Trading Statement

Worthington Nicholls Group plc
17 August 2007

                         Worthington Nicholls Group plc

                                 Trading update

Worthington Nicholls Group plc, (AIM: WNG) ('Worthington Nicholls' or the 
'Company'), announces that for the financial year ending 30 September 2007, it
expects that turnover and profit will be materially below market expectations.

As at 16 August 2007, the Company has booked £23.6 million of revenues, is on
site at projects worth £5.5 million in revenue that are expected to be invoiced
prior to the current year end and is scheduled or expected to commence and
complete further work worth approximately £2.4 million prior to the year end. On
this basis the Company would report revenues for the year of £31.5 million,
which would produce a breakeven result.

As at 16 August 2007, the Company had £12 million of net cash, representing
13.79 pence per share.

The shortfall in turnover is due predominantly to contract delays, a number of
which are attributable to the recent widespread flooding in the UK, and to the
impact on the maintenance side of the business of the cooler than average
weather conditions experienced throughout the UK this summer.

The loss of profit attributed to the delayed contracts is £3.3 million. The
Company has also recently lost margin on a small number of contracts which did
not perform to management's expectations, and its overheads base has increased
by £1.2 million as it prepared for anticipated growth.

Contract delays

At the time of the interim results announcement, the Company had been
shortlisted, along with two other contractors, to tender for the installation of
air conditioning into 3,000 bedrooms as part of a fast track installation
program for a mid-tier hotel chain. The Company had been given indications that
it could reasonably expect to win at least 1,000 rooms and that there was a
likelihood that this could be higher. A significant portion of this program was
expected to be delivered during this financial year.

Owing to internal issues within the customer relating to the timing of their
tendering and sign off process, the Company was notified on 15 August that this
tendering process would not now be completed until the beginning of October of
this year and therefore all of the expected revenue, should the Company be
successful in its tender, which amounts to approximately £3.5 million, will fall
outside this financial year.

In addition, the Company has had a number of contracts delayed, worth
approximately £3.1 million, as a direct result of the recent flooding across the
UK. In particular, two hotel groups have notified the Company that capital
expenditure on air conditioning installations which had commenced or were due to
commence, would be delayed as they have suspended certain capital expenditure
pending completion of their assessment of the likely cost of flood damage repair
amongst a number of hotels within each hotel group. An additional hotel group
has also yet to confirm anticipated works following flood damage at one of its
hotels.

Maintenance Division

Following this summer's unseasonal weather, the Company has seen lower than
expected demand in its maintenance division. The run rate of maintenance
call-outs has been lower than expected following a cooler than average summer,
leading to less air conditioning usage and consequently less breakdown and
maintenance work required.   This situation has compounded the effect of a delay
in commencement of a material maintenance contract for a hotel group with the
result that the Board now expects the Company's maintenance division to
underperform on management expectations for the current financial year by
approximately £2.5 million.

Margins and costs for the year ending 30 September 2007

Assuming turnover of approximately £31.5 million for the current financial year,
it is expected that the gross margin would be £4.9 million below market
expectations.  £3.3 million of this variance is due to the reduction in turnover
due to delayed contracts and the recent adverse weather conditions. In addition,
some of the contracts which the Company has undertaken have not performed in
line with management's expectation and this has resulted in lost gross margin of
approximately £1.0 million. The Company also took the decision to take on
contracts with new major customers at lower margins, and in some cases as a
sub-contractor, in anticipation of achieving principal contractor status with
those customers in the future.

For the current financial year the Company will see a £1.2 million increase in
its level of overheads, with the sales team being increased as the Company
sought to take advantage of market opportunities arising out of a changing
regulatory environment. Additionally, the Company has enhanced its project
management capability in anticipation of an increase in the number of contracts,
prior to the notification of the delays detailed above.

Summary

Given the very recent timing of the notifications to the Company of the delays
highlighted above, the Board is not at this time in a position to provide
guidance on anticipated turnover for the financial year ending September 2008.

The Board recognises the urgent need to strengthen the management of the
business. The Chairman is personally overseeing this process and is currently
exploring the options available. This includes the possibility of making
appointments at the most senior levels. Further announcements will be made as
and when appropriate.

Enquiries:

Worthington Nicholls

Alastair Stoddart, Chairman                           0870 6091829
Mark Worthington, Chief Executive                     07766 137780

Smithfield Group                                      020 7360 4900
Katie Hunt / Miranda Good

Blue Oar Securities plc                               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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