TIPS TO SHARE WITH MIDAS: Earn treasures in battles to thwart pirates with Windward

Ships are responsible for 90 percent of global trade, transporting around 11 billion tons of cargo around the world each year. The work is done by more than 50,000 vessels, from large oil tankers and container ships to small, specialized fishing boats.

Transporting goods by sea has always carried an element of risk. But recently, shipping has become much more complicated. Russian sanctions, attacks in the Red Sea, tensions off China’s coast, piracy in Africa and Asia – all of which make the high seas more dangerous than they were in 2009, the year of the real-life kidnapping that inspired the Tom Hanks film Captain Phillips.

Listed in London Windward uses high technology to help businesses, ship owners and governments manage their maritime journeys more efficiently, so that crews are safer, cargo arrives faster and fuel consumption is minimised.

The shares are worth £1.03 and should rise further as the company is a pioneer in its field, is growing rapidly and has several blue-chip clients on its roster, including the US government, Interpol, BP and commodities giant Glencore.

Windward was co-founded by Ami Daniel, a former Israeli Navy officer. After his ship was attacked off the coast of Lebanon in 2006, the risks of shipping became all too apparent. Four colleagues were killed and Daniel himself nearly died. Three years later, he and fellow officer Matan Peled formed Windward, determined to make shipping less risky for both governments and businesses.

Over the past decade and a half, the company has gathered a wealth of shipping data from public, commercial and customer sources. At the same time, Windward has developed advanced technology to analyse this information and provide clients with constantly updated advice and guidance on maritime trends.

Governments want to know exactly where the risks are, how best to navigate them, and whether countries or shipowners are acting in bad faith at sea. Companies need to be confident that the ships they use are bona fide and have not been involved in sanctions evasion, smuggling or other nefarious activities.

Shipowners want to be informed about routes, ports and the best places to refuel. And all customers recognize that the more information they have, the safer and more efficient their journeys will be.

Armed with the data and support the shipping world needs, Daniel and Peled have attracted more than 200 clients, two-thirds of which are government agencies and public sector bodies. The remainder range from large shipping groups to logistics specialists, banks and insurers.

Windward is growing rapidly. Half-year results are due on Tuesday and Daniel has already said revenues are up 37 per cent year-on-year to $17.6m (£13.7m), contract values ​​are rising and there is plenty of cash on the balance sheet.

Another key highlight is Windward’s launch of a new tool that uses generative artificial intelligence to deliver expert advice and commentary on around one million vessels worldwide, including the 100,000 largest ships at sea. The tool, known as MAI Expert, enables shipowners and clients to uncover the risks associated with any given vessel in a matter of minutes – a task that would otherwise be cumbersome, time-consuming and error-prone.

MAI Expert has already attracted considerable interest and brokers believe the tool could boost growth for existing and new clients. Group sales are expected to exceed £27m this year, rising to more than £39m in 2026. Daniel has been reinvesting cash into the business but a small profit is expected by the end of this year, rising to £310,000 in 2025 and £1.7m the following year.

Midas Verdict: Windward floated on AIM at £1.55 in December 2021. The company has consistently delivered on its promises, but the stock has fallen by more than 30 per cent since then. This is undeserved and the stock should recover. Thousands of ships sail every day, risks are increasing, logistics are harder to manage and costs are rising. Windward helps clients on all three fronts. Buy and hold.

Listed in: AIM Heart: ONOWD Contact: windward.ai or Alma PR at 0203 405 0205