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.

failure of management...at least they are honest to say that


Worthington Nicholls FY pretax loss 42.1 mln stg vs restated 8 mth loss 4.1 mln - AFX


LONDON (Thomson Financial) - Worthington Nicholls Group PLC posted a pretax loss of 42.1 mln stg for the year to Sept 30, 2007, against a restated loss of 4.1 mln stg for the period from Feb 2 to end-September 2006.

The company also said it expects the next reporting period to March 31 to show further substantial losses, but, following its second restructuring, it hopes trading will stabilise, thereby protecting its net cash balances.

Worthington Nicholls reported a turnover of 25.9 mln stg for the year to Sept 30, 2007, against 3.3 mln stg in the eight months to end-September 2006.

'These results document a failure of management and corporate governance by the previous board,' chief executive Simon Beart said.

The company also proposed that the group be renamed Managed Support Services PLC by a resolution at the forthcoming annual general meeting scheduled on April 14.


tf.TFN-Europe_newsdesk@thomson.com

Looking good for an eventual recovery, so long as every cupboard door has been opened and skeletons all removed!

Anyone know what happened to the FSA investigation & also the fate of the original auditors?

Jail, collars-felt and scott-free - words that you can take yr pick.
It beggers belief that execs think they will get away with their goings-on, ah well it is only a very small number of them.

Note today's sp rise is due to Dir buying ( see RNS)
It's just 28k-worth of stock, at an advantageous price ( compared with last year!), - still he has the decency to buy with his own money....

See earlier posts- I'm not keen on rebranding the company - makes it difficult to see how things are going and will cause confusion amongst customers.....maybe that's what they want..Oh deary.

Or maybe they think that the old name is tainted & a fresh image is needed.

yes harrycat, that's it:
- but we will never forget.....and the proposed name is pathetically poor. A short "snappy" name without specific focus is far better IMHO, so that Management has flexibility to move the business from unprofitable areas.

EDIT 14 March - I don't like these millions of warrants either at 7.5p for the next 10-years - Eh? does that mean it won't get any better for that long? Don't shareholders have any say?

New name is Managed Support Services
EPIC is: [MSS]

Let's hope this is a fresh-start.

Do you want to start a new thread, hangon, with a chart at the top?
I would do it, but the chart business at the top will take me about 6 goes!

Wakey wakey see MSS thread!!

Very well worth reading !!!!


http://boards.fool.co.uk/Message.asp?mid=11591272&sort=whole


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