Friday, 10 December 2010

IWG Sales UP With Revenues Down

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

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The law of paradox where reality is the opposite of how it appears is alive and well in International Water Guard's year end report released Friday.

Here's the conundrum.
IWG reported a 12% decrease in revenue to $4.38 million for the fiscal year ending Sept. 30th, 2010, down from $4.95 million in the previous year.

But it also showed a 7% increase in sales - to a corporate jet market that was still writhing on the ground from the financial blows it suffered in the Great Recession of '08 & '09. One of the huge factors at play in this conundrum was the declining value of the U.S. dollar.

On average, it went down around 13% for the 12 months up to Sept. 30th, 2010 compared to the same period in the previous year. IWG builds its sophisticated aircraft water handling and treatment technologies in Canada but sells to the international market in U.S. dollars.

What the U.S. dollar does in the future is anyone's guess but most respected groups are calling for a marked recovery in the corporate jet market by the middle of next year.

In the meantime, IWG finished its year end with modest profits and its bank vault still stuffed with $1 million in cash.

It also spent much of its fiscal year hunting for a good use for that cash - a takeover target. That hunt continues.

To read IWG's news release on its year end, please click here.