AGM Statement

Worthington Nicholls Group plc
23 March 2007


               Worthington Nicholls Annual General Meeting Update

                    ('Worthington Nicholls' or the 'Group')



The following Chairman's AGM Report will be made at the Company's AGM being held
today:



Chairman's AGM Report



This has been a very important year for Worthington Nicholls.  Our decision to
join AIM and raise expansion capital was a significant milestone in the Group's
history and development.



The experience of joining AIM has been a very positive one.  Our increased
commercial profile and stronger balance sheet have enabled us to implement some
very exciting changes within the Group.



As you are aware from our results for the year to 30 September 2006, we reported
proforma annualised turnover of £25 million, gross profits of £7.2 million and
earnings before interest and tax of £3.7 million.  As a result of these profits,
we were delighted to propose payment of our first dividend as a publicly quoted
company.



I am pleased to report that I am encouraged by our current trading position.
Looking ahead, we have a very healthy pipeline of new orders, including work
from five new hotel group clients that have commissioned Worthington Nicholls to
install their air conditioning systems for the very first time.  Currently, we
have 17 retained hotel and 16 retained retail clients.



Each new contract gives Worthington Nicholls the opportunity to secure preferred
supplier status.  This status, in turn, helps us to secure future additional
contracts if we continue to provide excellent service and focus on each
customer's particular requirements.



We have also been pleased to welcome new staff and management to the Group, some
of whom have joined us as a result of the acquisitions we have made and others
that we have hired to facilitate our organic growth.  In late June, we acquired
Project Air Limited ('Project Air'), a profitable specialist installer of air
conditioning systems to the retail sector, and in December we bought Lumenglow
Limited ('Lumenglow'), a specialist electrical contractor.   We are pleased to
report that in both instances the integration process is proceeding smoothly.



In integrating these companies, we have been aided greatly by the skills and
experience of Tim Hunt, who joined the Group as full time Finance Director in
January 2007.  We are pleased at how quickly and well Tim has integrated himself
within the Group, and we are already benefiting from the improvements to our
financial accounting systems that he has introduced.   We believe Tim's
experience will be key as we continue to explore further acquisitions and grow
sales.



Our acquisition strategy is to look for opportunities that profitably increase
our market share in existing sectors as well as broadening out into new sectors,
such as the retail sector as we did with the acquisition of Project Air.  In
addition, through acquisition we may seek to bring in-house certain trade skills
that are necessary for installations.  By doing this we increase the range of
services to our clients and should improve profit margins.  It also helps us to
monitor and ensure high standards of workmanship on the projects that we run.
This is exactly what we have been able to do with Lumenglow.  Not only were we
able to acquire skilled electricians but we will also be able to make
significant savings from ceasing to outsource electrical work to other
companies.



The Group has also made its first steps into Europe through the major
installations we are undertaking in Amsterdam. This has resulted in additional
interest from other potential European clients and we look forward to building
on this platform going forward.



In closing, shareholders will be pleased to hear there that is a growing
awareness of the potential issues caused by the R22 gas replacement programme
amongst our clients and their need to comply with European legislation. As a
result we are seeing an increasingly healthy flow of new tenders from both
existing and new customers.



Peter Worthington

Chairman

23 March 2007









Enquiries:

Worthington Nicholls                      0870 609 1829
Mark Worthington, Chief Executive
David Levis, Corporate Director

Gresham PR Ltd                            020 7404 9000
Neil Boom / Laura Black

Corporate Synergy                         020 7448 4400
Rhod Cruwys / Romil Patel

Halliwells LLP
Frank Shephard / Lisa Stavropoulos        0870 365 8000





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


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