Ideal World Sold to British Entrepreneur

[Graham]

Ideal Shopping Direct, a subsidiary of AURELIUS Equity Opportunities SE & Co. KGaA (ISIN: DE000A0JK2A8), has sold its remaining business, being the TV and web channels trading as Ideal World, to British entrepreneur and investor Hamish Morjaria. This transaction concludes the exit for AURELIUS. The financial terms of the deal remain undisclosed. The transaction completed on 15 February. In January, AURELIUS had sold the TV and web channels trading as Create & Craft.

Ideal World is a multi-channel home shopping provider that is broadcasting 24 hours a day on terrestrial and satellite televisions across the United Kingdom, as well as via online channels. The channel is also broadcasting for 3 hours a day on one of the UK's most popular television channels, ITV, and on STV. Furthermore, Ideal World hosts an e-commerce shop, Ideal World Online, with all products available for purchase via its website: www.idealworld.tv. With over 600,000 customers, Ideal World specialises in lifestyle products including home, leisure and fashion. The business is based in Peterborough, UK, where it has dedicated facilities for show production and transmission, alongside its distribution centre.

Hamish Morjaria is a British entrepreneur and investor, being currently the Chairman of on-premises payment solution company and tech disruptor, FETCH GROUP. Mr Morjaria has over 20 years' experience in senior leadership roles in global technology, distribution, wholesale and retail business.

 

[PhædrusR]

Went well didn't it?!

 

[Deleted member 30699]

TJC will close it soon.

 

[PhædrusR]

TJC will close it soon.

Dunno, wonder how well IW3 is doing selling their TJC's stock and other stuff.

It's now just TJC2, a second channel outlet for all their non-jewellery items. Often priced higher than on TJC too. Are they profitable?

 

[ianrobo111]

TJC will close it soon.

why do you say that ?

 

[PhædrusR]

why do you say that ?

Assume it's because @Gedfan reckons IW3 is not profitable or selling in sufficient numbers to make it a going concern. I've no idea, haven't looked in detail at VGL/ShopTJC figures and doubt they would split out IW3 figures from TJC.
But if it's true they made £10m last year, then IW3 is probably safe for now, if and until it adversely affects the group's profits.

 

[Hammy60]

Assume it's because @Gedfan reckons IW3 is not profitable or selling in sufficient numbers to make it a going concern. I've no idea, haven't looked in detail at VGL/ShopTJC figures and doubt they would split out IW3 figures from TJC.
But if it's true they made £10m last year, then IW3 is probably safe for now, if and until it adversely affects the group's profits.

They made £8 million profit (although that is not all from the TJC & TJC Beauty channels) for the year ending March 2023.

This years update that was posted the other day, although not a detailed look at the whole financial figures for year ending March 2024, does suggest a rise in revenue/profit, which would be expected for two reasons.

One, that the previous financial year saw a near £6.5 million drop in revenue from £81.5 million to £74.9 million, they made £2 million profit from sales on the shopping channels, the other £6 million in profit came from income/shares dividends from investments in other parts of the VGL group, assuming that year was just a blip then revenue should rise again.

Two, six months of this years figures will include the new IW channel, which will undoubtedly have increased revenue as against the revenue created by the former TJC beauty channel which occupied the spot before hand, so should help increase Shop TJC Ltd's overall revenue/profit.

So will be interesting to see overall how the previous years drop in revenue and IW introduction has increased revenue/profit on the previous years performance. We will have to wait till approx December when Shop TJC's detailed full financial accounts are posted at Companies House.

On whether IW is safe, at the moment it seems relatively safe, TJC have plenty of money in the bank. Of course that could change if the channel isn't pulling it's weight.

 

[PhædrusR]

Thanks for that @Hammy60

The old adage, "revenue is vanity, profit is sanity", applies to IW3's part in ShopTJC's figures. IW3 might increase the group turnover, but unless it is standalone profitable, they won't continue in the medium to long-term, unless it has advantages in just shifting non-jewellery stock from the TJC warehouse.

If they split out IW3 P&L from TJC, then we'll know, but my suspicion is that IW3 is loss-making at present as a new channel, significant investment to get it going and it just feels like they may not be shifting enough stock, or at sufficient margins, but might be improving to profitability in the next years+. Only my guess, but tine will tell.

 

[ianrobo111]

Kevin reappears !!!

 

[The Insider]

Kevin reappears !!!

No one else wants him!

 

[PhædrusR]

Kevin reappears !!!

Where, on IW3, TJC or SoTV?

 

[PhædrusR]

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