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.

If she holds recent lows I mght have a decent entry. ;-))

Ah, you're playing the daily points game then?

Nope. I like to buy the pullbacks and cash in as and when it seems a good idea. It might be days, weeks or months. Buy and hold doesn't give the returns IMO.

It looks like a good time to buy .

After an absence of a month- I am back in again

If i had any spare cash i would top up now , all spare funds gone into umn .

Nice to see it getting back positive. Fundies always out, its just a case of patience.

So much for the TA doom and gloom merchants only a week ago.

A bit early to say she's completely out of the woods, gf, but it was a nice entry level. Trailing stop in place. ;-))

Al
You still buying crap?! :-)

Keep yer eye on IFL CEY ALD

Hope you are well.

D. (havnt been able to access the traders room, so banned i suppose!)

P.S Is that Scottish dipstick still around? :-)

LOL D. Banned? Doubtful. You probably never paid your subs cheapskate.

Treble around and trading due to broken leg whilst trying to outperform the pole dancers apparently. Yep, dipstick is the word. LOL

As for WNG, nice entry on the chart and I'm led to believe the fundies are OK too. Me and Dil are never wrong. ;-)) .................... often.

Analyst have a 250p short term target.

That'll do nicely. ;-))

looks like your right on this one Big Al thanks for the good newsgoldfinger.nice to have got in this one with the news thats come out today.BBBig contracts

15 June 2007


Worthington Nicholls Group plc secures contract with IHG

First customer contract to comply with new EU legislation


Worthington Nicholls Group plc (AIM: WNG) ('Worthington Nicholls'), one of the
UK's largest installers of air conditioning, heating, ventilation and chilled
water systems, has signed a multi million pound contract for nine years through
to June 2016 with IHG Managed Services, part of the Intercontinental Hotels
Group ('IHG'). In the context of recent Company contract announcements, this is
one of the most significant.


The maintenance contract secured by Worthington Nicholls will cover the
maintenance and extended warranty of the air conditioning units in guest
bedrooms, public areas, back of house and Spirit Health Clubs across the UK and
Ireland estate.


The agreement follows an initial extended warranty and maintenance contract
awarded to WNG in 2003 for four years as part of the UK and Ireland air
conditioning installation roll-out.


The contract Worthington Nicholls has secured will ensure IHG has regulatory
compliance with new F Gas legislation, part of wider EU environmental
legislation, which comes into force on 4 July 2007 and will involve the
monitoring of all HCFC refrigerant compliance systems.


As part of the legislation, R22 refrigerants will be banned from 1 January 2015
and the new contract will take IHG through the R22 phase out period.


Mark Worthington, Chief Executive of Worthington Nicholls, said:


'We are very pleased to have secured a large contract and at a significant stage
in our growing relationship with IHG. The current EU legislation will ensure
that companies have to make major changes to their air conditioning systems over
the next seven years. We estimate that there are currently approximately one
million units still in use in the UK alone, with a replacement and installation
cost of over 7 billion.'


Notes to editors


European legislation introduced in 2000, banned the use of R22 as an ozone
depleting substance and introduced a phase-out programme. As a result, the
manufacture of new air conditioning equipment using R22 was discontinued in
stages between 2001 and 2004 as manufacturers released equipment to operate on
non-ozone depleting substances. The legislation decreed that existing installed
systems may be serviced using new R22 until January 2010, after which time only
recycled R22 could be used but not beyond 2015.

It reads very nicely indeed.
I wish they put some numbers and a sign on these though so we could calculate the value.
Not complaining though.
Alan

Analysts had the same 250p target on 14th May. It never made it past the 200p mark. I hope you are right, gf, but I think that price target is unrealistic.

Glad i got back in- harrycat even a sp of 200 short term will keep my missus happy

Mine too Robin.

Good news this morning then.

Would have thought that sp would be up more on this news. Never mind it will

The sp is low because I topped up at 1.95 & 1.67! Must be waiting for me to sell, but I ain't going to!

Blimey, got lucky again. ;-))