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.

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.

GF, for once it's nice to be bored.
kim

To right, too right.

And back to Green ,i suppose it can't go up every day .

Re- iterated buy in RHPS.

Hi guys,
what is the price target for WNG?
Many thanks
swseun

Depends where you look.

RHPS have a immediate target of 100p, others are looking for 130p and above.

We will learn a lot I beleive in early december when results are due.

thanks gf. :-)

Just ticked up.