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%.
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.
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.
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.
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
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
Author Ownership Disclosure: TSXV: IWG -
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