal Members or other CREST sponsored members and those CREST Members who have appointed voting service provider(s) should contact their CREST 
sponsor or voting service provider(s) for assistance with appointing proxies via CREST.
 For further information on CREST procedures, limitations and system timings, please refer to the CREST Manual. We may treat as invalid a proxy appointment sent by CREST 
in the circumstances set out in Regulation 35(5)(a) of the Uncertificated Securities Regulations 2001.
10. You may not use any electronic address provided either in this Notice of Annual General Meeting or any related documents to communicate with the Company for any purpose 
other than those expressly stated.
11. In order to facilitate voting by corporate representatives at the meeting, arrangements will be put in place at the meeting so that (a) if a corporate shareholder has appointed  
the Chairman of the meeting as its corporate representative with instructions to vote on a poll in accordance with the directions of all of the other corporate representatives  
for that shareholder at the meeting, then on a poll those corporate representatives will give voting directions to the Chairman and the Chairman will vote (or withhold a vote) as 
corporate representative in accordance with those directions: and (b) if more than one corporate representative for the same shareholder attends the meeting but the corporate 
shareholder has not appointed the Chairman of the meeting as its corporate representative, a designated corporate representative will be nominated, from those corporate 
representatives who attend, who will vote on a poll and the other corporate representatives will give voting directions to that designated corporate representative.
 Corporate shareholders are referred to the guidance issued by the Institute of Chartered Secretaries and Administrators on proxies and corporate representatives  
(http://www.icsa.org.uk/) for further details of this procedure. The guidance includes a sample form of representation letter if the Chairman is being appointed as described  
in (a) above.
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Directors and Advisers
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Directors and Advisers
Directors: Paul Wright (Non-executive Chairman)
 Val Kaye (Non-executive Director)
 Mike Hancox (Chief Executive Officer) 
 Ian Jebson (Finance Director)
Company Secretary: Ian Jebson
Bankers: Barclays Bank PLC
 Church Street
 PETERBOROUGH
 PE1 1EZ
Nominated Advisers,  Numis Securities Limited
Brokers and 10 Paternoster Square
Financial Advisers: London
 EC4M 7LT
Investor contact: Buchanan Communications
 45 Moorfields
  LONDON
 EC2Y 9AE
Auditors: KPMG Audit Plc
 2 Cornwall Street
 Birmingham
 West Midlands
 B3 2DL
Registrars: Capita Registrars Limited
 Northern House
 Woodsome Park
 Fenay Bridge
 Huddersfield
 HD8 0GA
Company  
Registration Number: 01534758
Registered Office: Ideal Home House
 Newark Road
 PETERBOROUGH
 PE1 5WG
 www.idealshoppingdirect.tv
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Notes
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Notes
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I/We 
(FULL NAME(S) IN BLOCK CAPITALS)
of
(ADDRESS IN BLOCK CAPITALS)
being member(s) of the above named Company, hereby appoint the Chairman of the meeting or failing him 
as my/our proxy to vote for me/us and on my/our behalf at the Annual General Meeting of the Company to be held at Ideal Home House, 
Newark Road, Peterborough PE1 5WG, on Wednesday 10 June 2009 at 9.30 am.
This proxy is in respect of all of the shares registered in my name unless I have indicated a smaller number of shares in the box below. 
For the appointment of more than one proxy please refer to Explanatory Note 2.
Please indicate with an “X” in the space below how you wish your vote to be cast. If the form is returned without any indication as to how 
the proxy shall vote on any particular matter the proxy will vote as he or she thinks fit or abstains from voting at his or her discretion.
Signature      Date 2009
      Vote    
     For Withheld Against Discretionary
Ordinary Business 
1. To receive and approve the Director’s Report and the audited accounts for the  
period ended 28 December 2008 and the report of the Auditors    
   
2. To elect Paul Wright as a Director     
   
3. To elect Val Kaye as a Director     
   
4. To elect Mike Hancox as a Director     
   
5. To elect Ian Jebson as a Director     
   
6. To appoint KPMG Audit Plc as auditors of the Company and to authorise the Directors  
to fix their remuneration     
   
Special Business
7. To increase the authorised share capital     
   
8. To authorise the Company to issue shares in accordance with Resolution 8  
in the Notice of Annual General Meeting     
   
9. Subject to passing Resolution 8 to grant authority to the Company to allot shares  
pursuant to section 95 of the Companies Act 1985     
   
10. To authorise the purchase of ordinary shares in the Company in accordance  
with Resolution 10 in the Notice of Annual General Meeting    
   
11. To adopt new Articles of Association     
   
12. To allow a general meeting to be held on 14 days’ notice    
   
Ideal Shopping Direct Plc
Form of Proxy
Notes
1. Every holder has the right to appoint some other 
persons(s) of their choice, who need not be a shareholder 
as his proxy to exercise all or any of his rights, to attend, 
speak and vote on their behalf at the meeting. If you wish 
to appoint a person other than the Chairman, please 
insert the name of your chosen proxy holder in the 
space provided. 
 If the proxy is being appointed in relation to less than  
your full voting entitlement, please enter in the box  
above the number of shares in relation to which they are 
authorised to act as your proxy. If left blank your proxy  
will be deemed to be authorised in respect of your full 
voting entitlement (or if this proxy form has been issued  
in respect of a designated account for a shareholder, the 
full voting entitlement for that designated account).
 If you wish to appoint some other person or persons 
please insert his/her/their name(s) and address(es), initial 
the insertion and strike out the words ‘the Chairman of 
the meeting’.
2.  To appoint more than one proxy, please photocopy this 
form, or (an) additional proxy form(s) may be obtained by 
contacting the Registrar’s helpline on 0871 664 0300 
(calls cost 10p per minute plus network extras) 
(+44 (0) 208 639 3399 from outside the UK). All forms 
must be signed and should be returned together in the 
same envelope.
3. Unless otherwise instructed above, the proxy will exercise 
his or her discretion both as to how he or she votes and 
as to whether or not he or she abstains from voting on any 
resolutions proposed at the meeting.
4. The ‘vote withheld’ option is to enable you to abstain on 
any particular resolution. This is not a vote in law and will 
not be counted in the votes ‘for’ and ‘against’ a particular 
resolution.
5. To be valid this form duly signed, together with the power 
of attorney or other authority (if any) under which it is 
signed (or a notarially certified copy of such power or 
authority) must be deposited at the offices of the 
Registrars no later than 48 hours before the time for 
holding the meeting.
6. In the case of a corporation this form must be under its 
Common Seal or otherwise executed in accordance with 
Section 36A Companies Act 1985 as amended or it must be 
signed by an officer or attorney duly authorised in writing.
7. Any alterations to this form must be initialled.
8. In the case of joint holders only one need sign but the 
names of all joint holders must be stated. The vote of the 
senior holder who tenders a vote shall be accepted to the 
exclusion of the votes of the other joint holders. For this 
purpose seniority shall be determined by the order in 
which names stand in the register of members.
9. For details of how to change your proxy instructions or 
revoke your proxy appointment please see the notice of 
meeting. If you submit more than one valid proxy 
appointment, the appointment received last before the 
latest time for receipt of proxies will take precedence.
10. Shares held in uncertificated form (i.e. in CREST) may  
be voted through the CREST Proxy Voting Service in 
accordance with the procedures set out in the 
CREST manual.
11. You may not use any electronic address provided in this 
proxy form to communicate with the Company for any 
purposes other than those expressly stated.
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Second fold
Third fold and tuck in 
First fold
Capita Registrars
(Proxies)
PO Box 25
Beckenham
Kent BR3 4BR
BUSINESS REPLY SERVICES
Licence No. MB122
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Ideal Shopping Direct Plc is a 
leading multi-channel retailer, 
selling products to consumers 
via its television shopping 
channels and the internet.
Contents
Overview
01  Ideal Shopping Direct at a glance
02  Chairman’s Statement
01
Business Review
04
04 Chief Executive’s Review
08  Finance Director’s Review
12  Corporate Responsibility Review
13 Board of Directors 
14 Directors’ Report
Governance
19
19  Corporate Governance
22  Remuneration Report
25  Independent Auditors’ Report
Financial Statements
26
26 Consolidated Income Statement
27 Consolidated Balance Sheet
28 Company Balance Sheet
29  Consolidated Statement of Recognised  
Income and Expense
29  Company Statement of Recognised  
Income and Expense
30 Consolidated Statement of Cash Flows
31 Company Statement of Cash Flows
32 Notes to the Financial Statements
65 Notice of 2009 Annual General Meeting
68 Directors and Advisers
 
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Ideal Shopping Direct Plc Annual Report and Accounts 2008
www.idealworld.tv
www.createandcraft.tv
Ideal Shopping Direct Plc
Ideal Home House
Newark Road
Peterborough
PE1 5WG
United Kingdom
Tel: 08700 777 002
www.idealshoppingdirect.tv
Ideal Shopping Direct Plc
Annual Report and Accounts 2008
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