Australia: Success today for AdultShop.com

"We are extremely pleased that the acquisition of Today's Success has been completed as planned,” AdultShop CEO, Malcolm Day, said in a statement.

“We expect to be cash flow positive in the September quarter, not only due to the acquisition of Today's Success, but also due to wide-ranging cost-cutting measures."

Today's Success estimates that operating revenue for the full financial year 2000/2001 will reach AU$18.26 million (US$9.37 million), with projected earnings before tax of AU$4.2 million (US$2.2 million).

Operating revenue for the financial year 2001/2002 is projected to grow to AU$33.1 million (US$16.9 million) and earnings before tax are projected to increase to AU$7.3 million (US$3.7 million).

AdultShop has allotted 61,111,111 of its ordinary shares at 18 cents per share, with AU$1 million (US$ million) payable in cash in four equal consecutive monthly instalments, commencing from the completion date of the acquisition.

AdultShop’s acquisition comes on the back an Australian Securities and Investments Commission inquiry into the company.

“While the ongoing ASIC inquiry has received public attention, the positive impact of this acquisition on AdultShop.com's bottom line has been neglected. This acquisition will help shape the future of AdultShop.com," Day said.