19 October 2009

Parkwood Holdings plc ('the Company' or 'Parkwood")

Glendale Grounds Management Limited and TEG Announce End of JV 

Parkwood's subsidiary, Glendale Grounds Management Limited ("Glendale") and The TEG Group Plc ("TEG") on 16 October 2009 reached agreement for Glendale to acquire TEG's shares in Verdia Horticulture Limited ("Verdia" or "the JV"), the joint venture company launched in 2007 to manufacture horticultural compost products. The parties believe that the future of Verdia is best served as a wholly owned operation and, as the Verdia plant at Hillbarton, Exeter, is part of a larger Glendale facility, the parties considered it more appropriate for Glendale to acquire the share capital from TEG. The cash consideration for the shares is £150,000 and, in addition, working capital loans of £200,000 have been repaid to TEG. In the year ended 31 December 2008 Verdia recorded a loss before tax of £51,000, and as at that date Verdia's gross assets amounted to £1,483,000 and net assets amounted to minus £80,800.  

TEG will continue to support Verdia under the plant supply agreement between the parties.

Contact:

For further information please contact either:

Tony Hewitt, Executive Chairman, 

Carolyn Smith, Company Secretary,     01772 627111.