TV shopping group Ideal Shopping Direct has issued a profit warning, blaming current market conditions which have had a negative impact on sales.

Total revenue for the retailer in the seven weeks to October 26 were 10 per cent lower than last year.

Following an increase in revenue for the first 10 weeks of its second half, Ideal’s net revenues for the first four months of its second half have fallen by 3 per cent. This is significantly short of management’s expectations.

For the rest of the current quarter, which is traditionally strong for Ideal, a smaller gross margin along with lower sales will impact profits for the business.

Ideal's board now expects to make a loss for the year to December 28 of£600,000, which represents cash held on deposit with Icelandic bank Kaupthing, which it is unlikely the company will be able to recover.

Last month former Otto chief Mike Hancox was appointed as the retailer’s new chief executive following the departure of Andrew Fryatt.

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