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.

Just came across this Buy rec for WNG from Eden Financial from September which reads well:

http://privateclient.edenfinancial.com/research/edenview/documents/edenviewsept2006.pdf

"Small stocks have inherent risks associated with them, and potential
investors should always be sceptical when they meet a company for the
first time. Management and their advisers are always positive, and
investors need to search for the chinks and flaws in their arguments, and
for what is missing. A check-list of desirable attributes is a useful tool.
Is it a growth market? Does the firm have a strong or market leading
position within this sector? Does the company rely on one major customer?
Is there government regulation that may either fuel market growth or
provide barriers to entry? Are there economies of scale? Does the company
have suitable patents in place to keep the competition at bay? Is there
good earning visibility? It is difficult to find a stock that ticks all the boxes.

Air conditioning may not sound like a route to quick riches but boombust
cycles from the Dutch tulip mania to the tech boom should make
us realise that slow and steady wins the race. Founded in 1973 by the
chairman Peter Worthington, Worthington Nicholls is the UKs largest
specialist air conditioning contractor in the hotel, leisure and retail
industries. It has grown primarily though organic growth but with a few
small bolt-on acquisitions.

Demand for air conditioning is growing steadily, with only 4% of UK
retail outlets currently having it. Customer expectations are rising, and
retailers are beginning to realise that customers spend more when the
temperature is comfortable and the air fresh. Increasing summer
temperatures in the UK are encouraging firms to invest in AC hardware
and most new construction will now include AC as standard. This
change has only come about very recently, and consequently there is
also a buoyant retrofit market.

The replacement market is being encouraged by EU legislation, introduced
in 2000, which outlawed numerous ozone depleting substances, including
HCFC, the cooling substance used in 70% of air conditioning units. The
phase out programme for these finishes in 2015, and is a key driver for
the business.

At present, 60% of revenue is generated by the installation of the AC units.
As the air conditioning market matures, the 5 year maintenance
programmes that the group sells with the new units will become more
important. This work is higher margin and provides a highly visible and
recurring revenue stream.

Worthington Nicholls is exposed to secular long-term growth assisted
by legislation. It has consistently delivered healthy historic sales and
profit growth and has already contracted 100% of 2006 and 50% of
2007 revenue forecasts. With both the replacement and new market
being buoyant, we believe that the prospects for the group are excellent."

A new day a new high.

Main tip in Shares Mag today :o)) Anyone got the full narrative or details?

http://www.citywire.co.uk/News/NewsArticle.aspx?VersionID=86123&MenuKey=News.Home&NewsPage=4

"SHARES MAGAZINE
Plays of the Week:
* Buy Worthington Nicholls Group at 82p"

Good find GF (Eden Financial) ,I havn't seen Shares mag yet ,i'll have a read .
Like i said before ,i think i'm in for the ride with this one ,(i bought on the day of the float) ,it should be a good hold.

Strange MM activity again on this one Jimmy. With it being half term I wonder if the trainees are in charge?.

Moving up nicely.

Top bombing.

You bet !!!!!!!!! never a dull day with this one .

Spot on.

Lets see what this week brings GF ,so far its been 3 steps forward and one back ,the more i read up on the company ,the more i'm inclined to stick with my (run this one strategy) ,especially in light of the last few summer's we'v had .

Id agree with that Jimmy, but being a tranche buyer its always best to lock a few gains in on earlier tranches.

Im in for the long term anyway, its just about re -adjustment for myself and when next to add new tranches.

Crikey GF,, it hasn't gone up today .

Cant understand it.

The Worlds coming to an end LOL.

It's turned colder down here in the south ,,i'll blame that.

LOL Jimmy. Bloody freezing here in W/ Yorkshire.

Up again so thats having a warming affect.

been watching this for a few weeks and waiting for a pull back to get in, but it never happens, except for the one in mid-OCtober when I had to wait 2 days for funds and missed it - grrrr.

should have sold some of other more sedately progressing shares months ago to buy these.

ah well, you can't ride every horse on the merryground

Nudged even higher.

Back as we should be GF ,up 4 , :-) ..

Nice very nice.

And blue again.......... YAWN.