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.

Me too :-)

Well done chaps, never has any doubts with this one, just got a little nervous when the P/E was looking a little topy. Recent news means a re rating should be on the cards and I reckon that 250p target by most may climb very soon.

From GCI online tipsters....

Market warms to Worthington Nicholls deal
Companies: WNG
15/06/2007

AIM air-conditioning star Worthington Nicholls (WNG) wafted 8p higher to 167p today on one of its most significant deals to date, a multi-million pound contract with Intercontinental Hotels.

One of the UKs largest installers of air conditioning, heating, ventilation and chilled water systems and boasting blue-chip clients ranging from the Hilton and Holiday Inn hotel groups to McDonalds, Worthington Nicholls has bagged a lucrative contract running through to 2016 with IHG Managed Services, part of FTSE 100 giant Intercontinental Hotels Group.

As well as maintaining air-conditioning units in bedrooms, public areas and within Spirit Health Clubs in the UK and Ireland, Worthington Nicholls will make sure Intercontinental complies with stringent EU environmental legislation related to the monitoring of all HCFC hydrochlorofluorocarbon which deplete ozone and are used in air-conditioning systems.

Mark Worthington, chief executive, said companies will have to make major changes to their air-conditioning systems over the next seven years, estimating there are one million units still in use in the UK alone with a replacement and installation cost of over 7 billion.

Consistently cheering backers with contract wins, Worthington Nicholls recently placed 20 million worth of new shares with institutions at 170p to assist with acquisitions and expansion, with Worthington himself selling an additional 3.4 million of equity in order to sate demand. He retains a meaningful eight per cent stake.

Floated on AIM at 50p in June 2006, Worthington Nicholls has garnered plaudits for its savvy use of the market and reported pre-tax profits of 1.96 million from revenues of 25 million for the year to September. Acquisitions completed to date include air-conditioning installer Project Air, specialist electrical contractor Lumenglow, and more recent additions Woods Environmental Group, Euro Property Services and Classic Interiors Contractors.

Very nice GF!

Yes NICE indeed.

No ones turning these units on because its to cold ! come on summer .

Worthington Nicholls Group plc, one of the UK's leading independent installers
of air conditioning, heating, ventilation and chilled water systems, will
announce its interim results for the period ended 31 March 2007 on Friday 29
June 2007. there will be a rush next week its best to get in today if you can ;-((

Already in mickey, but thanks for the tip. ;-0

Results day friday , will there be a big rush to get in before then ?

Tricky to call how the sp will react to results. Much of the good news may already be built in. With a current broker target of 220p, that may be the next level, but I still think that that is optomistic.
Am still holding two thirds of my original shares, so 200p would see me nicely in profit.

Turned positive.

Hmmm. Results went down like a lead balloon.

Results not too encouraging

whats all that about big Al.......news looked positive.

Maybe it was all in the charts after all. ;-)) Disappointed 140p didn't hold.

There seem to be a few punters who don't understand the nature of the business! I am quite pleased with the results, had expected a much bigger loss due to the rapid expansion of the business and would have added at these prices if I could get through to NatWest Stockbrokers; their website has gone tits up and I can't stand hanging on to the phone listening to rubbish music while I wait forever for a dealer!!

Let's get this in perspective, there's a very short term outlook here from some folks. I'm in again at 140p and don't intend to sell. The long term growth rate looks fantastic:

Turnover of 8.8 million

Gross profit of 2.8 million

Loss before interest and tax of 174,000

Raised 6 million before expenses towards identified acquisitions

Expansion into Europe implemented

Acquired Lumenglow Limited (December 06)

Post-interim financial and business highlights:

Approximately 34 million of revenue in total currently invoiced or
contracted to year end

Current new business pipeline of 61.3 million

That was unlucky, Seymour, as you can now buy at 124p.
Also I have seen figures that quote 297,000 loss before tax.
But I agree the medium term prospects are very good & there is no cause to jump ship imo. Those people who are holding, including myself, are just going to have to wait a bit longer to realise a profit.

iv brought 2x today 139 @ 124 i think long to mid looks good

Al..i refer u to my post from last week..

"You still buying crap? !!!

and u can add ALN to the 3 i mentioned!

p.s.. you're right, i wasnt banned, had mail to say i aint payed my subs!

p.p.s sorry if you lost a bit on this.
d.

D - LOL. Win some, lose some. In at 138.5p so not a massive hit. It's always the same if me and Dil buy the same stock. ;-))

ALN I have watched. Hmm.

You'd have thought AM would've mailed you specially just to ensure your contribution continued without interruption. LOL. Mind you, you should've had your s**t together.