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.

Someone said same about WS Atkins (ATK) when I bought a few in 2002 scotty.

Some you win ...

WNG is a win or WhiNGe company now Dil! Let's hope it's the former.

it would be a postive sign if the directors bought at this price but that isn't even happening !

They're skint , no bonuses lol.

Does anyone agree that all the crap news is out from the company & it is now a matterr of waiting until the October contract news or is there still some more bad news out there ?

14p in cash? Now there's a limit.

Mind you, it's always worrying when Dil and Bullie turn up on the same thread on the same day. ;-))

IMO there is now a serious risk that 'Contracts tendered' are not going to matierialise. Investors have lost confidence in the company; lets hope that the customers don't also go elsewhere.

Yeah I thought that Al , enough to put anyone off :-)

I'd sell now in that case. LOL

Agree at best WNG will break even at year end, there are likely to be more profit warnings and the cash may evaporate. Only way out is a merger or takeover like SMC.

jeepers .... what a stinker ...... company needing to issue a profit warning in a vile market is committing suicide (for investors at least), though of course they are obliged to, regardless

Could be a significant bounce as shorts close this afternoon.

Maybe a lot of shorts closed around 15p. ;-0

stopped out at 20.25p

sorry to hear you were caught Dil .... hope not too dire

Think he was long, cynic

Yeah was ok ta cynic , made over 20% in a few hours :-)

How bloody incompetent was that? ROFLMAO!

Yeah was up 30% at one point , I'm crap at this day trading lark much better at investing :-)

serious day trading is for those of iron disposition and discipline or for total mugs! ...... yes, of course i sometimes trade intraday, but that is almost invariably the indices which i don't really like leaving one o'night, and just occasionally a stock where i have made a good turn and decide to bank