Home shopping firm Ideal's profits higher than expected

British home shopping company Ideal Shopping Direct saw its shares soar by nearly a quarter today after it announced trading had exceeded expectations.

The group, which runs the TV channel Ideal World, said annual pre-tax profits would come in at £3m (€4.3m) – far higher than the £2m (€2.9m) expected by analysts.

This was before the key Christmas trading period, when the company traditionally does much of its business. Last year Ideal Shopping posted a small annual loss.

Recently-appointed chairman Jim Hodkinson, formerly a B&Q director, said: “2004 is set to be not just a successful and profitable year, but a strong platform for our further progress.”

Ideal World features programmes on products such as jewellery, fashion, skincare and gardening, and is available to digital, satellite and cable viewers.

Higher sales over the last eight weeks reflected a series of recent changes, including the decision to move its call centre to India.

At its base in Peterborough, England, the group said it had found it hard to recruit the quality of staff needed and had to endure “unacceptable levels of absenteeism”.

Other changes have included a freeview channel launch in April, meaning customers with set-top boxes can watch Ideal Shopping, as well as a shake-up of its buying and distribution.

The company took action following “challenging” times in 2003, when it was hit by a number of issues resulting from its rapid growth.

Last summer, it decided not to publish any more catalogues in order to concentrate on its television business.

In March 2001, the group was hit by a major fire that wiped out its TV studio and destroyed most of its offices and warehouse premises.

At the time of its interim results last month, it said “considerable progress” had been made in every area of the business.

Shares rose 23% today, 28.5p higher at 150p.