Parkwood Holdings plc ("Parkwood" or the "Group")
11 May 2009
Interim Management Statement
Parkwood, the specialist support service group, issues the following Interim
Management Statement covering the period 1 January 2009 to date.
Trading
Trading performance for the Group in the first quarter of this financial year
has been challenging.
Glendale, the Group's green services division, has continued to find trading
difficult, particularly in horticulture and countryside, primarily as a result
of continuing weak customer demand. The Group's green waste recycling and
composting business, Ecological Sciences Ltd, based in Devon, commenced
proceedings relating to the termination of a contract, which is expected to
have a material impact on the Group's results. The Group's Leisure Division is
continuing to trade broadly in line with the budget for the year.
Business Development
The Group's order book was £521 million at 31 March 2009 (March 2008: £546
million), with new contract wins in the Glendale and Leisure Divisions in the
quarter increasing the forward order book by approximately £4m since the year
end.
Parkwood Leisure commenced a four year management contract with Wycombe
District Council on 1 April 2009, with annual revenues of approximately £4m.
Glendale commenced two ten year grounds management contracts, together with the
retention of an existing contract with Birmingham City Council on 23 March
2009, with combined annual revenues of approximately £3.4 million.
Outlook
Management are continuing to focus on resolving issues in the underperforming
business areas. As mentioned in the preliminary results announcement released
on 9 March 2009, the Group is continuing negotiations to sell the equity and
subordinated debt that the Group holds in leisure related PFI/PPP investments.
A further announcement is expected in due course.
For further information, please contact Carolyn Smith on 01772 627111.
Notes to editors:
About Parkwood Holdings plc:
Parkwood Holdings plc specialises in providing outsourced and support services,
predominantly to the public sector across England and Wales under long term
contracts. Its four main areas of operation are as follows:
Glendale - provides amenity horticulture, grass cutting, arboriculture and are
of sports pitches, parks and open spaces. The division also includes golf
course management, waste recycling, environmental consultancy, tree moving and
horticulture.
Parkwood Leisure - manages a diverse range of public and private leisure
facilities, including swimming pools, sports halls, gyms, health suites and
catering operations.
Parkwood Consultancy Services - undertakes PFI, PPP and similar bids on behalf
of joint ventures and the Group. Parkwood Consultancy Services is also
responsible for project management of contracts and the management of other
funds such as the lifecycle funds associated with the project agreements.
Parkwood Healthcare - Provides medical services, a nursing agency and
non-emergency patient transport services for the NHS and the private sector.