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Re Contract
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[{"type":"text","content":"\n Worthington Nicholls Group plc\n15 June 2007\n\n\n \nRNS Release\n\n\n15 June 2007\n\n\n Worthington Nicholls Group plc secures contract with IHG\n\n First customer contract to comply with new EU legislation\n\n\nWorthington Nicholls Group plc (AIM: WNG) ('Worthington Nicholls'), one of the\nUK's largest installers of air conditioning, heating, ventilation and chilled\nwater systems, has signed a multi million pound contract for nine years through\nto June 2016 with IHG Managed Services, part of the Intercontinental Hotels\nGroup ('IHG'). In the context of recent Company contract announcements, this is\none of the most significant.\n\n\nThe maintenance contract secured by Worthington Nicholls will cover the\nmaintenance and extended warranty of the air conditioning units in guest\nbedrooms, public areas, back of house and Spirit Health Clubs across the UK and\nIreland estate.\n\n\nThe agreement follows an initial extended warranty and maintenance contract\nawarded to WNG in 2003 for four years as part of the UK and Ireland air\nconditioning installation roll-out.\n\n\nThe contract Worthington Nicholls has secured will ensure IHG has regulatory\ncompliance with new F Gas legislation, part of wider EU environmental\nlegislation, which comes into force on 4 July 2007 and will involve the\nmonitoring of all HCFC refrigerant compliance systems.\n\n\nAs part of the legislation, R22 refrigerants will be banned from 1 January 2015\nand the new contract will take IHG through the R22 phase out period.\n\n\nMark Worthington, Chief Executive of Worthington Nicholls, said:\n\n\n'We are very pleased to have secured a large contract and at a significant stage\nin our growing relationship with IHG. The current EU legislation will ensure\nthat companies have to make major changes to their air conditioning systems over\nthe next seven years. We estimate that there are currently approximately one\nmillion units still in use in the UK alone, with a replacement and installation\ncost of over £7 billion.'\n\n\nNotes to editors\n\n\nEuropean legislation introduced in 2000, banned the use of R22 as an ozone\ndepleting substance and introduced a phase-out programme. As a result, the\nmanufacture of new air conditioning equipment using R22 was discontinued in\nstages between 2001 and 2004 as manufacturers released equipment to operate on\nnon-ozone d...