Ideal Shopping Direct Plc
annual report 2007
BUILDING
ON OUR
SUCCESS
75705 CoverFin  31/3/08  10:50  Page 2 Ideal Shopping Direct is a leading
digital retailer to consumers via
its television shopping channels
and the internet 
2007 highlights
14.6% like-for-like sales increase, led by craft and
leisure categories
Sustainable cost base established with broadcast 
and systems infrastructure now in place
Gross margin enhanced, in part reflecting the 
benefits of sourcing through Superstore
Strong cash flow resulted in cash balances of 
£16.7 million despite significant investment in the
Group’s infrastructure
Uniquely positioned for further growth in digital
retailing
75705 PRELIM  31/3/08  12:22  Page ii Ideal Shopping Annual Report 07
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Financial highlights
2007 2006 Growth
£’million £’million %
Sales 96.9 85.6 13.1%
Gross margin 42.2% 41.3% +86bps
Like for like underlying profit 10.7 7.4 44.6%
Profit before tax 5.8 6.1 (6.2%)
Earnings per share (basic) 13.9p 15.0p (7.3%)
Dividend declared per share 5.5p 4.25p 29.4%
www.idealworld.tv
Sky Digital channel 634
Virgin TV channel 747
Freeview channel 22 
www.createandcraft.com
Sky Digital channel 661
www.idealvitality.tv
Sky Digital channel 658
Contents
Business and Financial Review
1 Financial Highlights
2 Our Business
4 Our Markets
6 Our Formula
8 Chairman’s Statement
10 Chief Executive’s Review
14 Finance Director’s Review
16 Risks and Uncertainties
18 Corporate Responsibility Review
20 Key Performance Indicators
21 Board of Directors & Professional Advisers
22 Board of Directors
Statutory Reports
24 Directors’ Report
28 Corporate Governance
32 Remuneration Report
Financial Statements
35 Report of the Independent Auditor
37 Consolidated Income Statement
38 Consolidated Balance Sheet
39 Company Balance Sheet
40 Statement of Changes in Equity
42 Consolidated Cash Flow Statement
44 Notes to the Financial Statements
83 Transition to International Financial Reporting Standards
90 Notice of Annual General Meeting
94 Shareholder Notes
95 Form of Proxy
97 Financial Calendar
Ideal Shopping Annual Report 07
75705 PRELIM  31/3/08  12:22  Page 1 Our Business
“Family, Friendship and Fun!”
We provide an exciting, personal, informative and convenient
home shopping retail experience with a distinct personality,
via our digital television shopping channels and websites.
Our customers can order via our outsourced call centres,
our automated order line, or online, and we despatch the
vast majority of those orders from our own warehouse
in Peterborough.
We broadcast to over 21 million households via Freeview,
Sky and Virgin Media. Our live demonstrations bring our
products to life through people’s TV screens, and quickly
provide a compelling reason to buy a product.
Since acquiring our sourcing and wholesale business,
Superstore, in 2006, we have used their offices in Asia to directly
source a wide range of products at enhanced margins. We have
further started to supply major high street retailers such as Asda
and Wilkinson, with exclusive ranges of crafting products.
We are the only UK-quoted television channel operator in 
the home shopping market. Our main channel, Ideal World,
broadcasts live 16 hours a day, with repeats run overnight. 
Our other 2 channels run pre-recorded content 24 hours a day.
All three channels are supported by transactional websites. 
We sell a broad range of merchandise in the categories of
fashion, beauty, craft, leisure, homewares and jewellery.
Digital retail home shopping and craft wholesale
02
Jewellery Health & Beauty Fashion
Home Craft Leisure & Technology
Product categories
75705 PRELIM  1/4/08  18:02  Page 2 Ideal Shopping Annual Report 07 Ideal Shopping Annual Report 07
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3
4
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Product sales by category
(£m’s)
1. Jewellery 6.9m
2. Fashion 11.0m
3. Health & Beauty 12.2m
4. Home 15.0m
5. Craft 17.0m
6. Leisure 20.9m
03
“Ideal World” is our flagship channel bringing
a department store concept to the home by
broadcasting 24 hours a day over the Freeview
(channel 22), Sky (channel 634) and Virgin Media
(channel 747) television networks. 
Our product range includes well-known names
such as Morphy Richards, De Longhi, Kenwood,
RAC, Hometek, Tefal and Elizabeth Grant, and
increasingly we are building our own brand names
such as “Simply Yoghurt”, “Flex and Soft” Italian
footwear, “ Simply Natural” skincare and
“Emelia” clothing. 
“Create and Craft” is our second channel.
Showing 24 hours a day on Sky 661 , it is the only
truly national craft medium in the UK today, and the
only television channel in the world dedicated to
crafting. It is complemented by our web-based
Create and Craft Club and our range of “Create
and Craft” merchandise which we wholesale to
independent retailers.
“Ideal Vitality” broadcasts 24 hours a day on
Sky Channel 658, offering a range of health and
beauty, lifestyle and wellbeing products. 
We broadcast to over 21 million
households, 86% of all UK homes, 
via Freeview, Sky and Virgin Media.
75705 PRELIM  31/3/08  12:23  Page 3 Our Markets
The TV shopping market
04
TV shopping formats in the UK
We estimate that in 2007 the UK
television shopping market exceeded
£950 million, with growth of 5% to 7%.
Our market share is over 10%.
Channel
Ideal World Create and Craft
Ideal Vitality
Show type
Live Live auction Pre-recorded Infomercial 
Description
Screened live for the Prices fall until a product Produced as live, but run Short pre-recorded
majority of the time, with is sold out as recorded shows sales pitches (often 
pro-active demonstration American footage)
and sales Consumers enter the repeated many times 
auction at any time a day
but buy at the eventual
lowest price
Comment
Operates in real time Low margin Cheaper to produce but Cheap to produce
not flexible to sales
Can focus on better sellers No demonstration – Repetitive
and vice versa price-based sale only Typically specialist or  
limited range Low sales
Live customer testimonials
possible Not as engaging to the 
viewer, so sales are lower
Generates higher sales
volumes
75705 PRELIM  1/4/08  17:46  Page 4 Ideal Shopping Annual Report 07
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Ideal Shopping Annual Report 07
What drives market growth?
Growth in access to digital television
As the analogue to digital switchover occurs, all
viewers must adopt Freeview, satellite or cable
television, which will automatically give them access
to Ideal World and, and if they do so via Sky, to our
other channels. Ofcom’s figures for the third quarter
of 2007 show that 86% of British homes now have
access to digital television, and this is expected to
be close to 100% by 2012 when the analogue
signal is switched off.
Freeview accounts for almost 75% of new digital
households, and, as one of only four television
shopping channels on Freeview, Ideal World is 
very well placed to benefit from this growth.
Growth in internet sales
The number of UK households with a broadband
connection continues to grow rapidly, and is
approaching 16 million (source: IMRG). UK online
sales are estimated to have exceeded £46 billion 
in 2007, an increase of more than 50% in the 
year. As online usage grows, the profile of the
online population is also evolving, with nearly 
40% aged 45+ and, according to Verdict, more
internet shoppers in the 55+ age bracket than 
in the 15-24 group. The over-50s may represent
25% of the online shopping population but they
represent 40% of all retail expenditure, making this
an enormous online growth area that matches the
demographics of our customer base.
Growing craft market
We estimate that the UK craft market is worth in
excess of £2 billion per year at retail sales value.
This market is very fragmented, with the largest
player having less than a 5% share. We estimate
that we are the number 3 or 4 player in the market,
after only 5 years of operation. We believe that the
ageing UK population is likely to continue to drive
the craft market, which remains only half the size of
the USA market on a per capita basis. This remains
a significant opportunity for the Group.
We are one of only
four TV shopping
channels on Freeview,
which accounts for
almost 75% of new
digital households.
75705 PRELIM  31/3/08  14:36  Page 5 Our Formula
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75705 PRELIM  31/3/08  12:23  Page 6 Ideal Shopping Annual Report 07
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Ideal Shopping Annual Report 07
Great products at competitive prices
Like all leading retailers, we have to offer innovative
products, at prices which represent great value. 
Over 20% of our products each year are new, to
satisfy customer demand for something different.
Unlike high street retailers, though, we generally
only stock the products that we are selling in a
show – if a product sells, we buy more, if it doesn’t
we drop it.
Secure access to our consumers
We have acted quickly to secure long term
distribution on the Digital TV platforms in the UK. 
On Freeview, which has very significant capacity
constraint, we have secured our channel until 2018
(assuming that our supplier, National Grid Wireless,
has its licence renewed in 2014). We do not
believe there will be any new shopping channels 
on Freeview in the foreseeable future.
On Sky, to which access has been limited since
November 2007, our three channels are secure and
on Virgin Media, Ideal World is secure until 2012.
A blend of selling and entertainment
A vital element in TV shopping is the ability to bring
products to life, and show how they can affect our
customers’ lives. On a live channel, in particular, this
can be done in an entertaining way that appeals to
viewers whilst they consider their purchase.
Reliable delivery
Our sales are only secured when the orders are
successfully delivered and our customers are
satisfied. It is vital, therefore, to have warehouse
operations and business systems that are well
resourced, highly efficient and cost effective. 
We apply the same high exacting standards to 
both our retail and wholesale customers from our
Peterborough site. For example, we were able to
guarantee pre Christmas delivery on certain shows
right up to the 23 December 2007.
What’s our formula?
“Create and Craft”
channel was voted
“Best TV Shopping
Channel for Crafts”
this year by readers 
of “Crafts Beautiful”,
“Lets Make Cards”
and “Quick & Crafty”.
75705 PRELIM  31/3/08  12:23  Page 7 I am delighted to report that the Group 
has delivered a strong set of results for 
the 52 weeks ended 30 December 2007.
Our overall sales growth of 13.1% at
improved margins has generated a pre-tax
profit of £5.8m, resulting in earnings per
share of 13.9p. Excluding exceptional 
items and the changes in Freeview carriage,
this is equivalent to a 44.6% increase in
underlying profitability.
This is a particularly impressive performance
when you consider that our main goal for
2007 was to put in place some of the key
strategic components that will underpin 
out future growth: our carriage contracts
with Freeview and Virgin Media, and our
new IT systems.
Our main TV channel, Ideal World, can
already be viewed by over 21 million
households, and this will rise to almost 
26 million in the next four years as digital
switchover completes, mainly via Freeview. 
We have secured our carriage on Freeview
until 2018, and subsequent renegotiations 
by other channels show that we have
done so at a price well below the current
market rate.
Last year’s replacement of our IT systems
will allow us to expand the business 
with ever increasing efficiency, whilst
responding more effectively to the needs
of our customers. In particular, it facilitates
significant development in our online
capability in 2008, led by our new Head 
of eCommerce.
Our investment in Superstore, our 
sourcing and wholesale business, is now
producing margin improvements, and 
we are managing working capital tightly.
Our cash balances at year end were
£16.7 million.
As we progress towards the convergence
of broadcast and online, Ideal’s role as 
a digital retailer means that we are well
positioned to build on our 2007 growth.
Nonetheless, we operate in what is
perhaps the fastest-paced sector of 
the retail market. Since becoming
Chairman, I have initiated a strategic review
to ensure that we continue to maximise
our opportunities in this exciting and rapidly
evolving market.
Dividend
These results, together with our
confidence in the business model, enable
the Board to recommend a final dividend
of 3.75p, which with our interim dividend
of 1.75p, takes the total dividend for the
year to 5.5p representing 29% growth 
over last year’s dividend of 4.25p. This
moves the Group onto a progressive and
sustainable dividend policy for the future.
Board changes
During the year, we have completed 
a restructuring of the Board in order 
to support the next stage of the 
Group’s growth.
Paul Wright and Val Kaye, Ideal’s 
co-founders, stepped down as 
non-executive Directors in the first half,
having already relinquished their executive
responsibilities in the previous year. 
Jim Hodkinson resigned as Chairman 
on 13 July 2007, and I became Chairman 
on that date. Finally, David Blake joined us
BUILDING ON OUR SUCCESS...
“I am delighted that in a year when we have been
putting in place the key foundations for our future, 
we have still been able to drive strong growth in sales 
and underlying profitability”
David Williams
Chairman
Chairman’s statement
08
75705 PRELIM  31/3/08  12:23  Page 8 “As a digital
retailer, Ideal is
perfectly placed
to benefit from
the continuing
drive towards
convergence of
broadcast and
online media”
David Williams
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40
60
80
100
2003 2004 2005 2006 2007
Sales (£m’s)
Ideal Shopping Annual Report 07
as Finance Director, taking over from Mike
Camp who stepped down in July 2007. 
I would like to thank all of our current and
previous Directors for the contribution they
have made to the growth and
development of the Group.
Colleagues
I am extremely grateful for the hard 
work and dedication of the whole team 
in generating these strong results, in
challenging trading conditions. I would like
to thank all of our employees on behalf of
the Board and our shareholders. I look
forward to our continued success in the
year ahead.
Outlook
Despite the toughening retail environment,
2008 has started well with good growth 
on what was a very strong start to 2007.
Our sales for the first nine weeks of the 
new financial year are 6.4% ahead of 2007,
and 27% ahead of 2006. In more difficult
times, our consumers increasingly enjoy 
the convenience of being able to shop from
their homes, and we are confident that the
investments made in 2007 position us to
make good progress in 2008 and beyond.
David Williams
Chairman
4 March 2008
09
Our shopping channels provide an exciting,
informative and convenient shopping experience
with a distinct personality.
75705 PRELIM  31/3/08  12:23  Page 9 BUILDING ON A
SOUND PLATFORM...
Chief Executive’s review
Market trends
It is estimated that in 2007 the UK
television shopping market generated sales
of over £950 million, with annual growth of
between 5% and 7%. Our market share is
in excess of 10%.
Growth in the market is being driven by:
● Growth in access to digital
television
As the analogue to digital switchover
occurs, all viewers must adopt
Freeview, satellite or cable television,
which will automatically give them
access to Ideal World and, if they do
so via Sky, to our other channels.
● Growth in internet sales
The number of UK households with a
broadband connection continues to
grow rapidly, and is approaching 
16 million (source: IMRG). UK Online
sales are estimated to have exceeded
£46 billion in 2007, an increase of more
than 50% in the year. As online usage
grows, the profile of the online population
is evolving to more closely match that of
our existing customer base.
● Growth in craft market
We estimate that the UK craft market is
worth in excess of £2 billion per year at
retail sales value. This market is very
fragmented, and we estimate that we
are amongst the top 4 players in the
market, after only 5 years of operation.
Operational review
With the move onto new Freeview and 
Virgin contracts, and the introduction of 
new systems, 2007 was a year in which 
we put in place the foundations to underpin
our future growth. The benefits of this 
began to be realised in the second half 
of the year, when we delivered like-for-like
sales growth in excess of 16%. This was
despite the toughening of the underlying 
retail market, and reflects both underlying
productivity improvements and a strong
promotional focus. Our like-for-like sales
growth exceeded 14% for the full year, with
growth in all our key categories. 
During the year we have continued our
strategy of focusing on the following 
key elements:
● Ideal World
● Create and Craft
● Superstore
● Infrastructure
Ideal World
At the start of 2007 we successfully
launched the Ideal World channel 
onto the Telewest cable base (which,
together with the former NTL cable
business, is now branded Virgin Media).
This added around 1.3 million new Virgin
Media households which can receive 
our channel 24 hours a day. In addition,
according to figures produced by Ofcom,
through the first nine months of 2007 
1.6 million additional households gained
access to Freeview, and hence to our main
channel, Ideal World. This means that today
we broadcast into over 21.5 million homes,
representing 86% of all UK households.
We have focused on three key sales tools:
driving underlying productivity, better use of
promotions, and continuing our programme
of sourcing and developing new ranges.
Productivity has been driven by the use 
of our improved IT systems which give us
greater analytical ability. This data enables
us to actively manage our schedules,
thereby maximising sales productivity and
increasing our margins. For example, with 
the recent trends in the retail jewellery
market, coupled with the increase in gold
prices, we have actively reduced the
airtime given to jewellery, reducing its 
sales and gross margin, but enhancing
sales and margin overall.
Sales by category
% sales
growth
Leisure 80%
Craft 14%
Home 10%
Health & Beauty 7%
Fashion 6%
Jewellery (11%)
In several of our categories, sales and 
margin benefited from our continuing focus
on developing our own product brands.
These include; “Simply Yoghurt” yoghurt
making kits, the “Skin Naturally” skincare
range, and “Flex & Soft” comfort and 
fashion footwear.
10
“We are perfectly placed to exploit the integration
of broadcast and online media”
Andrew Fryatt  MA
Chief Executive Officer
75705 PRELIM  1/4/08  18:46  Page 10 Ideal Shopping Annual Report 07
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2007 achievements
380,000 new customers
Ideal’s market share increasing
Growth across all categories except jewellery (airtime
reduced)
Growth led by leisure and craft
0.86% pts margin increase
Create & Craft Club membership increased significantly
– now over 23,000
Superstore delivered £0.7m bottom line (2006: £0.2m)
New IT systems successfully implemented in June
Our promotional programme has been highly
effective, primarily utilising multibuy offers and
free or discounted postage offerings. Despite
these offers, we are pleased that margins
have still increased.
During 2007 we brought almost 5,000 new
products to air, continually refreshing our 
on-air offer.
This combination of driving existing ranges,
90 new products each week, and
compelling promotional offers, has combined
to achieve outstanding sales results in 
the second half of the year and achieve
record levels of new customer acquisition.
380,000 new customers were added in
2007, with the rate of acquisition increasing
steadily through to the end of the year.
75705 PRELIM  1/4/08  19:09  Page 11 Chief Executive’s review
For the year ended 30 December 2007
Create and Craft
Our second channel, Create and Craft, has
a very strong brand presence in the UK
craft market, which is worth in excess of 
£2 billion per year. This market is very
fragmented, and we are in the top four 
craft retailers in the UK.
The Create and Craft brand addresses 
the needs of regular and dedicated
crafters, who prefer to buy from retailers
that really understand their needs, and
who can provide inspiration for their
crafting projects.
Our craft offer includes live shows on Ideal
World, pre-recorded shows on the “Create
and Craft” channel (on Sky), a standalone
retail website, a subscription-based craft
club, with over 23,000 members, and a
range of “Create and Craft” branded
products sold on air and wholesaled 
to independent craft retailers.
The growth in the Create and Craft Club,
from just over 10,000 members at the 
start of 2007, has been a key driver of 
our craft sales. We plan to grow this
substantially in 2008. 
Our craft model combines the benefits of
a strong brand and a truly multichannel
proposition, and the success of this
approach suggests that it would be
applicable to other categories in the future. 
Superstore
The acquisition of Superstore in 2006 was
designed to rapidly enhance our direct
sourcing capability, and in 2007 we put in
place the additional resources in China to
support this. We now have 15 employees,
who seek out products on our behalf and
work “hands on” to ensure that strict quality
controls are always met. Initially, the main
category focus has been on craft products,
but we are beginning to source for other
categories too. The direct sourcing model
does increase the amount of stock that 
we purchase on firm sale (as opposed to
our more traditional ‘sale or return basis’), but
it remains a single digit percentage of our
business, and the small increase in stock is
significantly outweighed by the enhanced
margins and better quality assurance.
In May 2007, Superstore began 
delivering craft ranges into Wilkinson. 
This complements our supply of craft
products to Asda, which began in 2006.
Whilst this national account business
supports the volumes of our internal craft
purchasing, the strategic benefits of the
Superstore business remain the margin
enhancement from direct sourcing and 
the increased reach of the “Create and
Craft” brand.
Infrastructure
During the first half of the year, we
completed the improvement and upgrade
of our IT systems (ISIS) in order to handle
significantly higher volumes in the business.
This has been an important and long-term
project and our new platform has greater
data storage capacity and performance
capability. We have also upgraded our
automated call centre facility (IVR), to offer
“upsells” to customers, and allow them 
to trace the status of their order. Further
enhancement is planned for 2008.
With the rapid growth of new business,
2008 is the year in which we must
determine the longer term solution to 
our warehousing requirement. We have
applied for planning permission to extend
our current warehouse facilities, but are
continuing to review this opportunity
against other warehousing solutions in 
the first half of 2008.
New opportunities
As previously announced, we began
discussions with British Telecommunications
Plc last year, to become the flagship TV
shopping channel on BT Vision. We are
pleased to report that a formal agreement
was signed in January 2008 and we
expect to launch onto this new exciting
IPTV platform with a video on demand 
offer in quarter 3 2008.
We believe that the online growth opportunity
may even exceed the potential from TV
shopping, and we are committed to realising
this. In January 2008, we appointed a new
Head of eCommerce, and have commenced
a programme to overhaul our websites by
the middle of this year. Already more than
20% of our sales are taken online, and we
anticipate that our online sales will approach
30% of the mix by the end of this year.
In November 2007, we opened an 
“Ideal World” outlet store in Peterborough,
enabling us to clear end of line stocks
above cost prices. 
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75705 PRELIM  31/3/08  12:23  Page 12 Future prospects
Having put the foundations in place in
2007, we anticipate continued growth 
in 2008. On Ideal World, we will continue
to drive the introduction of own brands 
and directly sourced products, so as to
drive margins and increase loyalty, and we
will test new categories of products and
services that we believe are relevant to 
our customers. Our Create and Craft 
brand will continue to benefit from our truly
multichannel approach, with increased
airtime and online focus, and growth in
Club membership.
In Superstore, the main focus is on
doubling the volume of directly sourced
merchandise for Ideal, with commensurate
margin benefits. In third party sales, we 
are focused on driving the efficient use of
working capital in supporting our key
accounts, whilst we will roll out our Create
and Craft branded offer to independent 
craft stockists.
In terms of infrastructure, we continue 
to develop both our IT and telephony
systems. By the end of 2008 we plan to
repatriate our customer service centre 
from India, and utilise both IVR and web 
to enhance our ordering and customer
service proposition.
“Convergence” of digital technologies has
been referenced in the media for the last
few years, but 2008 looks as if it will be 
the first year that it will reach some critical
mass. We are perfectly placed to exploit
the integration of broadcast and online
media, and our launch onto the BT Vision
platform later this year is a key step in our
evolution as a digital retailer.
The operational gearing of the business
means that growing our sales and margin
produces a disproportionate benefit to profit,
and with our significant investments in our
infrastructure now complete, we expect to
drive up net margins in 2008.
Andrew Fryatt, MA
Chief Executive Officer
4 March 2008
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75705 PRELIM  2/4/08  09:42  Page 13
Ideal Shopping Annual Report 07 Accounting policies
The Group’s results for the year have been
prepared under IFRS for the first time.
Financial results
Group sales for the 52 weeks ended 
30 December 2007 were £96.9m 
(2006: £85.6m), an increase of 13.1%, and
a 14.6% increase on a like-for-like basis.
Gross margin was £40.9m (2006: £35.4m)
or 42.2% (2006: 41.3%) of revenues
reflecting the positive combined impact 
of our improved sourcing and purchasing
and the removal of Freeview commission,
partially offset by increased promotional
activity.
Overheads, excluding exceptionals, were
18.2% higher at £35.3m (2006: £29.8m)
mainly due to the impact of the new
carriage agreements for the extended
Freeview contract and the addition of the
Telewest base to the Virgin Media Group’s
network in January 2007. A significant
portion of our overheads are contracted
(Freeview, Sky, Virgin Media etc) and 
are subject to RPI increases, with few
directly variable costs. This means that by
driving sales we are able to leverage the
operational effects of a robust and stable
cost base, and deliver strong bottom 
line growth. Our operational gearing
(overheads as a percentage of sales) was
36.4% versus 34.8% for 2006. However,
on a comparable basis, underlying
overheads increased by only 1.4% from
£26.0m to £26.4m, which reflects our 
tight cost controls. 
Reported profit before exceptionals and 
tax was £6.3m compared to £6.1m in the
prior year; which represents a 3.0%
increase. The exceptional items of £0.6m
are for Board restructuring costs (£0.4m)
and the relocation of Superstore’s
Manchester office to Peterborough 
(£0.2m) during the year.
Reported profit after exceptionals before
tax was £5.8m compared to £6.1m in the
prior year; on a comparable basis profit
before tax was £10.7m (2006: £7.4m)
which represents a 44.6% increase.
Taxation
The taxation charge for the financial year
was £1.6m (2006: £1.7m) resulting in 
a full year effective tax rate of 28.3%
(2006: 28.2%).
Earnings per share
Basic earnings per share (EPS) were
13.9p (2006: 15.0p), with diluted EPS 
at 13.8p and 14.8p.
Cash flow, debt and capital structure
We finished the year strongly with £16.7m
of gross cash (2006: £18.7m) following
rigorous management of stock, debtors
and creditors. This was after significant
increases in cash outflow for tax 
and dividend payments, and capital
expenditure on new IT systems and TV.
Stock levels increased 28% to £6.8m
(2006: £5.3m), reflecting appropriate 
stock investment in directly-sourced own
brand goods and wholesale ranges for
Superstore’s third party business. Although
both these activities use working capital,
the cost of this is more than offset by the
increased margin we obtain from these
products, and the Group still operates a
negative working capital model.
BUILDING FOR THE FUTURE...
“A significant portion 
of our overheads are
contracted, with few
directly-variable costs.
This means that, by
driving sales, we are 
able to deliver strong
bottom line growth.”
David Blake
Finance Director
Finance Director’s review
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75705 PRELIM  31/3/08  12:23  Page 14 Ideal Shopping Annual Report 07
Cash deposit rates are reviewed weekly 
to maximise returns on a variety of
time length deposits. To minimise
currency fluctuations >75% of our US$
and Euro € denominated purchases have
already been forward hedged for the year.
Shareholder return 
Ideal has seen its share price move from
£2.75 to £1.90, a decrease of 31% from 
2 January 2007 to 30 January 2008. 
Capital expenditure & revaluations
Capital expenditure for the year was
£2.7m of which £1.4m was IT related 
and £0.8m was broadcast related.
During the year, we revalued our land and
buildings resulting in an increase of £2.3m
in their value, reflecting the growth in the
Peterborough commercial property market.
Dividend
The Board is recommending a 
final dividend of 3.75p per share 
(2006: 2.75p) giving a total dividend of
5.5p (2006: 4.25p).
Subject to shareholder approval at the
Annual General Meeting (‘AGM’) the final
dividend will be paid on 27 June 2008 to
shareholders on the register at the close of
business on 6 June 2008.
David Blake
Finance Director
4 March 2008
15
Our direct sourcing through Superstore enables 
us to achieve better control of the supply chain 
at enhanced margins.
75705 PRELIM  2/4/08  09:42  Page 15 16
2007 Risks and Uncertainties
Risks and uncertainties
We must manage risks effectively to
secure the successful execution of our
strategy. Risk management is the
responsibility of the executive team and 
its effectiveness is reviewed by the Board
and the Audit Committee.
Market
As with all retail businesses, we are
affected by consumer confidence. As we
go into 2008 economic conditions are
more challenging than in previous years,
and consumer spending is expected 
to slow. We are in the fastest growing
areas of the retail market and can 
adapt our plans more quickly than high
street retailers, as we still buy most of 
our products on a “sale or return” basis 
and do not hold significant stocks. Our
strategic goals and budgets have 
been set in the context of expected
economic conditions.
Competition
We continue to face strong competition
from both high street retailers and other
television shopping channels and internet
retailers, with the possible resulting loss of
sale and margin erosion. We seek to build
customer loyalty by offering a range of
innovative products, including our own
brands, whilst maintaining a distinctive
personality, providing fast delivery and
efficient customer service. We also focus
on maintaining an efficient supply chain,
and our direct purchasing initiative will 
help secure margins.
Technology
The television and internet sector of 
the retail market is fast changing and
dynamic. We have to stay up to date 
with technological development in
broadcasting and the internet, and the
speed of consumer adoption of those
technologies. We are a member of ERA
(the Electronic Retailers Association),
subscribe to trade and research 
material and maintain a dialogue with
business partners such as British
Telecommunications Plc and Virgin Media
to remain abreast of these changes.
Access to digital television platform
Television shopping requires access 
to digital television, which in the UK is
primarily via three technology platforms
(digital terrestrial, satellite and cable).
Access to these platforms is limited. 
It is our policy, where possible, to gain
access to these platforms via long term
agreements in order to secure our 
route to market. We also maintain a 
strong working relationship with the
platform providers.
Direct sourcing
Our policy to develop our Far Eastern
sourcing capability brings with it both
product liability risk (as we become the 
first EU importer of the products) and 
stock risk as we have to buy the products
on a firm sale basis (unlike most of our
other products which we buy on a “sale 
or return” basis). Superstore’s supply to
Wilkinson and Asda also requires us to
carry larger stock levels. Our experienced
Chinese employees have a strong,
practical focus on quality – quite simply 
a product is not shipped unless its 
quality has been assured. We are also
aggressively managing stock and this will
be a strong focus for the year.
Acquisition
Our long term strategy includes a 
potential element of growth by acquisition. 
It is our policy to thoroughly research
acquisition targets, to engage appropriate
professional resources in due diligence and
to deploy structured project management
throughout the process, including post
acquisition integration.
Employees
Employee relations are key to our
performance. We maintain formal 
policies covering all material aspects of
employment and are committed to high
standards of health and safety at work,
effective communication with employees
and to training and development. Our
progress in this area is discussed in 
the Corporate Responsibility review on
page 18.
Product quality
We must deliver the highest standards of
product quality and service. Our policy is
to comply with or exceed European and
UK standards for product quality, labelling
and safety and appropriate regulations and
advisory standards governing television
and internet shopping. We employ quality
assurance and compliance officers in 
the UK and China to ensure that our
operations meet or exceed these
requirements. Our broadcasting licence
from Ofcom is dependent on continual
adherence to these standards.
Suppliers
The Group trades with a wide variety of
suppliers, both in the UK and abroad. 
We have a small number of key suppliers
with whom we have long term agreements;
the remainder of our purchases are made
on a deal to deal basis. Our policy is to
trade with our suppliers under clear written
terms which recognise the obligations of
both parties. Further details of our supplier
relationships are in the Corporate
Responsibility review on page 18.
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
75705 PRELIM  31/3/08  12:23  Page 16 Ideal Shopping Annual Report 07
17
standby transmission arrangements in the
event of a broadcast communications
failure. In 2007 we implemented new
systems hardware that has significantly
enhanced our resilience. We will be
reviewing our contingency arrangements 
in 2008.
Legislation and regulation
Our Ofcom licence, which is required to
enable us to broadcast, requires us to
comply with the Advertising Standards
Agency’s (ASA’s) Television Advertising
Standards Code. This code is strictly
enforced by the ASA. In addition, our
activities are governed by distance selling
and other consumer legislation, as well as
environmental regulation including the
Packaging Waste Regulations and the
Waste Electrical and Electronic Equipment
Regulations. It is our policy to comply with 
or exceed all applicable legal and regulatory
requirements. We have managers with
specific responsibility for keeping up to 
date with legal requirements, advising senior
management of required actions and putting
in place appropriate procedures.
Financial
The principal treasury risks to the Group
arise from exchange rate and interest rate
fluctuations. The Directors agree policies
for managing these risks. A substantial
proportion of the purchases of goods 
for resale are denominated in foreign
currencies. The Group’s policy is to 
hedge substantially all the risks of 
currency fluctuations with respect to
committed transactions in foreign currency.
In order to reduce the impact of currency
volatility on the trading operations of the
business the Group may also take forward
positions in foreign currency to the extent
of forecast requirements over a rolling six
month period. These positions are subject
to the approval of the Chairman of the
Audit Committee.
Our operations are funded primarily
through retained earnings with a proportion
of medium and long term asset backed
finance, at both fixed and floating rates of
interest. Cash deposits are placed at fixed
interest rates with varying maturity dates to
ensure liquidity.
We have considerable financial strength 
as a result of the cash retained on 
our balance sheet. This facilitates our
investment strategy and is appropriate in
the context of a rapidly evolving business
and market. However the capital structure
of the Group is kept under review by the
Board with a view to maximising
shareholder value.
Annual Report 07
75705 PRELIM  31/3/08  12:23  Page 17 18
2007 Corporate Responsibility Review
Corporate responsibility review
We will not succeed unless we have 
good relationships with our customers,
employees and third parties who come 
into contact with our business and 
its operations.
During 2008 we will be implementing 
a Code of Business Conduct which 
sets out our policies in this area, which 
will be available on our website
www.idealshoppingdirect.tv.
We set out below the main areas which
we focus on.
Customers
We have a responsibility to our customers
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 2007 the number of Advertising
Standards Agency (ASA) adjudications
against us fell from 3 to 2, which reflects
our focus on advertising our products
responsibly.
We have also in 2007 implemented the
Payment Card Industry (PCI)’s new data
security standard which has improved the
way in which we safeguard the personal
data and credit card details that our
customers provide to us.
Employees and health & safety
We have over 500 employees, based
primarily at our premises in Peterborough.
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, and 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 2007 included:
● Performance appraisals and training/
development needs analysis for all
employees
● Introduction of health care cover for 
all employees
● Adoption of the government childcare
voucher scheme
● A range of training workshops,
including courses on age discrimination
and equal opportunities
We focus on 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 2007, achievements included:
● A continuing reduction in accidents,
with a 12% reduction in reported
accidents and a 67% reduction in 
HSE reportable accidents
● Full review of our health and safety
policies
● In our warehouse, backstage and
technical operations departments,
where manual handling operations
present the greatest risk, we now 
have dedicated manual handling
trainers in each department with
specific training packages
● The introduction of a health and safety
module in all new employee inductions.
Suppliers and supply chain
We have two main categories of supplier:
Suppliers of goods and services that we
sell to our customers (“product suppliers”).
Providers of support services, such 
as broadcast carriage or IT services
(“service providers”).
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 expect others to do so.
We maintain a good relationship with our
service providers, and have secured long
term contracts with them which clearly set
out our mutual rights and obligations.
We ask all of our product suppliers to sign
our terms and conditions, which set out
what both parties expect from each other.
These terms are available on our website.
They include a commitment to ensure that
products are sourced only from businesses
which comply with minimum employee
75705 PRELIM  31/3/08  12:23  Page 18 Ideal Shopping Annual Report 07
19
welfare standards, such as freedom of
association, working conditions, safety,
working hours and pay. We do not
presently audit these for third party
suppliers, although Superstore reviews
employee welfare standards as part of 
its factory due diligence.
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.
One of our main uses of energy is the
lighting of our television studios. We have
committed to replace our lights with low
energy fittings early in 2008, which we
estimate will reduce our energy usage 
by 85%. We are also switching to a
renewable based electrical energy contract
in May 2008, which will reduce our
emissions by 1.68 tonnes of CO
2
per day.
We recycle all of our waste cardboard in
the warehouse and have recently acquired
a general waste compacter which will
reduce the number of skips that are
collected. In our offices, to encourage
recycling, we have greatly increased the
number of recycling bins and reduced the
number of general waste bins.
Our products sourced from China are
transported to the UK by sea, and our
Chinese office ensures that containers 
are used efficiently. Our suppliers are
responsible for ensuring that other products
are delivered to our warehouse or direct to
customers. We use national carriers to
deliver our products to customers, using the
most efficient means of delivery possible.
During 2007 we took steps to ensure 
that we comply with the Waste Electrical
and Electronic Equipment Regulations
2006 in respect of electrical goods 
which we sell. We are part of the Valpak
compliance scheme, the packaging of all
relevant products includes the “crossed
wheelie bin” symbol and we provide
consumers with information about
recycling on our website.
During 2008 we will be monitoring our
performance in this area and set targets 
for 2009.
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 we
provide a work experience programme
annually to young people and are seen 
as a leader in this area. In 2007, we
participated in a local authority travel
survey, and carried out our own detailed
survey from which we have developed a
travel plan, which we will start to implement
in 2008. For the plan and its innovation we
recently were award a Green Travel Award
from Peterborough Council.
Annual Report 07
75705 PRELIM  31/3/08  12:23  Page 19 20
2007 Key Performance Indicators
Key performance indicators 2007
2007 2006 2005
Like for like sales growth 14.6% 7.3% 15.0%
Gross margin % 42.2% 41.3% 42.1%
Overheads as % of sales 36.4% 34.8% 33.6%
2007 2006 2005
Total customer file 1.76m 1.43m 1.12m
New customers 0.38m 0.30m 0.37m
Frequency (per annum) 3.7 3.9 3.7
Average order value £37.8 £34.4 £34.0
2007 2006 2005
ASA adjudications 2 3 5
Returns rate (value) 13.8% 14.2% 14.2%
2007 2006 2005
Staff turnover 18% 22.2% 31.2%
Reportable accidents 3 8 8
Total recorded accidents (includes reportable accidents) 25 33 50
75705 PRELIM  31/3/08  12:23  Page 20 Ideal Shopping Annual Report 07
21
Directors: David Williams (Non-executive Chairman)
Andrew Fryatt MA (Chief Executive Officer)
David Blake ACA (Finance Director)
Terry Donovan FCCA FCMA (Non-executive Director)
Susan Ellis (Non-executive Director)
Company Secretary: David Blake
Bankers: Barclays Bank plc
Church Street
PETERBOROUGH PE1 1EZ
Nominated Advisers, Brokers Landsbanki Securities (UK) Limited
and Financial Advisers: Beaufort House 
15 St Botolph Street
LONDON EC3A 7QR
Solicitors: Norton Rose
Kempson House
Camomile Street
LONDON EC3A 7AN
DLA Piper UK LLP
Princes Exchange
Princes Square
LEEDS LS1 4BY
Auditors: Grant Thornton UK LLP
Registered Auditors
Chartered Accountants
Grant Thornton House
Kettering Parkway
KETTERING
Northants NN15 6XR
Registrars: Capita IRG plc
Bourne House
34 Beckenham Road
BECKENHAM
Kent BR3 4TU
Company registration number: 01534758
Registered office: Ideal Home House
Newark Road
PETERBOROUGH PE1 5WG
www.idealshoppingdirect.tv
Board of Directors and Professional Advisers
Ideal Shopping Annual Report 07
75705 PRELIM  31/3/08  12:23  Page 21 1. David Williams MSc
Non-executive Chairman
David joined the Board on 13 July 2007. 
He has extensive experience as a non-
executive director in both the public and
private sectors. He has been Chairman of
Slug & Lettuce plc, the Senior Independent
Director at DX Services plc and a former
Chairman of Wyevale Garden Centres plc.
His most recent executive role was as Chief
Executive Officer of the Thresher Group
between 2001 and 2004. He is currently
chair of Accantia Ltd, Sandpiper Ltd and
The Original Factory Shop, all Duke Street
investee businesses, an Operating Partner
with Duke Street Capital LLP , and a non-
executive director of Mothercare plc and the
Royal London Mutual Insurance Group.
David is a Governor of the London
Business School.David is Chairman of the
Remuneration Committee, the Nominations
Committee and a member of the Audit
Committee.
2. Andrew Fryatt MA
Chief Executive Officer
Andrew joined the Board on 8 November
2004 and was appointed Chief Executive
Officer in September 2005. He has a
background in retail, including senior 
roles at Woolworths, Tandy, Carphone
Warehouse and T-Mobile. Since joining 
the Company, Andrew has focused on
strengthening the senior management
team and the Company’s systems and
infrastructure to support the Company’s
organic growth and pursuit of new
opportunities. He was instrumental in
negotiating the new Freeview and Virgin
Media contracts and is now leading the
Company’s strategic delivery.
3. David Blake ACA
Finance Director
David was appointed as Finance Director
on 23 July 2007. David joins from
Jefferson Wells International, where he 
was Director of Financial Operations. His
previous experience includes Colt Telecom
Group Plc, Centrica Plc, Cable & Wireless
Plc and KPMG.
Since joining the Company, David’s 
focus has been on strengthening the
financial team and systems, and on the
implementation of policies designed to
manage risk.
3 4
5
Board of Directors 
22
1 2
75705 PRELIM  31/3/08  12:23  Page 22 4. Terence Donovan FCCA FCMA
Non-executive Director
Terry was appointed to the Board on 
20 July 1999. He has considerable
experience at board level in a finance
capacity, predominantly in the retail sector,
in both private and publicly quoted
businesses. He was Finance Director at
Moss Bros Group Plc between 1988 and
1999. Prior to this he was Finance Director
at Cecil Gee Plc between 1986 and 1988.
Terry is Chairman of the Audit Committee
and a member of the Remuneration
Committee and the Nominations
Committee.
5. Susan Ellis
Non-executive Director
Susan Ellis was appointed to the Board 
on 12 June 2006. She is the former
Chairman of Weber Shandwick Square
Mile, one of London’s leading financial
communications consultancies, prior to
which she was a founder of Square Mile
Communications in 1988. Susan has a
strong background in the business world
and direct experience of building a highly
successful business. She is also a director
and Chairman of Villa Colori Limited. 
Susan is a member of the Remuneration
Committee and Nominations Committee.
1. Pam Aujla
2. Peter Andalo
3. Andrew Fryatt
4. David Blake
Management Team
Ideal Shopping Annual Report 07
23
75705 PRELIM  31/3/08  12:23  Page 23 Directors’ Report
Directors’ Report
The Directors present their report together with the audited financial statements for the year ended 
30 December 2007. 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 sections headed “Our Business”, “Our Markets”,
“Our Formula”, the Chairman’s Statement, the Chief Executive’s Review, the Finance Director’s Review, 
the 2007 Risks and Uncertainties, the Corporate Responsibility Review and the 2007 Key Performance
Indicators, 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 has a branch in China.
Results and dividends
The consolidated profit for the year after taxation was £4.1m (2006 restated under IFRS: £4.4m). 
A final dividend of 3.75p per ordinary share (2006: 2.75p) is proposed in respect of the year ended 
30 December 2007 to add to an interim dividend of 1.75p per share (2006: 1.5p). The results are
discussed in greater detail in the Finance Director’s Review on pages 14 and 15.
Directors
Details of the Directors in office at the year end are set out on pages 22 and 23. During the year there
were the following changes to the Board:
1 May 2007 Paul Wright resigned
6 June 2007 Val Kaye resigned
6 July 2007 Mike Camp resigned
13 July 2007 Jim Hodkinson resigned
13 July 2007 David Williams appointed
23 July 2007 David Blake appointed
At the 2008 Annual General Meeting, David Williams and David Blake who were appointed since the last
AGM will offer themselves for election by shareholders, and Andrew Fryatt will be retiring by rotation and
offering himself for re-election.
The Directors serving at the year-end and their interests in the shares of the Company were:
At 31 December 2007 At 31 December 2006
3p ordinary shares 3p ordinary shares
D Williams 25,000 –
T W Donovan 10,000 10,000
S Ellis – –
A Fryatt 56,220 28,120
D Blake – –
There were no changes in the Directors’ shareholdings between the year end and 4 March 2008.
Details of share options held by Directors at the year end are given in the Remuneration Report.
24
75705 PRELIM 2  31/3/08  11:48  Page 24 Ideal Shopping Annual Report 07
25
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 2006 and 2007 Annual General Meetings to
purchase its own shares, it did not make any purchases during the period.
At 19 February 2008 the following had notified the Company of a disclosable interest in 3% or more of the
nominal value of the Company’s ordinary shares.
3p ordinary
shares %
Fidelity Investments 4,390,198 14.80
P C Wright 3,950,000 13.32
Artemis Investment Management 2,919,853 9.84
V Kaye 2,200,000 7.42
Axa Framlington Investment Managers 1,923,188 6.48
Ennismore Fund Management 1,730,000 5.83
Forum Investment Management 1,426,700 4.81
F&C Asset Management 1,331,115 4.49
Majedie Asset Management 1,188,703 4.01
Up to date details are available on the Company’s website, www.idealshoppingdirect.tv.
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 18.
Disabled employees
It is Group policy that training, career development and promotion opportunities should be available to all
employees and this is reflected in its 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 employees 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
Whilst it does not follow any published code or standard, 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 normal policy is to pay
suppliers at the end of the seventh week following the week in which the goods are received. The number
of days’ purchases outstanding for payment at 30 December 2007 was 51 days (2006: 54 days).
Treasury and risk management
The Group’s treasury and financial risk management objectives are detailed in the Risks and Uncertainties
on page 17. Details in respect of the Group’s exposure to interest rate risk, liquidity risk and currency risk
are detailed in note 32 to the Financial Statements.
75705 PRELIM 2  31/3/08  11:48  Page 25 Directors’ Report continued
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.
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.
Directors’ responsibilities for the financial statements
The Directors are responsible for preparing the Annual Report and the financial statements in accordance
with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted
Accounting Practice).
Company law in the United Kingdom requires the Directors to prepare financial statements for each
financial year which give a true and fair view of the state of affairs of the Company and the Group and of
the profit or loss of the Group for that period. In preparing these 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 applicable accounting standards have been followed, subject to any material departures
disclosed and explained in the financial statements;
● prepare the financial statements on the going concern basis unless it is inappropriate to presume that
the 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 Company and enable them to ensure that the financial
statements comply with the Companies Act 1985. They are also responsible for safeguarding the assets
of the Company and hence for taking reasonable steps for the prevention and detection of fraud and 
other irregularities.
In so far as the Directors are aware:
● there is no relevant audit information of which the Company’s auditors are unaware; and 
● the Directors have taken all steps that they ought to have taken to make themselves aware of any
relevant audit information and to establish that the auditors are aware of that information.
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.
26
75705 PRELIM 2  31/3/08  11:48  Page 26 Ideal Shopping Annual Report 07
27
Disclaimer
This Directors’ Report and Business Review and the 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 these Accounts should be construed
as a profit forecast.
Annual General Meeting
The Annual General Meeting will be held on Wednesday 7 May 2008 at 10.00 a.m. at the offices of
Buchanan Communications, 45 Moorfields, London EC2Y 9AE.
Special business at the Annual General Meeting will be:
● Requesting authority to distribute shares to the value of the lesser of the unissued ordinary share capital of
the Company, and one third of the issued ordinary share capital of the Company. At 4 March 2008 the
unissued ordinary share capital covered by this authority constitutes 8,336,495 ordinary shares, 28.1% of
the issued share capital. This authority will lapse at the 2009 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 £44,495 (1,483,175 ordinary shares),
which constitutes 5% of the Company’s issued share capital at 30 December 2007, without offering
them to existing shareholders. This authority will lapse at the 2008 Annual General Meeting.
● That the Directors be authorised to buy up to 2,966,350 (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.
The Notice of Annual General Meeting is set out on pages 90 to 93.
Auditors
Grant Thornton UK LLP offer themselves for reappointment as auditors in accordance with section 385 of
the Companies Act 1985.
BY ORDER OF THE BOARD
David Blake
Company Secretary
4 March 2008
75705 PRELIM 2  2/4/08  09:50  Page 27 Corporate Governance
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, and the Corporate
Governance Guidelines and Voting Policy issued by the National Association of Pension Funds (NAPF) in
2007 (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 each of these committees
comprises two other independent non-executive Directors, the Board does not consider that the Chairman
exercises undue influence over these committees.
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 the year, except that
each of Paul Wright, Val Kaye and Terry Donovan missed one Board meeting and Terry Donovan also
missed 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 reports on operational performance and the Finance Director reports
on financial performance. 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 Chairman and the other non-executive Directors have regular dialogue outside Board meetings.
Directors
The Board comprises a non-executive Chairman, David Williams, two independent non-executive
Directors, Terry Donovan and Susan Ellis, and two executive Directors, Andrew Fryatt who is the Chief
Executive Officer and David Blake who is the Finance Director and Company Secretary. Biographical
details are set out on pages 22 and 23.
In general terms, the Chairman is responsible for running the Board and the Chief Executive Officer is
responsible for running the Company’s business.
28
75705 PRELIM 2  31/3/08  11:48  Page 28 Ideal Shopping Annual Report 07
29
The Board considers that David Williams was independent on appointment, and that Terry Donovan and
Susan Ellis are independent. Both David Williams and Terry Donovan have been granted share options by
the Company (see the Remuneration Report for details).The Board considers that the number of shares
involved is not material enough to impair their independence. Overall the Board considers that there is a
good balance of executive and non-executive Directors such that no single person or grouping is able to
dominate decisions.
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.
During 2007 the composition of the Board changed significantly. Paul Wright and Val Kaye, the Company’s
founders, stepped down on 1 May and 6 June respectively. The Finance Director, Mike Camp, resigned
on 6 July and was replaced by David Blake on 26 July. The former Chairman, Jim Hodkinson, left the
Board on 13 July and was replaced by David Williams on the same day.
Board Committees
The Audit Committee is chaired by Terry Donovan, the other member is David Williams (from the time of
his appointment, and prior to that Jim Hodkinson). The Board considers that Terry Donovan has recent and
relevant financial experience because of his accountancy qualification and experience as a plc finance
director. David Williams also has recent audit committee experience by virtue of his membership of the
Audit Committee of Mothercare plc.
The Committee is scheduled to meet at least twice a year, to co-incide with key dates in the Company’s
financial reporting and audit cycle, during 2007 it met in March and September. The Chief Executive and
the Finance Director usually attend meetings by invitation, along with a representative from the 
Company’s auditor.
The principal responsibilities of the Committee are:
● 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
During the year the Committee met twice and September, when it approved the preliminary and half year
results, following discussion of the auditor’s review paper, and approved any significant judgements made
by management. The Chairman, Terry Donovan, had direct dialogue with the auditors and was directly
involved in the process of their reappointment.
The Remuneration Committee is chaired by David Williams (from his appointment, before that 
Jim Hodkinson), the other members are 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 pensions and any compensation payments
● Approval of awards made to Directors and management under share incentive schemes.
75705 PRELIM 2  31/3/08  11:48  Page 29 Corporate Governance continued
During the year the Committee met twice and:
● Reviewed and recommended proposed salary and benefits increase to be given to Andrew Fryatt,
and approved fees for non-executive Directors
● Approved the targets applicable to the 2007 cash bonus for executive Directors
● Approved the contractual compensation packages to be given to departing Directors
● Approved the remuneration package to be offered to David Williams and David Blake on 
appointment, including options to be granted under the Company’s Approved and Unapproved 
Share Option Scheme
● Approved the appointment of benefits consultants to devise a new share-based long term incentive
The Nominations Committee is chaired by David Williams (from his appointment, before that 
Jim Hodkinson), the other members are Terry Donovan, Susan Ellis and Andrew Fryatt.
The Committee’s responsibilities include:
● Reviewing the composition and balance of the Board (including succession planning)
● Making recommendations on appointments to the Board
During the year the Committee approved the role specification for the new Chairman and Finance 
Director appointments. Executive Search agents were instructed to find suitable candidates and the final
decision was made by the Committee members after reviewing the results of the search and meeting
potential candidates.
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 and 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.
30
75705 PRELIM 2  31/3/08  11:48  Page 30 Ideal Shopping Annual Report 07
31
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.
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 Group;
● a mutuality of interest is created; or
● the external auditor is put in the role of advocate for the Group.
75705 PRELIM 2  31/3/08  11:48  Page 31 Remuneration Report
Remuneration Report
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 company car 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 day preceding the day of
grant. The options vest 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.
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 annually.
The Remuneration Committee has appointed Keppler Associates to design a share based long term
incentive plan for executive Directors and senior management to be implemented in 2008 in place of the
2000 Share Option Scheme.
32
75705 PRELIM 2  31/3/08  11:48  Page 32 Group policy is that the operation of its share schemes should conform to relevant investor guidelines, in
particular those issued by the Association of British Insurers (ABI). In particular the Group complies with the
requirement that the number of newly issued shares used to satisfy outstanding share awards should not
exceed 10% of issued share capital over any ten year period.
Executive Directors’ service contracts and remuneration
Andrew Fryatt and David Blake each have a full time service contract with the Company. In addition to their
salaries, each of them are entitled to a number of other benefits including private medical cover, motor
vehicle allowance and pension contributions as outlined above. Each service contract may be terminated
by the Company by six months’ notice.
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 20% of basic salary for on target performance, rising to 100% of salary for
exceptional performance.
Remuneration of the executive Directors in 2007 is set out in the audited section below.
Details of share options granted to Andrew Fryatt and David Blake are set out in the table on page 34.
The Company has also committed to grant to David Blake options under the 2000 Share Option Scheme
equivalent to 1 x basic salary in September 2008 provided he is still an employee of the Company. 
There will be a performance condition set by the Remuneration Committee.
Non-executive Directors’ appointments and remuneration
The non-executive Directors all have letters of appointment. The term of each appointment is set 
out below:
Term Expiry Notice period
(may be given
at any time)
David Williams 3 years 10 July 2010 6 months
Terry Donovan Indefinite n/a 6 months
Susan Ellis 3 years 31 May 2009 Immediate
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.
Details of share options granted to non-executive Directors are set out in the table on page 34.
33
Ideal Shopping Annual Report 07
75705 PRELIM 2  2/4/08  09:50  Page 33 Remuneration Report continued
AUDITED INFORMATION:
Directors’ remuneration
Salary Benefits Bonus 2007 2006 2007 2006
Total Total
(exc. (exc. 
pension) pension) Pensions Pensions
£’000 £’000 £’000 £’000 £’000 £’000 £’000
A Fryatt 180 12 – 192 224 25 24
D Blake 58 4 – 62 – – –
D Williams 40–– 40 – – –
J Hodkinson 84–– 84 77 – –
M Camp 169 6 – 175 146 10 19
P Wright 62 3 – 65 258 16 47
S Ellis 30–– 30 15 – –
T W Donovan 34–– 34 30 – –
V Kaye 25–– 25 101 – –
682 25 – 707 851 51 90
2007 remuneration in respect of Jim Hodkinson, Paul Wright, Val Kaye and Mike Camp includes £38,700,
£20,000, £13,500 and £100,000 respectively relating to compensation for loss of office.
Gains made by Directors on exercise of share options during 2007 were Jim Hodkinson £177,000 and
Paul Wright £95,750.
The cost to the Company of Directors’ options under IFRS2 in 2007 were: Andrew Fryatt £91,000, 
David Blake £5,000, David Williams £8,000, Jim Hodkinson £142,000.
Share options
2000 Share Option Scheme
Option price Number of
per share Date exercisable Options
J Hodkinson £2.415 4 March 2008 – 12 July 2008 100,000
A Fryatt £1.565 8 November 2007 – 8 November 2014 95,847
A Fryatt £2.415 4 March 2008 – 4 March 2015 124,224
A Fryatt £3.65 19 September 2008 – 19 September 2015 42,329
D Williams £1.995 11 September 2010 – 11 September 2017 100,000
D Blake £1.995 11 September 2010 – 11 September 2017 160,401
2005 Save As You Earn Share Option Scheme
A Fryatt £1.94 1 August 2010 – 1 February 2011 8,518
T Donovan £2.78 1 July 2011 – 31 December 2011 5,791
The mid market price of the 3p ordinary shares was £1.835 at 30 December 2007. The mid market price
ranged from £2.75 to £1.835 during the year.
34
75705 PRELIM 2  31/3/08  11:48  Page 34 Report of the Independent Auditor
We have audited the Group and parent Company financial statements (the ‘’financial statements’’) of 
Ideal Shopping Direct Plc for the year ended 30 December 2007 which comprise the principal accounting
policies, 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 changes in equity,
notes 1-40 and the transition to international financial reporting standards reconciliations. 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 European
Union are set out in the Statement of Directors’ Responsibilities.
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 whether
the financial statements have been 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 sections headed “Our Business”, “Our Markets”, “Our Formula”, the
Chairman’s Statement, the Chief Executive’s Review, the Finance Director’s Review, the 2007 Risks 
and Uncertainties, the Corporate Responsibility Review and the 2007 Key Performance Indicators, 
that is cross-referred from the Business Review section of 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 other information contained in the Annual Report and consider whether it is consistent with 
the audited financial statements. The other information comprises only the Directors’ Report and the
sections headed “Our Business”, “Our Markets”, “Our Formula”, the Chairman’s Statement, the Chief
Executive’s Review, the Finance Director’s Review, the 2007 Risks and Uncertainties, the Corporate
Responsibility Review, the 2007 Key Performance Indicators, the Corporate Governance Report and the
Remuneration Report. 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.
Report of the Independent Auditor
to the members of Ideal Shopping Direct Plc
35
75705 PRELIM 2  31/3/08  11:48  Page 35 Report of the Independent Auditor continued
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
European Union, of the state of the Group’s affairs as at 30 December 2007 and of its profit for the
year then ended;
● The parent Company financial statements give a true and fair view, in accordance with IFRSs as
adopted by the European Union as applied in accordance with the provisions of the Companies Act
1985, of the state of the parent company’s affairs as at 30 December 2007;
● 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.
Grant Thornton UK LLP
Registered Auditor
Chartered Accountants
Kettering
4 March 2008
36
75705 PRELIM 2  31/3/08  11:48  Page 36 Ideal Shopping Annual Report 07
Consolidated Income Statement
For the 52 weeks ended 30 December 2007
37
52 weeks 52 weeks
ended ended
30 December 31 December
2007 2006
Notes £’000 £’000
Sales Revenue 5 96,871 85,638
Cost of Sales (56,008) (50,255)
Gross profit 40,863 35,383
Distribution costs (3,639) (3,027)
Administrative expenses
Exceptional items 11 (570) –
Other (31,362) (26,397)
Other expenses (283) (417)
Operating profit 6 5,009 5,542
Finance costs 9 (69) (97)
Finance income 9 485 594
Other financial result 10 332 101
Profit from continuing operations 5,757 6,140
Profit from continuing operations before
exceptional items 6,327 6,140
Tax expense net 12 (1,628) (1,733)
Net profit for the period 4,129 4,407
Attributable to equity shareholders of Ideal
Shopping Direct plc 4,129 4,407
Earnings per share
Continuing operations:
Basic 13 13.9p 15.0p
Diluted 13 13.8p 14.8p
The Company has not presented its own income statement as permitted by section 230 of the
Companies Act 1985. The parent Company’s profit attributable to shareholders amounted to £3.5m 
(2006: £4.8m).
The accompanying accounting policies and notes form an integral part of these financial statements.
75705 PRELIM 2  31/3/08  11:48  Page 37 Consolidated Balance Sheet
At 30 December 2007
38
30 December 31 December
2007 2006
Notes £’000 £’000
Assets
Non-current
Goodwill 14 1,523 1,523
Other intangible assets 15 3,083 1,510
Property, plant and equipment 16 9,904 9,420
Deferred tax assets 18 71 94
14,581 12,547
Current
Inventories 19 6,766 5,310
Trade and other receivables 20 5,616 2,595
Current tax assets 97 –
Cash and cash equivalents 22 16,697 18,684
29,176 26,589
Total assets 43,757 39,136
Equity
Equity attributable to shareholders of 
Ideal Shopping Direct Plc
Share Capital 23 894 888
Share Premium 23 308 193
Other reserves 2,642 2,166
Retained earnings 19,423 16,496
Total equity 23,267 19,743
Liabilities
Non-current
Borrowings 25 1,863 2,202
Deferred tax liabilities 18 705 486
Obligations under finance leases 26 – 260
2,568 2,948
Current
Provisions 28 449 340
Trade and other payables 29 16,253 14,860
Borrowings 25 339 339
Current tax liabilities 572 424
Obligations under finance leases 26 309 482
17,922 16,445
Total liabilities 20,490 19,393
Total equity and liabilities 43,757
39,136
The financial statements were approved by the Board of Directors on 4 March 2008.
Andrew Fryatt David Blake
Chief Executive Officer Finance Director
The accompanying accounting policies and notes form an integral part of these financial statements.
75705 PRELIM 2  31/3/08  11:48  Page 38 Ideal Shopping Annual Report 07
Company Balance Sheet
At 30 December 2007
39
30 December 31 December
2007 2006
Notes £’000 £’000
Assets
Non-current
Other intangible assets 15 3,083 1,510
Property, plant and equipment 16 9,876 9,410
Investments 17 743 743
Deferred tax assets 18 14 94
13,716 11,757
Current
Inventories 19 6,271 4,928
Trade and other receivables 20 6,937 4,120
Current tax assets 97 –
Cash and cash equivalents 22 16,671 18,533
29,976 27,581
Total assets 43,692 39,338
Equity
Equity attributable to shareholders of 
Ideal Shopping Direct Plc
Share Capital 23 894 888
Share Premium 23 308 193
Other Reserves 2,585 2,166
Retained earnings 19,180 16,905
Total equity 22,967 20,152
Liabilities
Non-current
Borrowings 25 1,863 2,202
Deferred tax liabilities 18 705 486
Obligations under finance leases 26 – 260
2,568 2,948
Current
Provisions 28 449 340
Trade and other payables 29 16,490 14,653
Borrowings 25 339 339
Current tax liabilities 570 424
Obligations under finance leases 26 309 482
18,157 16,238
Total liabilities 20,725 19,186
Total equity and liabilities 43,692
39,338
The financial statements were approved by the Board of Directors on 4 March 2008.
Andrew Fryatt David Blake
Chief Executive Officer Finance Director
The accompanying accounting policies and notes form an integral part of these financial statements.
75705 PRELIM 2  31/3/08  11:48  Page 39 Statement of Changes in Equity
Group statement of changes in equity: 2006
Share Share Other Retained Total
Capital Premium reserves earnings Equity
£’000 £’000 £’000 £’000 £’000
1 January 2006 887 180 1,643 13,152 15,862
Revaluation of Land and Buildings – – 257 – 257
Income taxes relating to items
charged or credited to equity – – (13) (33) (46)
Net income recognised
directly in equity 887 180 1,887 13,119 16,073
Profit for the 52 weeks ended
31 December 2006 – – – 4,407 4,407
Total recognised income and
expense for the period 887 180 1,887 17,526 20,480
Employee share based compensation 1 13 – – 14
Increase in share option reserve – – 279 – 279
Dividends – – – (1,030) (1,030)
31 December 2006 888 193 2,166 16,496 19,743
Company statement of changes in equity: 2006
Share Share Other Retained Total
Capital Premium reserves earnings Equity
£’000 £’000 £’000 £’000 £’000
1 January 2006 887 180 1,643 13,152 15,862
Revaluation of Land and Buildings – – 257 – 257
Income taxes relating to items
charged or credited to equity – – (13) – (13)
Net income recognised
directly in equity 887 180 1,887 13,152 16,106
Profit for the 52 weeks ended
31 December 2006 – – – 4,783 4,783
Total recognised income and 
expense for the period 887 180 1,887 17,935 20,889
Employee share based compensation 1 13 – – 14
Increase in share option reserve – – 279 – 279
Dividends – – – (1,030) (1,030)
31 December 2006 888 193 2,166 16,905 20,152
40
75705 PRELIM 2  31/3/08  11:48  Page 40 Ideal Shopping Annual Report 07
Group statement of changes in equity: 2007
Share Share Other Retained Total
Capital Premium reserves earnings Equity
£’000 £’000 £’000 £’000 £’000
1 January 2007 888 193 2,166 16,496 19,743
Revaluation of Land and Buildings – – 439 – 439
Deferred Tax Adjustment – – – (22) (22)
Income taxes relating to items
charged or credited to equity – – (40) – (40)
Net income recognised
directly in equity 888 193 2,565 16,474 20,120
Profit for the 52 weeks ended
30 December 2007 – – – 4,129 4,129
Total recognised income and
expense for the period 888 193 2,565 20,603 24,249
Employee share based compensation 6 115 – – 121
Dividends – – – (1,333) (1,333)
Increase in Share Option Reserve – – 77 153 230
30 December 2007 894 308 2,642 19,423 23,267
Company statement of changes in equity: 2007
Share Share Other Retained Total
Capital Premium reserves earnings Equity
£’000 £’000 £’000 £’000 £’000
1 January 2007 888 193 2,166 16,905 20,152
Revaluation of Land and Buildings – – 439 – 439
Income taxes relating to items
charged or credited to equity – – (97) (82) (179)
Net income recognised 888 193 2,508 16,823 20,412
directly in equity
Profit for the 52 weeks ended
30 December 2007 – – – 3,537 3,537
Total recognised income and
expense for the period 888 193 2,508 20,360 23,949
Employee share based compensation 6 115 – – 121
Dividends – – – (1,333) (1,333)
Increase in Share Option Reserve – – 77 153 230
30 December 2007 894 308 2,585 19,180 22,967
41
75705 PRELIM 2  31/3/08  11:48  Page 41 Consolidated Statement of Cash Flows
For the 52 weeks ended 30 December 2007
42
2007 2006
Notes £’000 £’000
Operating activities
Result for the period after tax 4,129 4,407
Adjustments 39 2,506 2,236
Change in inventories (1,385) 159
Change in trade and other receivables (3,021) 191
Change in trade and other payables 1,393 (550)
Change in provisions 109 (139)
Cash generated from operations 3,731 6,304
Income tax paid (1,482) (3,026)
Net cash from operating activities 2,249 3,278
Investing activities
Additions to property, plant and equipment 16 (808) (582)
Additions to other intangible assets 15 (1,860) (450)
Acquisition of Superstore TV net of cash acquired 4 – (1,720)
Interest received 9 485 594
Net Cash used in Investing Activities (2,183) (2,158)
Financing activities
Repayment of bank loans (339) (337)
Discharge of finance lease liability (433) (543)
Interest paid 9 (69) (97)
Dividends paid 13 (1,333) (1,030)
Financing outflows (2,174) (2,007)
Proceeds from share issue 121 14
Net change in cash and cash equivalents (1,987) (873)
Cash and cash equivalents, beginning of period 22 18,684 19,557
Cash and cash equivalents, end of period 22 16,697 18,684
75705 PRELIM 2  31/3/08  11:48  Page 42 Ideal Shopping Annual Report 07
Company Statement of Cash Flows
For the 52 weeks ended 30 December 2007
43
2007 2006
Notes £’000 £’000
Operating activities
Result for the period after tax 3,537 4,783
Adjustments 39 2,292 2,072
Change in inventories (1,272) 326
Change in trade and other receivables (2,586) (2,143)
Change in trade and other payables 1,524 26
Change in provisions 109 (139)
Cash generated from operations 3,604 4,925
Income tax paid (1,403) (3,026)
Net cash from operating activities 2,201 1,899
Investing activities
Additions to property, plant and equipment 16 (779) (576)
Additions to other intangible assets 15 (1,860) (450)
Acquisition of investment 4 – (512)
Interest received 629 594
Net Cash used in Investing Activities (2,010) (944)
Financing activities
Repayment of bank loans (339) (337)
Discharge of finance lease liability (433) (543)
Interest paid (69) (83)
Dividends paid 13 (1,333) (1,030)
Financing outflows (2,174) (1,993)
Proceeds from share issue 121 14
Net change in cash and cash equivalents (1,862) (1,024)
Cash and cash equivalents, beginning of period 22 18,533 19,557
Cash and cash equivalents, end of period 22 16,671 18,533
75705 PRELIM 2  31/3/08  11:48  Page 43 44
1. General information
The consolidated financial statements of the Group have been prepared in accordance with
International Financial Reporting Standards (IFRS) as adopted by the EU and under the historical cost
convention, except they have been modified to include the revaluation of certain non-current assets,
financial assets and liabilities. The measurement bases and principal accounting policies of the Group
are set out below.
A policy of revaluation in respect of property has been adopted as at 30 December 2007 as the
Directors consider this the most appropriate policy. This policy has been applied retrospectively, and
where appropriate the 2006 comparatives have been amended accordingly.
Ideal Shopping Direct Plc, a public limited company, is the Group’s ultimate parent. It is incorporated
and domiciled in the UK. The address of Ideal Shopping Direct Plc’s registered office, which is also 
its principal place of business;
Ideal Home House,
Newark Road,
Peterborough.
PE1 5WG.
Ideal Shopping Direct Plc’s shares are listed on the Alternative Investment Market of the London 
Stock Exchange.
The financial statements for the year ended 30 December 2007 (including the comparatives for the
year ended 31 December 2006) were approved by the Board of Directors on 4 March 2008.
Amendments to the financial statements are not permitted after they have been approved.
2. Standards and interpretations not yet applied
The following new Standards and Interpretations, which are yet to become mandatory, have not been
applied in the Group’s 2007 financial statements;
IFRIC 11 – IFRS 2 Group and Treasury Share Transactions – 1 March 2007
IFRIC 12 – Service Concession Arrangements – 1 January 2008
IFRIC 13 – Customer Loyalty Programmes – 1 July 2008
IAS 1 – Presentation of Financial Statements (Revised 2007) – 1 January 2009
IAS 23 – Borrowing Costs (revised 2007) – 1 January 2009
IAS 27 – Consolidated and Separate Financial Statements (Revised 2008) – 1 July 2009
IAS 32 – Financial Instruments: Presentation (Amendment) – 1 January 2009
IFRS 3 – Business Combinations (Revised 2008) – 1 July 2009
IFRS 8 – Operating Segments -1 January 2009
Based on Ideal Shopping Direct Plc’s current business model and accounting policies, management
does not expect material impacts on Ideal Shopping Direct Plc’s group financial statements when 
the Interpretations become effective, except for the amendment to IAS 1 that will impact on the
presentation of the financial statements.
Ideal Shopping Direct Plc does not intend to apply any of these pronouncements early.
Notes to the Financial Statements 
For the 52 weeks ended 30 December 2007
75705 NOTES  31/3/08  11:49  Page 44 Ideal Shopping Annual Report 07
45
3. Accounting policies
IFRS transitional arrangements
The Group adopted IFRS with a transition date of 1 January 2006. Comparative figures for the year
ended 31 December 2006, previously reported in accordance with UK GAAP, have been restated 
to comply with IFRS.
The disclosures required by IFRS 1 (First-time Adoption of International Financial Reporting Standards)
concerning the transition from UK GAAP (United Kingdom Generally Accepted Accounting Practice) 
to IFRS are given in the Transition to Financial Reporting Standards notes.
Overall considerations
The preparation of financial statements, in conformity with generally accepted accounting principles
under IFRS, 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.
Basis of consolidation
The consolidated financial statements incorporate the financial statements of the Company and its
subsidiaries made up to 30 December 2007.
Subsidiaries are fully consolidated from the date on which control is transferred to the Group.
The purchase method of accounting is used to account for the acquisition of subsidiaries by the
Group. The cost of an acquisition is measured as the fair value of the assets given, equity instruments
issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to
the acquisition. Identifiable assets acquired and liabilities and contingent liabilities assumed in a
business combination are measured initially at their fair values at the acquisition date.
The excess of the cost of acquisition over the fair value of the Group’s share of the identifiable net
assets acquired is recorded as goodwill.
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.
In the Company’s balance sheet the investments in subsidiaries are stated at cost less provision for
impairment losses. The intra-group loan established on acquisition of Superstore TV Limited has been
recognised at fair value upon recognition.
Revenue
Revenue represents the total invoice value, excluding value added tax, of goods sold and services
rendered during the period. 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 and for
rendering of services. Provision is made for the profit on anticipated returns at fair value upon
initial recognition.
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46
3. Accounting policies continued
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. Transactions 
which may give rise to exceptional items are principally gains or losses on board restructuring and
relocation costs.
Goodwill
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. Goodwill is carried at cost less accumulated
impairment losses.
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) 16.6%
Other intangibles (inc. trademarks) 12.5%
Acquired computer software licences are capitalised on the basis of the costs incurred to acquire and
bring to 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.
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, and
● 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’.
75705 NOTES  31/3/08  11:49  Page 46 Ideal Shopping Annual Report 07
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3. Accounting policies continued
Costs associated with maintaining computer software programmes in use are recognised as an
expense when incurred.
Estimation of uncertainty and significant judgement
Superstore TV Limited goodwill impairment review
An impairment review has been carried out on the following balances:
Goodwill £1,523,000 (As stated on Group balance sheet)
Investments £743,000 (As stated on Company balance sheet)
The impairment review is based on a five year net present value with the following assumptions for
growth of;
Market growth 2.0%
Sales price inflation 3.0% 
Cost inflation 3.0%
All cash flows are nominal and pre-tax, with an estimated cost of capital rate of 18% being used.
Intangible assets
After a due diligence review, the Directors do not consider that any intangible assets met IAS 38
‘Intangible assets’ criteria as part of the Superstore TV Limited Business Combination.
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,
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 or, where shorter, over the term of the relevant lease.
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.
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48
3. Accounting policies continued
Assets carried at valuation
The only class of asset that is carried at valuation is freehold land and property. Revaluation is to fair
value. Fair value is determined in appraisals by external professional valuers once every three years,
unless market-based factors indicate a material change in value.
Any revaluation surplus is credited to “other reserves” in equity, unless the carrying amount has
previously suffered a revaluation decrease or impairment loss. To the extent that any decrease has
previously been recognised in the income statement, a revaluation increase is recognised in the
income statement, with the remaining part of the increase charged to equity.
Downward revaluations are recognised upon appraisal or impairment testing, with the decrease being
charged against any revaluation surplus in equity relating to this asset and any remaining decrease
recognised in the income statement.
Impairment of property, plant and equipment, goodwill and intangible assets
Property, plant and equipment and intangible assets with finite useful lives are reviewed for impairment
at each reporting date whenever events or changes in circumstances indicate that the carrying
amount may not be recoverable.
Goodwill and intangible assets with an indefinite useful life and those intangible assets not yet available
for use are reviewed for impairment at least annually.
An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its
recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell
and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels
for which there are separately identifiable cash flows (cash generating units).
Where we are unable to perform an impairment review at individual asset level then this is performed
at cash generating unit level. Goodwill is always considered at cash generating unit level.
Leases
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.
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.
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49
3. Accounting policies continued
Inventories
Inventories are stated at the lower of cost and net realisable value, on a first in, first out basis.
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.
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.
75705 NOTES  31/3/08  11:49  Page 49 Notes to the Financial Statements continued
50
3. Accounting policies continued
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.
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.
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.
Foreign currencies
Transactions in foreign currencies are translated into sterling at the rate of exchange 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.
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.
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3. Accounting policies continued
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.
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 under the note 13.
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.
75705 NOTES  31/3/08  11:49  Page 51 Notes to the Financial Statements continued
52
4. Acquisition of Superstore TV Limited
On 1 June 2006 Ideal Shopping Direct Plc acquired 100% of the equity of Superstore TV Limited.
The acquisition of Superstore TV Limited was made to enhance the Group’s buying capabilities in
the Far East.
The total consideration for the acquisition was £1.6m of which £1.1m was satisfied by the repayment
of parent company loans.
The allocation of the purchase price to the assets and liabilities of Superstore TV Limited was
completed in 2006. The amounts for each class of the acquiree’s assets and liabilities recognised
at the acquisition date are as follows;
£’000
Non-current assets
Goodwill 1,523
Property, plant and equipment 12
1,535
Non-current liabilities
Borrowings 1,122
1,122
Current assets
Inventories 214
Trade and other receivables 577
Current tax asset 180
971
Current liabilities
Trade and other payables 779
Other borrowings 93
872
Disclosure of the carrying amounts of the acquiree’s assets and liabilities immediately before the
combination in accordance with IFRS was impractical. Superstore TV Limited had not applied IFRS
prior to its acquisition as at 1 June 2006. Therefore essential data needed for pro-forma IFRS
accounts of Superstore TV Limited prior to the date of acquisition was not available.
No major line of business has been or will be disposed of as a result of the combination.
A significant part of the acquisition costs can be attributed to the sales force and the sales know-how
of key personnel of Superstore TV Limited. At the acquisition however, no intangible assets qualified
for recognition in this respect. These circumstances contributed to the amount recognised as goodwill.
All goodwill arising on the business combination had been allocated to cash-generating units by
31 December 2006.
75705 NOTES  31/3/08  11:49  Page 52 Ideal Shopping Annual Report 07
53
5. Segment reporting
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.
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.
Within total revenue an amount of £1,788,000 (£1,609,000 in 2006) is in respect of rendering of
services. The remainder relates to the sale of goods under normal business practice.
30 December 2007 All amounts are presented in £’000
Business segments Retail Wholesale Group
Revenue
– from external customers 93,111 3,760 96,871
– from other segments – – –
93,111 3,760 96,871
Cost of Sales (54,241) (1,767) (56,008)
Gross Profit 38,870 1,993 40,863
Distribution costs (3,639) – (3,639)
Administrative expenses (30,886) (1,046) (31,932)
Other expenses (283) – (283)
Segment operating profit 4,062 947 5,009
Further information on each segment’s assets and liabilities as at 30 December 2007 may be
summarised as follows;
Segment assets 40,912 2,846 43,757
Segment impairment losses –––
Investments – – –
Depreciation and amortisation (1,054) (9) (1,063)
Impairment losses – – –
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54
5. Segment reporting continued
Comparative information on each segment’s assets and liabilities as at 31 December 2006 may
be summarised as follows;
31 December 2006 All amounts are presented in £’000
Business segments Retail Wholesale Group
Revenue
– from external customers 84,780 858 85,638
– from other segments – – –
84,780 858 85,638
Cost of Sales (49,665) (590) (50,255)
Gross Profit 35,115 268 35,383
Distribution costs (3,027) – (3,027)
Administrative expenses (25,830) (567) (26,397)
Other expenses (417) – (417)
Segment operating profit 5,841 (299) 5,542
Further information on each segment’s assets and liabilities as at 31 December 2006 may be
summarised as follows;
Consolidated total assets 38,120 1,016 39,136
Segment impairment losses –––
Investments – – –
Depreciation and amortisation (717) (4) (721)
Impairment losses – – –
The Wholesale segment relates to Superstore TV Limited which was acquired in June 2006.
75705 NOTES  31/3/08  11:49  Page 54 Ideal Shopping Annual Report 07
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6. Profit on ordinary activities before taxation
Operating profit arises wholly within the United Kingdom from distance selling and wholesaling. 
Profit on ordinary activities before taxation for the Group is stated after charging;
2007 2006
£’000 £’000
Depreciation;
Property, plant and equipment, owned 457 505
Property, plant and equipment, leased 306 216
Auditors’ remuneration;
Audit services 48 44
Non-audit services 69 102
Hire of plant and machinery 67 13
Profit on ordinary activities before taxation for the Company is stated after charging;
2007 2006
£’000 £’000
Depreciation;
Property, plant and equipment, owned 461 508
Property, plant and equipment, leased 291 210
Auditors’ remuneration;
Audit services 48 44
Non-audit services 69 102
Hire of plant and machinery 67 13
Fees payable to the Group’s auditor for non-audit services comprised £6,000 (2006: £7,000) in
respect of the Company’s subsidiaries; tax services £10,000, (2006: £12,000); services relating to
corporate finance transactions £nil, (2006: £66,000); and all other services £53,000 (2006: £18,000).
75705 NOTES  31/3/08  11:49  Page 55 Notes to the Financial Statements continued
56
7. Employee benefits and expense
Expenses recognised for employee benefits for the Group are analysed below;
2007 2006
£’000 £’000
Wages, salaries 11,962 11,251
Social security costs 1,163 1,052
Pensions 165 111
Share-based payments 230 279
Employee benefits expense 13,520 12,693
2007 2006
No. of No. of
employees employees
Management 10 11
Operations 507 514
Average no. of employees 517 525
Expenses recognised for employee benefits for the Company are analysed below;
2007 2006
£’000 £’000
Wages, salaries 11,376 11,251
Social security costs 1,093 1,052
Pensions 165 111
Share-based payments 230 279
Employee benefits expense 12,864 12,693
2007 2006
No. of No. of
employees employees
Management 8 9
Operations 497 508
Average no. of employees 505 517
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57
8. Directors
Directors’ remuneration
Details of Directors’ remuneration are contained within the Remuneration Report, under the heading,
‘Audited Information’.
Directors’ interests
The interests of the Directors in the shares of the Company are detailed within the Directors’ Report.
9. Finance income and costs
Finance cost includes all interest-related income and expenses. The following amounts have been
included in the income statement line for the reporting periods presented;
2007 2006
£’000 £’000
Interest expense for finance lease arragements 40 97
Interest expense for borrowings at amortised cost 21 –
Total interest expenses for financial liabilities 61 97
Loss on foreign currency financial liabilities 8 –
Finance costs 69 97
2007 2006
£’000 £’000
Interest income on financial assets carried at amortised cost 485 594
Finance income 485 594
10. Other financial result
The following amounts have been included in the income statement line for the reporting periods
presented;
2007 2006
£’000 £’000
Gain from exchange differences 332 101
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58
11. Exceptional items
The following amounts have been included in the income statement line for the reporting periods
presented;
2007 2006
£’000 £’000
Board restructuring expenses 420 –
Superstore TV Limited relocation costs 150 –
570 –
12. Income tax expense
The relationship between the expected tax expense based on the effective tax rate of the Group at
30% (2006: 30%) and the tax expense actually recognised in the income statement can be reconciled
as follows;
2007 2006
£’000 £’000
Result for the year before tax 5,757 6,140
Tax rate 30% 30%
Expected tax expense 1,727 1,842
Adjustment for tax-rate differences (29) –
Adjustment in respect of prior periods (14) (86)
Other temporary differences 40 (76)
Utilisation of tax losses (178) –
Share options 43 16
Other non-deductible expenses 39 37
Actual tax expense, net 1,628 1,733
Comprising
Current tax expense 1,509 1,791
Deferred tax expense/(income) resulting from the
origination and reversal of temporary differences 119 (58)
Total 1,628 1,733
Please refer to note 18 for information on the Group’s deferred tax assets and liabilities.
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13. Earnings per share and dividends
Both the basic and diluted 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 recognisable in profit or loss for 2006 or 2007.
To calculate the diluted earnings per share figure, the weighted average of dilutive employee share
options expected to vest have 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.
2007 2006
Number Number
Reconcilation of average number of shares used for 
basic and diluted earnings per share
Weighted average number of ordinary shares used for basic
earnings per share 29,663,505 29,431,917
Weighted average number of dilutive shares under option 235,269 406,035
Weighted average number of ordinary shares for diluted
earnings per share 29,898,774 29,837,952
During 2007 the Group paid dividends of £1,333,000 to its shareholders (2006: £1,030,035). 
This represents a payment of 4.50p per share (2006: 3.50p per share).
The Directors propose final dividend payment of £1,112,381 (3.75p per share) resulting in a full year
dividend of 5.50p for 2007. As the distribution of dividends by the Group requires approval of the
shareholders’ meeting, no liability in this respect is recognised in the 2007 consolidated financial
statements. No income tax consequences are expected to arise as a result of this transaction.
75705 NOTES  31/3/08  11:49  Page 59 Notes to the Financial Statements continued
60
14. Goodwill
Goodwill results solely from the acquisition of Superstore TV Limited in 2006. The net carrying amount
of goodwill can be analysed as follows;
£’000
Carrying amount 1 January 2006 –
Additions 1,523
Accumulated impairment –
Carrying amount 31 December 2006 1,523
Gross carrying amount 1,523
Accumulated impairment losses –
Carrying amount 30 December 2007 1,523
Subsequent to the annual impairment test for 2006, the carrying amount of goodwill is allocated to 
the following cash-generating unit;
2007 2006
£’000 £’000
Superstore TV Limited 1,523 1,523
The recoverable amounts for cash-generating unit given above were determined based on value in
use calculations, covering a detailed five year forecast, followed by an extrapolation of expected cash
flows at the growth rates stated below. The growth rates reflect the long term average growth rates 
for the product lines of the cash-generating unit.
2007 2006
Superstore TV Limited
Growth rates 5.2% 5.2%
Discount rates 18.0% 18.0%
The Ideal Shopping Direct Plc management’s key assumptions for Superstore TV Limited include
stable profit margins, which have been determined based on past experience in this market. Ideal
Shopping Direct Plc’s management believes that this is the best available input for forecasting this
mature market.
Apart from the considerations described in determining the value in use of the cash-generating units
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.
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15. Other intangible assets
Ideal Shopping Direct Plc’s other intangible assets comprise acquired software licences and own
software developments. The carrying amounts for the reporting periods under review can be analysed
as follows;
Group – Other intangible assets
£’000
Gross carrying amount 1,060
Accumulated amortisation and impairment –
Carrying amount 1 January 2006 1,060
Gross carrying amount 1,538
Accumulated amortisation and impairment (28)
Carrying amount 31 December 2006 1,510
Gross carrying amount 3,399
Accumulated amortisation and impairment (316)
Carrying amount 30 December 2007 3,083
Company – Other intangible assets
£’000
Gross carrying amount 1,060
Accumulated amortisation and impairment –
Carrying amount 1 January 2006 1,060
Gross carrying amount 1,538
Accumulated amortisation and impairment (28)
Carrying amount 31 December 2006 1,510
Gross carrying amount 3,399
Accumulated amortisation and impairment (316)
Carrying amount 30 December 2007 3,083
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62
15. Other intangible assets continued
The carrying amounts of property, plant and equipment for the periods presented in the consolidated
financial statements as at 30 December 2007 are reconciled as follows;
Group
£’000
Carrying amount 1 January 2006 1,060
Additions 450
Disposals –
Amortisation –
Net exchange differences –
Carrying amount 31 December 2006 1,510
Additions 1,860
Amortisation (301)
Transfer from property, plant and equipment 14
Impairment losses –
Net exchange differences –
Carrying amount 30 December 2007 3,083
Company
£’000
Carrying amount 1 January 2006 1,060
Additions 450
Disposals –
Amortisation –
Net exchange differences –
Carrying amount 31 December 2006 1,510
Additions 1,860
Amortisation (301)
Transfer from property, plant and equipment 14
Impairment losses –
Net exchange differences –
Carrying amount 30 December 2007 3,083
75705 NOTES  31/3/08  11:49  Page 62 Ideal Shopping Annual Report 07
63
16. Property, plant and equipment
The Group’s land and property was revalued during November 2007 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
23 November 2007. The carrying amount that would have been recognised under the cost model
for Freehold Land and Buildings would have been £ 6,196,000 for the Group and Company.
The policy of revaluation has been applied retrospectively, and the value of the property at transition to
IFRS on 1 January 2006, and at 31 December 2006, has been amended to fair value on the basis of
informed valuation by directors.
The carrying amounts of property, plant and equipment for the periods presented in the consolidated
financial statements as at 30 December 2007 are reconciled as follows;
Group – Property, plant and equipment
Freehold Plant
land and and
buildings equipment Total
£’000 £’000 £’000
Gross carrying amount 7,387 6,233 13,620
Accumulated depreciation and impairment – (4,324) (4,324)
Carrying amount 1 January 2006 7,387 1,909 9,296
Gross carrying amount 7,763 6,604 14,367
Accumulated depreciation and impairment – (4,947) (4,947)
Carrying amount 31 December 2006 7,763 1,657 9,420
Gross carrying amount 8,453 6,881 15,334
Accumulated depreciation and impairment – (5,430) (5,430)
Carrying amount 30 December 2007 8,453 1,451 9,904
Plant and equipment include £1,507,000 net book amount (2006: £1,010,000) in respect of assets
held under finance leases. £291,000 depreciation (2006: £210,000) was charged in respect of these
assets for the year. Plant and equipment also includes Superstore TV Limited assets of £45,000
(2006: £16,000) at cost. £15,000 (2006: £6,000) of depreciation has been charged in respect of
these assets.
Freehold land of £1,800,000 (2006: £1,283,000) has not been depreciated.
75705 NOTES  31/3/08  11:49  Page 63 Notes to the Financial Statements continued
64
16. Property, plant and equipment continued
Company – Property, plant and equipment
Freehold Plant
land and and
buildings equipment Total
£’000 £’000 £’000
Gross carrying amount 7,394 6,224 13,618
Accumulated depreciation and impairment – (4,322) (4,322)
Carrying amount 1 January 2006 7,394 1,902 9,296
Gross carrying amount 7,763 6,588 14,351
Accumulated depreciation and impairment – (4,941) (4,941)
Carrying amount 31 December 2006 7,763 1,647 9,410
Gross carrying amount 8,453 6,836 15,289
Accumulated depreciation and impairment – (5,413) (5,413)
Carrying amount 30 December 2007 8,453 1,423 9,876
Plant and equipment include £1,507,000 net book amount (2006: £1,010,000) in respect of assets
held under finance leases. £291,000 depreciation (2006: £210,000) was charged in respect of 
these assets for the year. Plant and equipment also includes Superstore TV Limited assets of 
£45,000 (2006: £16,000) at cost.
Freehold land of £1,800,000 (2006: £1,283,000) has not been depreciated.
75705 NOTES  31/3/08  11:49  Page 64 Ideal Shopping Annual Report 07
65
16. Property, plant and equipment continued
The carrying amounts of property, plant and equipment for the periods presented in the consolidated
financial statements as at 30 December 2007 are reconciled as follows;
Group – Property, plant and equipment
Freehold Plant
land and and
buildings equipment Total
£’000 £’000 £’000
Carrying amount 1 January 2006 7,387 1,909 9,296
Additions
– separately acquired 212 370 582
Depreciation (99) (622) (721)
Revaluation
– increase recognised in equity 263 – 263
Carrying amount 31 December 2006 7,763 1,657 9,420
Additions
– separately acquired 251 557 808
Depreciation – (763) (763)
Revaluation
– increase recognised in equity 439 – 439
Carrying amount 30 December 2007 8,453 1,451 9,904
Company – Property, plant and equipment
Freehold Plant
land and and
buildings equipment Total
£’000 £’000 £’000
Carrying amount 1 January 2006 7,394 1,902 9,296
Additions
– separately acquired 212 364 576
Depreciation (99) (619) (718)
Revaluation
– increase recognised in equity 256 – 256
Carrying amount 31 December 2006 7,763 1,647 9,410
Additions
– separately acquired 251 528 779
Depreciation – (752) (752)
Revaluation
– increase recognised in equity 439 – 439
Carrying amount 30 December 2007 8,453 1,423 9,876
75705 NOTES  31/3/08  11:49  Page 65 Notes to the Financial Statements continued
66
17. Investments
The Company
Subsidiary
Undertakings
£’000
Cost
At 1 January 2007 and 30 December 2007 743
Amounts written off
At 1 January 2007 and 30 December 2007 –
Net book amount
At 30 December 2007 743
At 1 January 2007 743
An amount due from Group undertakings of £231,000 has been reclassified as cost of investment
upon initial recognition, at fair value, of the intra-group loan established at acquisition.
Subsidiary Parent company Country of Principal
interest in incorporation activity
ordinary shares and operation
and voting rights
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
Superstore TV Limited 100% Great Britain Product design,
sourcing and
wholesale
The above companies described as dormant did not trade during 2007 or 2006.
75705 NOTES  31/3/08  11:49  Page 66 Ideal Shopping Annual Report 07
67
18. Deferred tax assets and liabilities
Deferred taxes arising from temporary differences and unused tax losses for the Group can be
summarised as follows;
2007 2006
Deferred Deferred Deferred Deferred
tax tax tax tax
assets liabilities assets liabilities
£’000 £’000 £’000 £’000
Non-current assets
Other intangible assets – (236) – (155)
Property, plant and equipment – (469) – (331)
Current assets
Inventories 57 – ––
Non-current liabilities
Pension and other employee obligations 2– 7–
Current liabilities
Provisions –– 11 –
Other liabilities 12 – 76 –
Total 71 (705) 94 (486)
Offset – – ––
Total 71 (705) 94 (486)
Deferred taxes arising from temporary differences and unused tax losses for the Company can be
summarised as follows;
2007 2006
Deferred Deferred Deferred Deferred
tax tax tax tax
assets liabilities assets liabilities
£’000 £’000 £’000 £’000
Non-current assets
Other intangible assets – (236) – (155)
Property, plant and equipment – (469) – (331)
Non-current liabilities
Pension and other employee obligations 2– 7–
Current liabilities
Provisions –– 11 –
Other liabilities 12 – 76 –
Total 14 (705) 94 (486)
Offset – – ––
Total 14 (705) 94 (486)
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.
75705 NOTES  31/3/08  11:49  Page 67 Notes to the Financial Statements continued
68
19. Inventories
Group Company
2007 2006 2007 2006
£’000 £’000 £’000 £’000
Goods for resale 7,305 5,989 6,810 5,607
Write down on inventories (539) (679) (539) (679)
Inventories 6,766 5,310 6,271 4,928
In 2007, a total of £45,449,000 (£43,884,000 for the Company) inventories was included in the
income statement as an expense (2006: £37,133,000 for the Group and £36,003,000 for the
Company). This includes an amount of £392,000 for both the Group and the Company resulting 
from write down of inventories (2006: £368,000).
No reversal of previous write-downs was recognised as a reduction of expense in 2006 or 2007.
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 times the estimates are made. Ideal Shopping Direct Plc’s core business is
continuously subject to rapid 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.
20. Trade and other receivables
Group Company
2007 2006 2007 2006
£’000 £’000 £’000 £’000
Trade receivables 2,512 1,508 1,108 1,114
Other receivables 531 10 531 –
Amounts due from group company – – 2,725 1,948
Prepayments and accrued income 2,573 1,077 2,573 1,058
5,616 2,595 6,937 4,120
The carrying value of trade receivables is considered a reasonable approximation of fair value.
All of the Group’s trade and other receivables have been reviewed for indicators of impairment and a
provision of £158,000 (2006: £321,000) has been recorded accordingly for the Group. The provision
for the Company is £158,000 (2006: £314,000).
An aged breakdown of trade and other receivables is not considered necessary as balances over
three months old are immaterial.
Within amounts due from group company in the Company balance sheet is £891,000
(2006: £1,122,000) which falls due after more than one year.
75705 NOTES  31/3/08  11:49  Page 68 Ideal Shopping Annual Report 07
21. Other short term financial assets
The Group engages in forward contracts, however there were no commitments at 30 December 2007
and 31 December 2006.
22. Cash and cash equivalents
Cash and cash equivalents include the following components;
Group 2007 2006
£’000 £’000
Cash at bank and in hand 16,697 18,684
Short-term investments – –
Total Cash and Cash Equivalents 16,697 18,684
Company 2007 2006
£’000 £’000
Cash at bank and in hand 16,671 18,533
Short-term investments – –
Total Cash and Cash Equivalents 16,671 18,533
23. Share capital
The share capital of Ideal Shopping Direct Plc consists of ordinary shares with a par value of 3p and
deferred shares with a par value of 1p. 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 are no dividend or voting rights associated with the deferred shares.
2007 2006
£’000 £’000
Shares issued and fully paid
3p Ordinary Shares
– beginning of the year 883 882
– issued during the year 6 1
1p Deferred Shares
– beginning of the year 5 5
– issued during the year – –
Shares issued and fully paid 894 888
Shares authorised for issue
3p Ordinary Shares 251 257
1p Deferred Shares 5 5
Total equity shares authorised at year end 1,150 1,150
69
75705 NOTES  31/3/08  11:49  Page 69 Notes to the Financial Statements continued
23. Share capital continued
The shares issued during the year relate only to share options. Further information on share options 
is included in note 24.
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 211,088 ordinary 3p shares during the year on the exercise of
various share options.
Share premium
An amount of £115,000 (2006: £13,000), being the difference between the total consideration of
£121,000 and the total nominal value of £6,000 for shares issued during the year has been included
in the share premium account.
24. Share based employee remuneration
As at 30 December 2007 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 1.835p at 30 December 2007. The market price ranged from
1.835p to 2.750p during the year.
In total, £230,000 (2006: £279,000) 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;
70
75705 NOTES  31/3/08  11:49  Page 70 Ideal Shopping Annual Report 07
24. Share based employee remuneration continued
Option Number
price per of
Date option granted share Date exercisable options
Discretionary schemes:
30 May 2002 £0.335 30 May 2005 - 30 May 2012 20,000
15 May 2003 £0.47 15 May 2006 - 15 May 2013 15,000
2 July 2004 £0.85 2 July 2007 - 2 July 2014 37,000
8 November 2004 £1.565 8 November 2007 -8 November 2014 95,847
4 March 2005 £2.415 4 March 2008 - 4 March 2015 224,224
7 March 2005 £2.385 7 March 2008 -7 March 2015 92,250
19 September 2005 £3.65 19 September 2008 - 19 September 2015 42,329
28 September 2005 £3.64 28 September 2008 - 28 September 2015 20,000
3 May 2006 £3.685 3 May 2009 - 3 May 2016 8,141
11 July 2007 £1.995 11 July 2010 - 11 July 2017 181,474
11 Sept 2007 £1.995 11 September 2010 - 11 September 2017 100,000
836,265
Save As You Earn scheme:
3 June 2005 £1.94 1 August 2008 - 1 February 2009 60,451
3 June 2005 £1.94 1 August 2010 - 1 February 2011 60,979
8 May 2006 £2.78 1 July 2009 - 31 December 2009 14,452
8 May 2006 £2.78 1 July 2011 - 31 December 2011 6,022
8 May 2007 £1.78 1 July 2010 - 31 December 2010 37,146
8 May 2007 £1.78 1 July 2012 - 31 December 2012 32,562
211,612
Total options 1,047,877
71
75705 NOTES  31/3/08  11:49  Page 71 Notes to the Financial Statements continued
24. Share based employee remuneration continued
At year end, the Group and the Company had the following outstanding options and exercise prices:
2007 2006
Weighted Weighted
Average average Average average
exercise remaining exercise remaining
price per contractual price per contractual
share Options life share Options life
p No Months p No Months
33.5 20,000 53.0 34.0 22,000 65.5
47.0 15,000 64.5 47.0 15,000 76.5
85.0 37,000 78.1 86.9 338,847 89.8
156.5 95,847 82.3 276.4 444,556 99.9
241.5 224,224 86.1 286.2 33,189 115.4
238.5 92,250 86.2
365.0 42,329 92.6
364.0 20,000 92.9
368.5 8,141 100.1
199.5 281,474 115.1
Discretionary 
schemes 836,265 853,592
194.0 121,430 19.0 219.6 114,168 28.3
278.0 20,474 31.1 202.5 123,398 50.1
178.0 69,708 47.2
Save As You 
Earn scheme 211,612 237,566
Total Options 1,047,877 1,091,158
Movements in the number of share options outstanding and their related weighted average
exercise prices are as follows:
2007 2006
Weighted Weighted
average average
exercise exercise
price per price per
share Options share Options
pNo pNo
Outstanding at 1 January 195.5 1,091,158 180.1 1,083,707
Granted 194.9 323,107 281.4 80,451
Lapsed 287.0 (155,300) 85.0 (33,000)
Exercised 57.4 (211,088) 42.1 (40,000)
Outstanding at 31 December 209.2 1,047,877 195.5 1,091,158
Exercisable at 31 December 116.3 167,847 39.2 37,000
72
75705 NOTES  31/3/08  11:49  Page 72 Ideal Shopping Annual Report 07
24. Share based employee remuneration continued
The weighted average share price at date of exercise of options exercised during the year was
£223.1p (2006: 330.9p).
The weighted average fair value of options issued during the year was 74.1p (2006: 122.4p).
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 221.3p at the grant date, exercise prices
shown above, weighted average share price volatility of 28.38%, weighted average dividend yield of
1.98%, an expected option life based on the historical pattern of option exercise of between 3.65 
and 5.65 years and a weighted average annual risk free interest rate of 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.
25. Borrowings
The borrowings for the Group and Company are as follows;
2007 2006
£’000 £’000
Other borrowings at amortised cost:
Bank borrowings 2,202 2,541
Comprising:
Current borrowings 339 339
Non-current borrowings 1,863 2,202
2,202 2,541
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 LIBOR to the extent that the loan is not covered by a corresponding cash balance.
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 30 December 2007, the fair value of borrowings has been determined as £1,238,000
(2006: £1,337,000).
73
75705 NOTES  31/3/08  11:49  Page 73 Notes to the Financial Statements continued
26. Other liabilities
The only other liabilities outstanding relate to finance lease obligations. These are detailed in the
following section. The following other liabilities are for the Group and Company;
2007 2006
£’000 £’000
Other liabilities
Finance lease obligations 309 742
Comprising
Finance lease obligations – current 309 482
Finance lease obligations – non-current – 260
309 742
27. Finance and operating lease commitments
Finance leases
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 1 to More than
1 year 5 years 5 years Total
£’000 £’000 £’000 £’000
30 December 2007
Lease payments 309 – – 309
Net present values 262 – – 262
31 December 2006
Lease payments 482 260 – 742
Net present values 409 187 – 595
The Group and the Company’s future minimum operating lease payments were as follows;
Operating Leases
Within 1 to More than
1 year 5 years 5 years Total
£’000 £’000 £’000 £’000
30 December 2007
Lease payments 12,670 42,523 51,653 106,846
31 December 2006
Lease payments 16 68 – 84
Ideal Shopping Direct Plc has a number of operating leases in respect of property, equipment and
services which expire between 2008 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 £12,690,000
(2006: £6,698,000). No sublease income is expected as all assets held under lease agreements 
are used exclusively by the Group.
74
75705 NOTES  31/3/08  11:49  Page 74 Ideal Shopping Annual Report 07
28. Provisions
The Group and Company’s provisions relate predominantly to sales returns. All provisions are
considered current as the timing of their settlement is not at the Group or Company’s discretion.
2007 2006
£’000 £’000
Carrying amount at 1 January 2007 340 479
Additional provisions 160 340
Used provisions (51) (479)
Carrying amount at 30 December 2007 449 340
29. Trade and other payables
Group Company
2007 2006 2007 2006
£’000 £’000 £’000 £’000
Trade payables 11,406 10,347 11,919 10,210
Social security and other taxes 1,714 1,400 1,463 1,361
Other payables 327 1,610 302 1,610
Accruals and deferred income 2,806 1,503 2,806 1,472
Trade and other payables – current 16,253 14,860 16,490 14,653
All amounts are short term. The carrying values are considered to be a reasonable approximation of
fair value.
30. 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 Remuneration Report.
The Board consider that they are the key management personnel.
The following purchases were carried out between Superstore TV Limited and Ideal Shopping Direct Plc;
2007 2006
£’000 £’000
Purchases from Superstore TV Limited 4,281 184
Recharges to Superstore TV Limited 1,088 847
The outstanding balance of £2,019,000 (2006: £1,756,000) due to Ideal Shopping Direct Plc from
Superstore TV Limited is included in the Company Balance Sheet under trade receivables and payables.
75
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31. Contingent assets and other contingent liabilities
There are no material contingent assets or liabilities as at 30 December 2007 and 31 December 2006.
32. Risk management objectives and policies
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
to are described in the following sections.
33. Foreign currency sensitivity
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.
Group and Company foreign currency denominated financial assets and liabilities, translated into
Sterling at the closing rate, are as follows;
2007 2006
£’000 £’000
Nominal amounts US$ € US$ €
Financial assets £295 £263 £1,310 £72
Financial liabilities (£246) (£295) (£66) (£19)
Short-term exposure £49 (£32) £1,244 £53
Financial assets –– ––
Financial liabilities –– ––
Long-term exposure – – ––
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 30 December 2007 and
31 December 2006. 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.
76
75705 NOTES  31/3/08  11:49  Page 76 Ideal Shopping Annual Report 07
33. Foreign currency sensitivity continued
£ Strengthens by 5% 2007 2006
£’000 £’000
Nominal amounts US$ € US$ €
Net result for the year £4,373 £4,270 £4,746 £4,591
Equity £23,511 £23,408 £20,082 £19,927
£ Weakens by 5% 2007 2006
£’000 £’000
Nominal amounts US$ € US$ €
Net result for the year £3,886 £3,988 £4,068 £4,223
Equity £23,024 £23,127 £19,404 £19,559
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 30 December 2007 and
31 December 2006. 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% 2007 2006
£’000 £’000
Nominal amounts US$ € US$ €
Net result for the year £3,573 £3,660 £5,062 £4,909
Equity £23,003 £23,091 £20,480 £20,327
£ Weakens by 5% 2007 2006
£’000 £’000
Nominal amounts US$ € US$ €
Net result for the year £3,500 £3,413 £4,406 £4,559
Equity £22,931 £22,843 £19,824 £19,977
77
75705 NOTES  31/3/08  11:49  Page 77 Notes to the Financial Statements continued
34. Interest rate sensitivity
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 30 December 2007, as in
the previous year, all material financial assets and liabilities have fixed rates.
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% (2006: +/-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.
2007 2006
£’000 £’000
+1% –1% +1% –1%
Net result for the year 4,220 4,039 4,512 4,302
Equity 23,358 23,177 19,848 19,638
35. Credit risk analysis
Ideal Shopping Direct Plc’s exposure to credit risk is limited to the carrying amount of financial
assets recognised at the balance sheet date, as summarised below;
Group 2007 2006
£’000 £’000
Cash and cash equivalents 16,697 18,684
Trade and other receivables 5,616 2,595
22,313 21,279
Company 2007 2006
£’000 £’000
Cash and cash equivalents 16,671 18,533
Trade and other receivables 6,937 4,120
23,608 22,653
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.
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.
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75705 NOTES  31/3/08  11:49  Page 78 Ideal Shopping Annual Report 07
36. Liquidity risk analysis
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. 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.
The Group maintains cash and marketable securities to meet its liquidity requirements for up to
30-day periods.
As at 30 December 2007, the Group’s liabilities have contractual maturities which are summarised
as follows;
Current Non-current Later
Within 6 to 12 1 to 5 than
6 months months years 5 years
30 December 2007 £’000 £’000 £’000 £’000
Long-term bank loans 170 169 1,360 503
Finance leases obligations 155 154 – –
Trade payables 16,253–––
16,578 323 1,360 503
As at 30 December 2007, the Company’s liabilities have contractual maturities which are
summarised as follows:
Current Non-current Later
Within 6 to 12 1 to 5 than
6 months months years 5 years
30 December 2007 £’000 £’000 £’000 £’000
Long-term bank loans 170 169 1,360 503
Finance leases obligations 155 154 – –
Trade payables 16,490–––
16,815 323 1,360 503
This compares to the maturity of the Group’s financial liabilities in the previous reporting period
as follows:
Current Non-current Later
Within 6 to 12 1 to 5 than
6 months months years 5 years
31 December 2006 £’000 £’000 £’000 £’000
Long-term bank loans 170 169 1,360 842
Finance leases obligations 241 241 260 –
Trade payables 14,860–––
15,271 410 1,620 842
79
75705 NOTES  31/3/08  11:49  Page 79 Notes to the Financial Statements continued
36. Liquidity risk analysis continued
This compares to the maturity of the Company’s financial liabilities in the previous reporting period as follows;
Current Non-current Later
Within 6 to 12 1 to 5 than
6 months months years 5 years
31 December 2006 £’000 £’000 £’000 £’000
Long-term bank loans 170 169 1,360 842
Finance leases obligations 241 241 260 –
Trade payables 14,653–––
15,064 410 1,620 842
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.
37. Summary of financial assets and liabilities by category
The carrying amounts of the Group’s financial assets and liabilities as recognised at the balance sheet
date of the reporting periods under review may also be categorised as follows;
2007 2006
Current assets £’000 £’000
Trade and other receivables:
– Loans and receivables 5,616 2,595
Cash and cash equivalents 16,697 18,684
Non current liabilities
Borrowings:
– Financial liabilities measured at amortised cost 1,863 2,462
Current liabilities
Borrowings:
– Financial liabilities measured at amortised cost 648 821
Trade payables:
– Financial liabilities measured at amortised cost 16,253 14,860
The carrying amounts of the Company’s financial assets and liabilities as recognised at the balance sheet
date of the reporting periods under review may also be categorised as follows;
2007 2006
Current assets £’000 £’000
Trade and other receivables:
– Loans and receivables 6,937 4,120
Cash and cash equivalents 16,671 18,533
Non current liabilities
Borrowings:
– Financial liabilities measured at amortised cost 1,863 2,462
Current liabilities
Borrowings:
– Financial liabilities measured at amortised cost 648 821
Trade payables:
– Financial liabilities measured at amortised cost 16,490 14,653
80
75705 NOTES  31/3/08  11:49  Page 80 Ideal Shopping Annual Report 07
38. Capital management policies and procedures
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.
By pricing products and services commensurately 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;
2007 2006
£’000 £’000
Total equity 23,267 19,743
– Cash and cash equivalents (16,697) (18,684)
Capital 6,570 1,059
Total equity 23,267 19,743
+ Borrowings 2,202 2,541
Overall financing 25,469 22,284
Capital-to-overall financing ratio 1:3.88 1:21.04
The Company’s capital-to-overall financing ratio is calculated as follows;
2007 2006
£’000 £’000
Total equity 22,967 20,152
– Cash and cash equivalents (16,671) (18,533)
Capital 6,296 1,619
Total equity 22,967 20,152
+ Borrowings 2,202 2,541
Overall financing 25,169 22,693
Capital-to-overall financing ratio 1:4.00 1:14.02
81
75705 NOTES  31/3/08  11:49  Page 81 Notes to the Financial Statements continued
39. Cash flow statement
The following non-cash flow adjustments have been made to the pre-tax profit for the year to arrive at
Group operating cash flow;
2007 2006
£’000 £’000
Depreciation & Amortisation and impairment
charges of tangible and intangible assets 1,064 721
Employee equity-settled share options 230 279
Tax expense net 1,628 1,733
Finance Income (485) (594)
Finance Cost 69 97
2,506 2,236
The following non-cash flow adjustments have been made to the pre-tax profit for the year to arrive at
Company operating cash flow;
2007 2006
£’000 £’000
Depreciation & Amortisation and impairment
charges of tangible and intangible assets 1,053 718
Employee equity-settled share options 230 279
Tax expense net 1,572 1,586
Finance Income (629) (594)
Finance Cost 66 83
2,292 2,072
40. Authorisation of financial statements
No adjusting or significant non-adjusting events have occurred between the balance sheet
date and the date of authorisation on 4 March 2008 by the Board.
Andrew Fryatt David Blake
Chief Executive Officer Finance Director
82
75705 NOTES  2/4/08  09:59  Page 82 Ideal Shopping Annual Report 07
Transition to International Financial
Reporting Standards
Basis of transition to IFRS
The Group and Company’s financial statements for the year ended 30 December 2007 are the first annual
financial statements that comply with International Financial Reporting Standards (IFRS as adopted by the
European Union). Financial statements have been prepared for the year to 30 December 2007 on the
basis described in the Notes to the Financial Statements.
In accordance with IFRS 1 (First time adoption of International Financial Reporting Standards), the Group
and Company’s accounting policies and recognition and measurement principles under IFRS have been
applied retrospectively at the date of transition. A permitted exemption to retrospective application has
been claimed in respect of IFRS 2 (Share based payment) which has been applied to all grants of equity
instruments after 7 November 2002 that were unvested as of 1 January 2006.
The Group and Company’s date of transition to IFRS is 1 January 2006 and an IFRS opening balance
sheet has been prepared at that date.
Reconciliations between IFRS and UK GAAP
The following reconciliations, which provide quantification of the effect and details of the impact of the
transition to IFRS, are attached;
● Profit for the 52 weeks to 31 December 2006
● Equity at 1 January 2006 (Date of transition to IFRS)
● Equity at 31 December 2006
● Schedule of movements in total equity
Explanations of differences between IFRS and UK GAAP 
Reclassification
Software development costs reclassified as intangible assets:
● At 1 January 2006 (£1,059,000)
● At 31 December 2006 (£1,510,000)
Current asset investment reclassified as cash and cash equivalents at 31 December 2006 (£10,000,000).
On the Company balance sheet, £231,000 of amounts due from group undertakings has been reclassified
as cost of investment upon initial recognition, at fair value, of the intra-group loan established at acquisition.
Amortisation
Reversal of goodwill amortisation (£89,000), charged under UK GAAP in the year to 31 December 2006,
not permitted under IFRS.
Deferred tax
The requirements of IAS 12 (Income Taxes) in respect of current tax are similar to UK GAAP in certain
circumstances. IAS 12, however, takes a balance sheet approach to accounting for deferred tax based 
on temporary differences between the accounting base and tax base of assets and liabilities. This is
conceptually different to UK GAAP treatment.
All taxation adjustments to the financial statements on the transition to IFRS relate to deferred tax.
83
75705 NOTES  31/3/08  11:49  Page 83 Transition to International Financial
Reporting Standards continued
Reconciliation of Group profit for the 52 weeks ended 31 December 2006
Deferred
UK GAAP Amortisation tax IFRS
£’000 £’000 £’000 £’000
Revenue 85,638 85,638
Cost of sales (50,255) (50,255)
Gross profit 35,383 –– 35,383
Other operating income –
Distribution costs –
Administrative expenses (29,829) 89 (29,740)
Other operating expenses –
Operating profit 5,554 89 – 5,643
Finance costs (97) (97)
Finance income 594 594
Profit before taxation 6,051 89 – 6,140
Taxation (1,812) 79 (1,733)
Profit for the period 4,239 89 79 4,407
Reconciliation of Company profit for the 52 weeks ended 31 December 2006
Deferred
UK GAAP tax IFRS
£’000 £’000 £’000
Revenue 84,780 84,780
Cost of sales (49,645) (49,645)
Gross profit 35,135 – 35,135
Other operating income –
Distribution costs –
Administrative expenses (29,276) (29,276)
Other operating expenses –
Operating profit 5,859 – 5,859
Finance costs ––
Finance income 510 510
Profit before taxation 6,369 – 6,369
Taxation (1,812) 226 (1,586)
Profit for the period 4,557 226 4,783
84
75705 NOTES  31/3/08  11:49  Page 84 Ideal Shopping Annual Report 07
Reconciliation of Group equity at 1 January 2006
Reclassi- Deferred Revaluation
UK GAAP fications tax Reserve IFRS
£’000 £’000 £’000 £’000 £’000
ASSETS
Non-current assets
Property, plant and equipment 8,794 (1,059) 1,561 9,296
Goodwill ––
Intangible assets – 1,059 1,059
Deferred tax assets – 88 88
8,794 – 88 1,561 10,443
Current assets
Inventories 5,254 5,254
Trade and other receivables 2,208 2,208
Cash and cash equivalents 19,557 19,557
Derivative financial instruments––
27,019 ––– 27,019
Total assets 35,813 – 88 1,561 37,462
LIABILITIES
Non-current liabilities
Borrowings 2,540 2,540
Deferred tax liabilities 259 393 652
Obligations under finance leases 754 754
Provisions and other liabilities 479 479
4,032 – 393 – 4,425
Current liabilities
Borrowings 339 339
Trade and other payables 14,630 14,630
Current income tax liabilities 1,676 1,676
Obligations under finance leases 530 530
Derivative financial instruments––
Provisions and other liabilities––
17,175 ––– 17,175
Total liabilities 21,207 393 21,600
Total net assets 14,606 – (305) 1,561 15,862
EQUITY
Capital and reserves
Share capital 887 887
Share premium 180 180
Other reserves 243 (161) 1,561 1,643
Retained earnings 13,296 (144) 13,152
Total equity 14,606 – (305) 1,561 15,862
85
75705 NOTES  31/3/08  11:49  Page 85 Transition to International Financial
Reporting Standards continued
Reconciliation of Company equity at 1 January 2006
Reclassi- Deferred Revaluation
UK GAAP fications tax Reserve IFRS
£’000 £’000 £’000 £’000 £’000
ASSETS
Non-current assets
Property, plant and equipment 8,794 (1,059) 1,561 9,296
Goodwill ––
Intangible assets – 1,059 1,059
Deferred tax assets – 88 88
8,794 – 88 1,561 10,443
Current assets
Inventories 5,254 5,254
Trade and other receivables 2,208 2,208
Cash and cash equivalents 19,557 19,557
Derivative financial instruments––
27,019 ––– 27,019
Total assets 35,813 – 88 1,561 37,462
LIABILITIES
Non-current liabilities
Borrowings 2,540 2,540
Deferred tax liabilities 259 393 652
Obligations under finance leases 754 754
Provisions and other liabilities 479 479
4,032 – 393 – 4,425
Current liabilities
Borrowings 339 339
Trade and other payables 14,630 14,630
Current income tax liabilities 1,676 1,676
Obligations under finance leases 530 530
Derivative financial instruments––
Provisions and other liabilities––
17,175 ––– 17,175
Total liabilities 21,207 – 393 – 21,600
Total net assets 14,606 – (305) 1,561 15,862
EQUITY
Capital and reserves
Share capital 887 887
Share premium 180 180
Other reserves 243 (161) 1,561 1,643
Retained earnings 13,296 (144) 13,152
Total equity 14,606 – (305) 1,561 15,862
86
75705 NOTES  31/3/08  11:49  Page 86 Ideal Shopping Annual Report 07
Reconciliation of Group equity at 31 December 2006
Reclassi- Amorti- Deferred Revaluation
UK GAAP fications sation tax Reserve IFRS
£’000 £’000 £’000 £’000 £’000 £’000
ASSETS
Non-current assets
Property, plant and equipment 9,112 (1,510) 1,818 9,420
Goodwill 1,434 89 1,523
Intangible assets – 1,510 1,510
Deferred tax assets – 94 94
10,546 – 89 94 1,818 12,547
Current assets
Inventories 5,310 5,310
Trade and other receivables 2,595 2,595
Current asset investment 10,000 (10,000) –
Cash and cash equivalents 8,684 10,000 18,684
Derivative financial instruments––
26,589 –––– 26,589
Total assets 37,135 – 89 94 1,818 39,136
LIABILITIES
Non-current liabilities
Borrowings 2,202 2,202
Deferred tax liabilities 120 366 486
Obligations under finance leases 260 260
Provisions and other liabilities 340 340
2,922 – – 366 – 3,288
Current liabilities
Borrowings 339 339
Trade and other payables 14,860 14,860
Current income tax liabilities 424 424
Obligations under finance leases 482 482
Derivative financial instruments––
Provisions and other liabilities––
16,105 –––– 16,105
Total liabilities 19,027 – – 366 – 19,393
Total net assets 18,108 – 89 (272) 1,818 19,743
EQUITY
Capital and reserves
Share capital 888 888
Share premium 193 193
Other reserves 522 (174) 1,818 2,166
Retained earnings 16,505 89 (98) 16,496
Total equity 18,108 – 89 (272) 1,818 19,743
87
75705 NOTES  31/3/08  11:49  Page 87 Transition to International Financial
Reporting Standards continued
Reconciliation of Company equity at 31 December 2006
Reclassi- Deferred Revaluation
UK GAAP fications tax Reserve IFRS
£’000 £’000 £’000 £’000 £’000
ASSETS
Non-current assets
Property, plant and equipment 9,102 (1,510) 1,818 9,410
Investments 512 231 743
Intangible assets – 1,510 1,510
Deferred tax assets – 94 94
9,614 231 94 1,818 11,757
Current assets
Inventories 4,928 4,928
Trade and other receivables 4,351 (231) 4,120
Current asset investment 10,000 (10,000) –
Cash and cash equivalents 8,533 10,000 18,533
Derivative financial instruments––
27,812 (231) – – 27,581
Total assets 37,426 – 94 1,818 39,338
LIABILITIES
Non-current liabilities
Borrowings 2,202 2,202
Deferred tax liabilities 300 186 486
Obligations under finance leases 260 260
Provisions and other liabilities 340 340
3,102 – 186 – 3,288
Current liabilities
Borrowings 339 339
Trade and other payables 14,653 14,653
Current income tax liabilities 424 424
Obligations under finance leases 482 482
Derivative financial instruments––
Provisions and other liabilities––
15,898 ––– 15,898
Total liabilities 19,000 – 186 – 19,186
Total net assets 18,426 – (92) 1,818 20,152
EQUITY
Capital and reserves
Share capital 888 888
Share premium 193 193
Other reserves 522 (174) 1,818 2,166
Retained earnings 16,823 82 16,905
Total equity 18,426 – (92) 1,818 20,152
88
75705 NOTES  31/3/08  11:49  Page 88 Ideal Shopping Annual Report 07
Group schedule of movements in total equity
1 Jan 31 Dec
2006 2006
£’000 £’000
Total equity under UK GAAP 14,606 18,108
Reversal of goodwill amortisation charged under UK GAAP – 89
Deferred tax (305) (272)
Revaulation Reserves 1,561 1,818
Total equity under IFRS 15,862 19,743
Company schedule of movements in total equity
1 Jan 31 Dec
2006 2006
£’000 £’000
Total equity under UK GAAP 14,606 18,426
Reversal of goodwill amortisation charged under UK GAAP – –
Deferred tax (305) (92)
Revaluation Reserve 1,561 1,818
Total equity under IFRS 15,862 20,152
89
75705 NOTES  31/3/08  11:49  Page 89 Notice of Annual General Meeting
Notice is hereby given that an Annual General Meeting of the Company will be held at the offices of
Buchanan Communications, 45 Moorfields, London EC2Y 9AE on Wednesday 7 May 2008 at 10.00 am 
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
30 December 2007 be received and approved.
2. That Andrew Fryatt, who is retiring by rotation in accordance with the Articles of Association of the
Company, and being eligible, is offering himself for re-election, be re-appointed as an executive
Director of the Company.
3. That David Williams, who is retiring in accordance with the Articles of Association of the Company,
and being eligible, is offering himself for election, be appointed as a non-executive Director of
the Company.
4. That David Blake, who is retiring in accordance with the Articles of Association of the Company, 
and being eligible, is offering himself for election, be and is hereby appointed as an executive 
Director of the Company.
5. To declare a final dividend on the ordinary shares of 3.75p per share in respect of the year ended
30 December 2007.
6. That Grant Thornton UK LLP be re-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 resolution number 7 will be proposed as
an ordinary resolution and the resolutions numbered 8 and 9 will be proposed as a special resolution:
7. That:
(a) the Directors shall have unconditional authority to allot, grant options over, offer or otherwise deal
with or dispose of any relevant securities (as defined in section 80(2) of the Companies Act 1985
(the “Act”)) of the Company up to an aggregate nominal amount of £250,094 to such persons at
such times and generally on such terms and conditions as the Directors may determine;
(b) this authority shall expire at the conclusion of the Annual General Meeting of the Company in
2009 unless previously renewed, varied or revoked, although the Directors may exercise this
authority after this date in respect of an offer or agreement made while the authority was in force;
and
(c) this authority replaces all previous authorities made under Section 80 of the Act, without prejudice
to any allotment of securities made pursuant to them.
8. That subject to the passing of ordinary resolution 7 above, the Directors be authorised pursuant to
Section 95 of the Companies Act 1985 to allot equity securities (as defined in Section 94(2) to 94(3A)
of the Companies Act 1985) wholly for cash pursuant to the authority conferred by the previous
resolution as if Section 89(1) of the Companies Act 1985 did not apply to the allotment, provided that
this power shall be limited to the allotment of equity securities:
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75705 NOTES  31/3/08  11:49  Page 90 Ideal Shopping Annual Report 07
(a) where securities have been offered to holders of ordinary shares in the capital of the Company in
proportion (as nearly as may be) to their existing holdings of ordinary shares subject to any
exclusions or other arrangements that the Directors consider necessary or expedient to deal with:
i fractional entitlements; and
ii legal or practical problems under the law of, or the requirement of any recognised regulatory
body or stock exchange in, any territory;
(b) pursuant to acceptance of any scrip dividend offer; and
(c) otherwise than pursuant to paragraphs (a) and (b) above for cash up to an aggregate nominal
amount of £44,495.
This authority will expire at the conclusion of the Annual General Meeting of the Company in 2009,
although the Directors may exercise this authority after this date in respect of an offer or agreement
made while the authority was in force.
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.
9. 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 3 pence 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
2,966,350, being 10 per cent of issued ordinary share capital at 30 December 2007, 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 per cent 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 3 pence 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.
By Order of the Board
David Blake
Company Secretary
4 March 2008
Ideal Home House
Newark Road
Peterborough PE1 5WG
91
75705 NOTES  31/3/08  11:49  Page 91 Notice of Annual General Meeting continued
Notes
1. Pursuant to Regulation 41 (1) of the Uncertificated Securities Regulations 2001, the Company has
specified that only those members on the Company’s register of members at 6.00pm on Monday 
5 May 2008, or if this meeting is adjourned, at 6.00 pm on the day two days prior to the adjourned
meeting, may attend and vote at the meeting.
2. If you are a member of the Company at the time set out in note 1 above, you may appoint a proxy 
to exercise all or any of your rights to attend, speak and vote at the meeting. You can only appoint a
proxy using the procedures set out in these notes and the notes to the proxy form.
3. A proxy does not need to be a member of the Company. Details of how to appoint the Chairman
of the meeting or another person as your proxy using the proxy form are set out in the notes to the
proxy form.
4. To appoint more than one proxy you may photocopy this form. Please indicate the proxy holder’s
name and the number of shares in relation to which they are authorised to act as your proxy (which, 
in aggregate, should not exceed the number of shares held by you).
Please also indicate if the proxy is one of multiple instructions being given. All forms must be signed
and should be returned together in the same envelope.
5. A vote withheld is not a vote in law, which means that the vote will not be counted in the calculation of
votes for or against the resolution. If no voting indication is given, your proxy will vote or abstain from
voting at his or her discretion in relation to any matter which is put before the meeting.
6. The notes to the proxy form explain how to direct your proxy how to vote on each resolution or
withhold their vote.
To appoint a proxy using the proxy form, the form must be completed and signed, and delivered to
Capita Registrars, The Registry, 34 Beckenham Road, Beckenham, Kent, BR3 4TU to arrive no later
than 10.00 am on Monday 5 May 2008. A member which is a company must execute the proxy form
under its common seal or it must be signed on its behalf by an officer of the company or an attorney
for the company. Any power of attorney or any other authority under which the proxy form is signed 
(or a duly certified copy of such power or authority) must be included with the proxy form.
7. CREST members who wish to appoint a proxy or proxies by utilising the CREST electronic proxy
appointment service may do so for the meeting and any adjournment(s) thereof by utilising the
procedures described in the CREST Manual. CREST Personal Members or other CREST sponsored
members, and those CREST members who have appointed a voting service provider(s), should refer
to their CREST sponsor or voting service provider(s), who will be able to take the appropriate action
on their behalf.
To appoint a proxy or give or amend an instruction to a previously appointed proxy via the CREST
system, the CREST message must be received by the issuer’s agent RA10 by 10.00 am on 5 May
2008. 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 appointment through CREST must be
communicated to the proxy by other means.
The appropriate CREST message (a CREST Proxy Instruction) must be properly authenticated 
in accordance with Euroclear UK & Ireland Limited’s (EUI) specifications and must contain the
information required for such instructions, as described in the CREST Manual.
For further information on CREST procedures, limitations and system timings, please refer to the
CREST manual.
92
75705 NOTES  31/3/08  11:49  Page 92 Ideal Shopping Annual Report 07
The Company may treat as invalid a CREST Proxy Instruction in the circumstances set out in
Regulation 35(5)(a) of the Uncertificated Securities Regulations 2001.
8. In the case of joint holders, where more than one of the joint holders purports to appoint a proxy, only
the appointment submitted by the most senior holder will be accepted. Seniority is determined by the
order in which the names of the joint holders appear in the Company’s register of members in respect
of the joint holding (the first-named being the most senior).
9. To change your proxy instructions simply submit a new proxy appointment using the methods set
out above. Note that the cut-off time for receipt of proxy appointments (see above) also apply in
relation to amended instructions; any amended proxy appointment received after the relevant cut-off
time will be disregarded.
Where you have appointed a proxy using the hard-copy proxy form and would like to change the
instructions using another hard-copy proxy form, please contact Capita Registrars, The Registry,
34 Beckenham Road, Beckenham, Kent, BR3 4TU.
If you submit more than one valid proxy appointment, the appointment received last before the latest
time for the receipt of proxies will take precedence.
10. In order to revoke a proxy instruction you will need to inform the Company by sending a signed hard
copy notice clearly stating your intention to revoke your proxy appointment to Capita Registrars, 
The Registry, 34 Beckenham Road, Beckenham, Kent, BR3 4TU. In the case of a member which is 
a company, the revocation notice must be executed under its common seal or signed on its behalf by
an officer of the company or an attorney for the company. Any power of attorney or any other authority
under which the revocation notice is signed (or a duly certified copy of such power or authority) must
be included with the revocation notice.
In either case, the revocation notice must be received no later than 10.00 am on Tuesday 6 May.
Appointment of a proxy does not preclude you from attending the meeting and voting in person.
If you have appointed a proxy and attend the meeting in person, your proxy appointment will
automatically be terminated.
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 corporate 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.
12. Copies of the service contracts and letters of appointment of the Directors of the Company will be
available at the registered office of the Company and for at least 15 minutes prior to the meeting and
during the meeting.
13. You may not use any electronic address provided either in this Notice of Annual General Meeting or
any related documents (including the Chairman’s letter and proxy form),to communicate with the
Company for any purposes other than those expressly stated.
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94
75705 NOTES  31/3/08  11:49  Page 94 Ideal Shopping Annual Report 07
Form of Proxy
IDEAL SHOPPING DIRECT PLC
Annual General Meeting 7 May 2008
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 Buchanan Communications, 
45 Moorfields, London EC2Y 9AE on Wednesday 7 May 2008 at 10.00 am.
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 ............................................. 2008
For Vote Against
Withheld
Ordinary Business
1. To receive and approve the Director’s Report and the
audited accounts for the period ended 30 December 
2007 and the report of the Auditors
2. To re-elect Andrew Fryatt as a Director
3. To elect David Williams as a Director
4. To elect David Blake as a Director
5. To declare a dividend on the ordinary shares of 3.75p per share
6. To re-appoint Grant Thornton UK LLP as auditors of the 
Company and to authorise the Directors to fix their remuneration
Special Business
7. To authorise the Company to renew its authority pursuant to
section 80 of the Companies Act 1985 in accordance with
Resolution 7 in the Notice of Annual General Meeting
8. Subject to passing Resolution 7 to grant authority to the
Company to allot shares pursuant to section 95 of the
Companies Act 1985
9. To authorise the purchase of ordinary shares in the
Company up to a maximum of 10% of issued ordinary
share capital in accordance with Resolution 9 in the
Notice of Annual General Meeting
Notes to the proxy form
1. A proxy does not need to be a member of the Company but must attend the meeting to represent you. To appoint as your proxy a person
other than the Chairman of the meeting, insert their full name in the box. If you sign and return this proxy form with no name inserted in the
box, the Chairman of the meeting will be deemed to be your proxy.
2. To appoint more than one proxy you may photocopy this form. Please indicate the proxy holder’s name and the number of shares in relation 
to which they are authorised to act as your proxy (which, in aggregate, should not exceed the number of shares held by you). Please also
indicate if the proxy is one of multiple instructions being given. All forms must be signed and should be returned together in the same envelope.
3. To direct your proxy how to vote on the resolutions mark the appropriate box with an ‘X’. To abstain from voting on a resolution, select the
relevant “Vote withheld” box. A vote withheld is not a vote in law, which means that the vote will not be counted in the calculation of votes for
or against the resolution. If no voting indication is given, your proxy will vote or abstain from voting at his or her discretion in relation to any
matter which is put before the meeting.
4. To appoint a proxy using this form, the form must be completed and signed, and delivered to Capita Registrars, The Registry, 34 Beckenham
Road, Beckenham, Kent, BR3 4TU to arrive no later than 10.00 am on Monday 5 May 2008. A member which is a company must execute
this proxy under its common seal or be signed on its behalf by an officer of the company or an attorney for the company. Any power of
attorney or any other authority under which this proxy form is signed (or a duly certified copy of such power or authority) must be included
with the proxy form.
5. CREST members who wish to appoint a proxy or proxies by using the CREST electronic appointment service may do so by using the
procedures described in the CREST Manual.
6. In the case of joint holders, where more than one of the joint holders purports to appoint a proxy, only the appointment submitted by the most
senior holder will be accepted. Seniority is determined by the order in which the names of the joint holders appear in the Company’s register
of members in respect of the joint holding (the first-named being the most senior).
7. If you submit more than one valid proxy appointment, the appointment received last before the latest time for the receipt of proxies will take
precedence.
8. For details of how to change your proxy instructions or revoke your proxy appointment see the notes to the notice of meeting.
9. 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.
95
75705 NOTES  31/3/08  11:49  Page 95 Ideal Shopping Annual Report 07
Financial Calendar 2008
(all dates subject to change)
Final results announcement 4 March
Annual report issued 4 April
Annual general meeting 7 May
Ex dividend date for final dividend 4 June
Record date for final dividend 6 June
Payment date for final dividend 27 June
Half year end 29 June
Half year results announcement w/c 3 September
Ex dividend date for interim dividend 3 December
Record date for interim dividend 5 December
Financial year end 28 December
Date of payment of interim dividend 30 December
75705 NOTES  31/3/08  11:49  Page 97
97 BUSINESS REPLY SERVICE
Licence No. MB122
1 1
SECOND FOLD
THIRD FOLD
FIRST FOLD
Capita Registrars
Proxy Department
P.O. Box 25
Beckenham
Kent
BR3 4BR
75705 NOTES  31/3/08  11:49  Page 96 ideal world
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