BusinessBusiness RecoveryIdeal Shopping brings in KPMG after profit warning

Ideal Shopping brings in KPMG after profit warning

Ideal brings in KPMG to review its accounting processes after issuing its second profit warning in five weeks

Ideal
Shopping Direct
warned on Wednesday it would lose £4m this year and has
appointed KPMG to review its accounting processes.

The TV shopping company issued its second profit warning in five weeks,
saying sales in the six weeks to December 7 were 17% below the previous year. It
revised its November prediction for a ‘small loss’ for the year to December 28,
to a £4m loss before charges.

Ideal, which runs three shopping channels on Freeview, Sky and Virgin Media,
appointed KPMG to review its accounting procedures and its balance sheet, saying
KPMG would replace its auditors Grant Thornton next year, the Financial
Times
reports.

Mike Hancox, newly appointed chief executive, said he had ‘one chance to
clear this company up’. ‘It’s not what I was expecting,’ he said. ‘I didn’t
think I’d have to be talking about losses.’ He said the previous management had
been ‘over-optimistic’ about this quarter he said, hoping for sales growth of
16%.

Further reading:

Read
the Financial Times story

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