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.

The Aim & Plus Newsletter writes: Worthington announced yet more contract wins yesterday. They expand Worthington's breadth of services into facilities management support. They also brings further earnings visibility and diversification from the core business, creating a new opportunity to expand into the EMEA region. On the back of this win, we are maintaining our September 30th 2007 estimate of 6.1p in earnings, but raising our 2008 forecast to earnings per share of 7.8p. We expect gross margins to rise by 1% to 32% and operating margins to increase by 0.4% to 17.5%. Based on our revised numbers, Worthington trades on a current-year multiple of 25, falling to 19.5 next year, putting it on a premium to the support services sector. This also reflects the group's position as a market leader and its strong long-term relationships with customers and suppliers. The shares yield 1%. With net cash of 3.8 million for future acquisitions and more potential contract wins this year, we suspect that our current estimates may well be revised upwards. We tipped the stock at 57.5p and have made a fantastic gain of 165% in just seven months, but this growth story is far from finished. STRONG HOLD

New high? :)

Harrycat - just out of interest, the point & figure chart on the Investors Intelligence website also gives a stop loss as of yesterday of 134p.

Steve

Cheers s040371. But am slightly confused as I have always interpreted a "trailing stop" to be a percentage behind the sp, so as the sp moves up the same %age will always move up at the same rate so as to protect against a fall. A stop loss of 134p is a huge percentage against a current sp of 169p.
I confess I am not really up to speed on CFDs so this principle may not apply.

feeling a little blue after taking my profits last week :-(

well done the rest of you guys. Will be coming back for these next week I think, as will continue to be re-rated on regular basis. Short term trading not done me any favours this time.

Harrycat,

The trailing stop I use I have to manually update - as I use a guaranteed stop loss (IG who I use is one of the few CFD brokers who offer this), in the case of WNG this needs to be a minimum of 12.5% from the market price. This all helps me determine the position size to take, as I can guarantee what my maximum risk is on each position.

I have now moved the stop loss up to the previous level of support at 147p (from 12-19 Feb) prior to the last break-out.

I pay a small premium for the guaranteed stop loss, which, in the case of SMC the other week, saved me a lot of grief (and 's!).

Hope this helps.

Steve

Another stonking day.

Sees ya next week.

From the Times online today..

Tiddler to watch

Worthington Nicholls, Britains leading installer of hotel air-conditioners, has soared 222 per cent since floating on AIM last June at 50p. Panmure Gordon analysts reckon there could be further to go as the group develops its maintenance division and expands into retail outlets. The broker valued the shares, down p at 161p yesterday, at 172p.

s040371 - thanks for the explanation. I now understand the principle. 12%+ is quite a high percentage, but I suppose if it is guaranteed then no complaints.
I think we could reach 203p faster than my original calculation if this week is anything to go by. Again, no complaints.

the market is looking for solid growth stocks so do not be surprised if this hits 3 in 3 months..did we think it would hit 1.60?!

WDIK

f18

Tipped in the Express in "Two To Watch"

.................EU legislation,plus demand for home, hotel and office cooling and prospects of acquisitions in a fragmented market should provide room for further SP growth. It has a healthy pipeline of new business for 2007 and has secured a string of hotel-group contracts

Neutral now and on a day like this, not bad.

so many on goldfingers case now -those last spamming posts on the solas advfn board must have lasted ten minutes.

Looks like we have a large order to fill.

Like you say GF ,i'm surprised it didn't get hit harder after the lovely run we'v all had with this one ,a good sign me thinks ,,glad i kept a few for a rainy day.

01 March 2007

Worthington Nicholls Group plc

('the Company')

Holding in Company


The Company was today notified that Octopus Investments Limited has a notifiable
interest in the Company, being 2,930,000 ordinary shares representing
approximately 3.98% of the Company.

Good to see that confidence is still high in WNG & that the downturn has had a minimal effect. Am still holding & happy to remain so.

Could be there's a few s..quid to be made here guys!!

sorry couldn't resist it!

AM

WNG aren't the only ones getting their tentacles into good business AM!

Nice to see this one back in the blue.

This one as gone ex divi today which as compounded the fall.