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.

Very nice, but I hope they don't expand too quickly and over-stretch themselves. I think the management are competent enough not to do that.
kim

Nice one !! a couple of pennies more and it's a bagger for me ,however i'm holding for now , :-)

When we get these bolt ons, a quid could be left way back.

Yes i agree GF ,it's all looking good .

Up through a quid for sure now.

TRIPLE BAGGER ALERT !!!!!!

You mean the only 3 of us who is interested?.

Who cares, this is grand stuff.

Jimmy, take some profit. I have done being a tranche buyer.

Best to seal profits now and again.

I may do GF ,i'm watching carefully ..

As far as it looks, without the advantage of level 2, the buyers are still coming and are not being put off by a little MM manipulation; the 1 door should be firmly closed now, 1.50 next?
kim

I agree with you there Kim, more or less all buys but the MMs have dropped the price a little.

It's certainly been a good week for Worthington; I suppose I'd best celebrate with a pint or two of it's namesake!
kim

Yes it's been a good run ,and nobody seems to have joined us .

When they do .... sell ;-)

But heres another lifted from another board, from RHPS tip sheet this weekend...

Let your profits run.
WORTHINGTON NICHOLLS (WNG): When a company places new shares,
as Worthington Nicholls has just done, and the share price
then rises, this is almost always a good sign. Usually it
means that the lucky institutional investors who have received
new shares like the story so much that they go into the market
to buy more. We should be hearing results from Worthington
Nicholls soon, and I am going to at least wait for them. HOLD

And Broker Hoodless now take coverage up...........


http://www.hoodlessbrennan.com/stock-research-prices/research/

It concludes:

"Conclusion
Since the companys IPO in June it has continued to build credibility in the market having made its first acquisition and securing new contract wins. The experienced management team is operating in a large, fragmented and growing market with legislation acting as a key driver e.g. EU legislation. The forward 2007 PE of 15.2x is still attractive despite the rise in the share
price given its established niche market position, inherent growth opportunities and comparison with the support services sector which is trading on 16.6x. Speculative Buy."

Of course that's based on the 6.3p EPS broker forecast for this year, which could and should be beaten from either or both of organic and acquisition-led growth imo.

Thanks for posting those GF ,,,,,,I still like this ,don't know what it will do in the short term ,but i want to hold on to some of them for next year.

It should go up a lot further Jimmy.

That's what i'm thinking GF ,,,havn't sold any yet .

I see the thread over the other side has gone to the dogs ,i wondered how long it would take ,don't know why you bother with it GF , ,, ... Now do we get the big backward step, or slow down and then onward ??