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.

Yup super news, first class.

Bring on the results and the new acquisitions and we should be quids in.

A positive start again.

Shaved a few of the top yesterday for some beer money over the xmas and new year period.

Contract news yesterday was nice. Still expecting news of two acquisitions any day soon.

Might be more than 2 juzzle.

Overseas expansion been looked at aswell.

Two supposedly expected prior to end of current quarter (only leaves a few days!) plus two (possibly abroad) sometime in new year, and then a pause while they bed things in. That's what's been said so far, I understand.

Just to remind everyone, they have never lost a client :-)

Excellent service and great value combine to give a great future for this company so expect a string of announcements over the coming months.

Merry Christmas all

NEVER!!! Since they floated in June or before that?

In the past 33 years of trading, apparently.

quite impressive isn't it

First of those two acquisitions announced this morning, bringing an electrical contractor in-house.

(AFX) - Air conditioning services firm Worthington Nicholls Group PLC said it has acquired specialist electrical contractor Lumenglow Ltd for a total 150,000 stg in cash and shares.

The company said the acquisition will reduce its 'substantial' yearly outlay on electrical subcontracting, thereby increasing profitability, and will also bolster its presence in London and the South East.

Lumenglow reported a pretax loss of 4,000 stg on turnover of about 830,000 for the full year ended July 31, 2006.

newsdesk@afxnews.com

tsk/vb

On the face of it only a small deal but with this company they tend to have a shrewd eye for bargains.

Will certainly help margins I believe if it helps outlay on electrical subcontracting.

I agree ,looks like a shrewd move ,roll on next year ,,,actually don't roll on too fast ,i'll be another year older.

Sold today guys to free up funds , taking a more cautious approach in 2007. No reflection on how I think these will do so good luck for next year.

Yup good luck to you Dil and a happy christmas to you and everyone.

cheers GF.

Ta mate , hope these go all the way and thanks to you I managed to get a few quid out of them on the ride up they've enjoyed over the last few months.

All the best.

Worthington Nicholls Group plc
28 December 2006



Worthington Nicholls Group plc
(the 'Company')


Update on acquisitions


On 10 November 2006 the Company announced a fundraising of 6m and at that time
anticipated making 2 further acquisitions before the end of the year. On 21
December 2006, the Company announced the acquisition of Lumenglow Limited. The
Company will not be announcing any further acquisitions by 31 December 2006,
although it has a number of potential acquisitions under review and anticipates
announcing further acquisitions in the New Year.


Enquiries:

Worthington Nicholls 0870 609 1829
Mark Worthington, Chief Executive
David Levis, Corporate Director

Still plenty of buying at these prices ,and another acquisition on the way soon,, that will do for me.

Me too.

Looks like we have more than one aswell.

Just ticked up, nice way to finish the year.