Thursday, 10 December 2009

IWG's Impressive Year End Results/Strategic Plan

International Water-Guard (TSX-V: IWG)
Basic Shares: 39.3 million
Fully Diluted: 46.5 million


Investors might look back to International Water Guard’s (IWG) surprisingly good financial results in 2009 as the platform year – the year when IWG flexed a little financial muscle and employed its excellent management to dramatically alter its history.

Consider this:
  • In a year when the worldwide aviation industry was still reeling from the worst economic crisis in 79 years, IWG recorded an 18% increase in revenues in F09 to $4.898 million (year ending Sept. 30th).

  • It increased its cash position to $1.3 million or 3.3 cents/share where it has been trading between 5.5 and 8 cents as of late. Also, it has no debt.

  • Its current market capitalization is approximately $3 million or about two-thirds F09 sales.

  • In F2009, net earnings were $312 thousand, compared to a net loss of $97 thousand in F2008.

  • Consider also that management under President and CEO, David Fox, managed to steer the corporate ship through some of the roughest economic waters we’ve seen and post six (6) consecutive quarters of profits.

In context of its undervalued nature, the Board of Directors has made an important strategic decision to retain Haywood Securities to offer its expertise in helping IWG grow through mergers and acquisitions. The message this sends is very straight forward and clearly signals that those in control of IWG will do what needs to be done to positively impact shareholder value!

There are some interesting prospects out there in the hard-hit aviation sector and if IWG plays its corporate hand right, it could follow the path of others in this sector which have done extremely well.

  • Take Zodiac S.A. for example. That’s right, the France-based manufacturer of inflatable boats. But marine sales are less than 50% of Zodiac’s business. The remainder are in the aviation sector, through inflatable emergency chutes, aircraft toilets, aircraft seats, aviation systems, etc. This now 130-year-old company took a strategic decision back in the early ‘70s to grow dramatically through acquisitions and now boasts annual revenues in the $1 billion range and employees around the world of roughly 20,000.

The fact is the IWG group is serious.

Click here to read the news release