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.

even worse at close, looking oversold now, glad I got out at 165, looks tempting now.

steveo- am also looking to get back in but waiting for some technicals to prompt me first

hyleo have we hit the TA support level?.

technically there should be support at around 150 but after double head and shoulders a further breakout on the downside is very well possible-too early to tell so still waiting b4 i jump onboard again

I think it is still on the downside...support is not convincing

Across the road they say a big institutional seller is getting shot of stock (obviously at one heck of a profit). If thats the real case for the fall and we get an RNS I can see no need to be worried here.

GD, apologies but probably being a bit thick here but why would the inst. wantto get rid of stock if it has great potential. Am a current holder but I am surprised at the level of the fall when the placing was at 1.70

Pumnben, Fund managers have a duty to perform as set by their managers.

Its all about targets targets targets in this business and competiton with fellow employees.

To get a 2 bagger plus in less than 9 months is something to be taken advantage of.

You will note earlier in the thread I had concerns over the topy P/E and said I was rather nervous because there was potentially more risk to the downside on such a high ratio.

The underlying valuation is now starting to look pretty healthy again.

Its all about patience and I wouldnt be too worried.

Unless there is a big market correction...................
Next resistance on the graph at +/- 125p.

GF you also said I was wrong to get out at 175 on 14/5......(will get back in at some time though but ................not yet)

RH I was suggesting you would be better off long term in WNG than the stock you were giving the thumbs up for on this thread.

I still believe that despite the short term weakness which is being compounded by traders taking notice of ambiguous TA theory.

The last trading update was rather encouraging, and remembering that the company would have to let the market know within three working days of any bad news which would affect the market Sp we can only assume that theres nowt different today than there was when that trading statement was released.

The present current SP is the interaction of buyers and sellers in the market place and given that the market is nearlly always wrong, I would suggest that any seller of this stock have a rethink.

WNG is still on a very slippery slope, I would say to sell now before it reaches 100p. In this market like today, I think it is just the beginning.

Well if thats the case hlyeo we may aswell all sell up and forget the market and every stock on it. Take to the bunkers.

If WNGs in trouble I hate to think what some of the rubbish followed by the TA brigade are in for.

Ive seen it all before in over 25 years in this business, chartists telling us doom and gloom is around the corner. They always believe the market is collectively right, but the fact is they are totaly wrong as investors wouldnt be able to outperform following their principals. The market is always nearlly always wrong.

WNG will recover.

GF agree longterm prospects of wng look good but was of the opinion that a downward correction was taking place- hence my bailing out shortterm. No doubt i will be back once i feel corner has turned

Good on you Robin.

Nevertheless. A bit odd to see the valuation now down by 30%.
The extra 20 mill they had to raise lately seems to have undermined confidence.
Fundamentals still hold good, imo, but the sp drop comes as a bit of a surprise.

Didn't think i'd see these down at this level again ,,are we having a bit of a market wobble ?? ,,i may look at a re buy here.

Ive been thinking the same Jimmy.

138p to buy and analysts and tipsters have a short term target of between 200p and 225p.

Problem is with the US having a few jitters it could drop a little further but underlying value, a forward P/E of 17 to sept 2008 makes it look cheap at this moment in time.

What's the EPS growth, gf, i.e. PEG?