Acquisition

Worthington Nicholls Group plc
21 December 2006

                               

RNS release


21 December 2006


                        Acquisition of Lumenglow Limited


Worthington Nicholls Group plc ('Worthington Nicholls' or 'the Company') (AIM:
WNG), the UK's largest independent installer of air conditioning, heating,
ventilation and chilled water systems, has completed its second acquisition
since listing its shares on AIM in June 2006.


On 10 November 2006, the Company reported that it had raised £6 million via a
share placing to accelerate growth, particularly by completing a number of
identified acquisitions.


Today, Worthington Nicholls is pleased to announce that it has acquired the
entire issued share capital of specialist electrical contractor Lumenglow
Limited ('Lumenglow'). Lumenglow has been supplying services to the Worthington
Nicholls group of companies ('Worthington Nicholls Group' or 'the Group') since
2003.


By acquiring Lumenglow, Worthington Nicholls will be adding 2 experienced
managers, 2 qualifying managers and a senior supervisor along with six highly
skilled electricians to the Group, all of whom have Joint Industry Board for the
Electrical Contracting Industry accreditation. By adding Lumenglow to the
Worthington Nicholls Group, the Company will be in a position to reduce its
substantial yearly outlay on electrical subcontracting and thereby enhance Group
profitability. In the financial year to 30 September 2006 Worthington Nicholls
subcontracted £3.1m of electrical work to electrical subcontractors other than
Lumenglow giving significant opportunity to bring these works in house.


The Lumenglow acquisition is also important strategically, bolstering the
Company's presence in London and the South East. The Group also sees
opportunities to market maintenance contracts to Lumenglow's customer base, and
to cross sell its services to existing Worthington Nicholls' clients.


Founded in 1984 and based in East Dulwich, Lumenglow's customers include
Debenhams, Royal Doulton, Farebrother and the London Borough of
Kingston-upon-Thames. In the year ended 31 July 2006, Lumenglow reported a small
pre-tax loss of £4,000 on turnover of approximately £830,000.


Worthington Nicholls has paid a total consideration of £150,000, £75,000 of
which is payable in cash and £75,000 in new ordinary shares of 1p each in the
Company ('Ordinary Shares').


As a result, the Company has issued 64,599 Ordinary Shares at 116.1p to the
vendors of Lumenglow. All new Ordinary Shares issued to the vendors of Lumenglow
will be locked in for 12 months and subject to an orderly market arrangement for
the following 12 months. Application has been made for the new Ordinary Shares
to be admitted to trading on AIM and trading in the new Ordinary Shares is
expected to commence on 27 December 2006.


As part of the acquisition, Ken Sole, managing director of Lumenglow, has signed
a new three-year service contract with Lumenglow. In the short term, Lumenglow
will continue to trade under its own name.


Mark Worthington, Chief Executive of Worthington Nicholls, said:

'This was a family run business with many parallels with how our own business
was run some years ago. In short, I see plenty of ways to return it quickly to
profitability and to increase the size and scope of its work. With skilled
electricians in short supply, we are lucky to be adding so many talented staff
in a single deal. We are very pleased that Ken and his colleagues are joining
the Worthington Nicholls Group.'

Enquiries:


Worthington Nicholls                     0870 609 1829

Mark Worthington, Chief Executive

David Levis, Corporate Director


Gresham PR Ltd                           020 7404 9000

Neil Boom / Tanya Feness


Corporate Synergy                        020 7448 4400

Rhod Cruwys / Romil Patel



Information on Worthington Nicholls can be accessed via the Group's website:
www.worthington-nicholls.co.uk



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