Ideal Shopping cautiously optimistic

TV shopping specialist Ideal Shopping Direct said although the economic conditions remain challenging, it is cautiously optimistic that the business will return to profitability in the medium term.Sales have continued to perform slightly ahead of our expectations, up around 2.0% over the comparable period in 2008, the group said in today's company statement.Gross margins are improving and the group believes that it can return them to historic levels in the near future. Stock control initiatives introduced at the beginning of the year are being maintained without any negative knock-on effects to the business, the group said.Ideal Shopping's cash balance at 31 May 2009 was £9.5m and net cash was £7.7m after adjusting for outstanding loans.