Kazera Global Regulatory News (KZG)

15 Jun 2007 07:00

Worthington Nicholls Group plc15 June 2007 RNS Release 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 theUK's largest installers of air conditioning, heating, ventilation and chilledwater systems, has signed a multi million pound contract for nine years throughto June 2016 with IHG Managed Services, part of the Intercontinental HotelsGroup ("IHG"). In the context of recent Company contract announcements, this isone of the most significant. The maintenance contract secured by Worthington Nicholls will cover themaintenance and extended warranty of the air conditioning units in guestbedrooms, public areas, back of house and Spirit Health Clubs across the UK andIreland estate. The agreement follows an initial extended warranty and maintenance contractawarded to WNG in 2003 for four years as part of the UK and Ireland airconditioning installation roll-out. The contract Worthington Nicholls has secured will ensure IHG has regulatorycompliance with new F Gas legislation, part of wider EU environmentallegislation, which comes into force on 4 July 2007 and will involve themonitoring of all HCFC refrigerant compliance systems. As part of the legislation, R22 refrigerants will be banned from 1 January 2015and 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 stagein our growing relationship with IHG. The current EU legislation will ensurethat companies have to make major changes to their air conditioning systems overthe next seven years. We estimate that there are currently approximately onemillion units still in use in the UK alone, with a replacement and installationcost of over £7 billion." Notes to editors European legislation introduced in 2000, banned the use of R22 as an ozonedepleting substance and introduced a phase-out programme. As a result, themanufacture of new air conditioning equipment using R22 was discontinued instages between 2001 and 2004 as manufacturers released equipment to operate onnon-ozone depleting substances. The legislation decreed that existing installedsystems may be serviced using new R22 until January 2010, after which time onlyrecycled R22 could be used but not beyond 2015. Enquiries: Worthington Nicholls 0870 609 1829 Mark Worthington, Chief Executive David Levis, Corporate Director Blue Oar Securities 020 7448 4400 Romil Patel/Rhod Cruwys Gresham PR Ltd 020 7404 9000 Neil Boom/Laura Black Information on Worthington Nicholls can be accessed via the Group's website:www.worthington-nicholls.co.uk This information is provided by RNS The company news service from the London Stock Exchange