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.

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.

Is this a new high?.

As Mama Cass Elliot would have said - it's getting better.

Is she still alive?.

Unlike WNG, she is very definitely not!

Tipped again......

Aim & Plus Comment: As we thought, Worthington has delivered on expectations. The group believes 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, too. Worthington hinted that there could be two potentially large contracts that could change earnings estimates for the current year. 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 and they currently trade at 137p - a gain of 120.9% Worthington now trades on a 2008 multiple of 18 times. However, this does not discount the potential from acquisiitions and the larger contract wins yet to be announced, which may lead us to increase our forecasts significantly. Our stance is unchanged. BUY

Nice ,,another new high ,and tipped again.

Up she goes again.

Brrrr! Nice weather from WNG's point of view!

First 1.50 trade .

too late but think definately not too late if you get my drift- jumped in yesterday at 141.75 and like what i see and hear so far

1.50 mid now, I reckon im on a double bagger.

Don't tell the tax man GF .. :-) All that selling today and it still goes up,

Speculation across the road news is around the corner.

Good news, bad news...........?

im 10p off a double bagger - but really guys - whats going on???...we all the know the fundies, but recent growth is without real foundation imho...we're all spreading the happy word but on relatively low trading volumes....more sells than buys in last day or so.......???????.....news???????........anyone out there have anything substantial????...im closer than most and i know nothing....sorry...?????????????

regards to all

AM