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.

Yes that's a good start GF - just wondered if anyone had any figs pre listing - no problem, we shall wait and see - can't see the company being this communicative if they have a problem meeting analysts forecasts - cheers AM

By the way the new web site is up and runing, far better than the old one.

http://www.worthington-nicholls.co.uk/index.html

Yep - will repeat for anyone who wants it

AM

Nice ,back to blue again . :-)

Indeed , Indeed.

Is this a tree shake.

Current figures on the board dont warrant the 3p SP price fall.

Results out on the 17th, thats wednesday isnt it?.

Yes it is Wednesday GF ,, i'm not surprised it's stopped going up after the last few months ,however i'm in for now unless i hear news i don't like..

Jimmy I think the MMs are building up the books in order to meet demand after good news on wednesday.

just ticked up a penny - could be a good omen for tomorrow

AM

UP 3.5P IN LAST 40 MINS....TOMORROW, TOMORROW??????

AM

Can't keep a good man down .

I think the market may be expecting good results, but are they now built in to the sp after today's late surge?

We may get an acquisition added onto the results, in that case these could get a further re- rating.

Fingers crossed.

I think you may be right Harry ,,but i'm holding for more contract wins ,,acquisitions and hotter summers . :-) .

That would be nice GF .

Yes a long termer.

Results this morning ,very much as expected ..

Results slightly better than expected.

First of all lets get this one off out of the way which some may not understand...

1. The exceptional item above of 1,498,000 relates to 1,112,000 for tax
payable on the gifting of shares to employees during the year and 386,000
for directors bonuses pre-reorganisation.

Obviously this affects earnings per share but is a one off, on business pre float.

- Revenues and profit in line with Broker forecasts in fact pre tax profit just above forecasts.

- New business going forward looks positive with tenders for 67 million of new business in place.

- A dividend to be paid which wasnt expected of 0.4p per share 30/3/ 2007.

- Acquisitions on the cards imminent.

Here were the broker forecasts.......

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.


Conclusion......

Thatl do me and I look forward to expansion in Europe and also more earnings enhancing acquisitions as the year goes forward.

rush of sell orders and the price drops - not totally unexpected as results in line - dividend unexpected but not sensational and MM's sensitive to stock situation. Just topped up with 5k @1.16 - interesting next 6 months me thinks. Should be generating good income at thisi time of the year.

AM

Wasn't in. Now am, lovely post results buying opportunity.

all the best

capa