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.

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.

Back on topic took the opportunity to add another tranche this lunch time. The latest broker report looks promising......

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. ENDS>

I also here RHP tip sheet are revising their target presently 200p UPWARDS.

goldfinger go f*** from my previous post you will note that i thanked you for bringing wng to my attention- and as stated b4 i was only repaying the compliment with a different stock-so you can keep your sarci comment to yourself. insofar as the carpet connection is concerned you are off the mark as this product will be used for doors-windows -bridgebuilding to name just a few

I bought mine back last week at 182, having sold at 188. I'd hoped they would drift lower but decided that wasn't going to happen. Which is now happening! Anyway, I'm comfortable, and will probably buy a few more if we get lower into the 160s.

Positive comment today from the Independant......






Investment Column: Buy Southern Cross Healthcare - Buy Inmarsat - Hold Futura Medical

Outlook: Mismanagement and profiteering all at the same time. The PFI faces crisis of confidence - Digging in for a long war at ABN Amro - Franklin challenges Virgin Media strategy

Other comment: Reed Elsevier galvanised by Thomson's 4 billion education sale -

Word that more deals are in the pipeline for Worthington Nichols

From the Independant....


Word that more deals are in the pipeline for Worthington Nichols

Just nudged into the blue.

Don't think there is any cause for concern here, though the 200p level seems to be a resistance level. Am happy to hold.
Don't suppose anyone knows how to post a chart on this thread with 200 & 50 dma. I think it would be a useful tool.

Thanks rh.
The 190p seeme to be the restistance level, having been tested twice.
First time it has broken through the 50 dma, but lets hope that is a support level.
If good news is on the way, then I am tempted to hold for a short while, but if it doesn't breach the 190 level, will take some profit.

Suffering from may - summer drift HC.

Id wait and watch what happens come late september.

I think we will go through 200p.

Maybe it was the diluting effect of the institutional placing of another 11 million shares which has caused this to stall a little.
Worrying to see this drift below the 170 level.

Could be that HC or it just might be investors cashing in their 2 bagger stakes.

I actually cashed in most of my chips at the 150p mark although I have added again after revised upward Broker forecasts.

Interesting to note that the ROCE here is a whopping 32.7% and the forward P/E to sept 2008 now stands at just over 19 which is fairly cheap in my eyes.

No need to panic.

broken thru 50dma-if it falls to 150 i may well get in again

Looking like a good top up point .

Good news from the AGM....

Worthington Nicholls says recently bought units win contracts worth 2.52 mln stg
AFX


LONDON (Thomson Financial) - Air conditioning services firm Worthington Nicholls Group PLC said its recently acquired businesses have won four contracts worth a total of about 2.52 mln stg.

The company said that it, in conjunction with Euro Property Services Ltd, has won a 1.3 mln stg contract to install and maintain air conditioning at the Connaught Hotel in London.

The Woods Environmental business has won a 750,000 stg new office refurbishment contract from property developers Bruntwood Estates to provide mechanical services installation on an 80,000 square foot property in Bolton, Worthington added in an EGM statement.

The company also said electrical contractor Classic Interiors and Lumenglow Ltd has won a 143,000 stg deal to refurbish a major retail outlet in Sloane Square, London.

As well as this, Classic Interiors, as principle contractor, has secured electrical and mechanical and engineering works for an estimated 330,000 stg to convert offices back into bedrooms for LRG.

On May 1, Worthington Nicholls said it completed the acquisitions of Woods Environmental, Euro Property Services and Classic Interiors for about 6 mln stg in cash and shares, and that it expected these to add to its earnings in the first full financial year as part of the group.

TFN.newsdesk@thomson.com

kkb/faj/slm