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.

In fine form again.

At this rate we must be going for a forward P/E rating of around 30 which is high, but then again we are holding a niche player in a stonking market driven by legislation and the impending acquisitions will add earnings and bring the rating down ready for the next wave of new buyers.

Hi Harry -

Company results statement 17/1 says

"..proposing to pay a dividend of 0.4p per share which will be made on 30 March 2007 to shareholders on the register at the close of business on 2 March 2007..."

That indicates an xd date of Feb 28th. Where are you getting Jan 31st from?

Is being incorrectly shown on Sharecrazy site. Apologies. 28th Feb it is.

A few taking profits here and I cant blame them after the recent strong run.

The trend is still very much positive.

Yes GF ,i'm thinking of locking in a bit of profit too .

Another day of profit taking.

No problem, it acts like a valve on the SP.

Sold a large portion of mine this morning ,to lock in profits ,,,,kept a few for a free run .

Sensible trading Jimmy, must be nearlly a 2 bagger for you.

I bought at 56 on the day of the float GF ,,so a 2 and a half bagger for me :-)
,,still in with a few though as i think the next two years could be interesting.

Nice one Jimmy, I think Silverdell SID is in many ways similar to WNG driven by asbestos legislation and a niche player, not sexy but who cares. Forward P/E of 14 and no lemmings following it.

If you have time give it the once over. Non of the tip sheets have yet caught on.

Sorry about the ramp.

Will do GF ,,always read your threads , unfortunately i didn't get in on Opsec or Myhome as iv'e been a bit busy lately .

SID is the word Jimmy.

Nice to see this one back in the blue, I hadnt realised it had gone ex divi on friday.

We have already thrashed out that arguement on page 20 of this thread!!
It goes ex-divi on the 28th feb. Some sites are showing the wrong date.

AHH right cheers HC, I got the info of the S/crazy site.

Nice to see it in the blue again.

Looks like its trying for a new high.

Prospective P/E of 22.5 for sept 2007 with a PEG of 0.3

and the following year a prospective P/E of 18.3 and PEG of 0.8.

back up again Gf ,glad i kept a few for the future .

Well done Jimmy.

It wasnt you who bought a new car for her indoors after a certain share went nutty historically was it??????????????????.

Must admit I just keep adding and adding gains to the portfolio, It never crosses my mind to sell ( well it does really long term)

Then again Im always looking for bargains and being a tranche buyer the old tranches at a big profit get kicked out............. NICE.

Not me GF ,women driving !! preposterous !!!

Cheers Jimmy, yes women and driving, to be avoided at all costs.