Ideal Shopping Direct Plc Annual Report and Accounts 2009
www.idealworld.tv
www.createandcraft.tv
ww.gardenbargains.com
Ideal Shopping Direct Plc
Ideal Home House
Newark Road
Peterborough
PE1 5WG
United Kingdom
Tel: 01733 316203
www.idealshoppingdirect.co.uk
Ideal Shopping Direct Plc
Annual Report and Accounts 2009 FSC LOGO TO GO  
IN HERE
Ideal Shopping Direct Plc is a leading multi-channel 
retailer, selling products to consumers via its 
television shopping channels and the internet.
02  Ideal Shopping Direct At a glance
04  Chairman’s Statement
06 Chief Executive’s Review
10  Finance Director’s Review
14  Corporate Responsibility Review
15 Board of Directors 
16 Directors’ Report
19  Corporate Governance
21  Remuneration Report
23  Independent Auditors’ Report
24 Consolidated Statement of Comprehensive Income
25 Consolidated Statement of Financial Position
26 Company Statement of Financial Position
27  Consolidated Statement of Cash Flows
28 Company Statement of Cash Flows
29 Consolidated Statement of Changes in Equity
30 Company Statement of Changes in Equity
31 Notes to the Consolidated Financial Statements
62 Notice of 2010 Annual General Meeting
65 Directors and Advisers
66 Financial Calendar
67 Form of Proxy
Contents 01 Ideal Shopping Direct Plc Annual Report and Accounts 2009
Overview
 Operational Highlights 
 Financial Highlights
 Sales increased by 9.2% to £103.3 million  •	
(2008: £94.7 million)
Gross margin improved to 41.1%  •	
(2008: 34.2%; 37.3% underlying)
Underlying profit before tax of £1.3 million  •	
(2008: Loss £4.0 million) before non underlying 
charges of £0.2 million (2008: £9.2 million)
Basic earnings per share of 7.1p  •	
(2008: 38.9p loss)
Net cash of £13.4 million at 3 January 2010  •	
(2008: £6.5 million)
Reduced working capital from improved stock •	
management and credit control
Home & Leisure sales up 27.5% to £48.4 million •	
New Craft division created in 2010 •	
Introduction of new branded products •	
Freeview Channel 36 launched in July 2009 •	
Significant investment in web and marketing •	
activities
Improved customer service from the restoration •	
of customer agents, the introduction of track and 
trace technology and faster delivery times
Integration of Lead The Good Life, acquired in •	
January 2010, progressing well and to plan 02 Ideal Shopping Direct Plc Annual Report and Accounts 2009
At a glance
Our strategy is to exploit our position 
as a television and internet retailer 
to grow sales strongly, whilst 
maintaining operational efficiency and 
developing our multi-channel offer.
Our flagship channel brings a department store 
filled with fantastic brands, right into the home.
Features a selection of the most exciting and 
innovative products from Ideal World.
More live hours of gardening and craft, as well  
as the best of our Ideal World shows.
Our dedicated craft channel provides specialist 
craft and hobby products to inspire. 
Our TV channels
Ideal World
www.idealworld.tv
Freeview channel 22
Sky Digital channel 644
Virgin TV channel 747
Freesat channel 812
Ideal Extra
Sky Digital channel 651
Ideal & More
Sky Digital channel 668
Create and Craft
www.createandcraft.tv
Freeview channel 36
Sky Digital channel 671 
Freesat channel 813
0
20
40
60
80
100
120
2007 2008 2009
-4
-3
-2
-1
0
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5
6
Sales £m PBT £m (pre-exceptional)
2007 2008 2009
0
20
40
60
80
100
120
2007 2008 2009
-4
-3
-2
-1
0
1
2
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5
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Sales £m PBT £m (pre-exceptional)
2007 2008 2009
1.3
-4.0
96.6
94.7
103.3
5.6 03 Ideal Shopping Direct Plc Annual Report and Accounts 2009
Home shopping 
market
1. All e-commerce (70%)
2.  Catalogue/TV 
direct response (25%)
3. All direct selling (5%)
Our websites
www.idealworld.tv
www.createandcraft.tv
www.gardenbargains.com
Source: Mintel 2008
Our product 
categories
1. Home & leisure 46.8%
2. Personal care 24.3%
3. Craft 23.2%
4. Other 5.7%
Overview
0
20
40
60
80
100
120
2007 2008 2009
-4
-3
-2
-1
0
1
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6
Sales £m PBT £m (pre-exceptional)
2007 2008 2009
1
2
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0
20
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100
120
2007 2008 2009
-4
-3
-2
-1
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6
Sales £m PBT £m (pre-exceptional)
2007 2008 2009
1
2
3 04 Ideal Shopping Direct Plc Annual Report and Accounts 2009
Chairman’s Statement
The retail environment during 2009 was challenging and in 
addition the new Board had many legacy issues to address. 
Given that background, I am delighted to announce that Ideal 
Shopping Direct has completed its turnaround plan. After 
spending the first half of 2009 addressing infrastructure issues 
that were negatively impacting the customer experience, we 
have delivered an excellent performance in the second half year 
with sales growth of 18.5% over the same period in the previous 
year. This performance has delivered a profit before tax and  
non underlying items of £1.3 million for the Financial Year 2009 
compared to a loss before tax and non underlying items of 
£0.95 million for the half year to June 2009 and a substantial 
improvement on the loss before tax and non underlying items  
of £4.0 million reported for the Financial Year 2008.
We further strengthened the Board when on 1 July 2009 
Graham Cole joined as a Non-executive Director and Chairman 
of the Audit Committee. Graham brings with him a wealth of 
experience gained from working with AIM listed businesses. Ian 
Jebson joined on 1 March 2009 as Finance Director; Val Kaye 
and I joined on 3 February 2009 as Non-executive Director and 
Non-executive Chairman respectively. I believe we now have  
a settled and strong Board who are committed to the future 
strategy of the business and to rebuilding shareholder value.
The Board would like to thank all their colleagues across the 
business for their contributions during 2009. We have a loyal 
and dedicated workforce who have worked skilfully to restore 
profitability and I am now confident that performance will 
continue to improve during 2010.
Strategy
As outlined in our 2008 Annual Report, following the 
establishment of a completely new Board, we undertook  
a strategic review and refocused the business on the 
fundamentals that had originally made it successful, namely 
customer loyalty, customer service, diversity of product across  
a range of price points within a convenient and entertaining 
shopping environment. This task is now largely complete.  
In addition, we decided to diversify from being a TV centric 
shopping business to one with a genuine multi-channel offering, 
exploiting our core values and strengths. In particular, we 
recognise the new opportunities offered to us via e-commerce 
where we can, and are, leveraging our TV shopping expertise 
and in-depth product knowledge. We also believe a number of 
specific complementary niche product categories exist, which 
“I am delighted that  
Ideal Shopping Direct has 
completed its turnaround  
plan. I remain optimistic that 
we will continue to improve  
the performance of the 
Company during 2010.”
Paul Wright Chairman
+9.2%
Sales increased by 9.2% to £103.3 million  
(2008: £94.7 million) 05 Ideal Shopping Direct Plc Annual Report and Accounts 2009
Overview
can offer attractive margins and little aggressive competition, 
where we can build and defend a significant franchise, as  
has already been successfully demonstrated by our profitable 
craft category.
In the pursuit of this strategy, in January 2010, we acquired  
the home shopping gardening business, Lead The Good Life 
(LTGL). This transaction directly supports our strategy of 
continuing to introduce new branded products that will  
enhance earnings. The integration of LTGL is progressing  
well and to plan.
Across the Company we have improved financial controls, 
managed overheads and generated a positive cash flow of  
£5.0 million during the year. We continue to develop our 
credentials as a strong multi-channel business and selective 
investments in our website has seen growth in our web traffic 
and sales.
Outlook
Our key focus now is to drive profitability towards those levels 
we achieved historically. I remain optimistic that we will continue 
to improve the performance of the Company during 2010. The 
Board is committed and motivated to achieving its goal of 
rebuilding shareholder value. Our strategy for growth is proving 
successful and we are preserving our cash to finance further 
growth of the business through organic development as well  
as through acquisitions. As a consequence, the Board is not 
recommending a final dividend.
Current trading
The current year has started well and sales for the first 10 weeks 
are 17.5% ahead of 2009; with like for like sales 8.8% ahead of 
2009 and Lead The Good Life sales 54.1% ahead of 2009.
Paul Wright
Chairman
23 March 2010 06 Ideal Shopping Direct Plc Annual Report and Accounts 2009
Mike Hancox Chief Executive
Chief Executive’s Review
During 2009 Ideal Shopping Direct made a successful return  
to profitability with business performance improving steadily 
through the year. 2009 started with the UK in recession and the 
Company having limited cash resources, with declining sales 
and a rapidly increasing overhead base.
During the first half of 2009 plans were implemented that 
reduced overheads and made them more variable with sales. 
We also looked to improve the customer experience by 
changing the organisational infrastructure in respect of our call 
centres and product delivery. In our call centres we focused  
on restoring ‘real people’ to answer our customer calls, where 
previously there had been a drive to automated answering 
systems. Furthermore, we invested in Numero Customer 
Management Software which significantly improved our 
customer service in the area of e-mail processing. With regard 
to product delivery, we increased the speed of delivery to the 
customer and introduced track and trace technology to give 
visibility to the delivery process. I believe that both these 
developments were appreciated by our customers and we  
saw increased customer spend in the second half year. 
Also during the first half, the business was managed more 
effectively. Tight financial controls were implemented across the 
organisation and a review of the supply chain led to changes in 
the way product was supplied into the business. Rather than 
committing to stock in advance of TV shows on a firm sale 
basis, the majority of our sales are now generated with products 
sourced on a sale or return basis. This has removed risk from 
the business and released cash. At the start of 2009 we had 
relatively high stock levels and there was a clear need for a 
reduction. The business initiated a ‘sale strategy’ in January  
and February 2009 to clear stocks at planned reduced margins. 
This will not be necessary in 2010 and our stock levels are some 
£1.5 million lower at the end of 2009 than the previous year.
Strategy
Focus on retail entertainment, great •	
products and customer service
Improve customer retention and •	
increase frequency and value of 
purchase
Grow internet sales •	
Grow Craft business •	
Develop other niche multi-channel •	
categories
Maintain financial controls and cash •	
and stock management
“The scale of the business 
turnaround since 2008 has 
been significant and the 
management team are  
excited about the growth 
prospects for the Company.” 
£1.3 million
Underlying profit before tax of £1.3 million 
(2008: loss £0.4 million) before non underlying 
charges of £0.2 million (2008: 9.2 million) 07 Ideal Shopping Direct Plc Annual Report and Accounts 2009
Business Review
Having reached the half year with flat sales compared with  
the previous year, and an underlying loss before tax and non 
underlying items of £0.95 million, there was a clear need to drive 
sales performance. Having improved the customer experience 
and focused on sourcing some excellent product for the 
Christmas selling period, sales increased by 18.5% in the 
second half, driven by a number of focused initiatives, which 
included the following:
a series of best practice direct mail techniques were •	
introduced to stimulate sales from our valuable customer 
databases
investments were made in people and software to improve •	
our websites through better search, navigation, presentation 
and availability
our products and on-screen presentation techniques were •	
improved with a comprehensive trading plan to maximise 
sales in the run up to Christmas.
For the year, sales increased by 9.2% to £103.3 million with 
home and leisure being the most successful categories showing 
growth of 27.5% with sales reaching £48.4 million. We have 
successfully started to increase the spend per basket of our 
customers through the introduction of some higher priced items. 
This has been helped by our Flexi-pay proposition, which we 
have extended from telephone sales to internet sales and I am 
pleased to be able to report that our bad debt exposure from 
Flexi-pay is minimal.
We have continued to make progress with the Craft category 
and sales are up 7.4% during 2009. In 2010 we will separate 
Craft into a new division to ensure increased focus on this area, 
which remains a strategic priority for the management team.  
In July 2009 a test was started with a daily, morning Craft 
broadcast live on Freeview Channel 36. After a successful test 
period this initiative was implemented permanently in October 
2009. The Create and Craft club membership continues to grow 
demonstrating the loyalty of our customers to the Create and 
Craft proposition. 08 Ideal Shopping Direct Plc Annual Report and Accounts 2009
Chief Executive’s Review continued
“Progress is being made with 
the Create and Craft brand 
which we believe has 
international potential.
We are actively looking at new 
product categories, such as 
gardening, that we believe can 
be developed in a similar way.”
Future prospects 
The scale of the business turnaround since 2008 has been 
significant and the management team are excited about the 
growth prospects for the Company. The strategy, set out in 
2009, of developing niche, internet based propositions that 
can be complemented by a unique TV shopping experience, 
is working. Progress is being made with the Create and Craft 
brand which we believe has international potential. In addition 
we have made great progress with the gardening category 
and during 2010 we intend to fully integrate Lead The Good 
Life Limited into the business. We are actively looking at new 
product categories that we believe can be developed in a 
similar way.
For the core TV shopping proposition, there continues to be  
a number of opportunities for development. The roll out of 
digital TV across the UK brings new customers every day and 
we are focused on the business qualities of customer service, 
entertainment and excellent products that will grow our 
customer base. The reinstatement of supplier credit insurance 
at the start of 2010 enables us to offer an increasingly broader 
range of products.
The successful implementation of initiatives that are driving 
the Company forward resulted from a team effort. My 
colleagues have stepped up to the challenge of turning  
the business around and their progress to date has been 
impressive. Their continued support will be needed going 
forward as we look to reinforce our brand values of family, 
friendship and fun.
Mike Hancox
Chief Executive
23 March 2010
"
"
Jan 09    Jan 10
18,289    52,459
+286%
Craft Club membership 09 Ideal Shopping Direct Plc Annual Report and Accounts 2009
Overview Business Review
Key performance indicators 2009
Sales growth
2009 9.2%
2008 -2.0%
2007 12.8%
2006 8.1%
Gross margin
(excl. exceptional items)
2009 41.1%
2008 37.3%
2007 41.8%
2006 41.3%
Core operating costs
(excl. exceptional items)
2009  £41.3m 
2008  £39.4m
2007  £35.3m 
2006  £29.8m
Core operating costs % to sales
(excl. exceptional items)
2009 39.9%
2008 41.7%
2007 36.6%
2006 34.8%
Underlying sales
2009 £103.3m
2008 £94.9m
2007 £96.6m
2006 £85.6m
Total customer file 
2009 2.34m
2008 2.10m
2007 1.73m
2006 1.37m
New customers
2009 0.31m
2008 0.33m
2007 0.31m
2006 0.29m
Stock turn
2009 16.4
2008 9.3
2007 7.7
2006 8.4
ASA adjudications 
2009 1
2008 2
2007 2
2006 3 10 Ideal Shopping Direct Plc Annual Report and Accounts 2009
Finance Director’s Review
“As a result of the robust 
management of cash and 
control of working capital, 
particularly inventory, the  
net cash position at the year 
end was £13.4 million, a  
£6.9 million improvement.”
+3.9%
Underlying gross margin up 3.9% to 41.1% 
(2008: 34.2%, 37 .3% underlying)
Ian Jebson Finance Director
Accounting policies
The Group’s results for the year have been prepared under 
International Financial Reporting Standards.
Financial results
The return to underlying profitability before tax of £1.3 million 
from continuing operations in 2009 after the loss of  
£4.0 million incurred in 2008 is a significant achievement.  
Non underlying items in 2009 were a charge of £0.2 million,  
which is very small when compared with the charge of  
£9.2 million in 2008.
As a result of the robust management of cash and control  
of working capital, particularly inventory, the net cash position 
at the financial year end was £13.4 million, a £6.9 million 
improvement to the opening position.
The year on year comparison of key numbers is as follows:
53 weeks ended 3 January 2010               
  Non 3 Jan 2010 
 Underlying Underlying Total 
 £000 £000 £000
Sales revenue 103,336  103,336 
Gross profit 42,505 – 42,505 
Operating profit/(loss) 1,231 (198) 1,033 
Profit/(loss) from continuing  
 operations before taxation 1,261 (198) 1,063
52 weeks ended 28 December 2008
   28 Dec 2008 
  Underlying Non Total 
 Reclassified Underlying Reclassified 
  £000 £000 £000
Sales revenue 94,947 (290) 94,657
Gross profit 35,387 (3,048) 32,339
Operating profit/(loss) (4,224) (9,243) (13,467)
Profit/(loss) from continuing  
 operations before taxation (3,978) (9,243) (13,221)
Total Sales revenue increased by 9.2% year on year with 
underlying gross margins increasing by £7.1 million;  
a 20.1% increase year on year.
This underlying gross margin of 41.1% represents a 3.9ppt 
increase over 2008 driven primarily by increased Home  
and Leisure sales and the cessation of frequent free  
P&P promotions.
Underlying overheads were 4.2% higher at £41.3 million  
(2008: £39.6 million); however given the solid sales growth, 
underlying operational gearing of the Group fell to 39.9%  
from 41.7%. The main increases in operating costs were 
broadcasting costs of £0.8 million, (driven by RPI increases  
and by new channels; ‘Ideal & More’ on Sky and ‘Create  
& Craft’ on Freeview), call centre costs of £1.1 million 
occasioned by the repatriation of our customer services  
team to the UK and combined website and marketing costs  
of £1.1 million, as we continue to drive market presence and 
awareness. Elsewhere, £1.3 million costs have been saved 
through tight cost control and the implementation of initiatives 
such as reduced warehousing, communication and facilities 
costs together with the closure of our retail outlet. 11 Ideal Shopping Direct Plc Annual Report and Accounts 2009
Business Review
Underlying profit, before tax and non underlying items,  
was £1.3 million compared to a loss of £4.0 million for the 
previous year.
Total non underlying costs of £0.2 million include the following 
items: £0.2 million costs associated with the purchase of Lead 
The Good Life and £0.3 million Board restructuring costs 
which were partially offset by a receipt of £0.2 million cash 
from the administrators of Kaupthing Singer & Friedlander,  
in relation to a deposit of £0.6 million previously written off.
From an underlying profit before tax and non underlying items 
of £1.3 million (2008: £4.0 million loss), the reported profit after 
non underlying items before tax was £1.1 million compared to 
a loss of £13.2 million in the previous year.
Taxation
There was a tax credit of £1.0 million for the financial year  
(2008: credit £1.7 million) arising from the recognition of a 
deferred tax asset, the majority of which is in respect of tax 
losses carried forward of £3.1 million. Carried forward tax losses 
from 2008 negated a tax charge on the profit for the year.
Earnings per share
Basic earnings per share (EPS) were 7.1p (2008: Loss 38.9p) 
with diluted EPS also being 7.1p (2008: Loss 38.9p).
Acquisition of Lead The Good Life
The Company completed the purchase of Lead The Good  
Life Limited on 18 January 2010. The initial purchase 
consideration was £5 million satisfied by the allotment of 
3,971,962 ordinary shares and £0.75 million cash and is duly 
included in the statutory accounts as a post balance sheet 
event. The Group has agreed to pay the selling shareholders 
additional ‘earn out’ consideration of up to a maximum of £2.2 
million. Any further consideration will be settled by the issue of 
ordinary shares, dependent on Lead The Good Life Limited 
achieving certain profit targets. The Company currently 
estimates that the further consideration under the acquisition 
scheme will amount to £1.54 million. Work is currently on 
track to  
optimise the benefits of this purchase.
Cash flow and debt
The closing gross cash balances were £13.4 million  
(2008: £8.4 million). The net cash inflow of £5.0 million  
arose from the following; £3.0 million cash inflow from operating 
activities, £3.6 million from improvement in working capital 
(predominantly reduced stock holding and improvement in 
creditor payment terms) and £1.3 million income tax received 
being the return of 2008 payments on account. These inflows 
were partially offset by the following outflows; £0.9 million capital 
expenditure and £1.9 million mortgage repayment. 
Inventory
At the year end, inventory (net of provisions) was £2.4 million, 
representing a reduction of £1.5 million, 37.5% lower than last 
year. This was achieved by passing inventory risk to suppliers 
and improved merchandising processes.
Capital expenditure
Capital expenditure for the year was £0.9 million of which  
£0.6 million relates to software and system upgrades,  
£0.2 million was spent on computer hardware and the  
remaining £0.1 million was spent on TV equipment and  
other fixtures and fittings.
Banking arrangements
During 2009 we switched our banking arrangements  
from Barclays to RBS, repaying the mortgage to Barclays  
(£1.9 million) in the process. RBS are secured by a charge and 
cross guarantees over the assets of the Group excluding land 
and buildings which were valued at £6.85 million at January 
2009. We are covenant free. There are bank guarantees of 
£0.35 million to support trading and these have a renewal  
date of 30 April 2010.
Dividend
The Board is not recommending a final dividend (2008: nil).  
An interim dividend was not paid (2008: 1.75p).
Ian Jebson
Finance Director
23 March 2010 12 Ideal Shopping Direct Plc Annual Report and Accounts 2009
Risk Measures in place to manage risk
Market 
We operate in a highly competitive retail market
With volatile consumer spending we face increasing pressure on 
sales volumes and margin
There is increased risk of bad debt and fraud
TV shopping and online sales continue to be attractive routes to 
market with growth prospects
Part of our strategy is to develop strong market positions in niche 
product areas such as craft and gardening
We focus on offering a range of new, great value products and are 
continually improving our customer service
We do not hold significant “in stock” items, have few long term 
purchase commitments, so can adapt our offer quickly
We have low levels of customer bad debt and this is closely 
monitored. We use a third party to screen for credit card fraud
Access to consumers
Access to digital television is primarily via Freeview, Sky Digital  
and Virgin Media, there is limited availability on the Freeview and 
Sky platforms
The pace of technological change in TV and internet retailing  
is rapid
We have long term agreements with all of our platform providers 
and maintain good relationships with them
Our Ideal World Freeview channel alone gives us access to over 23 
million homes in the UK. In 2009 we secured additional airtime on 
Freeview and Freesat for our Create and Craft television channels
Increased marketing activity is helping us drive consumers to our 
TV channels and websites. We have upgraded our websites and 
improved navigation
Through our purchase of Lead The Good Life we have enhanced our 
online route to market, in line with our strategy
We monitor technological developments closely; in particular the 
growth of IPTV
Products and suppliers
The quality of our product and service offer is paramount
We source some products direct from the Far East (at enhanced 
margins) which means we bear the stock and product liability risk
We trade with a large number of suppliers, some on long term 
agreements. All suppliers are required to sign our conditions 
of purchase 
In 2009 we have trialed airtime partnerships with a number of 
branded retailers to broaden our offer without stock risk 
We are closely managing our supply chain to minimise our stock risk 
and exposure
We employ compliance and quality assurance officers in the UK and 
China to ensure that products meet their specification and are safe 
and correctly labelled
Finance Director’s Review continued
Risks and Uncertainties 13 Ideal Shopping Direct Plc Annual Report and Accounts 2009
Business Review
Risk Measures in place to manage risk
Employees
We rely on our employees to execute our strategy Employees are recruited and regularly appraised against a formal 
job and person specification 
Formal policies cover all material aspects of employment and we are 
committed to high standards of health and safety at work, effective 
communication with employees and employee development 
Legislation and regulation 
Our Ofcom licence requires us to comply with the Advertising 
Standards Authority’s (ASA’s) Television Advertising Standards 
Code and other relevant legislation 
Our activities are regulated by distance selling, consumer, data 
protection and environmental legislation 
Our policy is to meet or exceed all applicable legal and regulatory 
requirements
There is a good level of awareness of the ASA code throughout  
the business
Managers have specific responsibility for keeping up to date with 
legislation, advising senior management of required actions and 
putting in place appropriate procedures
Financial
Availability of funding
The principal treasury risks to the Group arise from exchange rate 
and (less so) interest rate fluctuations 
Some of the purchases of goods for resale are denominated in 
foreign currencies
The business does not require an overdraft. It has renegotiated its 
bank arrangements and credit insurance is now available following 
the much improved trading performance in 2010
The Group’s policy is to hedge substantially all the risks of currency 
fluctuations with respect to committed transactions in foreign 
currency. The Group may also take forward positions in foreign 
currency to the extent of forecast requirements over a rolling  
six month period
Business continuity
We are dependent on information technology for all aspects of our 
business operations 
We have business continuity arrangements in place which seek 
to protect us from single points of failure in our operations, for 
example by having standby transmission arrangements in the event 
of a broadcast communications failure. We continue to look to 
strengthen the business continuity planning in force
Outsourcing
We outsource our product delivery and contact centre operations We have contractual arrangements with our outsource partners 
which contain service levels. The KPIs in our contact centre 
agreement have been strengthened in 2009 and we have changed 
our product delivery partner to improve service and traceability 14 Ideal Shopping Direct Plc Annual Report and Accounts 2009
Corporate Responsibility Review
We have policies and procedures in place to manage our 
corporate responsibilities to third parties. A description of our 
policies and some of our recent activity is set out below:
Customers
Our policy is to
Provide quality, safe products at a fair price •	
Market our products accurately and fairly, in accordance with •	
the law and the codes of practice issued by the Advertising 
Standards Authority (ASA)
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 2009 we put increased focus on the experience of our 
customers including call handling, email management and the 
product delivery process. At the start of the year we added 
extra call centre agents to ensure that wait times were reduced 
and with our contact centre partner we created a best practice 
centre in India for our customer services operations. The 
process for management of emails was also changed to ensure 
that any customer queries were answered in 24 hours. 
By appointing a new product dispatch provider we have  
been able to improve the speed of receipt of goods and offer 
customers track and trace capability to follow the progress of 
their orders. Improvements in all areas continue to be 
implemented in 2010.
Employees and health & safety
We have approximately 500 employees, based primarily at  
our premises in Peterborough, across a range of disciplines 
including television operations, product sourcing and 
development and warehouse operations. We aim to provide  
a working environment in which employees are valued and 
encouraged to fulfil their potential. We are a dynamic, growing 
business and provide our employees with good opportunity to 
grow and develop with us.
We require all employees to treat each other with respect, 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.
We were Winners of the 2009 BAFTA Training Award for our 
Foundation Training programme.
We are responsible for the health and safety of our employees 
and visitors to our premises, and employ a full time health and 
safety co-ordinator who is very active in the business, with the 
full support of senior management. In 2009:
We were delighted that there were no reportable accidents  •	
in the year and the absolute number of accidents fell by  
27% compared with 2008
We commenced a programme of IOSH based training for •	
senior managers
We rewrote and restructured our Risk Assessment  •	
policy and procedure and backed this up with a revised 
training programme
We created a dedicated Health and Safety intranet site. •	
Suppliers and supply chain 
Our policy is to be open and honest in our dealings with our 
suppliers and other business partners, and to honour our 
contractual obligations; and we expect others to do so. 
We maintain a good relationship with our service providers,  
and have contracts with them which set out our mutual rights 
and obligations.
We do business with hundreds of product suppliers; we ask 
them to sign our conditions of purchase, which are available on 
our website. These conditions include a commitment to ensure 
that products are sourced only from businesses which comply 
with minimum employee welfare standards, such as freedom  
of association, working conditions, safety, working hours and 
pay. We do not presently audit these for third party suppliers. 
However, when products are sourced by us direct from the  
Far East we ask the supplier to complete a questionnaire, and 
employee welfare standards are one of the quality measures 
that we check on factory inspections. 
Environment
The main areas in which our business operations affect the 
environment are:
Use of energy, packaging and disposal of waste at our site  •	
in Peterborough
Use of transport to source and deliver our products •	
Recycling and re-use of electrical products that we sell. •	
Our policy is to comply with all relevant legislation and, in 
addition, to seek to reduce our environmental impact in the 
areas identified above. We are part of the Valpak compliance 
scheme in respect of packaging waste and compliance with 
Waste Electrical and Electronic Equipment (WEEE) legislation.
In 2009 an energy survey was carried out by the Carbon Trust and 
we will review the results for possible implementation in 2010.
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 2009, 20 young persons carried out work experience 
programmes with the Company. In addition we received the 
Education Business in Partnership Investors In Education award 
for the second year running. 15 Ideal Shopping Direct Plc Annual Report and Accounts 2009
Business Review
Board of Directors
1 Paul Wright – Non-executive Chairman 
Paul was appointed to the Board as Non-
executive Chairman on 3 February 2009.
Paul is a co-founder of the Company. Prior  
to its formation he gained valuable experience 
in the fast-moving consumer goods industry, 
having begun his career running the Hong 
Kong office of Reed International, selling 
printing and graphic arts equipment to  
the local market . In 1980, he founded 
Wrightway Marketing with Val Kaye, initially  
as a marketing consultancy, which went on to 
develop into a successful mail order business.
In 2000, after seeing the potential of  
TV shopping, Wrightway Marketing changed 
its name to Ideal Shopping Direct, was listed 
on the AIM market and then launched the 
Ideal World channel.
Paul was Chief Executive Officer until 2005 
(having also acted as Chairman from 2001 
until 2004). He held the post of Executive 
Deputy Chairman until March 2006 when  
he became Non-executive Director. He 
resigned from this role in May 2007 and  
was reappointed as Non-executive Chairman 
in February 2009.
Paul is Chairman of the Remuneration 
Committee and the Nominations Committee 
and a member of the Audit Committee.
2 Mike Hancox – Chief Executive Officer 
Mike joined the Board as Chief Executive 
Office on 3 November 2008. Prior to joining 
the Company, Mike was Chief Executive of 
Otto UK, the world’s largest home shopping 
retailer, where he was responsible for 
operations in the UK, Ireland and Spain.  
He held this position from December 2005 
until 31 August 2008 and during this time led 
a significant turnaround in the profitability of 
the business. Prior to this, he was Chief 
Operating Officer of Littlewoods Shop Direct 
Group following the merger of the Littlewoods 
and Shop Direct businesses. He has also  
held other senior positions including Chief 
Executive of Shop Direct and Finance Director 
at ARG Equation, a division of GUS plc. 
Mike is a non executive director of Manchester 
Airport Group plc and Character World 
Limited and a Fellow of Chartered Institute  
of Management Accountants. 
Mike is a member of the Nominations 
Committee.
3 Ian Jebson FCA – Finance Director
Ian was appointed to the Board as Finance 
Director on 1 March 2009. Ian qualified 
with KPMG, and has worked across a 
number of sectors including retail and 
consumer products both in the corporate 
and private equity environment. He joined 
the Company from Charles Tyrwhitt, the mail 
order, retail and internet business, where 
he was Finance Director from 2006. Prior 
to Charles Tyrwhitt, Ian was Group Finance 
Director at Littlewoods Shop Direct Group, 
and previously held a number of senior 
management positions including Group 
Finance Director of UKS Group Limited and 
Chief Operating Officer of Vax Group. 
4 Valerie Kaye – Non-executive Director
Val was appointed to the Board as a 
Non-executive Director on 3 February 2009.
Val is a co-founder of the Company. Prior  
to its formation she held senior sales 
promotional roles at Bowater Scott and 
Dorland Advertising.
She actively managed the Company with  
Paul Wright as an executive Director until  
May 2005, when she became a Non-executive 
Director. She resigned from this role in June 
2007 and was reappointed as a Non-
executive Director in February 2009.
Val is a member of the Remuneration 
Committee, the Nominations Committee  
and the Audit Committee.
5 Graham Cole – Non-executive Director
Graham joined the Board on 1 July 2009.  
A qualified accountant (FCA), Graham brings 
to the role many years of experience of 
corporate governance and management.  
He specialises in advising growth companies 
and has been involved in over 60 public 
flotations in the UK and Europe.
As a director of Beeson Gregory (now 
Evolution), a European investment bank from 
1995 he was involved with capital raising  
and growth strategies for a wide variety of 
domestic and European companies, and  
has continued to advise public and private 
companies. Graham was also a co-founder 
and member of the executive committee of 
CISCO (City Group for Smaller Companies), 
now QCA (Quoted Companies Alliance).
Graham is a member of the Nominations 
Committee and Remuneration Committee 
and is Chairman of the Audit Committee.
1 2 3
4 5 16 Ideal Shopping Direct Plc Annual Report and Accounts 2009
Directors’ Report
The Directors present their report together with the audited 
financial statements for the period ended 3 January 2010. The 
information which fulfils the requirement of the Companies Act 
2006 to produce a Business Review is set out in this report and 
also in the Chief Executive’s Review and the Finance Director’s 
Review on pages 6 to 13 respectively, 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 small number of employees working in China.
Results and dividends
The results are discussed in the Finance Director’s Review  
on page 10. The Directors do not propose a final dividend  
in respect of the period ended 3 January 2010 (2008: nil).
Directors
Details of the Directors in office at the period end are set out  
on page 15. 
During the period there were the following changes to  
the Board:
3 February 2009 David Williams resigned
3 February 2009 Terry Donovan resigned
3 February 2009 Susan Ellis resigned
3 February 2009 Paul Wright appointed
3 February 2009 Val Kaye appointed
1 March 2009 Ian Jebson appointed
23 March 2009 Pam Aujla resigned
1 July 2009 Graham Cole appointed. 
At the 2010 Annual General Meeting, Mike Hancox and Val Kaye 
will retire by rotation in accordance with the Company’s Articles 
of Association and offer themselves for re-election by 
shareholders; and Graham Cole will offer himself for election by 
shareholders as he has been appointed since the date of the 
last Annual General Meeting.
Directors serving at the period end and their interests in the 
ordinary shares of the Company were:
 At   At 
 3 January   28 December 
 2010  2008 
 3p ordinary   3p ordinary 
 shares  shares
G Cole –  –
M Hancox 570,500  –
I Jebson 62,500  –
V Kaye 3,449,853  3,449,853
P Wright 5,280,000  5,280,000
 
In addition, Paul Wright and Val Kaye hold respectively 300,000 
and 150,000 deferred shares of 1 pence each.
Since the period end, as a result of the Company’s acquisition 
of Lead The Good Life Limited, Paul Wright and Val Kaye have 
acquired an additional interest in ordinary shares as follows:
  Conditional  
  interest in  
  ordinary  
  shares to  
 Ordinary be allotted in 
 shares allotted  2010 subject  
 18 January to earn out *
V Kaye 1,588,785 822,429
P Wright 1,588,785 822,429
* The issue of additional ordinary shares in the right hand column above is subject to 
the pre-tax profit achieved by Lead The Good Life Limited for the twelve months 
ending on 30 June 2010 being at least £0.8 million. The maximum number of 
shares to which Paul Wright and Val Kaye will be entitled is set out above, based on 
pre-tax profit of £1.8 million or more; if the pre-tax profit of Lead The Good Life 
Limited is less than £1.8 million but £0.8 million or more, the number of shares to 
which they will be entitled is reduced pro rata.
Details of share options held by Directors at the period end are 
given in the Remuneration Report.
Share capital and substantial shareholders
The share capital of the Company has increased during the 
period due to the exercise of share options.
Although the Company obtained shareholder authority at the 
2009 Annual General Meeting to purchase its own shares, it did 
not make any purchases during the period. 
At 30 April 2010 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 %
P C Wright  6,868,785 20.41
V Kaye  5,038,638 14.97
Fidelity Investments  4,016,113 11.93
Prem Nath Anand  2,320,000 6.89
Artemis Investment Management  1,650,000 4.90
Majedie Asset Management  1,672,951 4.97
Forum Investment Management  1,426,700 4.24
Up to date details are available on the Company’s website, 
www.idealshoppingdirect.co.uk.
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 14. 17 Ideal Shopping Direct Plc Annual Report and Accounts 2009
Business Review
Disabled employees
It is Group policy that training, career development and 
promotion opportunities should be available to all employees 
and this is reflected in our Equal Opportunities Policy.
The Group recognises its obligations towards disabled people 
and endeavours to provide employment where possible having 
regard to the physical demands of the Group’s operations and 
the abilities of the disabled person. If an employee becomes 
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 number of days’ purchases 
outstanding for payment at 3 January 2010 was 58.3 days 
(2008: 51.9 days).
Treasury and risk management
The Group’s treasury and financial risk management objectives 
are detailed in the Finance Director’s Review. The Group’s 
exposure to interest rate risk, liquidity risk and currency risk are 
detailed in note 27 to the Financial Statements.
Going concern
The Directors have made appropriate enquiries and formed a 
judgement at the time of approving the financial statements that 
there is a reasonable expectation that the Group has adequate 
resources to continue in operational existence for the 
foreseeable future. 
The Directors consider that the accounts should be prepared 
on the going concern basis for the following reasons:
Full and detailed profit and loss forecasts have been •	
prepared for the period to April 2011
These forecasts show that the Company can operate as a •	
going concern without the need for bank financing facilities.
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 
agrees to pay costs as they are incurred, so long as they are 
reimbursed if the Director is convicted or, in an action brought 
by the Company, judgement is given against the Director.
Disclosure of information to auditors
The Directors who held office at the date of approval of this 
Directors’ Report confirm that, so far as they are each aware, 
there is no relevant audit information of which the Company’s 
auditors are unaware; and each Director has taken all the steps 
that he or she ought to have taken as a director to make himself 
aware of any relevant audit information and to establish that the 
Company’s auditors are aware of that information.
Statement of Directors’ Responsibilities in respect of the 
Annual Report and the Financial Statements
The Directors are responsible for preparing the Annual Report 
and the Group and Parent Company financial statements in 
accordance with applicable law and regulations.
Company law requires the Directors to prepare Group and 
Parent Company financial statements for each financial year. As 
required by the AIM Rules of the London Stock Exchange they 
are required to prepare the Group financial statements in 
accordance with IFRSs as adopted by the EU and applicable 
law and have elected to prepare the Parent Company financial 
statements in accordance with UK Accounting Standards and 
applicable law (UK Generally Accepted Accounting Practice).
Under company law the Directors must not approve the 
financial statements unless they are satisfied that they give a 
true and fair view of the state of affairs of the Group and Parent 
Company and of their profit or loss for that period. In preparing 
each of the Group and Parent Company financial statements, 
the Directors are required to:
select suitable accounting policies and then apply them •	
consistently;
make judgments and estimates that are reasonable and •	
prudent;
for the Group financial statements, state whether they have •	
been prepared in accordance with IFRSs as adopted by 
the EU;
for the Parent Company financial statements, state whether •	
applicable UK Accounting Standards have been followed, 
subject to any material departures disclosed and explained 
in the financial statements; and
prepare the financial statements on the going concern basis •	
unless it is inappropriate to presume that the Group and the 
Parent Company will continue in business.
The Directors are responsible for keeping adequate accounting 
records that are sufficient to show and explain the Parent 
Company’s transactions and disclose with reasonable accuracy 
at any time the financial position of the Parent Company and 
enable them to ensure that its financial statements comply with 
the Companies Act 2006. They have general responsibility for 
taking such steps as are reasonably open to them to safeguard 
the assets of the Group and to prevent and detect fraud and 
other irregularities. 18 Ideal Shopping Direct Plc Annual Report and Accounts 2009
Directors’ Report continued
The Directors are responsible for the maintenance and integrity 
of the corporate and financial information included on the 
Company’s website. Legislation in the UK governing the 
preparation and dissemination of financial statements may  
differ from legislation in other jurisdictions.
Disclaimer
This Directors’ Report and Business Review and 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 Tuesday 
15 June 2010 at 9.30 am at Ideal Home House, Newark Road, 
Peterborough PE1 5WG. Notice is sent to shareholders 
separately with this report.
Special business at the Annual General Meeting will be:
Requesting authority to distribute shares to the value of one •	
third of the issued ordinary share capital of the Company. At 
30 April 2010 the unissued ordinary share capital covered by 
this authority constitutes 11,218,822 ordinary shares, 33.3% 
of the issued ordinary share capital. This authority will lapse 
at the 2011 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 £50,485 (1,682,823 ordinary shares), which constitutes 5% 
of the Company’s issued share capital at 30 April 2010, 
without offering them to existing shareholders. This authority 
will lapse at the 2011 Annual General Meeting.
Authorising the Directors to buy up to 3,365,647 •	
(approximately 10% of its issued ordinary shares in the 
Company at 30 April 2010). 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.
Authorising the Company to convene a meeting other than •	
an annual general meeting on at least 14 days’ notice. The 
Shareholders’ Rights Directive requires that all general 
meetings must be held on at least 21 days’ notice unless 
shareholders agree to a shorter period. Under the 
Companies Act and the Company’s Articles of Association, 
the Company can call general meetings other than an annual 
general meeting on 14 days’ notice. 
 This resolution will allow us to do so and will be effective until 
the next Annual General Meeting when it is intended that a 
similar resolution be proposed. Note that more than 21 days’ 
notice was given to shareholders in respect of the general 
meeting of the Company held on 18 January 2010.
The Notice of Annual General Meeting is set out on pages  
62 to 64.
Auditors
KPMG Audit Plc offer themselves for reappointment as auditors 
in accordance with section 489 of the Companies Act 2006.
BY ORDER OF THE BOARD
Ian Jebson 
Company Secretary 
23 March 2010 19 Ideal Shopping Direct Plc Annual Report and Accounts 2009
Governance
Corporate Governance
The Board is committed to high standards of corporate 
governance. The Company seeks to comply so far as possible 
with the voluntary Corporate Governance Guidelines issued  
by the Quoted Companies Alliance (QCA), and the Corporate 
Governance Guidelines and Voting Policy issued by the National 
Association of Pension Funds (NAPF) in 2007. 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 QCA and NAPF guidelines 
in one respect, that it only has one independent Non-executive 
Director (Graham Cole), and not a minimum of two as required 
by the guidelines. Its other two Non-executive Directors, Paul 
Wright and Valerie Kaye do not qualify as “independent” by 
virtue of the fact that as co-founders of the Company they  
have been Executive Directors in the past; and also they have 
substantial shareholdings in the Company, together controlling 
more than a third of its voting rights. During the 2009 financial 
year they also were directors of Lead The Good Life Limited 
(LTGL), a supplier to the Company (LTGL was acquired by the 
Company on 18 January 2010 with the approval of independent 
shareholders in general meeting).
Since 22 September 2009, Graham Cole has been the 
Independent Chairman of the Audit Committee and is also a 
member of the Remuneration and Nominations Committees. 
Further details are set out below.
In all other respects the Board has complied with the QCA and 
NAPF guidelines and considers that the Board is operating 
effectively, with all members actively contributing to debate and 
decision-making.
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 2009.
There is a schedule of matters reserved to the Board for 
decision or approval, the full list is available from the Company 
Secretary. Examples of these include Group strategy and 
budget, Group capital structure, approval of financial results 
and report and accounts, significant capital or contractual 
commitments, maintaining internal control and risk 
management, and approval of Group wide policies.
At each meeting, the Chief Executive and the Finance Director 
issue formal reports. The Board also receives a monthly report 
containing information on health and safety, shareholder 
register, regulatory compliance and corporate governance 
developments. Other matters are discussed by the Board as 
required, supported by a presentation or briefing paper where a 
decision is to be made by the Board.
Minutes of all Board and Committee meetings are taken and 
circulated for approval. Any unresolved concerns raised by a 
Director are recorded in the minutes.
The Non-executive Directors have regular dialogue outside 
Board meetings. 
Directors
The Board comprises a Non-executive Chairman, Paul Wright, 
two additional Non-executive Directors, Val Kaye and Graham 
Cole, and two executive Directors, Mike Hancox who is the 
Chief Executive Officer and Ian Jebson who is the Finance 
Director and Company Secretary. The Board considers that 
Graham Cole is independent. Biographical details are set out 
on page 15.
In general terms, the Chairman is responsible for running the 
Board and the Chief Executive Officer is responsible for running 
the Company’s business.
Directors are required by the Company’s Articles of Association 
to retire from the Board by rotation and offer themselves for 
re-election at least every three years.
Since the beginning of 2009 the composition of the Board has 
changed. On 3 February 2009, the Chairman, David Williams 
and the remaining two Non-executive Directors, Terry Donovan 
and Susan Ellis, stepped down from the Board. Paul Wright and 
Valerie Kaye were appointed in their place. Ian Jebson was 
appointed to the Board on 1 March 2009 and Pam Aujla 
resigned on 23 March. Graham Cole joined the Board on 1 July. 
Board Committees
The Audit Committee is chaired by Graham Cole, the other 
members are Paul Wright and Val Kaye. The Chief Executive, 
Mike Hancox and Ian Jebson, the Finance Director sometimes 
attend meetings by invitation, along with a representative from 
the Company’s auditor.
The Committee is scheduled to meet at least twice a year, to 
co-incide with key dates in the Company’s financial reporting 
and audit cycle, during 2009 it met in March and September. 
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. •	
The Remuneration Committee is chaired by Paul Wright, the 
other members are Val Kaye and Graham Cole. Mike Hancox 
sometimes attends meetings by invitation. 20 Ideal Shopping Direct Plc Annual Report and Accounts 2009
Corporate Governance continued
The Committee’s responsibilities include:
Recommending to the Board the specific pay and benefits •	
packages for the executive Directors and the Chairman, 
including bonus, pensions and any compensation payments
Approval of bonus for executive Directors and senior •	
management
Approval of awards made to Directors and management •	
under share incentive schemes.
During the year the Committee met six times. No Director votes 
on his or her remuneration and advice is sought from the 
Company’s Nominated Adviser as to the appropriate 
remuneration for the Chairman and the Non-executive Directors.
The Nominations Committee is chaired by Paul Wright and 
the other members are Val Kaye, Graham Cole and Mike 
Hancox. The Committee’s responsibilities include:
Reviewing the composition and balance of the Board •	
(including succession planning)
Making recommendations on appointments to the Board. •	
The Committee met twice during the year.
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.co.uk.
Shareholders are invited to contact the Chief Executive Officer 
or Finance Director with any questions or concerns, on 
01733 316203. We also have a dedicated contact email address 
for questions, ir@idealshoppingdirect.co.uk, this goes direct to 
the Finance Director and members of his team.
There is a formal investor relations programme based around 
results presentations and trading statements. In addition 
analyst/shareholder visits are arranged. The Chairman and 
executive Directors feed back the results of meetings with 
shareholders to the Board.
All Directors will be available at the Annual General Meeting to 
meet with shareholders and answer their questions.
Risk management and internal control
The Board is ultimately responsible for the Group’s system of 
internal control and for reviewing its effectiveness. However 
such a system is designed to manage rather than eliminate the 
risk of failure to achieve business objectives and can provide 
only reasonable, and not absolute, assurance against material 
loss and misstatement.
The key elements of the Group’s system of internal control are 
as follows:
The Board has adopted a risk-based approach to •	
establishing the system of internal control. This risk 
management approach is used to focus available resources 
on the Group’s most significant areas of risk and to 
determine key control objectives. 
The Group has in place an organisational structure with •	
clearly defined lines of responsibility, delegation of authority 
and reporting requirements.
The executive Directors are closely involved in the •	
management of the business at a detailed level. This is 
supported by reviews of daily, weekly and monthly analyses 
of the performance of the business and key performance 
indicators associated with the trading risks facing the Group. 
Detailed annual budgets are prepared, reviewed in detail and •	
agreed by the Board, and actual performance is reported 
against these budgets on a regular basis. Major commercial, 
technological and financial risks are assessed as part of 
this process.
The Group has established controls and procedures over the •	
security of the data held on its computer systems and also 
has in place disaster recovery plans for certain key areas of 
the business.
Controls were reviewed and strengthened by the incoming •	
Board during 2009, with particular emphasis on the quality of 
management information, control of cash and stock, and 
reinforcement of delegated authorities. 
Auditor independence
It is the responsibility of the Audit Committee to review and 
monitor the external auditor’s independence and objectivity and 
the effectiveness of the audit process, taking into consideration 
relevant UK professional and regulatory requirements; and to 
develop and implement policy on the engagement of the 
external auditor to supply non-audit services, taking into 
account relevant ethical guidance regarding the provision of 
non-audit services by the external audit firm.
The Audit Committee reviews the nature and extent of non-
audit services supplied by the external auditors to the group, 
seeking to balance objectivity and value for money. In 
determining policy, the Audit Committee has taken into account 
relevant ethical guidance regarding the provision of non-audit 
services by the external audit firm, and does not agree to the 
auditor providing a service if, having regard to the ethical 
guidance, the result is that:
the external auditor audits its own firm’s work; •	
the external auditor makes management decisions for •	
the Company;
a mutuality of interest is created; or •	
the external auditor is put in the role of advocate for •	
the Company. 21 Ideal Shopping Direct Plc Annual Report and Accounts 2009
Governance
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 car allowance and medical insurance •	
A contribution of 10% – 20% of basic salary to the Company pension scheme or a personal pension scheme held by the relevant •	
executive Director
Where considered appropriate, the participation in an annual cash bonus scheme based on the achievement of Group profit •	
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 individuals providing services to the Company under the unapproved section of the scheme.
Options are granted at a price which is no lower than the mid market price of the Company’s shares on the day preceding the day 
of grant. The options vest between one and three years after grant, normally subject to the fulfilment of a performance condition set 
by the Committee, and remain open for exercise for up to 10 years from date of grant. There is no provision for retesting of 
performance criteria. 
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 at the discretion of the Remuneration Committee. No options were granted under this scheme in 2009.
Executive Director’ service contracts and remuneration
Mike Hancox and Ian Jebson each have a full time service contract with the Company. In addition to their salaries, each of them are 
entitled to a number of other benefits including private medical cover, motor vehicle allowance and pension contributions as outlined 
above. The notice required to be given by the Company to terminate these service contracts is twelve months (Ian Jebson’s notice 
period was increased from 9 months by the Remuneration Committee during the year).
Executive Directors may also be entitled to an annual cash bonus, granted in the discretion of the Remuneration Committee. This 
bonus would be subject to Group performance meeting agreed profit targets, and would pay 30% (Mike Hancox) and 20% (Ian 
Jebson) of basic salary for on target performance, rising to 150% (Mike Hancox) and 100% (Ian Jebson) of salary for 
exceptional performance.
Remuneration of the executive Directors in 2009 is set out in the audited section below.
Details of share options granted to executive Directors are set out in the table overleaf.  22 Ideal Shopping Direct Plc Annual Report and Accounts 2009
Remuneration Report continued
Non-executive Directors’ appointments and remuneration
The Non-executive Directors all have letters of appointment. The term of each appointment is set out below:
      Notice period (may be 
    Term Expiry given at any time)
Paul Wright    3 years 2 February 2012 6 months
Val Kaye    3 years 2 February 2012 6 months
Graham Cole    3 years 30 June 2012 3 months
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. The advice of the 
Company’s Nominated Adviser was sought and taken into account when setting fees. No Director votes on his own remuneration.
None of the Non-executive Directors has share options.
AUDITED INFORMATION:
Directors’ remuneration
Details of the remuneration of Directors in 2009 are set out in the table below:
     2009 2008 
     Total (Excl Total (Excl 2009 2008 
  Salary Benefits Bonus pension) pension) Pensions Pensions 
  £000 £000 £000 £000 £000 £000 £000
P Aujla   159   3  –  162   168   6   19 
D Blake  – – – –  182  – –
G Cole   13  – –  13  – – –
T Donovan   21   –  –  21   37  – –
S Ellis   3   –  –  3   33   2  –
A Fryatt  – – – –  466  –  27 
M Hancox   250   15   375   640   43   25   4 
I Jebson   133   10   160   303  –  13  –
V Kaye   36  – –  36  – – –
D Williams   50  – –  50   85  – –
P Wright   55  –  60   115  – – –
   720   28   595   1,343   1,014   46   50 
2009 remuneration in respect of P Aujla, T Donovan and D Williams includes £121,354, £17,500 and £42,500 respectively relating to 
compensation for loss of office.
The Directors did not exercise any share options during 2009.
The cost to the Company of Directors’ options under IFRS2 in 2009 were: M Hancox £150,813, I Jebson £76,274.
The cash bonus set out in the table above payable to Mike Hancox, Ian Jebson and Paul Wright was paid in March 2010. The 
bonus was earned following achievement of a target related to Group profit that was set by the Remuneration Committee in 2009.
Share options
Options granted to Directors outstanding (subject to fulfilment of performance criteria) at 3 January 2010 are:
 2000 Share Option Scheme
  Option price  Number of 
  per share Date exercisable Options
Mike Hancox  £0.34 March 2010 to March 2012 833,333
Mike Hancox  £0.34 March 2011 to March 2013 833,333
Mike Hancox  £0.34 March 2012 to March 2014 833,334
Ian Jebson  £0.34 March 2010 to March 2012 166,666
Ian Jebson  £0.34 March 2011 to March 2013 166,667
Ian Jebson  £0.34 March 2012 to March 2014 166,667
The performance condition in relation to the options exercisable between March 2010 and March 2012 has been met.
The mid market price of the 3p ordinary shares on 3 January 2010 was £1.27. The mid market price ranged from £0.21 to £1.27. 
during the year. 23 Ideal Shopping Direct Plc Annual Report and Accounts 2009
Governance
We have audited the financial statements of Ideal Shopping 
Direct Plc for the period ended 3 January 2010 set out on pages  
24 to 61. The financial reporting framework that has been 
applied in the preparation of the Group financial statements is 
applicable law and International Financial Reporting Standards 
(IFRSs) as adopted by the EU. 
The financial reporting framework that has been applied in the 
preparation of the Parent Company financial statements is 
applicable law and UK Accounting Standards (UK Generally 
Accepted Accounting Practice).
This report is made solely to the Company’s members,  
as a body, in accordance with Chapter 3 of Part 16 of the 
Companies Act 2006. 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 auditors’ 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
As explained more fully in the Directors’ Responsibilities 
Statement set out on pages 17 and 18, the Directors are 
responsible for the preparation of the financial statements  
and for being satisfied that they give a true and fair view. Our 
responsibility is to audit the financial statements in accordance 
with applicable law and International Standards on Auditing (UK 
and Ireland). Those standards require us to comply with the 
Auditing Practices Board’s (APB’s) Ethical Standards for 
Auditors.
Scope of the audit of the financial statements
A description of the scope of an audit of financial statements is 
provided on the APB’s web-site at www.frc.org.uk/apb/scope/
UKNP.
Opinion on financial statements
In our opinion:
the financial statements give a true and fair view of the state •	
of the Group’s and of the Parent Company’s affairs as at 
3 January 2010 and of the Group’s profit for the period then 
ended;
the Group financial statements have been properly prepared •	
in accordance with IFRSs as adopted by the EU;
the Parent Company financial statements have been properly •	
prepared in accordance with UK Generally Accepted 
Accounting Practice;
the financial statements have been prepared in accordance •	
with the requirements of the Companies Act 2006.
Opinion on other matters prescribed by the Companies 
Act 2006
In our opinion the information given in the Directors’ Report for 
the period for which the financial statements are prepared is 
consistent with the financial statements.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters 
where the Companies Act 2006 requires us to report to you if, in 
our opinion:
adequate accounting records have not been kept by the •	
Parent Company, or returns adequate for our audit have not 
been received from branches not visited by us; or
the Parent Company financial statements are not in •	
agreement with the accounting records and returns; or
certain disclosures of directors’ remuneration specified by •	
law are not made; or
we have not received all the information and explanations we •	
require for our audit.
SJ Purkess, Senior Statutory Auditor, for and on behalf of 
KPMG Audit Plc, Statutory Auditor
Chartered Accountants 
One Snowhill, 
Snowhill Queensway 
Birmingham 
B4 6GH
23 March 2010
Independent Auditors’ Report
to the members of Ideal Shopping Direct Plc  24 Ideal Shopping Direct Plc Annual Report and Accounts 2009
Consolidated Statement of Comprehensive Income
For the 53 week period ended 3 January 2010
        52 Weeks 
     53 Weeks   Ended 
     Ended   28 Dec 2008 
    Non 3 Jan 2010 Underlying Non Total 
   Underlying Underlying Total Reclassified Underlying Reclassified 
Continuing operations  Note £000 £000 £000 £000 £000 £000
Sales revenue   103,336 – 103,336 94,947 (290) 94,657
Cost of sales   (60,831) – (60,831) (59,560) (2,758) (62,318)
Gross profit   42,505 – 42,505 35,387 (3,048) 32,339
Distribution costs   (4,247) – (4,247) (4,519) – (4,519)
Administrative expenses   (36,740) (198) (36,938) (35,030) (6,195) (41,225)
Other expenses   (287) – (287) (62) – (62)
Operating profit/(loss)  3 1,231 (198) 1,033 (4,224) (9,243) (13,467)
Finance costs  6 (46) – (46) (36) – (36)
Finance income  6 76 – 76 282 – 282
Profit/(loss) from continuing operations  
before taxation   1,261 (198) 1,063 (3,978) (9,243) (13,221)
Taxation  7   1,044   1,669
Profit/(loss) from continuing operations and  
for the period      2,107   (11,552)
Other comprehensive income:
Revaluation of property plant and equipment     –   (724)
Total comprehensive income for the period  
attributable to owners of the Group      2,107   (12,276)
Attributable to equity shareholders of
Ideal Shopping Direct Plc     2,107   (11,552)
Net profit/(loss) for the period     2,107   (11,552)
Earnings/(loss) per share   8
From continuing operations
Basic     7.1p   (38.9)p
Diluted     7.1p   (38.9)p 25 Ideal Shopping Direct Plc Annual Report and Accounts 2009
Financial Statements
Consolidated Statement of Financial Position
As at 3 January 2010
       3 Jan 2010 28 Dec 2008 
      Note £000 £000
Assets
Non-current assets
Property, plant and equipment      9 8,113 8,574
Intangible assets      10 3,011 3,302
Goodwill      11 – –
Deferred tax assets      13 1,402 131
Total non-current assets       12,526 12,007
Current assets
Inventories      14 2,419 3,872
Current tax assets       3 1,300
Trade and other receivables      15 6,033 4,538
Cash and cash equivalents      16 13,379 8,399
Total current assets       21,834 18,109
Total assets       34,360 30,116
Equity
Share capital      17 895 895
Share premium       327 314
Reserves       1,780 1,666
Retained earnings       8,549 5,963
Total equity       11,551 8,838
Liabilities
Non-current liabilities
Deferred tax liabilities      13 138 131
Total non-current liabilities       138 131
Current liabilities
Loans and borrowings      20 – 1,863
Trade and other payables      23 21,978 18,166
Provisions      22 669 803
Current tax liabilities       24 94
Dividends payable       – 221
Obligations under finance leases       – –
Total current liabilities       22,671 21,147
Total liabilities       22,809 21,278
Total equity and liabilities       34,360 30,116
The financial statements were approved by the Board of Directors on 23 March 2010.
Mike Hancox Ian Jebson
Chief Executive Finance Director 26 Ideal Shopping Direct Plc Annual Report and Accounts 2009
Company Statement of Financial Position
As at 3 January 2010
       3 Jan 2010 28 Dec 2008 
      Note £000 £000
Assets
Non-current assets
Property, plant and equipment      9 8,081 8,496
Intangible assets      10 3,011 3,302
Deferred tax assets      13 1,385 118
Total non-current assets       12,477 11,916
Current assets
Inventories      14 1,632 3,660
Current tax assets       3 1,300
Trade and other receivables      15 6,364 4,857
Cash and cash equivalents      16 13,378 8,397
Total current assets       21,377 18,214
Total assets       33,854 30,130
Equity
Share capital      17 895 895
Share premium       327 314
Reserves       1,780 1,666
Retained earnings       9,124 6,766
Total equity       12,126 9,641
Liabilities
Non-current liabilities
Deferred tax liabilities      13 137 118
Total non-current liabilities       137 118
Current liabilities
Loans and borrowings      20 – 1,863
Trade and other payables      23 20,901 17,513
Provisions      22 669 774
Current tax liabilities       21 –
Dividends payable       – 221
Total current liabilities       21,591 20,371
Total liabilities       21,728 20,489
Total equity and liabilities       33,854 30,130
The financial statements were approved by the Board of Directors on 23 March 2010.
Mike Hancox Ian Jebson 
Chief Executive Finance Director 27 Ideal Shopping Direct Plc Annual Report and Accounts 2009
Financial Statements
Consolidated Statement of Cash Flows
For the 53 week period ended 3 January 2010
       53 Weeks 52 Weeks 
       Ended Ended 
       3 Jan 2010 28 Dec 2008 
      Note £000 £000
Continuing operations
Cash flows from operating activities
Profit/(loss) for the period       2,107 (11,552)
Depreciation       748 683
Amortisation of intangible assets       930 577
Impairment of assets       – 324
Loss on disposal of property, plant and equipment       – 745
Impairment of goodwill       – 1,523
Net finance income       (30) (231)
Equity settled share-based payment transactions       287 63
Income tax credit       (1,044) (1,669)
Operating cash flows before changes in working capital and provisions    2,998 (9,537)
Change in inventories       1,453 2,878
Change in trade and other receivables       (1,496) 978
Change in trade and other payables       3,829 1,187
Change in provisions       (134) 354
Cash generated from operations       6,650 (4,140)
Interest paid       (46) (36)
Income tax received/(paid)       1,297 (181)
Net cash flows from operating activities       7,901 (4,357)
Cash flows from investing activities
Interest received       76 267
Proceeds from sale of property, plant and equipment       13 7
Acquisition of property, plant and equipment       (291) (767)
Acquisition of intangible assets       (648) (1,396)
Net cash flows from investing activities       (850) (1,889)
Cash flows from financing activities
Proceeds from issue of share capital       13 7
Repayment of bank loans       (1,863) (339)
Payment of finance lease liabilities       – (309)
Dividends paid       (221) (1,411)
Net cash flows from financing activities       (2,071) (2,052)
Net increase/(decrease) in cash and cash equivalents       4,980 (8,298)
Cash and cash equivalents at 29 December 2008       8,399 16,697
Cash and cash equivalents at 3 January 2010       16 13,379 8,399 28 Ideal Shopping Direct Plc Annual Report and Accounts 2009
Company Statement of Cash Flows
For the 53 week period ended 3 January 2010
       53 Weeks 52 Weeks 
       Ended Ended 
       3 Jan 2010 28 Dec 2008 
      Note £000 £000
Continuing operations
Cash flows from operating activities
Profit/(loss) for the period       1,879 (10,578)
Depreciation       696 663
Amortisation of intangible assets       930 577
Impairment of assets       – 324
Write off of investment in Ideal Sourcing Limited       – 743
Loss on disposal of property, plant and equipment       – 745
Net finance income       (33) (373)
Equity settled share-based payment transactions       287 63
Income tax credit       (916) (1,764)
Operating cash flows before changes in working capital and provisions    2,843 (9,600)
Change in inventories       2,028 2,595
Change in trade and other receivables       (1,507) 2,080
Change in trade and other payables       3,384 297
Change in provisions       (105) 325
Cash generated from operations       6,643 (4,303)
Interest paid       (44) (17)
Income tax received/(paid)       1,297 (207)
Net cash flows from operating activities       7,896 (4,527)
Cash flows from investing activities
Interest received       76 390
Proceeds from sale of property, plant and equipment       13 7
Acquisition of property, plant and equipment       (285) (697)
Acquisition of intangible assets       (648) (1,396)
Net cash flows from investing activities       (844) (1,696)
Cash flows from financing activities
Proceeds from issue of share capital       13 8
Repayment of bank loans       (1,863) (339)
Payment of finance lease liabilities       – (309)
Dividends paid       (221) (1,411)
Net cash flows from financing activities       (2,071) (2,051)
Net increase/(decrease) in cash and cash equivalents       4,981 (8,274)
Cash and cash equivalents at 29 December 2008       8,397 16,671
Cash and cash equivalents at 3 January 2010       16 13,378 8,397 29 Ideal Shopping Direct Plc Annual Report and Accounts 2009
Financial Statements
Consolidated Statement of Changes In Equity
    Share  Share Other Retained 
    capital  premium  reserves earnings Total 
    £000 £000 £000 £000 £000
Group
Balance at 30 December 2007    894 308 2,642 18,832 22,676
Profit/(loss) for the period     – – – (11,552) (11,552)
Other comprehensive income:
Revaluation of property, plant and equipment    – – (724) – (724)
Total comprehensive income for the period    – – (724) (11,552) (12,276)
Transactions with owners, recorded directly in equity
Contributions by and distributions to owners
Issue of shares    1 6 – – 7
Dividends to equity holders    – – – (1,632) (1,632)
Share based payment transactions (net of tax)    – – (252) 315 63
Total transactions with owners    1 6 (252) (1,317) (1,562)
Balance at 28 December 2008    895 314 1,666 5,963 8,838
Total comprehensive income for the period 
Profit/(loss) for the period     – – – 2,107 2,107
Total comprehensive income for the period    – – – 2,107 2,107
Transactions with owners, recorded directly in equity
Contributions by and distributions to owners
Issue of shares    – 13 – – 13
Share based payment transactions (net of tax)    – – 114 479 593
Total transactions with owners    – 13 114 479 606
Balance at 3 January 2010    895 327 1,780 8,549 11,551 30 Ideal Shopping Direct Plc Annual Report and Accounts 2009
Company Statement of Changes In Equity
    Share  Share Other Retained 
    capital  premium  reserves earnings Total 
    £000 £000 £000 £000 £000
Company
Balance at 30 December 2007    894 308 2,585 18,661 22,448
Profit/(loss) for the period     – – – (10,578) (10,578)
Other comprehensive income:
Revaluation of property, plant and equipment    – – (667) – (667)
Total comprehensive income for the period    – – (667) (10,578) (11,245)
Transactions with owners, recorded directly in equity
Contributions by and distributions to owners
Issue of shares    1 6 – – 7
Dividends to equity holders    – – – (1,632) (1,632)
Share based payment transactions (net of tax)    – – (252) 315 63
Total transactions with owners    1 6 (252) (1,317) (1,562)
Balance at 28 December 2008    895 314 1,666 6,766 9,641
Total comprehensive income for the period 
Profit/(loss) for the period     – – – 1,879 1,879
Total comprehensive income for the period    – – – 1,879 1,879
Transactions with owners, recorded directly in equity
Contributions by and distributions to owners
Issue of shares    – 13 – – 13
Share based payment transactions (net of tax)    – – 114 479 593
Total transactions with owners    – 13 114 479 606
Balance at 3 January 2010    895 327 1,780 9,124 12,126 31 Ideal Shopping Direct Plc Annual Report and Accounts 2009
Financial Statements
Notes to the Consolidated Financial Statements
1. Accounting policies
(a) Reporting entity
Ideal Shopping Direct plc (the ‘Company’) is a company domiciled in the United Kingdom (UK). The address of the Company’s 
registered office is Ideal Home House, Newark Road, Peterborough, PE1 5WG. The consolidated financial statements of the 
Company as at and for the 53 week period ended 3 January 2010 comprise the Company and its subsidiaries (together referred to 
as the ‘‘Group’). The Group primarily is involved in distance selling to consumers through television home shopping channels and 
the internet.
Ideal Shopping Direct Plc’s shares are listed on the Alternative Investment Market on the London Stock Exchange.
(b) Basis of preparation
Statement of compliance
The Group’s financial statements have been prepared and approved by the Directors in accordance with International Financial 
Reporting Standards as adopted by the EU (‘Adopted IFRSs’). The Company has elected to prepare its parent company financial 
statements in accordance with Adopted IFRS.
The consolidated financial statements were authorised for issuance on 23 March 2010.
(c) Basis of measurement
The consolidated financial statements have been prepared on the historical cost basis except for the following material items in the 
statement of financial position:
Financial instruments at fair value through profit and loss are measured at fair value •	
Property, plant & equipment which fall within the company revaluation policy are measured at their revalued amount •	
The Directors consider that the accounts should be prepared on a going concern basis for the following reasons:
Full and detailed profit and loss forecasts have been prepared for the period to April 2011 •	
These forecasts show that the company can operate as a going concern without the need for bank financing facilities. •	
(d) Functional and presentation currency
These consolidated financial statements are presented in Great British Pounds (GBP), which is the company’s functional currency. 
All financial information presented in GBP has been rounded to the nearest thousand.
(e) Use of estimates and judgements
The preparation of the consolidated financial statements in conformity with Adopted IFRS requires management to make 
judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, 
liabilities, income and expenses. Actual results may differ from these estimates.
Estimates underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the 
period in which estimates are revised and in any future periods affected.
Judgements made by the Directors in the application of accounting policies that have significant effect on the financial statements 
and estimates with a significant risk of material adjustment in the next year are discussed below.
Valuation of property, plant and equipment
Items of property plant and equipment that qualify for recognition as an asset are initially measured at cost. Cost includes any 
expenditure that is directly attributable to the acquisition of the asset. After initial recognition classes of assets valued under the cost 
model are carried at cost less any accumulated depreciation and any accumulated impairment losses. Classes of assets valued 
under the revaluation model are carried at a revalued amount being the fair value at the date of revaluation, less any subsequent 
accumulated depreciation and subsequent impairment losses.
Trade receivables
An appropriate allowance for estimated irrecoverable trade receivables is derived where there is an identified event which, based  
on previous experience is evidence of a potential reduction in the recoverability of future cash flows. This estimation is based on 
assumed collection rates which, although based on the Group’s historical experience of customer repayment patterns, remains
inherently uncertain. 32 Ideal Shopping Direct Plc Annual Report and Accounts 2009
1. Accounting policies continued
Inventory
Provision is made for those items of inventory where the net realisable value is estimated to be lower than cost. Net realisable value 
is based on both historical experience and assumptions regarding future selling values, and is consequently a source of
estimation uncertainty.
Deferred tax
Deferred tax assets and liabilities require management judgement, in determining the amounts to be recognised. In particular, 
judgement is used when assessing the extent to which deferred tax assets should be recognised with consideration given to the 
timing and level of future taxable income.
Information about assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment within 
the next financial year are included in the following notes:
Note 22 and 26 provisions and contingencies. •	
(f) Changes in accounting policies
As at the commencement of the accounting period, the Group has decided to change its accounting policies in the following areas:
Accounting for business combinations •	
Determination and presentation of accounting segments •	
Presentation of financial statements. •	
(i) Accounting for business combinations
The Group has adopted early IFRS 3 Business Combinations (2008) and IAS 27 Consolidated and Separate Financial Statements 
(2008) for all business combinations occurring in the financial year starting 29 December 2008. All business combinations occurring 
on or after 29 December 2008 are accounted for by applying the acquisition method. The change in accounting policy is applied 
prospectively and had no material impact on earnings per share.
The Group has applied the acquisition method for the business combination disclosed in note 25.
Control is the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. In 
assessing control, the Group takes into consideration potential voting rights that currently are exercisable. The acquisition date is 
the date on which controls is transferred to the acquirer. Judgement is applied in determining the acquisition date and determining 
whether control is transferred from one party to another.
The Group measures goodwill as the fair value of the consideration transferred, liabilities incurred by the Group to the previous owners 
of the acquiree, and equity interests issued by the Group. Consideration transferred also includes the fair value of any contingent 
consideration and share-based payment awards of the acquiree that are replaced mandatorily in the business combination.
Transaction costs that the Group incurs in connection with a business combination, such as finder’s fees, legal fees, due diligence 
fees, and other professional and consulting fees are expensed as incurred.
(ii) Determination and presentation of operating segments
As of the commencement of the accounting period, the Group determines and presents its operating segments based on the 
information that internally is provided to the Chief Executive Officer (CEO), who is the Group’s chief operating decision maker. This 
change in accounting policy is due to the early adoption of IFRS 8 Operating Segments. Previously operating segments were 
determined and presented in accordance with IAS 14 Segment Reporting. The new accounting policy in respect of segment 
operating disclosures is presented as follows.
Comparative segment information has been re-presented in conformity with the transitional requirements of such standard. Since 
the change in accounting policy only impacts presentation and disclosure aspects, there is no impact on earnings per share.
An operating segment is a component of the Group that engages in business activities from which it may earn revenues and incur 
expenses, including revenues and expenses that relate to transactions with any of the Group’s other components. An operating 
segment’s operating results are reviewed regularly by the CEO to make decisions about resources to be allocated to the segment 
and assess its performance, and for which discrete financial information is available.
Notes to the Consolidated Financial Statements
continued 33 Ideal Shopping Direct Plc Annual Report and Accounts 2009
Financial Statements
Segment results that are reported to the CEO include items directly attributable to a segment as well as those that can be allocated 
on a reasonable basis. Unallocated items comprise mainly corporate assets (primarily the Company’s headquarters), support 
services, central and head office expenses, and income tax assets and liabilities.
Segment capital expenditure is the total cost incurred during the period to acquire property, plant and equipment, and intangible 
assets other than goodwill
The early adoption of IFRS 8 by the Group has not resulted in a change of operating segments, only the presentation of information 
within the note.
(iii) Presentation of financial statements
The Group has early adopted revised IAS 1 Presentation of Financial Statements (2007), which became effective for periods ending 
on or after 1 January 2009. As a result, the Group presents in the consolidated statement of changes in equity all owner changes in 
equity, whereas all non-owner changes in equity are presented in the consolidated statement of comprehensive income.
Comparative information has been re-presented so that it also is in conformity with the revised standard. Since the change in 
accounting policy only impacts presentation aspects, there is no impact on earnings per share.
In the current year, the Group is presenting its foreign exchange gains and losses on a more accurate allocation basis; 
consequently, the prior period information has been restated in order for the information to be comparable. The restatement has no 
impact on profit in either period.
(g) Basis of Consolidation
(i) Business combinations
The Group has changed its accounting policy with respect to accounting for business combinations. See note 1(f)(i) for further details.
(ii) Subsidiaries
Subsidiaries are entities controlled by the Group. Control exists when the Group has the power, directly or indirectly, to govern the 
financial and operating policies of an entity so as to obtain benefits from its activities. In assessing control, potential voting rights 
that presently are exercisable or convertible are taken into account. The financial statements of subsidiaries are included in the 
consolidated financial statements from the date that control commences until the date that control ceases. The accounting policies 
of subsidiaries have been changed when necessary to align them with the policies adopted by the Group.
(iii) Transactions eliminated on consolidation
Intra-group 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.
(h) Revenue recognition
Revenue represents the total invoice value (which includes postage & packaging), excluding value added tax, of goods sold. The 
total invoice value equates to the fair value of consideration receivable. Revenue is recognised for the sale of goods on despatch to 
the customer. Provision is made for the impact of anticipated returns. Agency fees are earned on sold airtime, this revenue is 
recognised at the point that the sold airtime is broadcast.
(i) Non underlying items
Non underlying items are presented in the Consolidated Statement of Comprehensive Income, being those items that are unusual 
because of their size or nature of incidence. The Directors consider that these items should be disclosed separately to enable a full 
understanding of the Company’s results.
(j) Intangible assets and goodwill
Goodwill that arises upon the acquisition of subsidiaries is included in intangible assets. For measurement of goodwill at initial 
recognition, see note 1(f)(i).
Acquisitions of non-controlling interests
Acquisitions of non-controlling interests are accounted for as transactions with equity holders in their capacity as equity holders
and therefore no goodwill is recognised as a result of such transactions. 34 Ideal Shopping Direct Plc Annual Report and Accounts 2009
1. Accounting policies continued
Subsequent measurement
Goodwill is measured at cost less accumulated impairment losses. In respect of equity accounts investees, the carrying amount of
goodwill is included in the carrying amount of the investment, and an impairment loss on such an investment is not allocated to any 
asset, including goodwill, that forms part of the carrying amount of the equity accounted investee.
(k) 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 a straight-line basis, at the following rates, in order to write off the cost, less estimated residual value, of 
each asset, over its expected useful economic life.
Software (other than bespoke)       20%
Software (bespoke)       16.7% – 50%
Licences of channel rights       5% – 9%
Acquired computer software licences are capitalised on the basis of the costs incurred to acquire and bring into use the specific 
software.
Directly attributable costs relating to software development include employee costs and an appropriate portion of the 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. •	
The expenditure attributable to the intangible asset during its development can be measured reliably. •	
Amortisation of the asset commences when it is fully implemented or operational, and is shown within, “Administrative expenses” 
Costs associated with maintaining computer software programs in use are recognised as an expense when incurred.
(l) 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 the 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 a straight-line basis, at the following rates, in order to write off the cost or valuation less estimated 
residual value of each asset, other than freehold land, over its expected useful economic life.
Buildings        2%
Motor vehicles        25%
Plant and equipment        10% – 33%
Assets held under finance leases are depreciated over the shorter of the term of the lease or the expected useful life of the asset on 
the same basis as owned assets.
Depreciation methods, residual values and useful lives are re-assessed annually and, if necessary, changes are accounted for prospectively.
Notes to the Consolidated Financial Statements
continued 35 Ideal Shopping Direct Plc Annual Report and Accounts 2009
Financial Statements
The gain or loss arising on 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 statement of comprehensive income.
(m) Investments
In the Company’s financial statements, investments in subsidiary undertakings are stated at cost less amounts written off.
(n) Inventories
Inventories are stated at the lower of cost and net realisable value. Cost comprises direct materials and the costs incurred in 
bringing inventories to their present location and condition. Net realisable value means estimated selling price less all costs incurred 
in marketing, selling and distribution.
(o) Trade and other receivables
Trade receivables are measured at initial recognition at fair value, and are subsequently measured at amortised cost using the 
effective interest rate method. Appropriate allowances for estimated irrecoverable amounts are recognised in profit or loss when 
there is objective evidence that the asset is impaired. The allowance recognised is measured as the difference between the asset’s 
carrying amount and the present value of future cash flows discounted at the effective interest rate computed at initial recognition.
(p) Trade and other payables
Trade and other payables are not interest bearing and are stated at their nominal value.
(q) Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and demand deposits that are readily convertible into known amounts of cash 
which are subject to an insignificant risk of change in value.
(r) 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.
(s) Leases
(i) Finance leases
Assets financed by leasing arrangements, which transfer substantially all the risks and rewards of ownership to the lessee, are 
capitalised in the balance sheet at their fair value or, if lower, at the present value of the minimum lease payments, each determined 
at the inception of the lease. The corresponding liability is shown as a finance lease obligation to the lessor.
Leasing repayments comprise both a capital and a finance element. The finance element is written off to the income statement so 
as to produce an approximately constant periodic rate of charge on the outstanding obligation. Such assets are depreciated over 
the shorter of their useful economic lives and the period of the lease.
(ii) Operating leases
Leases where the lessor retains substantially all the risks and rewards of ownership are classified as operating leases. Rentals are 
charged to the income statement on a straight-line basis over the life of the lease.
(t) 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 profits. Deferred tax liabilities are provided in full, with no discounting.
Deferred tax assets are recognised only to the extent 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 the statement of financial position date that are 
expected to apply to their respective period of realisation, provided they are enacted or substantially enacted at the balance 
sheet date. 36 Ideal Shopping Direct Plc Annual Report and Accounts 2009
1. Accounting policies continued
Changes in deferred tax assets and 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.
(u) Financial instruments
(i) 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 rate method, less provision for impairment. Any change in their value through impairment or reversal of impairment is 
recognised in the statement of comprehensive income.
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.
(ii) 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 any 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 statement of comprehensive income. Finance charges, including 
premiums payable on settlement or redemption and direct issue costs, are charged to the statement of comprehensive income on 
an accruals basis using the effective interest rate 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.
(v) Foreign currencies
Transactions in foreign currencies are translated into sterling at the Group’s monthly exchange rate ruling at the date of the 
transaction. Monetary assets and liabilities in foreign currencies are translated into sterling at the rate of exchange ruling at the 
statement of financial position 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 are subject to the above and are dealt with through the 
statement of comprehensive income for the year.
(w) 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. •	
(x) Employee and retirement benefits
The Group operates a defined contribution pension scheme. Contributions payable are charged to the statement of comprehensive 
income in the period to which they relate. These contributions are invested separately from the Group’s assets.
(y) Share based compensation arrangements
The Company operates an equity-settled share based compensation plan.
Notes to the Consolidated Financial Statements
continued 37 Ideal Shopping Direct Plc Annual Report and Accounts 2009
Financial Statements
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 which 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 statement of financial position 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 statement of comprehensive income, and a 
corresponding adjustment to equity over the remaining vesting period. The proceeds received net of any directly attributable 
transaction costs are credited to share capital (nominal value) and share premium when the options are exercised. Further details 
are provided in note 19.
(z) New standards and interpretations not yet adopted
Other than those adopted early as explained in note 1(f), a number of new standards, amendments to standards and interpretations 
are not yet effective for the 53 week period ending 3 January 2010, and have not been applied in preparing these consolidated 
financial statements. None of these will have an effect on the consolidated financial statements of the Group, except for Eligible 
Hedged Items – Amendment to IAS 39 Financial Instruments: Recognition and measurement, which clarifies the existing principles 
that determine whether specific risks or portions of cash flows are eligible for designation in a hedging relationship. The 
amendment, which becomes mandatory for the Group’s 2010 consolidated financial statements, is not expected to have a 
significant impact on the consolidated financial statements.
2. Segmental reporting
The Group has two reportable segments, as described below, which are the Group’s strategic business units. The strategic 
business units offer different products and services, and are managed separately because they require different technology and 
marketing strategies. For each of the strategic business units, the Group’s CEO reviews internal management reports on at least a 
quarterly basis. The following summary describes the operations in each of the Group’s reportable segments:
Retail segment •	
Wholesale segment •	
There are varying levels of integration between the retail and wholesale segments, this integration includes the transfer of finished 
goods and shared distribution services. The accounting policies of the reportable segments are the same as described in note 1.
Information regarding the results of each reportable segment is included below. Performance is measured based on segment profit 
before income tax, as included in the management reports that are reviewed by the Group’s CEO. Segment profit is used to 
measure performance as management believes that such information is the most relevant in evaluating the results of certain 
segments relative to other entities that operate within these markets. Inter-segment pricing is determined on an arm’s length basis. 38 Ideal Shopping Direct Plc Annual Report and Accounts 2009
2. Segmental reporting continued
Information about reportable segments
 Retail  Wholesale  Total
   3 Jan 2010 28 Dec 2008 3 Jan 2010 28 Dec 2008 3 Jan 2010 28 Dec 2008 
   £000 £000 £000 £000 £000 £000
External revenues   100,128  91,222  3,209 3,435 103,336 94,657
Inter-segment revenue     9,989  8,728  9,989 8,728
Interest revenue   76 282 – – 76 282
Interest expense   (43) (36) (3) – (46) (36)
Depreciation and amortisation   (1,626) (1,240) (52) (20) (1,678) (1,260)
Reportable segment profit before income tax   1,162 (12,948) (320) (103) 842 (13,051)
Other material non-cash items:
 Impairment on property, plant and equipment and 
  intangible assets   – (1,069) – – – (1,069)
Reportable segment assets   33,854 30,130 1,574 1,557 35,428 31,687
Capital expenditure    933 2,093 6 70 939 2,163
Reportable segment liabilities   (21,728) (20,489) (2,113) (2,217) (23,840) (22,706)
Reconciliations of reportable segment revenues, profit or loss, assets and liabilities and other material items
       3 Jan 2010 28 Dec 2008 
       £000 £000
Revenues
Total revenue for reportable segments       113,325 103,385
Elimination of inter-segment revenue       (9,989) (8,728)
Consolidated revenue       103,336 94,657
Profit or loss
Total profit or loss for reportable segments       842 (13,051)
       842 (13,051)
Elimination of inter-segment movement of profit held in stock      221 (170)
Consolidated profit before income tax       1,063 (13,221)
Assets
Total assets of reportable segments       35,428 31,687
Inter-segment assets       (1,068) (1,571)
Consolidated total assets       34,360 30,116
Liabilities
Total liabilities of reportable segments       (23,840) (22,706)
Inter-segment liabilities       1,031 1,428
Consolidated total liabilities       (22,809) (21,278)
Notes to the Consolidated Financial Statements
continued 39 Ideal Shopping Direct Plc Annual Report and Accounts 2009
Financial Statements
Other material items 2009
      Reportable  Consolidated 
      segment totals Adjustments totals 
      £000 £000 £000
Interest revenue      76  76
Interest expense      (46)  (46)
Capital expenditure      939  939
Depreciation and amortisation      (1,678)  (1,678)
Other material items 2008
      Reportable  Consolidated 
      segment totals Adjustments totals 
      £000 £000 £000
Interest revenue      282  282
Interest expense      (36)  (36)
Capital expenditure      2,163  2,163
Depreciation and amortisation      (1,260)  (1,260)
Impairment on intangible assets      (1,069)  (1,069)
Geographical segments
The wholesale and retail segments are managed on a worldwide basis but operate a sales office in the UK and a sourcing office 
in China.
In presenting information on the basis of geographical segments, segment revenue is based on the geographical location of 
customers. Segment asset are based on the geographic location of the assets.
Geographical information
53 week period ended 3 January 2010
        Non-current 
       Revenues assets
United Kingdom       102,971 12,526
Other countries       365 –
       103,336 12,526
Geographical information
52 week period ended 28 December 2008
        Non-current 
       Revenues assets
United Kingdom       94,276 12,007
Other countries       381 –
       94,657 12,007
Major customer
Revenues from one customer of the Group’s wholesale segment represents approximately £3,050,000 of the Group’s total revenues. 40 Ideal Shopping Direct Plc Annual Report and Accounts 2009
3. Group operating profit/(loss) and non underlying items
The following items have been presented as non underlying:
     3 Jan 2010 3 Jan 2010 28 Dec 2008 28 Dec 2008 
     £000 £000 £000 £000
Included in sales revenue:
Sales returns      –  290
Included in costs of sales:
Stock write downs      –  2,758
Included in administrative expenses:
Restructuring costs      254  746
Doubtful debt provisions      –  752
Legal and professional fees in respect of restructuring      16  355
Bank deposit (recovery)/loss      (236)  614
Acquisition costs      164
Write off planning permission costs (historical)     –  432
Write off planning permission costs (acquired during the year)    –  260
Impairment of IT system values     –  245
Write off of IT expenditure (acquired during the year)     –  884
Assets written off under new capitalisation policy     –  79
Assets written off after physical audit     –  305
Impairment of goodwill     –  1523
Asset write offs      –  3,728
Total non underlying items      198  9,243
The following items have been charged to the statement of comprehensive income as operating expenses during the year:
       3 Jan 2010 28 Dec 2008 
       £000 £000
Depreciation of property, plant and equipment
 Owned       748 667
 Held under finance lease       – 16
Amortisation of other intangible assets       930 577
Impairment loss on trade receivables       (297) (913)
Operating lease rentals payable
 Hire of plant and machinery       74 63
 Property rentals       73 73
 Broadcasting fees       14,110  12,499
Auditors’ remuneration payable to KPMG Audit Plc:
Audit of these financial statements       59 47
Amounts receivable by the auditors and their associates in respect of:
 Audit of financial statements of subsidiaries pursuant to legislation     8 8
 All services relating to taxation       18 18
 All other services       28  35
       113  108
Auditors’ remuneration payable to Grant Thornton LLP:
 All other services       –  107
       –  107
Notes to the Consolidated Financial Statements
continued 41 Ideal Shopping Direct Plc Annual Report and Accounts 2009
Financial Statements
4. Employees
The average number of people employed by the Group in the following areas was:
       3 Jan 2010 28 Dec 2008 
       Number Number 
        (Restated)
Management        13  13
Operations       512  521
       525  534
Note: the number of employees at 28 Dec 2008 has been restated to include the China office.
Costs incurred in respect of these employees were:
       2010 2008 
       £000 £000 
        (Restated)
Wages and salaries       12,582 12,108
Social security costs       1,118 1,154
Contributions to defined contribution plans       161 200
Compensation for loss of office for directors (included within exceptional restructuring costs)   242 389
Share-based payments       287 63
       14,390 13,914
5. Directors
Total emoluments of Directors (including pension contributions) amounted to £1,389,000 (2008: £1,064,000)
Information relating to Directors’ emoluments, share options and pension entitlements are set out in the Remuneration Report.
6. Finance income and finance costs
        Reclassifi ed 
       3 Jan 2010 28 Dec 2008 
       £000 £000
Recognised in profit or loss
Interest income on bank deposits       76 267
Net foreign exchange gain       – 15
Finance income       76 282
Interest payable on finance leases       – (9)
Interest expense in respect of financial liabilities measured at amortised cost     (45) (27)
Net foreign exchange gain loss       (1) –
Finance costs       (46) (36)
Net finance costs recognised in profit or loss       30 246
The above finance income and finance costs include the following interest
 income and expense in respect of assets/(liabilities) not at fair value through profit or loss:
Total interest income on financial assets       76 267
Total interest expense on financial liabilities       (45) (27) 42 Ideal Shopping Direct Plc Annual Report and Accounts 2009
7. Income tax
       3 Jan 2010 28 Dec 2008 
       £000 £000
Current tax expense/(credit)
Current year       24 (1,206)
Adjustments for prior periods       (115) (43)
Total current tax       (91) (1,249)
Deferred tax expense/(credit)
Origination and reversal of temporary differences       (953) (420)
Total deferred tax       (953) (420)
Total income tax credit       (1,044) (1,669)
Reconciliation of effective tax rate
     3 Jan 2010 3 Jan 2010 28 Dec 2008 28 Dec 2008 
     % £000 % £000
Profit/(loss) for the period      2,107  (11,552)
Total income tax credit      (1,044)   (1,669)
Profit/(loss) excluding income tax      1,063   (13,221)
Income tax using the Group’s domestic tax rate     28.00% 298 (28.50%) (3,768)
Adjustment in respect of prior periods     (10.82%) (115) (0.33%) (43)
Non-deductible expenses     9.31% 99 7.30% 965
Recognition of assets to be carried forward     (89.66%) (953) 0.00% –
Utilisation of unrecognised losses brought forward     (35.09%) (373) 0.00% –
Unrecognised losses carried forward     0.00% – 8.91% 1,177
Total income tax credit     (98.26%) (1,044) (12.62%) (1,669)
The tax rate applicable to the Group was 28% from 1 April 2008 (previously 30%) resulting in an effective tax rate for the period of 
28.0% (2008: 28.5%)
Please refer to note 13 for information on the Group’s deferred tax assets and liabilities.
8. Earnings per share
Both the basic and diluted earnings/(loss) per share have been calculated using the net results attributable to shareholders of the 
Group as the numerator. None of the dilutive shares relate to interest or similar expense recognised in profit or loss for 28 December 
2008 or 3 January 2010.
To calculate the diluted earnings per share figure, the weighted average of dilutive employee share options expected to vest has 
been added. The number represents management’s best estimate at the balance sheet date, which is also used for calculating 
employee remuneration expense relating to share based payment transactions.
Reconciliation of average number of shares used for basic and diluted earnings per share:
      3 Jan 2010 28 Dec 2008 
      Number Number
Weighted average number of ordinary shares used for basic earnings per share   29,673,467 29,665,428
Weighted average number of dilutive shares under option     14,349 30,327
Weighted average number of ordinary shares for dilutive earnings per share   29,687,816 29,695,755
The Directors do not propose a final dividend for the period ended 3 January 2010 (2008: £Nil). An interim dividend was not paid 
resulting in a zero total dividend for the period (2008: 1.75p).
Notes to the Consolidated Financial Statements
continued 43 Ideal Shopping Direct Plc Annual Report and Accounts 2009
Financial Statements
9. Property, plant and equipment
The Group’s land and property was revalued at the prior year end by independent valuers. Fair values were calculated based on 
current market transactions at arm’s length which were then adjusted for specific conditions relating to the land and based on 
market value.
The valuation was carried out on 7 January 2009 by A J Barker BSc FRICS and M A Hughes BSc (Hons). The carrying amount that 
would have been recognised under the cost model for Freehold Land and Buildings would have been £5,413,000 (2008: £5,531,000) 
for the Group and Company.
      Freehold Plant, 
      Land and equipment 
      buildings and vehicles Total 
Group      £000 £000 £000
Cost or valuation
At 30 December 2007      8,453 6,881 15,334
Additions      – 767 767
Disposals      (432) (988) (1,420)
Transfers to intangible assets      (96) 532 436
Revaluation      (1,075) – (1,075)
At 28 December 2008      6,850 7,192 14,042
Additions      – 291 291
Disposals      – (18) (18)
At 3 January 2010      6,850 7,465 14,315
Depreciation and impairment losses
At 30 December 2007      – 5,430 5,430
Depreciation charge for the year      137 546 683
Disposals      – (683) (683)
Transfers      – 96 96
Impairment losses      – 79 79
Revaluations      (137) – (137)
At 28 December 2008      – 5,468 5,468
Depreciation charge for the year      117 631 748
Disposals      – (14) (14)
At 3 January 2010      117 6,085 6,202
Net book value
At 28 December 2008      6,850 1,724 8,574
At 3 January 2010      6,733 1,380 8,113
Plant and equipment include £Nil net book value amount (2008: £Nil) in respect of assets held under finance leases.  
£Nil depreciation (2008: £16,000) was charged in respect of these assets in the year.
Freehold land of £1,150,000 (2008: £1,150,000) has not been depreciated. 44 Ideal Shopping Direct Plc Annual Report and Accounts 2009
9. Property, plant and equipment continued
The Company’s land and property was revalued at the prior year end by independent valuers. Fair values were calculated based on 
current market transactions at arm’s length which were then adjusted for specific conditions relating to the land and based on 
market value.
The valuation was carried out on 7 January 2009 by A J Barker BSc FRICS and M A Hughes BSc (Hons). The carrying amount that 
would have been recognised under the cost model for Freehold Land and Buildings would have been £5,413,000 (2008: £5,531,000) 
for the Group and Company.
      Freehold Plant, 
      Land and equipment 
      buildings and vehicles Total 
Company      £000 £000 £000
Cost or valuation
At 30 December 2007      8,453 6,836 15,289
Additions      – 697 697
Disposals      (432) (988) (1,420)
Transfers to intangible assets      (96) 532 436
Revaluation      (1,075) – (1,075)
At 28 December 2008      6,850 7,077 13,927
Additions      – 285 285
Disposals      – (18) (18)
At 3 January 2010      6,850 7,344 14,194
Depreciation and impairment losses
At 30 December 2007      – 5,413 5,413
Depreciation charge for the year      137 526 663
Disposals      – (683) (683)
Transfers      – 96 96
Impairment losses      – 79 79
Revaluations      (137) – (137)
At 28 December 2008      – 5,431 5,431
Depreciation charge for the year      117 579 696
Disposals      – (14) (14)
At 3 January 2010      117 5,996 6,113
Net book value
At 28 December 2008      6,850 1,646 8,496
At 3 January 2010      6,733 1,348 8,081
Plant and equipment include £Nil net book value amount (2008: £Nil) in respect of assets held under finance leases.  
£Nil depreciation (2008: £16,000) was charged in respect of these assets in the year.
Freehold land of £1,150,000 (2008: £1,150,000) has not been depreciated.
Notes to the Consolidated Financial Statements
continued 45 Ideal Shopping Direct Plc Annual Report and Accounts 2009
Financial Statements
10. Intangible assets
Ideal Shopping Direct Plc’s intangible assets comprise acquired software licences, broadcasting channel rights and own software 
developments. The carrying amounts for the reporting periods under review can be analysed as follows:
      Broadcasting 
      channel rights 
      and licences Software Total 
Group and Company      £000 £000 £000
Cost
At 1 January 2008      685 2,727 3,412
Additions      1,056 340 1,396
Disposals      – (19) (19)
Transfers to property, plant and equipment      – (436) (436)
At 28 December 2008      1,741 2,612 4,353
Additions      – 648 648
Disposals      – (11) (11)
At 3 January 2010      1,741 3,249 4,990
Amortisation and impairment losses
At 1 January 2008      85 244 329
Amortisation for the year      53 524 577
Disposals      – (4) (4)
Transfers to property, plant and equipment      – (96) (96)
Impairment losses      3 242 245
At 28 December 2008      141 910 1,051
Amortisation for the year      94 836 930
Disposals      – (2) (2)
At 3 January 2010      235 1,744 1,979
Net book value
At 28 December 2008      1,600 1,702 3,302
At 3 January 2010      1,506 1,505 3,011
11. Goodwill
Group
Goodwill results solely from the acquisition of Ideal Sourcing Limited (formerly Superstore TV Limited) in 2006. The net carrying 
amounts of the goodwill can be analysed as follows:
        £000
Cost
At 31 December 2007 and 28 December 2008        1,523
At 28 December 2008 and 3 January 2010        1,523
Amortisation
At 30 December 2007        –
Impairment        1,523
At 28 December 2008        1,523
At 3 January 2010        1,523 
Net book amount
At 28 December 2008 and 3 January 2010        – 46 Ideal Shopping Direct Plc Annual Report and Accounts 2009
11. Goodwill continued
Ideal Sourcing Limited’s wholesale profitability diminished in 2008 following a strategic review of the business. Sales reduced 
following the loss of a key account in 2008 and costs increased primarily due to exchange rate movements.
In accordance with IAS 36 a full impairment review was carried out at the 2008 year end, this review resulted in the goodwill being 
fully impaired.
12. Investments
        Shares in  
        subsidiary 
        undertakings 
        £000
Cost
At 28 December 2008 and 3 January 2010        743 
Amounts written off
At 28 December 2008 and 3 January 2010        743 
Net book amount
At 28 December 2008 and 3 January 2010        – 
An amount due from Group undertakings of £231,000 (2008: £231,000) has been reclassified as cost of investment upon initial 
recognition, at fair value, of the intra-group loan established at acquisition.
The Investment in Ideal Sourcing Limited was impaired in the same period as the goodwill (see note 11). There are no indicators that 
the impairment on the investment should be reversed.
The principal subsidiary undertakings of the Company, all of which are wholly owned, are:
     Parent 
     company 
     interest 
     in ordinary  Country of 
     shares and  incorporation Principal 
Subsidiary     voting rights  and operation activity
Create and Craft Limited (formerly iChild Limited)     100% Great Britain Dormant
Ideal Home Mail Order Limited     100% Great Britain Dormant
Ideal World Home Shopping Limited     100% Great Britain Dormant
Wrightway Marketing Limited     100% Great Britain Dormant
Ideal Sourcing Limited (formerly know as Superstore TV Limited)    100% Great Britain Product  
       design 
       sourcing 
       and 
       wholesale
The above companies described as dormant did not trade during the 53 week period ended 3 January 2010 or the 52 week period 
ended 28 December 2008.
Notes to the Consolidated Financial Statements
continued 47 Ideal Shopping Direct Plc Annual Report and Accounts 2009
Financial Statements
13. Deferred tax assets and liabilities
(a) Deferred taxes arising from temporary differences and unused tax losses can be summarised as follows:
Group
Recognised deferred tax assets and liabilities
   3 Jan 2010 
||
 28 Dec 2008
     Deferred tax Deferred tax Deferred tax Deferred tax 
     assets liabilities assets liabilities 
     £000 £000 £000 £000
Non-current assets
Other intangible assets     111 – 108 –
Property, plant and equipment     – (138) – (131)
Tax losses carried forward     855 – – –
Current assets
Inventories     45 – 13 –
Non-current liabilities
Pension and other employee obligations     – – 6 –
Current liabilities
Other liabilities     – – 4 –
Share based payments     391 – – –
Total     1,402 (138) 131 (131)
Unrecognised deferred tax assets
Deferred tax assets have not been recognised in respect of the following items:
       2010 2008 
       £000 £000
Tax losses       – 1,177
Company
Recognised deferred tax assets and liabilities
   3 Jan 2010 
||
 28 Dec 2008
     Deferred tax Deferred tax Deferred tax Deferred tax 
     assets liabilities assets liabilities 
     £000 £000 £000 £000
Non-current assets
Other intangible assets     111 – 108 –
Property, plant and equipment      (137) – (118)
Tax losses carried forward     855 – – –
Current assets
Inventories     28 – – –
Non-current liabilities
Pension and other employee obligations     – – 6 –
Current liabilities
Other liabilities     – – 4 –
Share based payments     391 – – –
Total     1,385 (137) 118 (118)
Unrecognised deferred tax assets
Deferred tax assets have not been recognised in respect of the following items:
       3 Jan 2010 28 Dec 2008 
       £000 £000
Tax losses       – 1,177 48 Ideal Shopping Direct Plc Annual Report and Accounts 2009
13. Deferred tax assets and liabilities continued
(b) Movement in temporary differences during the year:
Group
Recognised deferred tax assets and liabilities
     At Recognised Recognised At 
     30 December in profit directly in 28 December 
     2007 or loss equity 2008 
     £000 £000 £000 £000
Intangible assets     (236) 344 – 108
Property, plant and equipment     (469) 67 271 (131)
Inventories     57 13 (57) 13
Retirement benefit obligations     2 4 – 6
Other liabilities      12 (8) – 4
     (634) 420 214 –
     At Recognised Recognised At 
     29 December in profit directly in 3 January 
     2008 or loss equity 2010 
     £000 £000 £000 £000
Intangible assets     108 3 – 111
Property, plant and equipment     (131) (7) – (138)
Inventories     13 32 – 45
Retirement benefit obligations     6 (6) – –
Other Liabilities     4 (4) – –
Losses     – 855 – 855
Share based payments      – 80 311 391
     – 953 311 1,264
Company
Recognised deferred tax assets and liabilities
     At Recognised Recognised At 
     30 December in profit directly in 28 December 
     2007 or loss equity 2008 
     £000 £000 £000 £000
Intangible assets     (236) 344 – 108
Property, plant and equipment     (469) 80 271 (118)
Inventories     – – – –
Retirement benefit obligations     2 4 – 6
Other liabilities      12 (8) – 4
     (691) 420 271 –
     At Recognised Recognised At 
     29 December in profit directly in 3 January 
     2008 or loss equity 2010 
     £000 £000 £000 £000
Intangible assets     108 3 – 111
Property, plant and equipment     (118) (19) – (137)
Inventories     – 28 – 28
Retirement benefit obligations     6 (6) – –
Other liabilities     4 (4) – –
Losses     – 855 – 855
Share based payments      – 80 311 391
     – 937 311 1,248
Notes to the Consolidated Financial Statements
continued 49 Ideal Shopping Direct Plc Annual Report and Accounts 2009
Financial Statements
14. Inventories
  Group Company
     3 Jan 2010 28 Dec 2008 3 Jan 2010 28 Dec 2008 
     £000 £000 £000 £000
Goods for resale     3,702 6,735 2,817 6,007 
Write down on inventories     (1,283) (2,863) (1,185) (2,347)
Inventories     2,419 3,872 1,632 3,660 
In 2009, a total of £53,320,000 (£52,087,000 for the Company) product costs were included in the statement of comprehensive 
income as an expense (2008: £51,091,000 for the Group and £50,229,000 for the Company). This includes an amount of £39,000 
for the Group and £33,000 for the Company (2008: £4,957,000 for the Group and £4,757,000 for the Company) resulting from the 
write down of inventories.
No reversal of previous write-downs was recognised as a reduction of expense in 2009 or 2008. None of the inventories are 
pledged as securities for liabilities.
In determining net selling prices of inventories, management takes into account the most reliable evidence available at the time the 
estimates are made. Ideal Shopping Direct Plc’s core business is continually subject to rapid changes in consumer demands which 
may cause inventory obsolescence. Both aspects are considered key sources of estimation uncertainty and may cause significant 
adjustments to the Group’s inventory assets within the next financial year.
15. Trade and other receivables
  Group Company
     3 Jan 2010 28 Dec 2008 3 Jan 2010 28 Dec 2008 
     £000 £000 £000 £000
Trade receivables     4,003 2,579 3,569 1,763
Other receivables and prepayments     170 478 147 398
Amounts due from Group undertakings     – – 788 1,214
Prepayments and accrued income     1,860 1,481 1,860 1,482
     6,033 4,538 6,364 4,857
The carrying value of trade receivables is considered a reasonable approximation of fair value.
The Group and Company’s exposure to credit risk and impairment losses related to trade and other receivables are disclosed in 
note 27.
Within amounts due from Group undertakings in the Company statement of financial position is £889,000 (2008: £889,000) which 
falls due after more than one year.
16. Cash and cash equivalents and net borrowing
Cash and cash equivalents include the following components:
  Group Company
     3 Jan 2010 28 Dec 2008 3 Jan 2010 28 Dec 2008 
     £000 £000 £000 £000
Cash at bank and in hand     13,379 8,399 13,378 8,397
Of the £8,397,000 of cash at the prior year end, £1,863,000 was held in a cash offset account against a mortgage in favour of 
Barclays Bank Plc. The mortgage was paid off during the year and the cash offset released. 50 Ideal Shopping Direct Plc Annual Report and Accounts 2009
17. Share capital
  3 Jan 2010 28 Dec 2008
     Number  Number 
     000 £000 000 £000
Shares issued and fully paid
3p Ordinary shares     29,685 890 29,670 890 
1p Deferred shares     455 5 455 5 
Shares issued and fully paid     30,140 895 30,125 895 
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.
The shares issued during the period relate only to share options. Further information on share options is included in note 19.
The authorised shares that have not yet been issued have been authorised for use in the remuneration programme and to fund 
future acquisitions.
Proceeds received in addition to the nominal value of the shares issued during the period have been included in the share premium, 
less registration and other regulatory fees and net of related tax benefits.
The Company has made allotments of 15,000 (2008: 6,000) ordinary 3p shares during the period on the exercise of various 
share options.
Share premium
An amount of £13,061 (2008: £6,410), being the difference between the total consideration of £13,511 (2008: £6,590) and the total 
nominal value of £450 (2008: £180) for shares issued during the period has been included in the share premium account.
18. Reserves 
Other reserves
Other reserves comprise equity settled share based employee remuneration until such share options are exercised (£460,504 at 
3 January 2010) and gains and losses due to the revaluation of certain assets and property, plant and equipment (£1,318,832 at 
3 January 2010).
19. Share based employee remuneration
As at 3 January 2010 the Group and Company maintained two types of share based payment schemes for employee remuneration, 
discretionary scheme 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 Option Scheme are subject to profit or earnings per share 
performance conditions. The market price of the 3p ordinary shares was £1.27 at 3 January 2010 (28 December 2008: £0.36).  
The market price ranged from £0.21p to £1.27 during the year.
In total £287,000 (2008: £62,000) of employee remuneration expense has been included in the consolidated statement of 
comprehensive income. No liabilities were recognised due to share-based payment transactions.
Notes to the Consolidated Financial Statements
continued 51 Ideal Shopping Direct Plc Annual Report and Accounts 2009
Financial Statements
 3 Jan 2010 28 Dec 2008
     Average   Weighted Average  Weighted 
     exercise   average exercise  average 
     price per   remaining price per  remaining 
Date option     share Options contractual share Options contractual 
granted  Date exercisable   p Number life Months p Number life Months
Discretionary schemes
30-May-02  30 May 2005 – 30 May 2012   33.5 20,000 29.1 33.5 20,000 41.1
15-May-03  15 May 2006 – 15 May 2013   47.0 5,000 40.6 47.0 15,000 52.6
2-Jul-04  2 July 2007 – 2 July 2014   85.0 26,000 54.2 85.0 31,000 66.2
8-Nov-04  8 November 2007 – 8 November 2014   156.5 – 58.4 156.5 95,847 70.4
7-Mar-05  7 March 2008 – 7 March 2015   238.5 62,250 62.3 238.5 92,250 74.3
28-Sep-05  28 September 2008 – 28 September 2015  364.0 20,000 69.0 364.0 20,000 81.0
3-May-06  3 May 2009 – 3 May 2016   368.5 8,141 76.2 368.5 8,141 88.2
11-Jul-07  11 July 2010 – 11 July 2017   199.5 21,053 91.6 199.5 21,053 103.6
11-Sep-07  11 September 2010 – 11 September 2017  199.5 100,000 91.6 199.5 100,000 103.6
15-Jan-09  March 2010 – March 2012   34.0 833,333 15.0 – – –
15-Jan-09  March 2011 – March 2013   34.0 833,333 27.0 – – –
15-Jan-09  March 2012 – March 2014   34.0 833,334 39.0 – – –
1-May-09  March 2010 – March 2012   34.0 166,666 15.0 – – –
1-May-09  March 2011 – March 2013   34.0 166,667 27.0 – – –
1-May-09  March 2012 – March 2014   34.0 166,667 39.0 – – –
16-Apr-09  16 April 2012 – 16 April 2014   45.0 50,000 40.0 – – –
5-May-09  5 May 2012 – 5 May 2014   59.1 235,000 41.0 – – –
15-Nov-09  5 October 2012 – 5 October 2014   86.0 100,000 46.0 – – –
  Total discretionary schemes    3,647,444   403,291
Save As You Earn scheme
3-Jun-05  1 August 2008 – 1 February 2009   194.0 – – 194.0 51,271 12.7
3-Jun-05  1 August 2010 – 1 February 2011   194.0 18,734 – 194.0 47,694 12.7
8-May-06  1 July 2009 – 31 December 2009   278.0 6,788 – 278.0 9,073 12.7
8-May-06  1 July 2011 – 31 December 2011   278.0 231 – 278.0 6,022 12.7
8-May-07  1 July 2010 – 31 December 2010   178.0 13,478 – 178.0 22,500 36.0
8-May-07  1 July 2012 – 31 December 2012   178.0 22,628 – 178.0 22,628 36.0
6-May-08  1 July 2011 – 31 December 2012   162.0 27,728 – 162.0 33,297 47.2
6-May-08  1 July 2013 – 31 December 2014   162.0 4,420 – 162.0 28,530 47.2
   Total Save As You Earn scheme    94,007   221,015
  Total options    3,741,451   624,306
Movements in the number of share options outstanding and their related weighted average exercise prices are as follows:
   3 Jan 2010 
I
 28 Dec 2008
  Weighted    Weighted  
  average    average  
  exercise     exercise  
  price per     price per  
  share  Options  share  Options 
  p  Number  p  Number
Outstanding at the beginning of the period  187.2   624,306   209.2   1,047,877 
Granted  37.5   3,390,000   162.0   63,388 
Lapsed  181.0  (257,855)  238.0  (480,959)
Exercised  59.7  (15,000)  85.0  (6,000)
Outstanding at end of the year  52.5   3,741,451  187.2   624,306 
Exercisable at end of year  202.3   166,913  179.0   325,326  52 Ideal Shopping Direct Plc Annual Report and Accounts 2009
19. Share based employee remuneration continued
The weighted average share price at date of exercise of options exercised during the period was 59.7p (2008: 85.0p).
The weighted average fair value of options issued during the period was 37.5p (2008: 162.0p).
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 40.5p (2008: 265.1p) at the grant date, exercise prices shown above, weighted average share price 
volatility of 55.07% (2008: 28.29%), weighted average dividend yield of 1.30% (2008: 2.66%), an expected option life based on the 
historical pattern of option exercise of between 3.0 and 5.25 years (2008: 3.5 and 5.5 years) and a weighted average annual risk 
free investment rate of 2.4% (2008: 6.11%).
Share price volatility was calculated as the average of annualised standard deviations of daily continuously compounded returns 
calculated back over 3 years from date of grant.
20. Loans and borrowings
Group and Company 
This note provides information about the contractual terms of the Group and Company’s interest-bearing loans and borrowings, 
which are measured at amortised cost.
       3 Jan 2010 28 Dec 2008 
       £000 £000
Non-current liabilities
Secured bank loans       – –
       – –
Current liabilities
Current portion of secured bank loans       – 1,863
       – 1,863
Total borrowing       – 1,863
Bank borrowings during the period were secured by a first legal charge and debenture over certain freehold land and buildings and 
a fixed and floating charge over the assets of the Group. The loan was repayable in quarterly instalments of £85,025 over its ten 
year term, and interest was charged at a rate of 1.5% over Barclays Base rate to the extent that the loan was not covered by a 
corresponding cash balance. In the prior period the covenants of the loan were breached, consequently, the secured bank loan 
was reclassified as current liabilities at the prior year end in line with IAS 1.
In January 2010 the facilities with Barclays Bank Plc were terminated and all security discharged. New bank arrangements with 
Royal Bank of Scotland PLC are secured by a fixed and floating charge over the asset and undertaking of the Group (excluding land 
and buildings).
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 3 January 2010, the fair value of bank borrowings has been determined as £Nil (2008: £1,246,000)
For more information about the Group and Company’s exposure to interest rate, foreign currency and liquidity risk, see note 27.
21. Operating lease commitments
Group and Company 
The Group and Company’s future minimum operating lease payments were as follows:
     Within  2 to 5 More than 
     1 year years 5 years Total 
     £000 £000 £000 £000
3 January 2010
Lease payments     13,691 44,754 35,870 94,315
28 December 2008
Lease payments     12,670 42,523 51,653 106,846
Notes to the Consolidated Financial Statements
continued 53 Ideal Shopping Direct Plc Annual Report and Accounts 2009
Financial Statements
Ideal Shopping Direct Plc has a number of operating leases in respect of property, equipment and services which expire between 
2010 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 £14,258,000 (2008: £12,635,000).  
No sublease income is expected as all assets held under lease agreements are used exclusively by the Group.
22. Provisions
All provisions are considered current as the timing of their settlement is not at the Group or Company’s discretion.
      Sales returns Restructuring Total 
Group      £000 £000 £000
Carrying amount at beginning of year      463 340 803
Provisions made during the year      508 – 508
Provisions (utilised) during the year      (463) (179) (642)
Carrying amount at end of year      508 161 669
      Sales returns Restructuring Total 
Company      £000 £000 £000
Carrying amount at beginning of year      463 311 774
Provisions made during the year      508 – 508
Provisions (utilised) during the year      (463) (150) (613)
Carrying amount at end of year      508 161 669
23. Trade and other payables
   Group 
|
 Company
     3 Jan 2010 28 Dec 2008 3 Jan 2010 28 Dec 2008 
     £000 £000 £000 £000
Trade payables     14,146  10,970  13,269  10,572 
Other tax and social security costs     1,609  892  1,409  636 
Accruals and deferred income     6,223  6,304  6,223  6,305 
     21,978  18,166  20,901  17,513 
All amounts are short term. The carrying values are considered to be a reasonable approximation of fair value.
24. Related party transactions
The following transactions were carried out between Ideal Shopping Direct Plc and its subsidiary undertakings:
       3 Jan 2010 28 Dec 2008 
       £000 £000
Purchases from Ideal Sourcing Limited       9,989  8,728 
Recharges (from)/to Ideal Sourcing Limited       1,709  1,084 
Purchases from Lead The Good Life Limited       2,229  –
The outstanding balance of £788,072 (2008: £1,214,409) due to Ideal Shopping Direct Plc from Ideal Sourcing Limited is included in 
the Company statement of financial position under trade receivables and payables.
The outstanding balance of £10,396 (2008: £Nil) due from Ideal Shopping Direct Plc to Lead The Good Life Limited is included in 
the Company statement of financial position under trade receivables and payables. 54 Ideal Shopping Direct Plc Annual Report and Accounts 2009
25. Post period end acquisition of subsidiary
Group and Company 
Post period end, on 18 January 2010 the Group obtained control of Lead the Good Life Limited, a gardening products retailer by 
acquiring 100 percent of the shares and voting interests in the company. 
Taking control of Lead the Good Life Limited will enable the Group to increase profitability by the introduction of a high margin, low 
returns niche category, together with business growth opportunities via database, website and gardening club development.
The following summarises the major classes of consideration transferred, and the recognised amounts of assets acquired and 
liabilities assumed at the acquisition date:
Consideration transferred        £000
Cash        750
Equity instruments (3,971,962 ordinary shares)        4,250
Contingent consideration        1,540
        6,540
The share price of £1.07 used to calculate the number of ordinary shares issued was based on an average of the closing mid 
market share price of the Group between 30 November 2009 and 17 December 2009.
Contingent consideration
The Group has agreed to pay the selling shareholders additional consideration of 2.056075 earn out consideration shares for every 
£1 of relevant profit in excess of £799,999 up to and including £1,800,000. The Group has included £1,540,000 as contingent 
consideration, which represents its provisional fair value at the acquisition date. The maximum earn out consideration is £2,200,000.
Identifiable assets acquired and liabilities assumed        £000
Property, plant and equipment        449
Inventories        160
Trade and other receivables        200
Cash and cash equivalents        725
Deferred tax liabilities        (17)
Trade and other payables        (1,214)
Total net identifiable assets        303
All of the above fair values have been determined on a provisional basis:
Provisional Goodwill
Goodwill is anticipated to be recognised as a result of the acquisition as follows:       £000
Total consideration transferred        6,540
Less value of identifiable assets        (303)
Provisional Goodwill        6,237
The remaining goodwill will be attributable mainly to the intrinsic value of future earnings potential of Lead The Good Life and 
synergies obtained by integrating the Company into the Group. None of the goodwill recognised is expected to be deductible for 
income tax purposes.
Given the close proximity of the acquisition to year end, a full review of identifiable intangible assets has yet to take place.
Transactions separate from the acquisition
The Group incurred acquisition-related costs of £163,500 relating to external adviser fees and due diligence costs. The adviser fees 
and due diligence costs have been included in exceptional costs as administrative expenses in the Group’s consolidated statement 
of comprehensive income as the costs were incurred during the financial period ended 3 January 2010.
26. Contingent assets and other contingent liabilities
There are no material contingent assets or liabilities as at 3 January 2010 and 28 December 2008 for the Group. The Company 
guarantees, on behalf of its subsidiary, Ideal Sourcing Limited, an amount of £250,000 in respect of a supplier contract.
Notes to the Consolidated Financial Statements
continued 55 Ideal Shopping Direct Plc Annual Report and Accounts 2009
Financial Statements
27. Financial instruments
(a) Fair value of financial instruments
Trade and other receivables
The fair value of trade and other receivables, is estimated as the present value of future cash flows, discounted at the market rate of 
interest at the statement of financial position date if the effect is material.
Trade and other payables
The fair value of trade and other payables, is estimated as the present value of future cash flows, discounted at the market rate of 
interest at the statement of financial position date if the effect is material.
Cash and cash equivalents
The fair value of cash and cash equivalents is estimated as its carrying amount where the cash is repayable on demand. Where it is 
not repayable on demand then the fair value is estimated at the present value of future cash flows, discounted at the market rate of 
interest at the statement of financial position date.
Interest-bearing borrowings
Fair value, which after initial recognition is determined for disclosure purposes only, is calculated based on the present value of 
future principal and interest cash flows, discounted at the market rate of interest at the balance sheet date. For finance leases the 
market rate of interest is determined by reference to similar lease arrangements.
Derivative financial instruments
The fair value of forward exchange contracts is based on their listed market price, if available. If a listed market price is not available, 
then fair value is estimated by discounting the difference between the contractual forward price and the current forward price for 
the residual maturity of the contract using a risk-free interest rate (based on government bonds). 
The Group does not currently use interest rate swaps.
The interest rates used to discount estimated cash flows, where applicable are based on a market rate and were as follows:
       3 Jan 2010 28 Dec 2008 
       % %
Loans and borrowings       – 8%
Fair values
The fair values for each class of financial assets and financial liabilities together with their carrying amounts shown in the statement 
of financial position as follows:
Group and Company 
Management have reviewed the fair values of the Group’s assets and liabilities and consider these to be consistent with the carrying 
amounts.
A summary of financial assets and liabilities is set out below:
   Group 
|
 Company
     3 Jan 2010 28 Dec 2008 3 Jan 2010 28 Dec 2008 
     £000 £000 £000 £000
Cash and cash equivalents (note 16)     13,379  8,399  13,378  8,397 
Trade receivables (note 15)     4,003  2,579  3,569  1,763 
Total financial assets     17,382  10,978  16,947  10,160 
Other interest-bearing loans and borrowings (see note 20)    – 1,863 – 1,863 
Trade payables (note 23)     14,146 10,970 13,269 10,572 
Total financial liabilities measured at amortised cost, being  
 total financial liabilities     14,146 12,833 13,269 12,435 
Total financial instruments     3,236  (1,855)  3,678  (2,275) 56 Ideal Shopping Direct Plc Annual Report and Accounts 2009
27. Financial instruments continued
(b) Credit risk
Financial risk management
Credit risk is the risk of financial loss to the Group and Company if a customer or counterparty to a financial instrument fails to meet 
its contractual obligations, and arises principally from the Group’s receivables from customers and investment securities.
Ideal Shopping Direct Plc continuously monitors defaults of customers and other counterparties, identified either individually or by 
group, and incorporates this information into its credit risk controls. Where available at reasonable cost, external credit ratings and/
or reports on customers and other counterparties are obtained and used. Ideal Shopping Direct Plc’s policy is to deal only with 
creditworthy counterparties.
Ideal Shopping Direct Plc’s management considers that all the above financial assets for each of the reporting dates under review 
are of good credit quality, including those that are past due and are not impaired.
In respect of trade and other receivables, Ideal Shopping Direct Plc is not exposed to any significant credit risk exposure to any 
single counterparty or any group of counterparties having similar characteristics. The credit risk for liquid funds and other short-term 
financial assets is considered negligible, since the counterparties are reputable banks with high quality external credit ratings.
Exposure to credit risk
The carrying amount of financial assets represents the maximum credit exposure. Therefore, the maximum exposure to credit risk 
for the Group at the balance sheet date was £17,382,000 (2008: £10,978,000) being the total of the carrying amount of financial 
assets, excluding equity investments, shown in the table above. The maximum exposure to credit risk for the Company at the 
balance sheet date was £19,624,000 (2008: £13,254,000 ).
Credit quality of financial assets and impairment losses
The ageing of trade receivables at the balance sheet date was:
     Gross Impairment Gross Impairment 
     3 Jan 2010 3 Jan 2010 28 Dec 2008 28 Dec 2008 
Group     £000 £000 £000 £000
Not past due     3,892 –  2,088 –
Not more than 3 months     375 (264)  560  (72)
More than 3 months but not more than 6 months     2 (2)  24  (21)
More than 6 months but not more than 1 year     6 (6)  252  (252)
More than 1 year     25 (25)  568  (568)
     4,300 (297)  3,492  (913)
     Gross Impairment Gross Impairment 
     3 Jan 2010 3 Jan 2010 28 Dec 2008 28 Dec 2008 
Company     £000 £000 £000 £000
Not past due     3,458 –  1,506 –
Not more than 3 months     375 (264)  304  (47)
More than 3 months but not more than 6 months     2 (2)  21  (21)
More than 6 months but not more than 1 year     6 (6)  43  (43)
More than 1 year     25 (25)  285  (285)
     3,865 (297)  2,159  (396)
Notes to the Consolidated Financial Statements
continued 57 Ideal Shopping Direct Plc Annual Report and Accounts 2009
Financial Statements
The movement in the allowance for impairment in respect of trade receivables during the period was as follows:
       3 Jan 2010 28 Dec 2008 
Group       £000 £000
Balance at start of year       913  202 
Impairment loss recognised       133  677 
Impairment loss reversed       (749)  34 
Balance at end of year       297  913 
       2010 2008 
Company       £000 £000
Balance at start of year       396  158 
Impairment loss recognised       133  185 
Impairment loss reversed       (232)  53 
Balance at end of year       297  396 
The allowance account for trade receivables is used to record impairment losses unless the Group or Company is satisfied that no 
recovery of the amount owing is possible; at that point the amounts considered irrecoverable are written off against the trade 
receivables directly.
c) Liquidity risk analysis
Liquidity risk is the risk that the Group and Company will not be able to meet its financial obligations as they fall due.
Ideal Shopping Direct Plc manages its liquidity needs by carefully monitoring scheduled debt servicing payments for long-term 
financial liabilities as well as cash outflows due in day-to-day business and banking covenants. Liquidity needs are monitored in 
various time bands, on a day-to-day and week-to-week basis, as well as on the basis of a rolling 30-day projection. Long-term 
liquidity needs for a 180-day and a 360-day lookout period are identified monthly.
As at 3 January 2010, the Group’s liabilities have contractual maturities which are summarised as follows:
   Current 
|||
 Non-current
     Within 6 6 to 12  1 to 5  Later than 
     months months years 5 years 
     £000 £000 £000 £000
3 January 2010
Trade payables including creditors, accruals and prepaid revenues   21,978 – – – 
     21,978 – – – 
This compares to the maturity of the Group’s financial liabilities in the previous reporting period as follows:
   Current 
|||
 Non-current
     Within 6 6 to 12  1 to 5  Later than 
     months months years 5 years 
     £000 £000 £000 £000
28 December 2008
Long term bank loans     1,863 – – – 
Trade payables including creditors, accruals and prepaid revenues   18,166 – – – 
     20,029 – – –  58 Ideal Shopping Direct Plc Annual Report and Accounts 2009
27. Financial instruments continued
As at 3 January 2010, the Company’s liabilities have contractual maturities which are summarised as follows:
   Current 
||| 
Non-current
     Within 6 6 to 12  1 to 5  Later than 
     months months years 5 years 
     £000 £000 £000 £000
3 January 2010
Trade payables including creditors, accruals and prepaid revenues   20,901 – – – 
     20,901 – – – 
This compares to the maturity of the Group’s financial liabilities in the previous reporting period as follows:
   Current 
|||
 Non-current
     Within 6 6 to 12  1 to 5  Later than 
     months months years 5 years 
     £000 £000 £000 £000
28 December 2008
Long term bank loans     1,863 –  –  – 
Trade payables including creditors, accruals and prepaid revenues   17,513 –  –  – 
     19,376 – – – 
The Group and Company contractual maturities reflect the gross cash flows, which may differ to the carrying values of the liabilities 
at the statement of financial position date.
 
(d) Market risk
Financial risk management
Market risk is the risk that changes in market prices will affect the Group’s income or the value of its holdings of financial instruments.
Ideal Shopping Direct Plc is exposed to market risk through its use of financial instruments and specifically to currency risk, interest 
rate risk and certain other price risks, which result from both its operating and investing activities.
The Group’s risk management is coordinated at its headquarters, in close co-operation with the Board of Directors, and focuses on 
actively securing the Group’s short to medium term cash flows by minimising the exposure to financial markets.
Ideal Shopping Direct Plc does not actively engage in the trading of financial assets for speculative purposes nor does it write 
options. The most significant financial risks to which the Group is exposed are described in the following sections.
Market risk – Foreign currency risk 
The Group and Company’s exposure to foreign currency risk is as follows. This is based on the carrying amount for monetary 
financial instruments except derivatives when it is based on notional amounts.
The Group’s exposure to currency rates arise from overseas purchases, which are primarily dominated in US Dollars and Euros.
To mitigate the Group’s exposure to foreign currency risk, forward exchange contracts are entered into, in accordance with the 
Group’s risk management policy. Forward exchange contracts are mainly entered into for long-term foreign currency exposures, 
where there is not expected to be a further amount to offset against.
Notes to the Consolidated Financial Statements
continued 59 Ideal Shopping Direct Plc Annual Report and Accounts 2009
Financial Statements
Group and Company foreign currency denominated financial assets and liabilities, translated into Sterling at the closing rate, are as 
follows:
   3 Jan 2010 
|||
 28 Dec 2008
     £000 £000 £000 £000 
Nominal amounts      US$ € US$ €
Financial assets     16  5  37  25 
Financial liabilities      – (559) (243) (59)
Short term exposure     16 (554) (206) (34)
Financial assets     –  – – – 
Financial liabilities     –  – – – 
Long term exposure     – – – – 
Sensitivity analysis
The following table illustrates the sensitivity of the net result for the year and equity in regards to the Group’s financial assets and 
financial liabilities and the US Dollar – Sterling exchange rate and the Euro – Sterling exchange rate.
It assumes a +/– 5% change of the exchange rates for the year ended at 3 January 2010 and 28 December 2008. The sensitivity 
analysis is based on the Group’s foreign currency financial instruments held at each statement of financial position date and also 
takes into account forward exchange contracts that offset effects from changes in currency exchange rates.
£ strengthens by 5%
   3 Jan 2010 
|||
 28 Dec 2008
     £000 £000 £000 £000 
Nominal amounts      US$ € US$ €
Net result for the year     2,562  2,237  (11,087) (11,383)
Equity      12,006  11,681  9,303 9,007
£ weakens by 5%
   3 Jan 2010 
|||
 28 Dec 2008
     £000 £000 £000 £000 
Nominal amounts      US$ € US$ €
Net result for the year     1,652  1,976  (12,019) (11,724)
Equity      11,096  11,421  8,371 8,667
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 3 January 2010 and 28 December 2008. The sensitivity 
analysis is based on the Company’s foreign currency financial instruments held at each statement of financial position date and also 
takes into account forward exchange contracts that offset effects from changes in currency exchange rates.
£ strengthens by 5%
   3 Jan 2010 
|||
 28 Dec 2008
     £000 £000 £000 £000 
Nominal amounts      US$ € US$ €
Net result for the year     1,918  2,006  (10,496) (10,446)
Equity      12,164  12,252  9,724 9,744
£ weakens by 5%
   3 Jan 2010 
|||
 28 Dec 2008
     £000 £000 £000 £000 
Nominal amounts      US$ € US$ €
Net result for the year     1,841  1,753  (10,663) (10,713)
Equity      12,088  12,000  9,556 9,506 60 Ideal Shopping Direct Plc Annual Report and Accounts 2009
27. Financial instruments continued
Market risk – interest rate risk
Profile
Ideal Shopping Direct Plc’s policy is to minimise interest rate cash flow risk exposures on long-term financing. Longer-term borrowings 
are therefore usually at fixed rates.
At the statement of financial position date the interest rate profile of the Group’s interest bearing financial instruments was:
       3 Jan 2010 28 Dec 2008 
       £000 £000
Fixed rate instruments
Financial assets       9,144  4,600 
Financial liabilities       –  – 
       9,144  4,600 
Variable rate instruments
Financial assets       4,235  3,799 
Financial liabilities       – (1,863)
       4,235  1,936 
Sensitivity analysis
The following table illustrates the sensitivity of the net result for the year and equity to a reasonably possible change in interest rates 
of +1% and -1% (2008: +/-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 statement of financial position date. All other variables are held constant.
   3 Jan 2010 
|||
 28 Dec 2008
     £000 £000 £000 £000 
Nominal amounts      +1% -1% +1% -1%
Net result for the year     2,173  2,077  (11,338) (11,769)
Equity      11,617  11,521  9,053 8,621
(e) Capital management
The Group and the Company’s capital management objectives are:
•	T o	e n s u r e	th e	G r o u p	a n d	C o m p a n y ’ s	a b i l i t y	t o	c o n ti n u e	a s	a	g o i n g	c o n c e r n ;	a n d
•	T o	p r o v i d e	a n	a d e q u a t e	r e tu r n	t o	s h a r e h o l d e r s .
These objectives are met principally by pricing products and services commensurate with the level of risk.
The Group and Company monitors capital on the basis of the carrying amount of equity less cash and cash equivalents as 
presented on the face of the statement of financial position. 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.
Notes to the Consolidated Financial Statements
continued 61 Ideal Shopping Direct Plc Annual Report and Accounts 2009
Financial Statements
The Group’s capital-to-overall financing ratio is calculated as follows:
       3 Jan 2010 28 Dec 2008 
       £000 £000
Total equity       11,551  8,837 
- Capital and cash equivalents       (13,379) (8,399)
Capital       (1,828)  438 
Total equity       11,551  8,837 
+ Borrowings       –  1,863 
Overall financing       11,551  10,700
Capital-to-overall financing ratio       1:(6.32) 1:24.43
The Company’s capital-to-overall financing ratio is calculated as follows:
       3 Jan 2010 28 Dec 2008 
       £000 £000
Total equity       12,126  9,640 
- Capital and cash equivalents       (13,378) (8,397)
Capital       (1,252)  1,243 
Total equity       12,126  9,640 
+ Borrowings       –  1,863 
Overall financing       12,126  11,503 
Capital-to-overall financing ratio       1:(9.69) 1:9.25 62 Ideal Shopping Direct Plc Annual Report and Accounts 2009
Notice of 2010 Annual General Meeting
THIS DOCUMENT IS IMPORTANT AND REQUIRES YOUR IMMEDIATE ATTENTION
If you are in any doubt as to any aspect of the proposals referred to in the document or as to the action you should take, 
you should seek your own advice from a stockbroker, solicitor, accountant or other professional adviser. 
If you have sold or otherwise transferred all of your shares, please pass this document together with the accompanying 
documents to the purchaser or transferee, or to the person who arranged the sale or transfer, so that they can pass them 
to the person who now holds the shares.
Notice is hereby given that an Annual General Meeting of the Company will be held at Ideal Home House, Newark Road, 
Peterborough PE1 5WG on Tuesday 15 June 2010 at 9.30 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 period ended 3 January 2010 be received and approved.
2.  That Mike Hancox, who is retiring in accordance with the Articles of Association of the Company, be re- elected as an Executive 
Director of the Company.
3. That Val Kaye, who is retiring in accordance with the Articles of Association of the Company, be re-elected as a Non-executive 
Director of the Company.
4. That Graham Cole, who is retiring in accordance with the Articles of Association of the Company, be elected as a Non-executive 
Director of the Company.
5. That KPMG Audit Plc be reappointed 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 resolution number 6 will be proposed as an ordinary resolution 
and the resolutions numbered 7, 8 and 9 will be proposed as a special resolution:
6. That:
(a)  in accordance with section 551 of the Companies Act 2006, the Directors be authorised to allot ordinary shares in the 
Company or grant rights to subscribe for ordinary shares or to convert any securities into shares in the Company up to  
a maximum nominal amount of £336,565 to such persons and on such terms as the Directors may determine; and 
(b)  this authority shall expire at the conclusion of the next Annual General Meeting of the Company after the passing of this 
resolution, or, if earlier, on 30 June 2011 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 this authority was in force; and
 (c)  all previous unutilised authorities shall cease to have effect (save to the extent that the same are exercisable by reason of any 
offer or agreement made prior to the date of this resolution which would or might require relevant securities to be allotted on 
or after that date).
7.  That:
(a) Subject to the passing of resolution 6 above, and in accordance with section 570 of the Companies Act 2006, the Directors 
be given power to allot equity securities for cash or by way of a sale of treasury shares pursuant to the previous resolution as 
if section 561(1) Companies Act 2006 does not apply to the allotment;
(b) the powers under paragraph (a) shall be limited to the allotment of equity securities:
(i)  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 fractional entitlements and legal or practical problems under the law of, or  
the requirements of any recognized regulatory body or stock exchange in any territory;
(ii)  having a nominal amount not exceeding in aggregate £50,485; 63 Ideal Shopping Direct Plc Annual Report and Accounts 2009
Notice of Annual General Meeting
 This authority shall expire at the conclusion of the next Annual General Meeting of the Company after the passing of this 
resolution or, if earlier, on 30 June 2011 although the Directors may exercise this authority after this date in respect of an offer  
or agreement made while this authority was in force; and
(c) all previous unutilised authorities shall cease to have effect.
8. That, in accordance with section 701 of the Companies Act 2006, the Company be generally and unconditionally authorised  
to make market purchases (within the meaning of that section 701) of ordinary shares of 3p each in the capital of the Company 
(‘ordinary shares’) provided that:
(a)  the maximum aggregate number of ordinary shares authorised to be purchased is the lesser of 3,365,647, being 
approximately 10% of the issued ordinary share capital at 30 April 2010, and 10% of the Company’s issued ordinary share 
capital at the date of passing of this resolution;
(b)  the maximum price (not including expenses) which may be paid for each ordinary share is an amount equal to 105% of the 
average of the middle market quotations for an ordinary share, as derived from the London Stock Exchange Daily Official List, 
for the five business days immediately before the day on which the purchase is made and the amount stipulated in the 
Buy-Back and Stabilisation Regulation 2003; and
(c)  the minimum price ( not including expenses) which may be paid for each ordinary share is 3p per share.
 This authority shall, unless previously varied, revoked or renewed, expire at the conclusion of the next Annual General Meeting  
of the Company or, if earlier, on 30 June 2011, 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.
9. That a general meeting of the Company other than the Annual General Meeting may be called on not less than 14 clear days’ notice.
Biographies of the Directors who are standing for appointment are set out on page 15 and further explanation in relation to the 
resolutions proposed as Special Business are set out in the Directors’ Report on page 18.
The Directors consider that all the resolutions put to the meeting are in the best interests of the Company and its shareholders as  
a whole and are most likely to promote the success of the Company and its shareholders as a whole. Your Board will be voting in 
favour of them and unanimously recommends that you do so as well.
By Order of the Board
Ian Jebson
Company Secretary
Ideal Home House
Newark Road
Peterborough
PE1 5WG
30 April 2010 64 Ideal Shopping Direct Plc Annual Report and Accounts 2009
Notice of 2010 Annual General Meeting
continued
Notes
1. Information regarding the meeting, including the information required by section 311A of the Companies Act 2006, is available from the Investor Information section of our 
corporate website www.idealshoppingdirect.co.uk
2. Pursuant to section 319A of the Companies Act 2006, the Company must cause to be answered at the Annual General Meeting any question relating to the business being 
dealt with at the meeting which is put by a member, except in certain circumstances, including if it is undesirable in the interests of the Company or the good order of the 
meeting that the question be answered or if to do would involve the disclosure of confidential information.
3. A member is entitled to appoint a proxy to exercise all or any of his rights to attend, speak and vote instead of him, using the form in this report. Only the procedures set out in 
these notes and the note to the proxy form can be used to appoint a proxy. A proxy need not be a member of the Company. A member may appoint more than one proxy to 
exercise rights attached to different shares. A member may not appoint more than one proxy to exercise rights attached to any one share. If you wish your proxy to speak on 
your behalf at the meeting you will need to appoint your own choice of proxy (not the Chairman) and give your instructions directly to them.
4. The ‘vote withheld’ option is to enable shareholders to abstain on any particular resolution. This is not a vote in law and will not be counted in the votes ‘for’ or ‘against’ any resolution.
5. To be valid, a duly completed Form of Proxy must be sent by post, together with the power of attorney or other authority (if any) under which it is signed (or a notarially certified 
copy), to Capita Registrars, PXS, The Registry, 34 Beckenham Road, Beckenham, Kent, BR3 4TU. so as to arrive not later than 48 hours before the time fixed for the meeting 
or adjourned meeting or (in the case of a poll taken otherwise than at or on the same day as the meeting or adjourned meeting) for the taking of the poll at which it is to be 
used. Completion and return of a Form of Proxy will not preclude a member from attending and voting in person at the meeting.
6. To change your proxy instructions please submit a new proxy appointment in accordance with the instructions above. The appointment received last before the cut-off time 
and date specified above will take precedence.
7. The time by which a person must be entered on the register of members of the Company in order to have the right to attend or vote at the meeting is 6pm on the day which is 
two days (excluding any non-working days) before the time fixed for the meeting or the adjourned meeting. Changes to entries on the register of members after that time will be 
disregarded in determining the rights of any person to attend or vote at the meeting.
8. To appoint a proxy or to give or amend an instruction to a previously appointed proxy via the CREST system, the CREST message must be received by the issuer’s agent  
(ID RA10) by 48 working hours before the time fixed for the Annual General Meeting. For this purpose, the time of receipt will be taken to be the time (as determined by the 
timestamp applied to the message by the CREST Applications Host) from which the issuer’s agent is able to retrieve the message. After this time any change of instructions to 
a proxy appointed through CREST should be communicated to the proxy by other means. 
 CREST Personal Members or other CREST sponsored members and those CREST Members who have appointed voting service provider(s) should contact their CREST 
sponsor or voting service provider(s) for assistance with appointing proxies via CREST.
 For further information on CREST procedures, limitations and system timings, please refer to the CREST Manual at www.euroclear.com/CREST. We may treat as invalid a proxy 
appointment sent by CREST in the circumstances set out in Regulation 35(5)(a) of the Uncertificated Securities Regulations 2001.
9. You may not use any electronic address provided either in this notice of annual general meeting or any related documents to communicate with the Company for any purpose 
other than those expressly stated.
10. Copies of the Executive Directors’ service agreements with the Company, the Non-executive Directors’ terms of appointment and the register of Directors’ interests will be 
available for inspection during normal business hours on each business day at the registered office of the Company from the date of this notice until the date of the meeting and 
also at the place of the meeting for 15 minutes prior to and during the meeting. 65 Ideal Shopping Direct Plc Annual Report and Accounts 2009
Directors and Advisers
Directors:     Paul Wright (Non-executive Chairman)
      Val Kaye (Non-executive Director)
      Mike Hancox (Chief Executive Officer) 
      Ian Jebson (Finance Director)
      Graham Cole (Non-executive Director)
Company Secretary:    Ian Jebson
Bankers:     The Royal Bank of Scotland Plc 
      2nd Floor 
      152 Silbury Boulevard 
      Milton Keynes 
      MK9 1LT
Nominated Advisers and Brokers:  Fairfax I.S. PLC
      46 Berkeley Square
      Mayfair
      London
      W1J 5AT
Solicitors:     Wragge & Co LLP
      55 Colmore Row
      Birmingham
      B3 2AS
Auditors:     KPMG Audit Plc
      One Snowhill
      Snowhill Queensway
      Birmingham
      B4 6GH
Registrars:     Capita Registrars 
      Northern House 
      Woodsome Park 
      Fenay Bridge 
      Huddersfield 
      HD8 0GA
Company registration number:   01534758
Registered office:    Ideal Home House 
      Newark Road 
      Peterborough 
      PE1 5WG
      www.idealshoppingdirect.co.uk
Directors and Advisors 66 Ideal Shopping Direct Plc Annual Report and Accounts 2009
Financial Calendar
Financial calendar 2010  
(All dates subject to change) 
Preliminary results announcement 23 March
Annual report issued 12 May
Annual General Meeting 15 June
Half year end 4 July 
Half year results announcement w/c 13 September
Financial year end 2 January 2011 Financial Statements
I/We  
(FULL NAME(S) IN BLOCK CAPITALS)
of  
 
(ADDRESS IN BLOCK CAPITALS)
being member(s) of the above named Company, hereby appoint the Chairman of the meeting or failing him  
 as my/our proxy to vote for me/us and on my/our behalf at the Annual General Meeting of the Company to 
be held at Ideal Home House, Newark Road, Peterborough, PE1 5WG, on Tuesday 15 June at 9.30am.
This proxy is in respect of all of the shares registered in my name unless I have indicated a smaller number in of shares in the box below: 
 
For the appointment of more than one proxy please refer to Explanatory Note 2.
Please indicate with an “X” in the space below how you wish your vote to be cast. If the form is returned without any indication as to how 
the proxy shall vote on any particular matter the proxy will vote as he or she thinks fit or abstains from voting at his or her discretion.
Signature      Date   2010
       Vote 
      For Withheld Against
Ordinary Business 
1. To receive and approve the Directors’ Report and the audited accounts  
for the period ended 3 January 2010 and the report of the Auditors      
2. To re-elect Mike Hancox as a Director        
3. To re-elect Val Kaye as a Director      
  
4. To elect Graham Cole as a Director      
  
5. To appoint KPMG Audit Plc as auditors of the Company and to authorise  
the Directors to fix their remuneration      
  
Special Business
6. To authorise the Company to issue shares in accordance with Resolution 6 in the  
Notice of Annual General Meeting      
  
7. Subject to passing Resolution 6 to grant authority to the Company to allot shares  
pursuant to section 570 of the Companies Act 2006      
  
8. To authorise the purchase of ordinary shares in the Company in accordance with  
Resolution 8 in the Notice of Annual General Meeting     
  
9. To allow a General Meeting to be held on 14 days’ notice.     
  
Ideal Shopping Direct Plc
Form of Proxy 
Annual General Meeting 15 June 2010
Notes
1. Every holder has the right to appoint some other persons(s) 
of their choice, who need not be a shareholder as his proxy 
to exercise all or any of his rights, to attend, speak and vote 
on their behalf at the meeting. If you wish to appoint a 
person other than the Chairman, please insert the name  
of your chosen proxy holder in the space provided. 
 If the proxy is being appointed in relation to less than your 
full voting entitlement, please enter in the box next to the 
proxy holder’s name the number of shares in relation to 
which they are authorised to act as your proxy. If left blank 
your proxy will be deemed to be authorised in respect of 
your full voting entitlement (or if this proxy form has been 
issued in respect of a designated account for a shareholder, 
the full voting entitlement for that designated account).  
If you wish to appoint some other person or persons  
please insert his/her/their name(s) and address(es), initial 
the insertion and strike out the words ‘the Chairman of  
the meeting’.
2. To appoint more than one proxy, please photocopy this 
form, or (an) additional proxy form(s) may be obtained by 
 contacting the Registrar’s helpline on 0871 664 0300 ( calls 
cost 10p per minute plus network extras) (+44 (0) 206 639 
3399 from outside the UK) lines are open 8.30am - 5.30pm 
Monday - Friday. All forms must be signed and should be 
returned together in the same envelope.
3.  Unless otherwise instructed above, the proxy will exercise 
his or her discretion both as to how he or she votes and as 
to whether or not he or she abstains from voting on any 
resolutions proposed at the meeting.
4. The ‘vote withheld’ option is to enable you to abstain on  
any particular resolution. This is not a vote in law and  
will not be counted in the votes ‘for’ and ‘against’  
a particular resolution.
5. To be valid this form duly signed, together with the power  
of attorney or other authority (if any) under which it is signed 
(or a notarially certified copy of such power or authority) 
must be deposited at the offices of the Registrars no later 
than 48 hours before the time for holding the meeting.
6. In the case of a corporation this form must be under its 
Common Seal or otherwise executed in accordance with 
the Companies Act 2006 or it must be signed by an officer 
or attorney duly authorised in writing.
7. Any alterations to this form must be initialled.
8. In the case of joint holders only one need sign but the 
names of all joint holders must be stated. The vote of the 
senior holder who tenders a vote shall be accepted to the 
exclusion of the votes of the other joint holders. For this 
purpose seniority shall be determined by the order in which 
names stand in the register of members.
9. For details of how to change your proxy instructions or 
revoke your proxy appointment please see the notice of 
meeting. If you submit more than one valid proxy 
appointment, the appointment received last before the 
latest time for receipt of proxies will take precedence.
10. Shares held in uncertificated form (i.e. in CREST) may  
be voted through the CREST Proxy Voting Service  
in accordance with the procedures set out in the  
CREST manual.
11. You may not use any electronic address provided in this 
proxy form to communicate with the Company for any 
purposes other than those expressly stated. # Third fold and tuck in 
Second fold
First fold
PXS
34 Beckenham Road
BECKENHAM
BR3 4TU
Business Reply
Licence Number
RSBH-UXKS-LRBC Ideal Shopping Direct Plc is a leading multi-channel 
retailer, selling products to consumers via its 
television shopping channels and the internet.
02  Ideal Shopping Direct At a glance
04  Chairman’s Statement
06 Chief Executive’s Review
10  Finance Director’s Review
14  Corporate Responsibility Review
15 Board of Directors 
16 Directors’ Report
19  Corporate Governance
21  Remuneration Report
23  Independent Auditors’ Report
24 Consolidated Statement of Comprehensive Income
25 Consolidated Statement of Financial Position
26 Company Statement of Financial Position
27  Consolidated Statement of Cash Flows
28 Company Statement of Cash Flows
29 Consolidated Statement of Changes in Equity
30 Company Statement of Changes in Equity
31 Notes to the Consolidated Financial Statements
62 Notice of 2010 Annual General Meeting
65 Directors and Advisers
66 Financial Calendar
67 Form of Proxy
Contents Ideal Shopping Direct Plc Annual Report and Accounts 2009
www.idealworld.tv
www.createandcraft.tv
ww.gardenbargains.com
Ideal Shopping Direct Plc
Ideal Home House
Newark Road
Peterborough
PE1 5WG
United Kingdom
Tel: 01733 316203
www.idealshoppingdirect.co.uk
Ideal Shopping Direct Plc
Annual Report and Accounts 2009