Kazera Global Regulatory News (KZG)

26 Jun 2006 07:02

Worthington Nicholls Group plc26 June 2006 RNS release 26 June 2006 Worthington Nicholls Group plc ("Worthington Nicholls" or "the Company") Acquisition of Project Air Limited Worthington Nicholls, one of the UK's leading independent installers of airconditioning, heating, ventilation and chilled water systems, is pleased toannounce that it has completed its first acquisition since its shares wereadmitted to AIM earlier this month. The Company has acquired the entire issued equity of Project Air Limited.("Project Air"), a specialist installer of air conditioning systems to theretail sector. Its customers include well-known high street retailers, such asPhones 4 U, Hamleys, The Bear Factory, and TM Lewin. Project Air is based inRugeley, Staffordshire. The business was established in 1992 and today has atotal of 23 staff including 13 engineers. In the year to 31 March 2006, Project Air reported turnover of approximately£3,236,000 generating approximately £754,000 in post-tax profits. Immediatelyprior to completion and as part of the acquisition, assets with a value of£129,000 were transferred to Project Air from GC and AD Price, the partnershipthat provided air conditioning service and maintenance services alongsideProject Air and which held all the business assets utilised by Project Air andthe partnership. In the year to 31 March 2006 these assets generated turnover of£297,446 and profits after tax of £38,710. As at the date of this announcement,Project Air has net assets of approximately £370,000. As part of the acquisition, Gary Price, the managing director and founder ofProject Air, will remain with the company for at least a year to help with asmooth transition under its new owners. It is the opinion of the directors of Worthington Nicholls that the acquisitionshould immediately enhance the earnings per share of the Group and providefurther growth opportunities through Project Air's customers and resource base. The acquisition is for a total consideration of £4,600,000 of which £3,000,000has been paid with two subsequent instalments of £500,000 each in six months'and one year's time subject to a Project Air meeting a turnover target. Theremaining £600,000 is to be satisfied by the issue of 1,165,049 ordinary sharesin the Company. Application has been made for these shares to be admitted to AIMand trading is expected to commence on Thursday 29 June 2006. Mark Worthington, Chief Executive of Worthington Nicholls, said: "We are extremely happy with this acquisition. We have tracked Project Air for awhile, and we know that it's a respected company with a good client base andprofessionally trained staff. We believe the acquisition of Project Air willhelp develop our operations in the retail sector while also providing extraresource to meet demand in the hotel sector. On a personal note, I am delighted to welcome the directors and staff to theWorthington Nicholls Group." Gary Price, Managing Director of Project Air, comments: "We have a great deal of respect for Worthington Nicholls and are delighted tohave found a partner that takes the same pride in its work and strives for thesame high standards. We believe that our customers will also benefit from awider range of services now being offered by the enlarged group. There is alarge potential market available to us and by being part of a larger group, wehope to see a greater share of it." Enquiries: Worthington Nicholls - Tel. 0870 609 1829Mark Worthington, Chief ExecutiveDavid Levis, Corporate Director Gresham PR Ltd - Tel. 020 7404 9000Neil Boom / Tanya Feness Corporate Synergy - Tel. 020 7448 4400Rhod Cruwys / Romil Patel Information on Worthington Nicholls can be accessed via the Group's website:www.worthington-nicholls.co.uk About Worthington Nicholls Group plc Worthington Nicholls operates as principal contractor for delivery of end to endsolutions in the air conditioning market. Its blue-chip clients operate in a number of different market sectors andinclude Hilton Hotels, Holiday Inn Hotels, Debenhams, Boots the Chemist, Arcadiaand McDonald's. The business was established in 1973 by Peter Worthington and has grown to beone of the dominant players in the UK Heating, Ventilation and Air Conditioning("HVAC") market, which is currently estimated to be worth approximately £2billion per annum. Led by Mark Worthington, the Company repositioned itself in 2003 as a supportservices group, moving away from the subcontractor business model common acrossthe HVAC industry. The Company now offers a full project management capability, which includes survey, design and specification, throughinstallation, commissioning and ongoing service and maintenance. Worthington Nicholls operates from its head office in Manchester and regionaloffices in Bedford, Swindon and Edinburgh, and employs approximately 130people. This information is provided by RNS The company news service from the London Stock Exchange