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Parkwood Holdings plc

('the Company' or 'the Group')

Realm Services (DAC) Limited

Parkwood Holdings plc announces that a subsidiary special purpose company ('SPC') Realm Services (DAC) Limited ('Realm') has been placed into Administration following close discussions with Barclays Bank plc, the senior lender to the SPC.  The Joint Administrators, Shay Bannon and Tony Nygale, of BDO Stoy Hayward will seek to negotiate satisfactory terms with the Ministry of Defence ('MoD') relating to an outstanding dispute at the Defence Animal Centre ('DAC') in Leicestershire. The dispute relates to the provision of kennelling for dogs trained at the DAC. The directors and Barclays believe that placing Realm into Administration is the best course of action since it invokes a 150 day suspension period to the contract which should allow time to reach a commercial resolution to the outstanding contractual issues.

Barclays Bank provides senior debt amounting to £6.5 million to Realm which signed a PFI contract with the MoD in August 2000. Realm is responsible for the provision, management and maintenance of a new Headquarters building, which includes offices, messes and new single living accommodation. Realm also provides an ongoing range of services in support of the core military training activities. The total carrying value of Realm in the Group's consolidated balance sheet is £2.6 million.  Realm forms part of the Group's non-recourse activities.

The Group's interim results will be issued on 28 August 2009 and further information will be provided in due course.

For further information, please contact Tony Hewitt, Executive Chairman, 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 the UK under long term contracts.  Its four main areas of operation are as follows: 

 

Glendale                                           Provides amenity horticulture, grass cutting, arboriculture and care 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.

 

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.

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