2 November 2010 – trading update

The new management team has issued a trading update with the thorough review of the business progressing well.  It is expected that the continuing profit for the first half of the financial year, covering the six months to 30 September, will be ahead of the same period last year.  However, the new team has decided to adopt a more prudent approach relating to some items in the internal budgets and this means that profits for the full year could be £7m less than previously forecast.  The group is about to enter the key Christmas trading period in its home shopping business although it is too early to say how this will go.  Until the interim results are announced at the end of November, the shares are a HOLD.