Share price not Ideal

[Graham]

<a href="http://www.londonstockexchange.com/en-gb/pricesnews/prices/system/detailedprices.htm?sym=GB0001202109GBGBXAIM%200120210IDS" target="_blank">Shares in Ideal Shopping Direct plc</a> have lost over a quarter of their value today after it warned of "extremely challening" market conditions.<br /><br /><img src="http://74.63.193.250/images/shareprice.jpg" border="1" alt="Ideal World Share Price Drop" title="Ideal World" hspace="4" align="right" />In a statement, Ideal Shopping Direct plc said that sales for "the critical final quarter of the year" have shown "large weekly variations" with a trend that is "substantially down".<br /><br />"Overall, revenues in November were substantially below expectations and whilst the first nine days of December were broadly in-line with last year, November’s shortfall is unlikely to be made up," the company told shareholders today.<br /><br />Mike Hancox, Ideal World's new Chief Executive, said "the firm is taking radical action to improve sales, efficiency and reduce costs" and remains "focused on generating improved returns from our home shopping and internet channels to achieve the best possible results in the current economic climate".

 

[icr24350]

And one of the reasons is the screen-shot. They seem to depend on craft for a lot of sales, but surely the baloon has burst regarding that. I think IW need to find more diverse products if they are to have a long term future. They need to realise that the other channels would love to knock a competitor out of the shopping TV scene. There will need to be major changes or else in a few months IW will not exist.

 

[fhl]

From today's Evening Standard:

Ideal cutting staff after trade plunge

TV shopping channels group Ideal Shopping today said trading fell off a cliff last month, and it expects losses for the year to be far greater than previously forecast.

It is taking immediate action by cutting 70 full-time jobs, 15% of its permanent workforce, and axeing “the majority of temporary staff” by the end of this year.

Ideal, which runs the Ideal World, Ideal Vitality and Create and Craft channels on Sky, said “revenues for November were substantially below expectations” although the first nine days of December had been broadly in line with last year. For those six weeks, however, sales were 17% down on a year ago. That means losses for the year will be about £4 million rather than the £700,000 losses analysts had been forecasting.

That is before one-off charges including £400,000 of redundancies, £800,000 of stock provisions, £900,000 of exceptional costs and £600,000 on deposit with defunct Icelandic bank Kaupthing.

Chief executive Mike Hancox has brought in Ian Jebson from Charles Tyrwhitt, the shirts direct seller, as finance director.

 

[Postman Matt]

Not if - when.

 

[Janette]

Come the New Year, I don't think they will last in the current economic climate too long.

 

[kitbag]

Sony, Littlewoods, Anne Harvey, a couple of new jewellery ranges and one skin care I can't remember the name of, Freemans?... Seems Ideal World are bringing in new products. Of course they are going to struggle...look at Woolies... but i for one will be very sad if they don't survive. I'm not a crafter but can understand why they sell so much of the stuff... if it keeps the company going in these hard times then good for them. Here's to a more prosperous New year for all businesses.

 

[hibbychubbs]

if things are that bad at ideal world why do they have 3 channels showing the same rubbish & a create & crap channel. & as many people have said give us a variety of products each hour i mean how boring is it watching paul the chef cooking with the same product
cut down the channels & give variety is hibbychubbs's recipe for success

 

[Postman Matt]

Presumably there is someone in charge of programming at Ideal, not that one would guess as much. The presentation looks like it is beamed in from eastern Europe. Whoever is in charge of what is after all a shopping television channel should be changed pronto. Fryatt wasn't a television person, and it showed. Whoever he left in charge when he got the order of the bullet should join him. It isn't as though there isn't a wide choice of channels available on British television. Dreary presentation of a tired range of products is what has put Ideal where it is now - on the slippery slope.:12:

 

[deanos]

The presentation looks like it is beamed in from eastern Europe.

Its because those channels are low bitrate, it means more channels can share a transponder hence cheaper to broadcast