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.

Breaking upwards on a roll. NICE.

Going some today, now 70p. NICE.

excellent progress goldfinger. Only annoyed I had to wait until today to increase holding! Quietly accumulating contracts and demand can only rise- another great find!

RHPS tip sheet have a short term target of 80p tau.

Now wer'e motoring .:-))

And another nudge up on a down day for small caps, cant be bad.

Nice to see this one back at 70p still much more to come I feel.

Do we have a breakout.

I don't know about a breakout GF ,this one's been a nice steady climber , :-) ..

Fingers crossed it continues Jimmy.

I'm sure your a Vampire GF ,you only come out in the middle of the night :-)

LOL, Running my business Jimmy heavy industrial cleaning. We have to be there when they arent there, if you get my drift. Cleaning Engineering/textile machinery and also envoiremental division.

Bit quiet for small caps today.

Heavy industrial cleaning Goldfinger? How about leaving a few notes tonight, along the lines of "your air conditioning is way out of date, I can put you in touch with.....etc"?!!
kim

No good writing a note to myself Kim lol.

Nice to see WNG as just sprung into life................NICE.

:o)
I haven't added to my original 3k holding but I'm more than happy with progress. Future looks rosy.
kim

Certainly doing well chaps .

Looking for more at kick off.

And we have it.

Will have to check the fundies and forecast rating here for forward guidance.

With 6.3p EPS forecast for this current year to 30/9/07, it seems to me that any decent outlook for the year just finished should mark a decent re-rating.

Even on a P/E of only 14 WNG should be at 88p, but on a P/E of 17 WNG would be at 107p.

With a PEG of only 0.42, plus a cash pile for earnings-enhancing acquisitions, there's loads to go for imo assuming results are at worst in line.

Ticked up again.