Diversaflow Corporation Ltd.
TSX VENTURE : DVF

Diversaflow Corporation Ltd.

August 31, 2005 17:14 ET

Diversaflow Releases Financial Statements for Third Quarter

LANGLEY, BRITISH COLUMBIA--(CCNMatthews - Aug. 31, 2005) - Diversaflow Corporation Ltd. (the "Company") (TSX VENTURE:DVF) announces the release of its unaudited consolidated financial statements for the quarterly period ended June 30, 2005. The consolidated financial statements of the Company can be accessed at the Sedar website.

For the three month period ended June 30, 2005, total sales of $2,084,740 increased by $3,025 over the same three month period in 2004. Total revenue for the nine month period, ended June 30, 2005 of $5,443,529 constitutes a 7% increase over results for the same period last year. Playgrounds are frequently a part of larger projects. Delivery and installation at customer sites are subject to unforeseen delays arising from a variety of customer logistical issues; these factors can contribute to anomalies in comparing revenues for successive reporting periods.

A decline in sales into Europe and the Middle East during 2005 has been offset by stronger sales activity in North America, Asia, Pacific and Latin American markets, resulting in the continuation of the Company's pattern of consistent revenue growth over the nine month period ended June 30, 2005.

The Company recorded a net loss on operations of ($39,019) for the three months ended June 30, 2005 as compared to a profit of $161,844 for the comparable period in the prior year; for the nine month period ended June 30, 2005 the Company recorded a net loss on operations of ($154,435) as compared to a net loss of ($27,507) for the preceding year.

Port Work Stoppage/Trucking Job Action

During the three month period ended June 30, 2005 container shipping activity in the Port of Vancouver was curtailed because of job action by container truck operators; as a consequence, IPC was prevented from shipping several offshore projects, fabrication of which had been completed in IPC's factory prior to June 30, 2005.

Had the containers been available, the projects would have been shipped and the Company's revenue would have been increased by $139,700; the estimated profit contribution on these projects would have been sufficient to convert the $39,019 loss to a profit of approximately $26,000.

The results of the consolidated financial statements discussed above reflect the 3 month period ended June 30, 2005, compared to the 3 month period ended June 30, 2005. The fiscal year end for Diversaflow is September 30; for full details please see the most recent annual and interim statements which can be accessed at the Sedar website.

ON BEHALF OF THE BOARD OF DIRECTORS

Scott Forbes, President and Director

FORWARD LOOKING STATEMENTS: This news release contains certain forward-looking statements. All statements, other than statements of historical fact, included herein, including without limitation statements regarding the Company's business, results or future plans, are forward looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed elsewhere in documents that are available to the public.


The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Diversaflow Corporation Ltd.
    David Romano
    (604) 882-1188
    (604) 882-1977 (FAX)