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.

Id still be a little wary of sentiment in the market place as a whole h6.

As like hyleo mentioned yesterday we may not be out of the woods just yet and he was right about that on his post although I have to say this time I couldnt agree with his TA perspective on this stock.

Im just hoping we have got the timing right.

Gotta say I am not known for my short term timing!!!
But I am a medium - long term investor and I usually look to get in somewhere near the bottom, get my cash back out at a perceived high, and leave a rump of free shares.
You are right, short term could see a lower SP, but I am looking at a longer trek than that and feel happy that the plan will work.
Famous last words.
Alan

Thanks guys. I do like PEGs. ;-))

I've kept my eye on this lot for a wee while and have been awaiting a pullback to consider whether it was worth an entry.

It's moved up the pecking order somewhat. ;-))

Goldfinger, I think we are not out of the woods yet given the situation in USA...we are in for a rocky ride tomorrow. Hang on tight.

I appear to have taken a position first thing this morning so we'll see how it goes. Nice early pullback to enter too. ;-))

I got 139p Thusday ... what you get cheapskate ?

138.5.

;-))))

Turned positive.

Says he, wiping his brow, while the rest of us breathe a collective sigh of relief!
With a possible stockmarket downturn looming on the horizon, I'm afraid this has become a short term hold for me. I thought it would be reasonably immune from any corrections as the fundamentals are sound, but apparently not.

If she holds recent lows I mght have a decent entry. ;-))

Ah, you're playing the daily points game then?

Nope. I like to buy the pullbacks and cash in as and when it seems a good idea. It might be days, weeks or months. Buy and hold doesn't give the returns IMO.

It looks like a good time to buy .

After an absence of a month- I am back in again

If i had any spare cash i would top up now , all spare funds gone into umn .

Nice to see it getting back positive. Fundies always out, its just a case of patience.

So much for the TA doom and gloom merchants only a week ago.

A bit early to say she's completely out of the woods, gf, but it was a nice entry level. Trailing stop in place. ;-))

Al
You still buying crap?! :-)

Keep yer eye on IFL CEY ALD

Hope you are well.

D. (havnt been able to access the traders room, so banned i suppose!)

P.S Is that Scottish dipstick still around? :-)

LOL D. Banned? Doubtful. You probably never paid your subs cheapskate.

Treble around and trading due to broken leg whilst trying to outperform the pole dancers apparently. Yep, dipstick is the word. LOL

As for WNG, nice entry on the chart and I'm led to believe the fundies are OK too. Me and Dil are never wrong. ;-)) .................... often.

Analyst have a 250p short term target.