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.

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.

Could'nt have been more wrong.......glad to be out.

I stupidly jumped on the band wagon with little research and bailed out 1 week later at about a 65% loss. Lesson learned!!

Kivver you couldn't know how Mkts would slide, -that would have happened to any investment at that time, admittedly AIM has been hard-hit but look at Bio's!!!
+ HarryCat, et al.
Some positive comments, yet sp falls; can any of you comment on the following...?

I know some odd-accounting issues surfaced about the time of the 2007-Floods, but this was nothing like the upset when a Dir sold rather a lot of stock (- or am I confusing Co's?)....In terms of valuation he was right! - Whether it was correct to do so is another issue, for the FSA perhaps. The City rumour about the expensive car is just that - and might mean something else entirely. It does give a lie to ideals of behaviour, but I'm not sure it affects the business - not like Bunging for a contract, is it?
- Anyway I'm still in. However, with a further 14% drop today, it does mean anyone with the knowledge can pick-up stock for a tenth of the earlier* Mkt-valuations.
*(I suspect the real value lay about sub 50-p with maybe abt. 35p after some flood-damage issues - the current sp is "fright"-value - anyone agree?


- I am a late-commer to [WNG], recognising that earlier prices were somewhat high ( without years of figures and maybe some dividend history); but unless this Co is riddled with FRAUD then there has to be good fundamental-value arround the current price, making a small uplift a matter of Mkt Expectation.

Air Con is still needed ( here in UK); as I was thinking of having some myself!

When a "stock" becomes popular it is my hope that at least a few participants do look at fundamentals, maybe go round to see the Works, know someone who does business there, etc. -OR- are we looking at a business that has been raised to dizzy heights by a mad rush?
=NO? - I don't think so, for [WNG], is UK-based in an easily accessed area of the country and it's not technology being Pumped by Newspapers and Politicians - like Solar/Wind/Wave/Geo-energy nonsense - where IMHO valuations are already way too high since the Customer ( remember them?) will not pay £1000 pounds for every £10 annual saving - grief even double-glazing is several times "better value" and that releases you from the tedium of painting the frames every few years.
Anyone live near the WNG-works, etc.?

9.5p now...record low.

Corporate info on the WNG website has ben updated but as yet no other news.
A waiting game now, imo.

Friday morning - 33% jump on No News - does someone know something?