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.

Worthington Nicholls Group

Placing of 6,666,667 new Ordinary Shares at 90 pence per share to raise
6,000,000
Trading update
Notice of Extraordinary General Meeting

Nominated Adviser and Broker:
Corporate Synergy Plc


Worthington Nicholls Group plc ('Worthington Nicholls' or 'the Group'), one of
the UK's leading independent installers of air conditioning, heating,
ventilation and chilled water systems, announces today that the Group has,
subject to shareholder approval, raised 6 million, before expenses, by way of a
placing of 6,666,667 new Ordinary Shares at 90p per new Ordinary Share, in order
to increase Group working capital and provide further funding for identified
acquisitions.


Highlights:

raised 6 million with institutions at 90p

financial results for the year ended 30 September 2006 will be in line
with market expectations

the Group's quotation register is significantly ahead when compared to the
same time last year

although Project Air will not have a material impact on the results of the
Group for the year ended 30 September 2006, it has performed ahead of
Directors expectations for the 3 months since acquisition

further acquisitions have been identified which the Directors believe
would impact positively on Group results going forward


Mark Worthington, Chief Executive of Worthington Nicholls, said:

'With 6 million of new funds secured we will be able to accelerate our growth,
particularly if we can deliver the attractive acquisitions that have been
identified.'


Placing statistics:

Placing Price 90p

Number of Ordinary Shares in issue prior to the Placing 66,165,049

Number of Placing Shares to be issued pursuant to the Placing 6,666,667

Number of Ordinary Shares in issue following the Placing 72,831,716

Percentage of enlarged issued share capital represented by the Placing Shares 9.15%

Approximate proceeds of the Placing available to the Company (net of expenses) 5.7 million
Market capitalisation following the Placing at the Placing Price 65.5 million


Not hanging about are they? Seems fair enough to me and I think that a Placing with Institutions at 90p is a good endorsement of the company's growing stature.
kim

Looks like shareholder approval for the placing will be a foregone conclusion. More strength in the SP today. Lovely jubbly.
kim

Further acquisitions, ............NICE.

Thanks for posting that Kim ,,up we go again ,looking good for next year ..

Pushing the 1 door today, almost through!
kim

Late selling.

Looks like a lot of broker to broker sales GF ,, i like the institutions buying in the placing .

Me too, jimmy.

Cant wait to see what the bolt ons will be. Looks like we will get them in the next cople of months I here.

A shortage of stock on this on i think

AM

there definately is now...........requests coming out
AM

I have just bought 5000. Like the look of this for growth and sector consolidation. Also Elektra VCT (2 funds) bought substantial equity on floatation

I have just bought 5000. Like the look of this for growth and sector consolidation. Also Elektra VCT (2 funds) bought substantial equity on floatation

A shake of the tree going on. Doesnt look like the MMs are going to get any stock though.

I don't see such a shake,, only down 1/2 penny, although on strong buying.

Strange I had it down 2p on the other site.

Must have been too much drink last night.......... then again I didnt go out. I must be cracking up.... Helppppppppppppppppppppp

Stock v tight - bought another 9k myself this am - was all i could get in one purchase at price - agree tight market for MM's - looks good for us over next few weeks though - a warm front forecast, turn up the air con!!

AM

Yes a tight market for MMs.

"Nice rise", as the actress said to the Bishop.
kim

Nice indeed.

13/11/2006..........

From today's Manchester Evening News:


WORTHINGTON Nicholls, the air-conditioning installer which floated on the stock market earlier this year, plans a buying spree which could see the group double in size....

..Bosses are in advanced takeover talks with two UK firms and have begun discussions with two other targets, including one in the north west. They are also understood to be eyeing a swoop in Germany as the group gains more business on the continent...

The firm.. ..raised 7.5m for working capital and growth when it floated on AIM in June. Later that month, it paid 4.6m for Staffordshire rival Project Air...

..The group has 216 staff across the UK...

...it is now in advanced negotiations to buy businesses in Kent and London.
Bosses are also looking at another target in the south and one in the north west...


See full article at http://tinyurl.com/yhhdvy