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.

2008 the hottest year ever. we hope. no hope.

Any Ideas about the news??

Excellent. A really good clearout, declare all debts & writedowns now so that there are no surprises when the next audit is done. Sp is going to suffer a little bit in the short term, but the following is how these guys go about their business, which is only good news for WNG, imo:

"The New Board intends to adjust rapidly the fixed cost base where appropriate,
generating immediate monthly cash savings. The changes to financial process and
management will take a period of time but these are challenges with which the
New Board is familiar.

The group remains robustly financed with substantial cash balances and the New
Board believes that the group is one of the larger and more experienced
competitors in its markets, with considerable engineering and technical skills.

The Board does not expect service levels or engineering skills to be adversely
affected as result of recent changes and the adjustment to the cost base. The
Group will, therefore, continue to manage existing business for customers and
continues to seek to win new business including bidding for at least two large
new contracts."

Thanks Harrycat. Do you hold?

I sure do! A whole range of prices from 17p to 124p.
I am confident that these guys will turn the company round, otherwise I would have bailed out ages ago. It may take a while but once the market is confident in the management & the strategy, then the sp should rise, imo.

I like what I see! The new board are just what the doctor ordered, no messing about, just the facts (let's hope they know everything there is to know now). A pity the board can't take up on half my other holdings! Feeling confident about WNG's future again now.

The only thing which I can't answer, which is where we need someone who is good with the figures, is how much of a difference a 15m writedown is going to make as opposed to a declared 6m writedown. Much of the sp decline was due to a lack of confidence in the management, but some was due to the surprising accounting. Monday should see an immediate adjustment to the sp, but then what?

9.4m is worth 10.4p per share. 15.9m = 17.63 per share.

So if someone said the NAV per share was 27p, then it should now be 10p - although I would expect a small premium to this in respect of the promises made by the New Board today which should build as they deliver on them.

Audited accounts to 30th September and then again to 31st March is a great opportunity for the New Board to demonstrably provide evidence that their new regime is working over a relatively short time period.

The RNS certainly had the ring of radical, but calmly considered, review, appraisal and action, which can only be a good thing in the medium to long term.

The new board and their auditors certainly have their work cut out to establish precisely the real financial position. Further provisions/write offs may be required. An investigation into the Woods acquisition last May which was financed through a placing arranged by Blue Oar (since replaced ) at 170p may result in some legal dispute as it was at this time that Mark Worthington ( since dismissed ) sold a large shareholding.

Given the latest news report, this morning's dip in the sp could have been a lot worse:
"LONDON (Thomson Financial) - Shares in air conditioning group Worthington Nicholls, suspended last week in the wake of write-downs, resumed trading down 2 at 15-1/2 pence. It has been further unsettled by a weekend press report claiming former chief executive Mark Worthington became so friendly with Gavin Haywood, a salesman at City broker Blue Oar, that he gave Haywood's wife a Porsche."

I've sent in a request for a Jag, heard nothing yet though.

As Mark Worthington is no longer part of the company and the books have been well scrutinized, I can't really see the relevance now, all part of history surely?

To add to my last comment, any charges of fraud, or whatever, would imo be brought against Worthington the man, not the company.

Yes, I agree that Worthington has a lot to answer for, but it seems that WNG is loss making & that he has been hiding the fact. This is going to rumble on for quite a while, imo.

Daniel Stewart say sell sp should be 6p to reflect cash position only. They note new directors have not as yet bought any shares, also they are of the opinion legal action should be taken against old board of directors.

They probably need to seize the passports of the old board otherwise I can see them booking one way flights to Panama!

If the new directors are wise, they will wait until the sp steadies, at 6p or whatever, until they buy! Can't see a problem with them not buying at present, even they cannot be absolutely certain at this stage that there are no more skeletons in the cupboard.

Can on trust these Financiers when they have such extreme views on value?
It wasn't long ago they were either silent on value, or believed it was fairly-priced.

I suppose any panic that can be created will mean some trading-profits.

Until recently the cash-value was considerably more than 6p ( wasn't ti?) and presumably there is some value in what used to be a resonable business - although the term "Float of the Year" might be a bit fanciful.......indeed, I wonder whatever gave that impression?
If it halves again, I may buy some more.

I don't know about Panama, but I have got a canoe that Mr. Worthington can buy if that would help.

looks like IanT has his own thoughts on this with the chart having now a zero on it!

LONDON (Thomson Financial) - Shares in air conditioning group Worthington Nicholls, suspended last week in the wake of write-downs, resumed trading down 2 at 15-1/2 pence. It has been further unsettled by a weekend press report claiming former chief executive Mark Worthington became so friendly with Gavin Haywood, a salesman at City broker Blue Oar, that he gave Haywood's wife a Porsche.