Presentation to Annual General Meeting 29 September 2004.

Presentation to Annual General Meeting

29 September 2004

Review of Financial Year ended 30 April 2004

‘Platform for Growth’

• Average Sales per Retailing Distributor per period (ASR) increased 19.6% to £610

• Improved Operating Margin

• New distribution centre providing capacity for expansion

• New higher value brands introduced

Financial Year ended 30 April 2004

‘Dividend Resumed & Net Debt Down’

•Turnover on continuing operations £158.9m (2003: £164.1m)

•Normalised operating profit unchanged at £8.5m

•Operating margin increased to 5% (2003: 4.7%)

•Normalised basic EPS increased to 12.8p (2003: 12.7p)

•Net debt reduced by 30% to £11.2m (2003: £16.0m)

•Final dividend 2p (2003: nil), total for the year 3p (2003: nil)

Financial Year ended 30 April 2004

‘Improved Performance at Kleeneze UK’

2004 2003 % change

£m £m

Turnover 82.6 86.3 -4.3%

Operating profit 6.6 6.6 0.0%

Exceptional costs (1.1) -

Operating profit margin 8.0% 7.6%

Average active distributors 14,900 16,900 -11.8%

ASR1 £610 £510 19.6%

1 ASR represents the average sales per retailing distributor per 4 week period

Financial Year ended 30 April 2004

‘Improved Margin at Farepak’

2004 2003 %

£m £m change

Turnover 76.3 77.9 -2.1%

Operating profit 1.2 1.2

Share of associate's profit 0.6 0.7 -14.3%

Operating profit margin 1.6% 1.5%

Kleeneze UK

• Improve retention of distributors

• Focus on catalogue range & performance

• European expansion

• Operational efficiencies from new site

• Capacity for growth

Farepak

• Focus on reduction of fixed overheads

Group

• Reviewing acquisition opportunities to accelerate growth

Summary of Financial Year ended 30 April 2004

‘Well Positioned for Future Growth’

Trading Update

‘Further Growth Opportunities Introduced’

• Sales at Kleeneze UK in first 4 months ahead of last year

• Further increase in ASR - compounding 20% increase in previous year

• Acquisition of Cabouchon reflecting move to higher value, branded goods

• Commencement of trading of Dutch Operation

• Farepak trading in line with focus on cost base and vouchers

• Announcement of expansion into Television Shopping

Dutch Operation

• Launched in September

• Over 1,000 distributors signed up – above initial target

• Over 500,000 catalogues to be distributed by Christmas

• Network response positive

• First conference in Amsterdam in October – 1,000 attendees expected

Expansion into TV Shopping

‘The Investment’

• Investment of some £4 million over next 2 years

• Joint venture with JML

• Re-branded as ‘eezee TV’

• Currently broadcasting pre-recorded on Channel 664

• To be relaunched as live channel in March 2005

Expansion into TV Shopping

‘The Growth Opportunity’

• TV shopping market same demographic characteristics as the Group

• Effective Recruitment and Retention tool for Kleeneze

• Significant cross selling opportunities for the Group

• TV shopping market worth over £500 million in 2004

• Market forecast to grow to over £750 million by 2008

‘Strong Growth in TV Shopping’

Source: Mintel - figures exclude revenues from travel channels

146

221 246

328

441

505

581637

708751

806

198

-

100

200

300

400

500

600

700

800

900

£m

• TV shopping has benefited from the uptake of digital TV

• Freeview has been a major influence in growth

• FreeSat being launched in October

• Over 15 million homes forecast to have digital TV by the end of 2004

• Analogue switch-off will further drive penetration levels

• Switch-off date has been set by the Government by 2012

Expansion into TV Shopping

‘Digital TV driving the Growth’

Group Strategy

Kleeneze UK

• Increase product range

• Geographic expansion

• Increase channels to market

Farepak

• Re-stimulate demand for shopping vouchers

• Reduction of fixed overheads

Group

• To become the leading Home Shopping specialist

Presentation to Annual General Meeting

29 September 2004