Adultshop.com revises profit forecast

Northbridge-based company AdultShop.com Ltd has revised its forecast net profit of $500,000 down to a net loss of between $300,000 and $500,000.

In an announcement to the ASX, AdultShop said the decrease was a result of a number of unforseen, non-recurring events in June 2006, The most significant of these being the unexpected relocation of the group's Canberra warehouse and operations in the final week of the financial year.

The full text of the announcement is pasted below

The directors of AdultShop.com Limited ("AdultShop") advise that the previously forecast net profit before tax for year ended 30 June 2006 of $500,000 will not be achieved and that the company expects to record a net loss for the year of between $300,000 and $500,000.

The decrease in the forecast profit has arisen due to the occurrence of a number of unforseen non-recurring events in the month of June 2006, the most significant of which was the unexpected relocation of the group's Canberra warehouse and operations in the final week of the financial year. This relocation resulted in unfulfilled sales orders in the last week of June which has a significant impact upon sales and profitability.