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.

shares tip sp drops!!

anyone interested in IPH results due 27th March great prospect

IPH certainly looks interesting, will have a closer look later, let's hope Shares tips it!!!!

Many thanks Kim, Much appreciated.

IPH has target price of 3.40 from current 1.90 over next 12 months currently undervalued relative to the rest of the sector, should be very interesting end of month results, good buying behind it last few days.

sorry to hijack thread but it has great potential wanted to share it with you.

Steve

Come to life this afternoon.

I just wish the management would get one of those acquisitions on the table so the underlying fundies are supported.... and more.

Hi gf - finally I'm into this one, since Thursday, after waiting for funds - modest purchase just under 160p, hope to catch the final ride up to 200p and who knows beyond by the time we get there later this year. Have now covered the spread at least, so am in profit already.

Glad to see you aboard SD.

Any thoughts on the present fundies?.

Have to be honest and say they make me a little nervous at the moment.?

GF - PE, PEG, Operating Margin, ROCE, secular growth market lead by government regulation, management proven to be capable - what other fundamentals did you have in mind to be nervous of?

Whether or not interest rate/inflation concerns lead to reduced spending on hotel stays and/or new build hotels and offices/shops, all the existing ones have to be converted whether they like it or not - and when better than not fully occupied.

Interested as ever in your thoughts as to why nervous.

SD, I put a lot of faith in the P/E ratio and its served me well for many years.

I agree though that earnings per year increase looks very healthy. The PEG looks very solid.

ROE and ROCE not yet established to give a pure picture.

Just wish they would get one of these acquisitions sorted out so that we have updated analyst figurers.

.

Oops, wrong thread!!!

Whilst here though; I think that WNG future is very solid, I was a little concerned at one point that they may over-stretch themselves but the management look very able and I am very relaxed about it now, they look to be in a win win situation.

Another good day.

Just about back to the high .

A good afternoon.

Ive just posted what I think will be this years(2007/2008) new float of the year.... EAGA.

It might interest a few.

morning all Just picked this up from AFX

Worthington Nicholls says current trading 'encouraging', pipeline 'very healthy'
AFX


LONDON (AFX) - Air conditioning services firm Worthington Nicholls Group PLC said its current trading is encouraging and it has a 'very healthy' pipeline of new orders.

The orders include work from five new hotel groups to install air conditioning systems, the company said in statement made to coincide with its annual general meeting today.

Worthington Nicholls also said there is an increasing flow of new tenders due to the growing awareness among its clients of the potential issues caused by the R22 gas replacement programme and the need to comply with European legislation.

newsdesk@afxnews.com

faj/jr

SHARES UP IN GREY MARKET A COUPLE OF POINTS

WOW just moved up 6 points

agm sttement in full

now up 8 - very positive

Worthington Nicholls Group plc
23 March 2007


Worthington Nicholls Annual General Meeting Update

('Worthington Nicholls' or the 'Group')



The following Chairman's AGM Report will be made at the Company's AGM being held
today:



Chairman's AGM Report



This has been a very important year for Worthington Nicholls. Our decision to
join AIM and raise expansion capital was a significant milestone in the Group's
history and development.



The experience of joining AIM has been a very positive one. Our increased
commercial profile and stronger balance sheet have enabled us to implement some
very exciting changes within the Group.



As you are aware from our results for the year to 30 September 2006, we reported
proforma annualised turnover of 25 million, gross profits of 7.2 million and
earnings before interest and tax of 3.7 million. As a result of these profits,
we were delighted to propose payment of our first dividend as a publicly quoted
company.



I am pleased to report that I am encouraged by our current trading position.
Looking ahead, we have a very healthy pipeline of new orders, including work
from five new hotel group clients that have commissioned Worthington Nicholls to
install their air conditioning systems for the very first time. Currently, we
have 17 retained hotel and 16 retained retail clients.



Each new contract gives Worthington Nicholls the opportunity to secure preferred
supplier status. This status, in turn, helps us to secure future additional
contracts if we continue to provide excellent service and focus on each
customer's particular requirements.



We have also been pleased to welcome new staff and management to the Group, some
of whom have joined us as a result of the acquisitions we have made and others
that we have hired to facilitate our organic growth. In late June, we acquired
Project Air Limited ('Project Air'), a profitable specialist installer of air
conditioning systems to the retail sector, and in December we bought Lumenglow
Limited ('Lumenglow'), a specialist electrical contractor. We are pleased to
report that in both instances the integration process is proceeding smoothly.



In integrating these companies, we have been aided greatly by the skills and
experience of Tim Hunt, who joined the Group as full time Finance Director in
January 2007. We are pleased at how quickly and well Tim has integrated himself
within the Group, and we are already benefiting from the improvements to our
financial accounting systems that he has introduced. We believe Tim's
experience will be key as we continue to explore further acquisitions and grow
sales.



Our acquisition strategy is to look for opportunities that profitably increase
our market share in existing sectors as well as broadening out into new sectors,
such as the retail sector as we did with the acquisition of Project Air. In
addition, through acquisition we may seek to bring in-house certain trade skills
that are necessary for installations. By doing this we increase the range of
services to our clients and should improve profit margins. It also helps us to
monitor and ensure high standards of workmanship on the projects that we run.
This is exactly what we have been able to do with Lumenglow. Not only were we
able to acquire skilled electricians but we will also be able to make
significant savings from ceasing to outsource electrical work to other
companies.



The Group has also made its first steps into Europe through the major
installations we are undertaking in Amsterdam. This has resulted in additional
interest from other potential European clients and we look forward to building
on this platform going forward.



In closing, shareholders will be pleased to hear there that is a growing
awareness of the potential issues caused by the R22 gas replacement programme
amongst our clients and their need to comply with European legislation. As a
result we are seeing an increasingly healthy flow of new tenders from both
existing and new customers.



Peter Worthington

Chairman

23 March 2007









Enquiries:

Worthington Nicholls 0870 609 1829
Mark Worthington, Chief Executive
David Levis, Corporate Director

Gresham PR Ltd 020 7404 9000
Neil Boom / Laura Black

Corporate Synergy 020 7448 4400
Rhod Cruwys / Romil Patel

Halliwells LLP
Frank Shephard / Lisa Stavropoulos 0870 365 8000





Information on Worthington Nicholls can be accessed via the Group's website:

www.worthington-nicholls.co.uk



This information is provided by RNS
The company news service from the London Stock Exchange

Looking good