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.

scotinvestor,

if ic and sharemag are rubbish, what do you recommend?

Yes GF another acquisition would be nice, however if we continue to tick up slowly i'll be happy.

Jimmy Ill be more happy when the P/E ratio falls a little.

All buys so far today.

Could be a good one.

Nudging higher.

Slow & steady is just what we want, imo.
Still see a great deal of upside & happy to hold.

Another new high :-)

Quality company, Quality share, Champagne and Quality Street choccies for the good lady for the weekend.

Steady on kim ,you buy the lady champange when its a ten bagger ,,you should be more like Al he bought his wife a forty pound coat for her birthday and thought he'd really pushed the boat out.

Er.......oh, ok then Jimmy, a can of Magners cider it is then!

Go for the multi pack kim its cheaper.

Thought it was going to be a good one today.

NICE............. but be carefull.

A multi pack? Decadence surely?!

GF, I think you might be worrying too much, I appreciate your concerns but I feel that WNG is in totally the right hands to move forward without getting out of control. There is huge scope for expansion of course but slowly, not too fast otherwise the company would be in danger of becoming over-stretched; I can't see that happening.

Yep kimmers i know where you are coming from but that P/E makes me nervous.

Come on management give us a bolt on and I wont have to get up at 7.50am every morning.

You mean you would trust somebody to polish your fleet of Ferraris?!

LOL LOL LOL LOL LOL LOL.

Nice one Kimmers.

I love my VW Beatle.

1968 version 1300 mind.

Hang on.
The coat is still going strong, and probably still worth what i paid for it.
I only wish I were as good at picking shares............
Alan

Nice one Alan.

It has been tipped in the Mail on Sunday today - says that Mark Worthington expect revenues to increase by 2009 to 130m from 36m this year due to new EU legislation.