TOP IDEAS: IWG Technologies Inc. (TSXV: IWG) delivers strong revenue and profit growth for the first-half of fiscal 2015. Second half should be strong too. Stock is up 20%.

Small cap shareholders of IWG Technologies Inc. (TSXV: IWG - $0.26) have a lot to beam about when reading the Company's recent financial results. And, why not, with revenues up 30% to $4.33 million, EBITDA up 97% and net income up 103% for the first half of fiscal 2015.

IWG Technologies Inc.'s main operating subsidiary, International Water-Guard Industries (IWG), supplies business aircraft manufacturers with product technology to improve the quality of on-board water systems for passengers and crews. The Company is considered one of the world's leading providers of flight-certified water treatment units and specialized aircraft water system components. IWG offers a range of products to meet all aircraft potable water systems needs, from water treatment units including components such as pumps to on-demand water heaters, tanks and water control systems.

With Q2 results, IWG Technologies has reported 11 consecutive quarters of profitability. This was derived from the steady year-over-year revenue increases due to the introduction of several new water treatment product lines. The Company has seen its cash holdings rise to $1.7 million from the steady stream of profits.

Product development activity pursued by IWG in recent years has assured that its water systems are at the leading edge of aviation market requirements. The Company maintains a strong balance sheet to fund the growth of its business to create additional products for new and existing markets.

The medium to large, long-range business aircraft marketplace continues to be a growing sector of the aircraft marketplace. IWG has built a solid foundation, supplying on-board water systems to this market. A new market opportunity for the Company is the commercial jet market.

IWG recently launched a new generation of on-demand tankless water heaters, which are lighter and smaller and ideal for aircraft showers and VIP galleys for commercial aircrafts such as the Boeing 787 Dreamliner and the Airbus 350. Last year IWG strengthened its management team with the hiring of a new President (Darryl Jacobs), who has significant experience marketing products deployed in commercial jetliners.

It was just two months ago when we named IWG Technologies to our list of Investorfile Top Ideas - Small Cap Value stocks with our blog post (See: IWG Technologies is soaring in small cap value). Since then the Company's stock price has moved up 20% as first half financial results were a significant improvement over the same period last year. 

IWG says customer demand for its water treatment products continues to grow. Given the outlook, second half financial results for fiscal 2015 should also be strong. Longer term, through exploration of new market opportunities with commercial jetliners, the Company should continue to grow. Water issues continue to be important to the aviation market.

We like the growth prospects for IWG Technologies. That said, we reiterate our view that value-driven small cap investors should continue accumulating the Company's shares from the current trading levels to a high of $0.40.

The Company has approximately 39.1 million shares outstanding.

IWG websites: www.iwgtech.com and www.water.aero

Author Ownership Disclosure: TSXV: IWG - YES

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