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.

Top tip for 2007 from myfinances.co.uk

http://www.myfinances.co.uk/investments/news/investments/share-dealing/top-uk-equities-tips-2007-$461756.htm

First European hotel contract secured

Worthington Nicholls Group plc (AIM:WNG), installers of air conditioning,
heating, ventilation and chilled water systems, has secured a contract to
install new and replacement air conditioning systems with Grand City Hotels &
Resorts at the Park Hotel in Amsterdam, worth approximately Euro350,000.

Grand City Hotels & Resorts is a management company of hotels in The Netherlands
and Germany, and is based in Berlin. The hotels managed by the group operate
under various brands such as Steigenberger, Ramada, Intercity Hotels, Comfort
Inn, Quality Hotels, Mercure, Best Western and Ibis although they have recently
signed a deal with Intercontinental Hotels Group to re-brand 19 hotels.

The Grand City Hotels & Resorts estate has approximately 3,000 additional
bedrooms in Germany. Having won the mandate for the Park Hotel in Amsterdam, the
Company is confident that this will pave the way for further expansion into
Western Europe.

Following this new contract wins, Worthington Nicholls will be the retained
contractor to 16 hotel groups, and 16 retail chains.

Mark Worthington, Chief Executive of Worthington Nicholls, said:

"We recognise that to be successful in the European air conditioning market you
need to have reference sites that showcase your ability. This contract gives
Worthington Nicholls exactly that and should allow us to approach a number of
our major clients to offer our services within their hotels in mainland Europe."

Good news to start the new year with. Plenty more to come.

Nice constant stream of news.... Maybe their next acquisition will be European ..

jimmy - the next acquisition (unless held up and overtaken by something else) is already identified as a UK company (one of two that were expected by 31 Dec, one of which came through, the other still to be confirmed), but I wouldn't be surprised to see them buying an overseas firm this year or next. They previously indicated they will pause after acquisitions 3 and 4.

Meanwhile, they do seem to have got themselves mentioned in several lists of recommended picks for 2007.

Juzzle yes Ive seen a few analysts and tip sheets picking them as 2007 naps.

Moved up again this afternoon.

From growth company investor buy report just out..

Worthington Nicholls - BUY
Companies: WNG
02/01/2007

Air conditioning star Worthington Nicholls has won its first European hotel contract, a deal worth around 236,000, with Grand City Hotels & Resorts for work at Amsterdams Park Hotel.

Berlin-based Grand City Hotels & Resorts manages a variety of hotel brands throughout the Netherlands and Germany. To be successful in the European air conditioning market, explained chief executive Mark Worthington, you need to have reference sites that showcase your ability. This contract gives Worthington Nicholls exactly that.

Worthington Nicholls - the biggest independent installer of air conditioning, heating, ventilation and chilled water systems in the UK - boasts the likes of Hilton and Holiday Inn Hotels, as well as Arcadia and Debenhams, as clients and joined AIM in June, having raised 20m from institutions and VCTs at 50p.

This latest contract news follows a 6m November fundraising with institutions at 90p, with funds earmarked for acquisitions, and the subsequent acquisition of electrical contractor Lumenglow. Only last month, new hotel group contracts worth 2.3m were announced, further diversifying its client base.

Results for the year to September are slated for publication this month and analysts are looking for adjusted pre-tax profits of 3.6m from 25m sales, giving 4.6p of earnings and a lofty-looking prospective p/e of 26, with the shares having raced north since float. Nevertheless, we like the fact Worthington Nicholls is a full support services group, rather than a subcontractor (with all the implications this has for margins) and admire its acquisition strategy.

James Crux
Market cap: 79.14m
PE Forecast: 26
Share price: 119.5p

Nice one GF , this has been tipped just about everywhere now.,,,,,,Juzzle i read that they were looking at something in Europe ,i can't remember where,,, i'll post it if i find it ...cheers JB..

From memory the forecasts are 4.6p EPS for the year already ended to 30/9/06, and 6.3p EPS for the current year - but that may be improved either with earnings-enhancing acquisitions from WNG's cash pile or maybe by increases in broker forecasts.

A 'buy' recommendation in todays times and a 'hold' rec in todays Independent - up on early trading.

AM

NOW UP 5.5 ON DAY

Thanks AM. Results due 17 January. Here is the text of that Indy article:


Worthington Nicholls

Our view: Hold

Share price: 120.5p (+2p)

Worthington Nicholls is the UK's leading installer and maintainer of air conditioning units for hotels and shops. Yesterday, the Manchester-based company unveiled its first European contract which will see it install new and replacement air conditioning systems for Grand City Hotels & Resorts at the Park Hotel, Amsterdam. The deal should be complete by the summer and is worth 350,000, but, more importantly, it could lead to significantly larger contracts with the hotel group in the future.

This would be a major coup for Worthington Nicholls as the Berlin based company manages hotels under a series of brands in The Netherlands and Germany - it has approximately 3,000 rooms in Germany alone. It also reduces the air conditioning group's reliance on the UK market.

Worthington Nicholls listed on AIM last summer, raising 20m at 50p. Since then its shares have soared. They closed at 120.5p yesterday giving it a market capitalisation of 86m. The group was founded 33 years ago by Peter Worthington who sold his house and moved in with his parents in order to start the business. It remains very much a family affair. Mr Worthington, at the age of 70 is its non-executive chairman, his son, Mark, is chief executive and the family retain a 42 per cent stake in the business.

The group's largest client is InterContinental Hotels, owner of the Crowne Plaza and Holiday Inn chains, for which Mr Worthington previously worked as an engineering director in Africa. Other clients include Hilton and Boots, the UK retailer.

Having made a pre-tax profit of 300,000 last year, stockbroker Corporate Synergy, which floated Worthington Nicholls, expects it to make 3.6m in the current year and 6.2m next year. Of course, should it get a further order from Grand City Hotels & Resorts or any other hotels group on the continent, these forecasts will end up looking far too conservative.

Given the growth, Worthington Nicholls stock is well worth holding on to despite its strong rise since floatation.

just announced results to end sept 2006 out on Jan 17th.

am

Juzzle do you have the Times article?.

Excelent start to the day by the way.

Glad your aboard AM.

Results should come with an acquisition or two. P/E is looking topy but new business would lower that.

Still think its a BUY.

FROM THE TIMES......

Worthington Nicholls

In what was a poor year for AIM floats, Worthington Nicholls stood out. The installer of air conditioning systems has risen 137 per cent since listing last June, taking the value of the Manchester company, started with a 5,000 investment in 1973, to 86 million. It ticked higher again yesterday on unveiling its first contract in continental Europe: a deal with Grand City Hotels & Resorts to fit out a hotel in Amsterdam.

Although the initial value is small, Worthington, through clients such as InterContinental Hotels and Hilton, has shown that it can extend its reach. Its work in Amsterdam will also serve as reference to other continental operators considering using its fixed-price per room model. At around 3 billion a year, spending on air conditioning in Germany and the low countries is more than four times that in Britain.

Worthington should also benefit from the continued replacement of cooling systems that use gases banned under Kyoto, while 5 million of cash gives it scope to consolidate further its home market. At 120p, it sits at


19.8 times 2007 earnings, not unreasonable for a support services stock with such prospects. Buy.

...

Nice one Jimmy.

Higher, higher.

Good finish ,up 6.5p ..

Yes a very good day and hoping it continues up to results.

Well the buys are still coming in , on what appears to be a muted day so far due to inflation worries yesterday evening across the pond.

Another Broker note.....

Worthington Nicholls "buy"

Wednesday, January 03, 2007 7:48:02 AM ET
Fyshe Horton Finney

LONDON, January 3 (newratings.com) - Analysts at Fyshe Horton Finney maintain their "buy" rating on Worthington Nicholls Group (ticker: W3L). The target price is set to 150p.

In a research note published this morning, the analysts mention that the company is well positioned to become a potential consolidation candidate in the industry due to its combination of size, national coverage and depth of expertise, backed by its recent long-term contract wins. The EU legislation ban on R22 gas has led to the creation of a large market for replacement systems and upgrades, the analysts says.