Ships are responsible for 90 per cent of global trade, transporting around 11 billion tons of cargo round the world every year. The work is done by more than 50,000 vessels, from huge oil tankers and container ships to small-scale specialist fishing boats.
Moving freight around at sea has always carried an element of risk. Recently however, shipping has become significantly more challenging. Russian sanctions, Red Sea attacks, tensions off the coast of China, piracy around Africa and Asia – all make the high seas more perilous than they were in 2009, the year of the real-life hijacking that inspired the Tom Hanks film Captain Phillips.
London-listed Windward uses high-tech to help companies, ship owners and governments manage their maritime journeys more effectively so crews are safer, cargo arrives faster and fuel consumption is minimised.
The shares are £1.03 and should move higher, as the company is a pioneer in its field, growing fast and has several top-tier customers on its roster, 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 only too apparent. Four colleagues were killed and Daniel himself nearly perished. Three years later, he and fellow officer Matan Peled formed Windward, determined to make shipping less risky for both governments and business.
Essential: World trade depends on container ships to carry goods around the globe
Over the past decade and a half, the company has amassed a trove 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 constantly updated advice and guidance on maritime trends.
Governments want to understand exactly where risks lie, how best to navigate them and whether nations 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 sanction-busting, smuggling or other nefarious activities.
Shipowners want news on routes, ports and where best to refuel. And every customer recognises that the more information they have, the safer and more efficient journeys will be.
Armed with data and support that the shipping world needs, Daniel and Peled have attracted more than 200 customers, two-thirds of whom are government agencies and public sector bodies. The rest range from big shipping groups to logistics specialists to banks and insurers.
Windward is growing fast. Half-year results will be unveiled on Tuesday and Daniel has already stated that revenues are up 37 per cent year-on-year to $17.6 million (£13.7 million), contract values are rising and there is plenty of cash on the balance sheet.
Critically, too, Windward has launched a new tool, using generative AI to provide expert advice and commentary on around a million vessels across the globe, including the 100,000 largest ships at sea. The tool, known as MAI Expert, allows ship owners and customers to discover the risks associated with any given vessel in a matter of moments, a task that is otherwise cumbersome, labour-intensive and prone to error.
On the defensive: Somali pirates hijack the MV Maersk Alabama in the film Captain Phillips
MAI Expert has already attracted considerable interest and brokers believe the tool could turbo-charge growth from existing and new customers. Group sales are expected to top £27 million this year, rising to more than £39 million in 2026. Daniel has been ploughing cash back into the business but a small profit is expected by the end of this year, rising to £310,000 in 2025 and £1.7 million the year after.
Midas verdict: Windward floated on AIM at £1.55 in December 2021. The company has consistently delivered against its promises but the shares have fallen more than 30 per cent since then. This is undeserved and the stock should recover. Thousands of ships set sail every day, risks are increasing, logistics are harder to navigate and costs are climbing. Windward helps customers on all three fronts. Buy and hold.
Traded on: AIM Ticker: WNWD Contact: windward.ai or Alma PR on 0203 405 0205
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