MIDAS SHARE TIPS: Earn treasures by fighting and thwarting pirates with Windward

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

Shipping cargo by sea has always been risky. But lately, it’s become a lot harder to ship. Russian sanctions, attacks in the Red Sea, tensions off the coast of China, piracy around Africa and Asia – all make the high seas more dangerous than they were in 2009, the year of the real-life hijacking that inspired Tom Hanks’s Captain Phillips.

London listed Windward uses high-tech to help companies, ship owners and governments manage their maritime journeys more effectively, keeping crews safer, cargo arriving at its destination faster and minimizing fuel consumption.

The shares are trading at £1.03 and should rise further as the company is a pioneer in its field, growing rapidly and counts several major clients among its customer base, including the US government, Interpol, BP and commodities giant Glencore.

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

Over the past fifteen years, the company has collected a wealth of shipping data from public, commercial and customer sources. At the same time, Windward has developed advanced technology to sift through this information and provide customers with continually updated advice and guidance on maritime trends.

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

Ship owners want news about routes, ports and where to refuel. And every customer realizes 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 signed more than 200 clients, two-thirds of whom are government agencies and public sector organisations. The rest range from large shipping groups to logistics specialists to banks and insurers.

Windward is growing fast. Its 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.

Crucially, Windward has also launched a new tool that uses generative AI to provide expert advice and commentary on approximately one million vessels worldwide, including the 100,000 largest ships at sea. The tool, known as MAI Expert, allows ship owners and clients to discover the risks associated with a particular vessel in moments, a task that is otherwise cumbersome, labor-intensive and error-prone.

MAI Expert has already attracted a lot of interest, with brokers believing the tool could boost growth from existing and new clients. Group turnover is expected to top £27m this year, rising to over £39m by 2026. Daniel has been putting money back 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 year after.

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

Traded on: GOAL Ticker symbol: WNWD Contact: windward.ai or Alma PR on 0203 405 0205