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.

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.

I think Dai is a sadist. Big Al, ignore him. WNG honestly I think is oversold now. It is starting to recover now.

Based on your previous comments about minimising losses, Big Al, you presumably hit your stop loss & sold? Or are you still confident of a recovery?

Its certainly taken a whack this morning but Im not overly concerned as all along Ive preached about taking profits when the rating starts to look topy. At the moment I have 2 tranches left and will keep them.

Outlook statement seems very enthusiastic, looks like this news as hit the share....

Our investors may be aware that we generally see a split in turnover which is
weighted towards the second half of the year. This year, the split has been more
pronounced than normal, which is largely due to a number of the large contracts
finishing at roughly the same time, causing a lag before we were able to start
on new contracts. Work on these new contracts has now begun.

The Board does not believe it is likely that the second half weighting trend
will become more pronounced going forward and that this anomaly is likely to be
a one-off caused by the way the contracts have fallen this financial year.

hlyeo - I've been having a laugh with Dailos for a number of years, but never thought of him as a sadist. Now you mention it .................. ;-)))

Stopped myself out of all but the SIPP holding, HARRY. I'd certainly be getting in a lot lower now. ;-0 Watching, though.

Personally, I consider this a big hit for an outfit supposedly having "prospects". The problem sometimes with little companies is s**t sticks. We'll see how WNG fare.

Not concerned.
My purchase of a couple of weeks ago was at 140 and I am still confident of being weel in profit by year end, with more to come.
Alan

A question - were we expecting a profit with these interims or was it all supposed to come with the FY ending 30/09/07. I seem to have forgotten. Doh!

FY ending BA.

Concensous analysts looking for 5.7p

per share on full year results

Thx

gf "always preached taking profits when it looks toppy?"come off it. I recall you saying that i made a big mistake in selling wng at 175 and topping up on AXS at 3.70 Euro p/s which incidentally now are at 4.23. Having said that I still believe WNG will recover otherwise my re-entry point at 1.50 does not look so smart

From AFX...looks cheap to get in now.

According to dealers, Panmure Gordon has reiterated its 'buy' rating on WNG and target price of 220 pence for the shares. In a note reacting to the results, it said cash flow is weaker than expected, while acquisitions after a dull first quarter are now performing in line or ahead of expectations.

The broker said the company should meet its numbers for this year but it will rely on some major contract wins in the coming four to six weeks, adding that the company has enough leads to achieve this.

Oi Dailos ALN bounced off support right on cue a couple of weeks ago.

I sold WNG for a 15% profit a couple of weeks ago as I hate results time for these smaller companies.

Fall does look a bit over done but best to wait til the dust settles.

Robinhood get your facts right please.

All along I have used a conservative few of this stock and preached it.

If you look at posts 505 507 508 509 547 569 and numerous ones before that where in fact I state I sold more than 90% of my holding you will seee I have been rather nervous of the high rating.

Ask stockdog and Jimmy if you want more proof.

And when I mentioned your post above re - to asx I was trying to point out that ASX could not justify its present rating on fundies and that WNG was the better long term stock, and I still believe that.

I wish you would discard your bitchy attitude.

And if you want more proof take a look at the sondex and hamworthy threads.

If a stock gets too topy I believe you should either take profits or sell the lot and move on.

Something the sola crowd should be looking at.