Watch out for this one floating in the next few days, it could turn out to be the float of the year. Theres not much available on the company yet but I have found the write up below which shows the fantastic potential of this one. Note just how cheap it is.

New Issue: here's one that's more than hot air

Published: 12:45 Monday 27 February 2006
By Cliff Feltham, Companies Correspondent

Owners of thousands of buildings in the UK are facing massive bills over the next few years to comply with new energy standards, which is good news for new AIM entrant Worthington Nicholls.

Air conditioning and ventilation units using ozone depletive gases have to be replaced by systems using more environmentally friendly gases.

The measures are creating a windfall for air conditioning installation companies like Manchester-based Worthington Nicholls which is to float on AIM with a price tag close to 35 million.

The firm, which has been around since the early 1970s, needs extra working capital to cope with the influx of orders which will see this year's turnover climb from 11.7 million to nearly 30 million.

The flotation, sponsored by broker Corporate Synergy, will also allow founder chairman Peter Worthington, who is nearing his 70th birthday, to sell shares worth around 7 million.

After years of steady progress, the firm has seen a huge jump in work triggered by new energy efficient legislation flowing from the Kyoto Agreement.

The deadline for owners of buildings to replace air conditioning, heating, ventilation and chilled water systems using banned gases is the end of 2009.

Chief executive Mark Worthington, son of John, believes there are at least 9,000 buildings in the UK which will have to comply with the new regulations. But the figure could be much higher. ' We are talking billions of pounds here,' he says.

Worthington Nicholls has concentrated on servicing hotel and retail clients which include Hilton, Holiday Inns, Debenhams, Arcadia and Boots.

A new, energy compliant air conditioning plant in a high street store can cost anywhere between 80,000 and 120,000. Re-fitting a Debenhams branch cost 670,000 while hotels can expect to pay around 3,500 a room for a new air conditioning unit.

Worthington Nicholls offers a complete service, designing the system, managing installation and providing regular maintenance. At present income from maintenance contracts is running at around 20% of total sales but that is expected to rise.

The flotation, which is raising a total of 15 million, will also provide a warchest for acquisitions. Two deals have already been lined up with will add another 20 million a year to turnover.

Mark Worthington says there is huge scope for acquisitions. The company claims to be market leader yet it only has a 3% share suggesting plenty of room for consolidation.

The company is making some confident assumptions about future growth. Profits are expected to rise from 3.7 million last year to 8.6 million in the current year to September. By 2008 it is projecting earnings of 12.6 million on sales of 45 million but this does not take into account any contribution from future acquisitions.

Says Worthington: 'Stringent environmental legislation has changed our business. Now the large international hotel and restaurant groups prefer to deal with a single supplier. We believe there is huge scope for expanding not just in the UK but across Europe.'

Price of the shares being placed will be fixed over the new few weeks following investor presentations with dealings due to start in about a month's time.

Please DYOR and do not use money on shares you cannot afford to lose.

cheers GF.

:o)
I haven't added to my original 3k holding but I'm more than happy with progress. Future looks rosy.
kim

Certainly doing well chaps .

Looking for more at kick off.

And we have it.

Will have to check the fundies and forecast rating here for forward guidance.

With 6.3p EPS forecast for this current year to 30/9/07, it seems to me that any decent outlook for the year just finished should mark a decent re-rating.

Even on a P/E of only 14 WNG should be at 88p, but on a P/E of 17 WNG would be at 107p.

With a PEG of only 0.42, plus a cash pile for earnings-enhancing acquisitions, there's loads to go for imo assuming results are at worst in line.

Ticked up again.

Looking good , i'm just waiting for the tip sheets TMI or SCSW to make it their main recomondation one month ,,they both featured it pre float.

Fingers crossed then Jimmy. Blimey where are all these buys coming from?.

Marching on together.

Think Ive found another quality float like this one in Velosi velo, Oil Quality control.
Doing a little more research.

Anither good day ,what a good week this has been.. don't know that one GF ,has it floated or is it due ???

Floated Jimmy.

Ill get back to you when Ive got through a little more research. Im a little tipsy at the moment after watching that football sham this evening. Mclaren as to go. Brian Rix couldnt have written a better farce than that.

Up again we go. NICE.

Only a penny ? come on Worthington up you go ..

Good news received from a pal of mine.

RHPS tip sheet this evening e-mailed this to their clients.....

A quick word on Worthington Nicholls (WNG). The shares
have hit my target price of 80p, giving us a 55% gain -
on paper - since July. But this air conditioning company
has got the potential to go much further. So I am going
to raise my target to 100p. Sit tight and HOLD!

Buys coming in.

Buyers coming in now,hopefully the early red will go blue.

150,000 buy gone in. Still down though buys total far greater than sells total, wonder what the MMs are doing here?.

Had to have an off day at some point ,(it's pulled back a bit all the way up) nothing goes up in a straight line ,,unless news tells me otherwise i'll be keeping mine in to next year at least..

Yup taking a breather before the next leg up.

Moving in the right direction now and thats up.