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.

Panmure Gordon upgrade from 220p to 250p, which should help things a bit.

The basic price for Woods of 1.5m is at a fully taxed PE of 6.7. Even if there is a furtehr 25% to pay on performance, that is still a PE of only 8.4.

Any trading figures on EPS and Classic Interiors available?

I'll stick for the moment GF ,your right the bolt on's will need a bit of working out (i'm all ears) (or eyes) but it still looks a good investment for the next year.

sold two weeks ago bought back in friday just lucky i guess, but cant keep away - advised to bank some gains by my sb but just think this has some yards to go - invested some MYH gains on top to be fair so am now in for a serious amount imho - holding for now .

AM

Cheers HC for the immediate Broker upgrade.

250p........ Interesting.

Just found the full note...

Worthington Nicholls "buy," target price raised

Tuesday, May 01, 2007 5:16:38 AM ET
Panmure Gordon & Co

LONDON, May 1 (newratings.com) - Analyst Oliver Wynne James of Panmure Gordon maintains his "buy" rating on Worthington Nicholls Group (ticker: W3L), while raising his estimates for the company. The target price has been raised from 220p to 250p.

In a research note published this morning, the analyst mentions that the company is purchasing three businesses for 6.1 million, in order to expand its product offering, few in-source services and market. Worthington Nicholls has placed 11.76 million in new equity at 170p to raise 19 million, excluding costs, Panmure Gordon adds. The company is likely to utilize 13 million to fund future acquisitions, the analyst says. The EPS estimates for 2008 and 2009 have been raised from 8.0p to 9.7p and from 11.5p to 13.2p, respectively.

Excellent day yesterday. Market seems to like it. Break out above 194 is possible within a few days, then onwards and upwards.

WNG's PE is about 30 and it keeps using its higly valued shares to buy in businesses on PE's of 10 - classic value building technique.

Looking forward to other Broker House future projections.

Sp doing well this morning. Added first thing.

goldfinger- did you buy AXS in the end?

RH, not yet.

silli boy then- on 30/3/07 when i mentionned it to you sp was euro 2.65-2.70 now it is 3.75 (and lots more to come i reckon with expansion plans and now licensing out the acytelation process)

Im suprised WNG hasnt moved north after what was supposed to be a good comment in this weekends FT.

Out of WNG now to use funds for topping up on AXS

Rather a strange move that RH.

AXS not even at the profitable stage yet and the big international carpet manufactureres now pushing their commercial fire resistant new tech carpets in competion.

Theres a silly old codger on the finfoex website (fryern) who swears by AXS, but the problem is he cant see its a pie in the sky stock.

Id reverse your decision and put the money back in WNG which as been affected by summer drift but I do know that 2 maybe more brokers are about to revise the rating upwards.

Accsys Technology (AXS) is a company that makes softwoods into hardwoods thru acetylation. nothing to do with carpets....suggest you read up on them on this billboard as shares have moved from Euro 1 p/s nov 05 (floatation) to nearly euro 4.00 p/s today

Carpets are big competion. Please visit Fryen on finfoex.com and he'l tell you LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL.

anyway once you have read up on Accsys Technologies feel free to give your views, but if Fryen thinks they got anything to do with carpets then he is seriously misguided

...and by the way: AXS up 10% just this morning alone

am i missing something here ? Goldfinger can you explain ?

Dont have to explain anything to anyone, and dont know you from adam, but I think its a bit cheap when a person comes onto a thread touting for business for another stock. (RH).

By the way RH Im led to believe that this unprofitable product will be used for wood flooring. Now do you see the connection and competion.