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.

sorry to disappoint you. bot at 140 sold at 175. bot in again at 150 so at worst i am breaking even at current lvl

this looks hugely oversold, shenanigans on the book as usual, watch for the bounce back to 125-130 before the day's out.

The sell off, can be an advantage: It may give us the chance to buy more of a good thing at a bargain price."

thought oversold at 120, now 111 is a steal. strongly agree with dave. Good buying opportunity here. unfortunately got mine at 120. If goes lower will average down for a quick return on the bounce.

Traders have been in shorting the hell out of it methinks. They'll cover at some point. As of this moment about 10% of the shares have been traded so far today. ;-))

At 114p the current PE is 20. Is that too high or too low for a company that disappointed with interims? These are all questions you need to answer.

PS - that's forward PE!!

huge director buys.

Worthington Nicholls Group plc
29 June 2007

Worthington Nicholls Group plc
(the "Company" or "Worthington Nicholls")

Directors holding

Worthington Nicholls announces the following directors' purchase of ordinary
shares of 1p each in the Company ("Ordinary Shares").

Mark Worthington, CEO of the Company, has today purchased 450,500 Ordinary
Shares at a price of 1.11 per share. Following this purchase Mark Worthington
now holds 7,445,500 Ordinary Shares representing 8.56% of the total voting
rights of the Company.

Alastair Stoddart, Non Executive Deputy Chairman of the Company, has today
purchased 22,250 Ordinary Shares at a price of 1.11 per share. Following this
purchase Alastair Stoddart now holds 122,250 Ordinary Shares representing 0.14%
of the total voting rights of the Company.

Stephen Mulligan, Non Executive Director of the Company, has today purchased
22,250 Ordinary Shares at a price of 1.11 per share. Following this purchase
Stephen Mulligan now holds 22,250 Ordinary Shares representing 0.03% of the
total voting rights of the Company.

Good

I have also bought some given the discount and directors buying in too.

After looking at todays numbers I am feeling tempted, although normally prefer more established businesses. With second half sales likely to be in the order of 25M, assuming gross margins similar should give annual GP north of 10M. With the enhanced admin expenses in first half hopefully not showing same increase, there could be around 4M of pretax profit. Taking a lot on trust, particularly given the number of acquisitions they have to digest and even then P/E by my reckoning still likely to be around 20, but their market prospects do look very good. Always nice to see directors putting their own cash in. Will deliberate over the weekend!

Broker report out...

Worthington Nicholls "buy"

Friday, June 29, 2007 5:40:10 AM ET
Panmure Gordon & Co

LONDON, June 29 (newratings.com) - Analyst Oliver Wynne-James of Panmure Gordon maintains his "buy" rating on Worthington Nicholls Group Plc (ticker: W3L). The target price is set to 220p.

In a research note published this morning, the analyst mentions that the company has reported its 1H07 revenues and operating income short of the estimates. Worthington Nicholls is set for a busy 2H07 and is expected to meet its guidance for the full year, the analyst says. The company expects to generate another 8 million of business from its pipeline and said it may win a single contract worth several million pounds for the year.

"dealers were at a loss to understand the big fall in the share price of fast growing worthington-nicholls and in the end put it down to over enthusiastic 'short' sellers. The company which gave a very upbeat presentation to analysts fell nearly 25% although recovered slightly as brokers issued a flurry of buy notes."

I'd agree with the above. Massive chunks of 5000, 75000, 10000 all day just battered the price down and well over 10% of the shares traded. However, these folk have to cover at some point. ;-))

Agree should prove a rewarding trade from monday onwards. They were definitely being shorted all day but those shorts started getting covered later on in the day and PI buying was huge. As soon as the huge director buys were announced shorts were being closed. I'm expecting these to got 130-135p at some stage monday.

One thing that is a slight worry, imo, is that disregarding this weeks sudden fall in the sp, the chart trend since mid april has been down. There must be a good reason why?
Possibly the completion of two consecutive contracts or the knowledge that interim results were not going to impress, in fact show a trading loss.
Brokers have already (back in May) given a target of 220 - 250p, which was never reached. Surely 155 - 165p is more realistic?

Truly WNG has been oversold and it looks likely to spring back to 135-140p tomorrow especially when Panmure Gordon has maintain its BUY status and multiple directors buying into it last week.

Dont forget the other side of the equation chaps.

Yup there might look to be an opportunity for a bounce here but just how have the results been received by this weekends press?(havent had time to look myself), are a lot of misguided holders going to sell.

Will tip sheets online eg, Red hot Penny Shares advise holders to sell (ive seen them do it by e-mail before).

Have to say I think the reaction to the results has been well overdone, but again I wouldnt be buying (still holding 2 tranches) until further evidence of revenues coming through on contracts in 2nd half. (i am a long term investor)

Good luck to all monday morning.

i'll be helping myself to some of these in the morn, looks ridiculously overdone markdown on friday. No wonder chairman and directors spent best part of 600000 on the shares. Agree i think we could see a bounce tomorrow to 135-140p. The stock opened on friday at 152 and dropped all day but the recovery started around 4pm when news of director buys came in. Looks a good one 4 tomorrow.