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.

WNG has already stated that it will have to write off 6.5 million in asset value as at 31/3/07 also overheads in the second half increase by 1.2million due to increased marketing etc inspite of the adverse weather!
The new board will want to clean out all the crap hidden in the cupboards when they take over and further write offs are likely to be necessary. At tonights closing price the market cap is 21 million nav is not clear due to recent acquisitions. Before buying these shares one needs much more transparency from the new board.

Good point Harry, Now may be the time to get in then??

Assuming that the new management team turn this company round & allowing for the 6.5 mill write down, the fundamentals of good forward orders & strong management should see this company progress well over the next year, imo.
I wonder if we are going to look back & wish we had topped up at 19p. The offer price has now crept up tp 28p. Once the new board are confirmed in place, I would expect the sp to rise again.

Up 10% on the news:

"The Board of Worthington Nicholls announces that Messrs David Levis, Stephen
Mulligan and Christopher Neilson have resigned as Directors of the company with
immediate effect. The Board also announces the appointment of Rodney Mann as
Deputy Chairman, Simon Beart as Chief Executive and William Good as Group
Finance Director with immediate effect. Alastair Stoddart has agreed to remain
as Chairman of the Company until the date of the next AGM which is expected to
be in early 2008, at which time Alastair Stoddart will resign and Rodney Mann
will become Chairman.

It is the intention that, at the appropriate time, a further Non Executive
Director be appointed to the Group."

WTF?????

It's just a guess, but it may be that the following sentence has been found to be incorrect:
"The company also expects full-year results, before the effects of the write offs, to be materially in line with its earlier statement. On Aug 17, it anticipated turnover would be 31.5 mln stg in the year to Sept 30, leading to a break-even result."
The new board might have found that the books are showing a substantial loss.

LOL hewittalan, either you have just opened your wife's visa bill by mistake or you have just seen the rns...

TEMPORARY SUSPENSION OF TRADING ON AIM

WORTHINGTON NICHOLLS GROUP PLC

At the request of the company trading on AIM for the under-mentioned securities
has been temporarily suspended from 03/12/2007 7:30am pending an announcement.

Bluelady,
The missus had her credit card nicked and I rang the bank.
They asked if I wanted to cancel it, but I said no, cos the thief was spending less than she did......................................;-)
Alan

Good one Alan, can't ever think that would apply to me, lol.

Must admit I am slightly peeved about the suspension but I don't have that much in WNG, probably less that the credit card bill for last month ;0)

I'm not in too deep (never am on anything), but it is somewhat annoying, the pausity of information.
You can bet that all the investment houses know exactly what the problem is.
Alan

A note of consolation. My understanding is that as WNG are on AIM you can offset any losses against income tax. Not exactly win win, more a case of win - inland rev lose.

I think only if trading is your main source of income. Not if you are trading as a top up to your bank balance.

You never know our luck.
It may be the 6mill they discovered missing earlier in the year has been found down the back of the chairmans settee.
:-(
Alan

I can't think the news is going to be good. Not really much point in speculating but I suppose now is a good time to vent all the bad news & then get on with recovery. Maybe they now need to raise more cash? Maybe they are going to sell off the brand new offices in Manchester & relocate to an offshore tax haven!

What a class peice of management suspending the shares....excellent stuff. The old board would not have given such a move.....a second thought.

Well done.

Not good for shareholders wanting to bail out before the bad news.

I was so lucky getting out of these at 85p .

EGM thursday. All should be revealed.

Sadly, no further forward:

"The Company announces that at the general meeting held earlier today, resolution
1 (to propose the removal of Alastair Stoddart as a director of the Company) was
not passed following a poll in accordance with the board of directors'
recommendation. The remaining resolutions (numbered 2 to 8) were not moved at
the meeting in accordance with section 303(5)(a) of the Companies Act 2006 on
account of being ineffective following the board changes announced on 22
November 2007."

2008 the hottest year ever. we hope. no hope.