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.

Blimey just luck at the volume of buys but the MMs mark it down........ ludicrous.

Nice to see the MMs are playing ball again.

I hope the sell on results brigade have found somewhere better to place their money, I am grateful to them for allowing me to get in yesterday at 1.17 and already showing a profit ;-)

capa

Glad to have you in Capa,

Nice one.

From across the road....

Tipped as BUY in Moneyweek today

keybox - 19 Jan'07 - 22:32 - 817 of 817


Also tipped in Aim & OFEX newsletter
As expected, Worthington has delivered on expectations. The group is confident that the market for installation of air conditioners will remain buoyant. It has recorded 60% growth in the hotel sector and with retailers enjoying a strong Christmas, Worthington is confident that orders from retailers are likely to rise as well. The company is currently looking at three acquisitions and expects to announce news over the next few quarters. Worthington hinted that there could be two potentially large contracts that could change earnings estimates for the current year significantly. Given that over 70% of its turnover for the current year has already been secured, we expect that in the year to September 2007, Worthington will announce profits of 6.2 million and earnings of 6.1p. The following year, earnings are forecast to increase to 7.5p. We tipped the shares at 62p, the stock currently trades at 118.5p. Worthington trades on a 2008 PE of 15. However, this does not discount the potential from acquisitions and the larger contract wins yet to be announced which may well lead us to increase forecasts significantly. Our stance remains unchanged. BUY.

Every man and his dog....... and budgie are tipping this one......... LOL.

And Taxi Drivers GF.

And Moneyweek ..

Moneyweek, as with all its Buy/Sell lists, is only a lift - this time from Fyshe Focus

https://www.fyshe.co.uk/index.aspx?Target=apps/Research

but you have to subscribe or be registered to read.

This company will also feature in next weeks SHARES mag.

Hey, HC, do you work for them?.

By the way many thanks SD, signed up.

Apologies to all. WNG will not be in the next SHARES mag, but will be in next weeks edition of the INVESTORS CHRONICLE. It looks like they will be analysing in depth the preliminary results issued by WNG.
And in answer to your question, goldfinger, no I don't work for either magazine! :o)

Ill be looking forward to the article HC, well done.

GF - so what does the Fyshe article/note say? I've not signed up - how do you do that - couldn't see the way in.

SD click onthe September sample issue and then in the url change 09 for 12, its as simple as that, heres their take in full.........

Formerly a family business established over 30 years ago in the air
conditioning industry, this company came to the AIM market in June
2006. The company is a UK installer of air conditioning, ventilation
and chilled water systems,
offering a full service from
survey and design through
to installation with ongoing
maintenance in a very fragmented market.
The current combination of size, national coverage and depth of expertise put it in an ideal position as a possible
consolidator in the industry with several recent long term contract wins including good quality retail customers and
national/international hotel chains.
In addition, there are several powerful business drivers in its market with a move towards branded hotels and a low
market penetration of air conditioning even in newer hotels, thereby giving rise to significant retro-fit opportunities.
Aside from this, EU legislation banning R22 gas from all systems has created a huge market for replacement systems
and upgrades. New fire and safety legislation is also impacting on maintenance and duct cleaning. Repeat business also looks promising as typical equipment life is 12
to 15 years in a growing market and maintenance contracts usually operate over 5 years. This is a good well run business with significant growth potential. AF
Sector: General Retailers Next Results: December 2006
Market Capitalisation: 69.5m 52 Week High/Low: 113p/50p


Year Ending Pre-Tax Earnings per
P/E Ratio
Net Dividend Net Yield
1 Jan Profit (m) share (p) (p) (%)
2006E 3.6 4.6 22.8 0.40 0.38

2007E 6.0 6.3 16.7 1.60 1.52
Worthington Nicholls Group Price - 120p FHF target price - 150p BUY

The forecast figures..........

2007E 6.0 6.3 16.7 1.60 1.52

Soory about the poor download not so easy from PDF.

Just seen this on Digitallook, it cant have been there too long as I normally check the site out...

Forecasts
Year Ending Revenue (m) Pre-tax (m) EPS P/E PEG EPS Grth. Div Yield
30-Sep-07 37.20 6.18 6.10p 20.0 0.2 +89% 1.60p 1.3%
30-Sep-08 44.50 7.80 7.50p 16.3 0.7 +23% 2.00p 1.6%

Worthington Nicholls forecasts
Covering analysts: Corporate Synergy, Fyshe Horton Finney ENDS.

Favourable figures when one looks at the PEG and the EPS Growth.

Especially as 2008 figures likely to be conservative still.

Indeed, indeed and when the acquisitions are made we can expect the Earnings figure to move up substantially.

Good start to the day. Looks like one large holder taking some well earned profits.

Corporate Synergy exercised options on 65,000 shares

AM