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.

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.

Hi Chaps - Back from Canada - thanks Pumben - found this on the MOS website.

Makes good reading, obviously this was leaked as sp jumped on friday.

A buy recommendation from the Midas column so another source of regular updates. Like you GF would be happy to see another acquisition or two. Anyway after the heat of today I remain a commited fan of air con!!!. Good luck to all this week.

AM




Internet Crystal Mark 2006
News - ColumnistsMIDAS SHARE TIPS
Midas: EU rule changes good for Worthington

15 April 2007

It is only April and already much of the country has been enjoying exceptionally fine weather. Goodness knows what the summer will bring, but one thing is certain - the demand for air conditioning has never been greater.




One company well placed to benefit is Worthington Nicholls, which installs and maintains air conditioning and ventilation products.


It was founded by Peter Worthington in the early Seventies and he remains chairman. His son, Mark, joined the business as an apprentice straight from school and became chief executive in 2003.


The company floated last summer with a view to growing rapidly, both organically and through acquisition.


The air conditioning sector is highly fragmented and most operators are small, regional, family-owned businesses. In many cases, these companies were founded several decades ago and their owners are keen to sell and retire.


Worthington Nicholls is a ready buyer. The group wants to be the leader in its field in the UK and on the Continent and is already making good headway. Revenues for the year to September are forecast at about 36m and Mark Worthington is aiming to almost quadruple that in the next two years, hoping to produce revenues of nearly 130 million by 2009.


His ambition seems eminently achievable. New EU regulations dictate that most air conditioning units in the UK must be replaced with more environmentally friendly systems by the end of 2014. Independent estimates indicate that 7bn of replacement equipment will be needed and much of the work will take place over the next four or five years.


Health and safety legislation governing the maintenance of units has also become much tougher. Companies used to be able to run systems until they stopped working. Now they will have to make sure they are regularly maintained by qualified engineers.


Worthington Nicholls is a major force in the hotel and retail sectors and has contracts with companies such as Inter-Continental Hotels and Iceland, the frozen food store group.


The company is keen to expand into the office sector and is exploring several possible acquisitions. Overseas expansion is also under consideration and the group recently won a contract from InterContinental covering Europe, the Middle East and Africa.


Though the company is run as a professional listed business, it retains some of the more personal elements of private ownership. The Worthington family still owns a sizeable chunk of the company, key staff were given stock when the business floated and every employee has share options, so they are all extremely motivated.


Midas verdict: When Worthington Nicholls joined the market the shares were priced at 50p. Today they are 184p, so they have already come a long way. But the management is highly ambitious and the air conditioning industry has huge growth potential. Buy.

2009 is light years away in stock market terms.

The fact is the shares are trading on a present rolling P/E of 57.1 and a forward P/E of just below 32 to the end of sept 2007.

Ok the CEO can blow his own trumpet but these look topy until we get news of further enhancing gains in earnings.

Im not suggesting selling but I feel theres more threat to the downside than the upside on this rating at present.

Up 10 in early trading for a new high

GF - the projected growth, it must be said, does currently justify the rather heady PE of 31.3 for 2007 and 23.3 for 2008. PEG values are 0.4 and 0.7 respectively. If the CEO is anywhere near right with his 190m t'over for 2009, I expect the actual 2008 figures to improve significantly from the current forecasts by the time we get there.

Let the trend be your frend - enjoy the ride up.

Ive never liked high P/E ratings SD.

Nice to get some reassurance and its nice to see them moving ahead again.

200p not that far off.

Will the sp rise like the tempreture in summer ?

I hope not.

No way do I want another July like that.

RNS out , a good day to come i think .

SP is an ice cool blue in a sea of red; suits WNG, but will possibly follow the market down a bit today whilst the present trend continues which would be a good time to top up maybe.

Worthington Nicholls Group plc
17 April 2007

Worthington Nicholls Group plc

Trading update



Worthington Nicholls Group plc, (AIM: WNG) ('Worthington Nicholls' or the
'Company'), the UK's largest independent installer of air conditioning, heating,
ventilation and chilled water systems, is pleased to announce that its new
business pipeline has increased in line with projections and that current
trading is strong.



Today, the Company can report that since 1 October 2006 it has submitted tenders
for approximately 85 million worth of additional new business which are
outstanding as at today, an increase of 18 million in the new business pipeline
figure from that reported in January in the preliminary results statement. The
new business pipeline includes a growing number of major air conditioning
installation contracts for prestigious hotels in continental Europe, an
important new market for Worthington Nicholls.



In response to the rising demand for its services in the UK and Europe, the
Company today announces that it is in two-stage process to take up to 3,000
square feet of additional office and staff car parking at its head office in
Wilmslow, near Manchester, thereby doubling its capacity. The first stage has
been agreed and stage two is in advanced negotiations.



It will also be opening a new office in Bluewater, Kent on Friday 20 April, from
which most of its major European contracts will be managed.



Mark Worthington, Chief Executive of Worthington Nicholls, said:



'We are pleased to report that revenues continue to grow in line with market
expectations and that our UK and European new business pipelines are healthy.
The increase in our office capacity, in terms of new sites and the extra office
space at Wilmslow, will ensure that the infrastructure is in place to enable our
expansion to continue at its current pace.'



Enquiries:



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



Gresham PR Ltd 020 7404 9000
Neil Boom / Laura Black



Blue Oar Securities Plc* 020 7448 4400
Rhod Cruwys / Romil Patel



Information on Worthington Nicholls can be accessed via the Group's website:
www.worthington-nicholls.co.uk



* Blue Oar Securities was formerly Corporate Synergy Plc and acts as Nominated
Adviser & Broker for the Company

Broker upgrade.......

Worthington Nicholls "buy," target price raised

Tuesday, April 17, 2007 9:36:30 AM ET
Panmure Gordon & Co

LONDON, April 17 (newratings.com) - Analyst Oliver Wynne-James of Panmure Gordon & Co maintains his "buy" rating on Worthington Nicholls Group (ticker: W3L). The target price has been raised from 203p to 220p.

In a research note published this morning, the analyst mentions that the companys quote book has grown by 27% from 67.5 million to 85 million in just four months. Worthington Nicholls is likely to raise its guidance for September 2007, the analyst says. The current year is turning out to be busier than expected for the company, given robust trading conditions, supported by new wins in Europe, and growth in quote book, Panmure Gordon & Co adds

Great news, but I am amazed they would upgrade on the basis of tenders pending. Theoretically, it is possible that none of the quotations will be accepted & the order book would start to look a bit thin. Very unlikely I know, but surely confirmed orders would be a better benchmark?

I suppose it depends which broker is giving the analyst advice.

Seems to be quite a few following this one now.

GF

I know you got into these early. Is the smart money already in as I have a bad habit of coming to the table late, the price drops and I get locked in. I'm looking for a new investment as I have some spare ackers. There are a couple of new floats coming up and I'm tempted to wait.

MS