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.

"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.

I would tend to agree with the comments of GF, this could continue down tomorrow with shorters forcing it or just the general market feeling, terroist attacks, interest rate rise etc. However if you believe the company has good long term prospects you should hold & not panic.
Personally I hope it does bounce to 135-140 range as it will help with my v large holding but its going to be a nervy one !!!

Good Luck, news on new contract wins this week would be the boost that this share needs.

p.s. does anyone know what the value of the contract win with Intercontinal Hotels is worth ?? I don't remember seeing any numbers.

Pumben, at least 'multi million stg' as below.


Worthington Nicholls signs 'multi mln stg' 9-yr deal with Intercontinental unit - AFX

LONDON (Thomson Financial) - Worthington Nicholls Group PLC said it has signed a multi-million pound 9-year contract with IHG Managed Services, part of the Intercontinental Hotels Group.

The UK's largest installers of air conditioning, heating, ventilation and chilled water systems did not disclose any precise financial details, but said 'in the context of recent company contract announcements, this is one of the most significant'.

It added this contract will ensure IHG has regulatory compliance with new F Gas legislation, part of wider EU environmental legislation, which comes into force on July 4.

Nothing like hedging your bets?

"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)"

You were extremely bullish not a week or two ago, gf.

Yep Big Al two weeks on the markets can sometimes seem like a lifetime, but in general Im very happy with this one having trousered a six figure profit.

Got some more at a bargin price .

absolutely unbelievable buying this am.

Not the bounce we had hoped for yet.

looks very quiet out there. Might be something to do with the bombings of the last few days but tend to think thats in the prices now.

Any thoughts anyone?.

Hi Gf i still have my few for a free ride ,as you know i sold my main holding on the climb in February, i think these got a bit ahead of themselves up at 180p ,and were bound to retrace ,then the recent figures were obviously going to have an impact,,,i'm keeping my holding as i believe in the company ,however i didn't see the need to dive back in for a trade,i think we need more time to see where they are going...Cheers Jimmy.

I think your spot on Jimmy.

good job we both took that profit eh.

Yup very nice one it was too ,i am surprised they hav'nt spiked up more today though with all the buying .

Yep does look to be far more buys than sells.

MM picking up stop losses at cheap prices . Big buy order in hand ?

Or just the day traders packing up for the day?