Parkwood Holdings plc

("Parkwood" or the "Group")

Interim Management Statement

19 November 2009

Parkwood, the specialist support service group, issues the following Interim Management

Statement covering the period 1 July 2009 to date.

Trading performance for the Group in the period since 1 July 2009 has benefitted from the usual improvement in activity levels at this time of year although the general economic environment remains challenging. 

The Group's Leisure Division is trading in line with the budget for the year which anticipated a substantial increase in profit compared to the previous year due to an increase in revenue from new contracts.

Glendale, the Group's green services division, continues to find trading difficult primarily as a result of weak demand, particularly in horticulture, golf and countryside. Glendale is currently undergoing a restructuring of the business in order to reduce overheads and improve efficiency. On 16 October 2009 Glendale acquired the equity interest of its joint venture partner in the Verdia business, which manufactures horticultural compost products. The total consideration was £0.35 million, including the repayment of the joint venture partner's loan. 

Bristol City Council have now received final funding approval for a PFI project to build a £23 million leisure centre and have signed a binding memorandum of understanding with Parkwood Project Management. Financial close is expected to occur in the first quarter of 2010.

Earlier today Parkwood announced the proposed disposal of its equity and subordinated debt investments in the leisure related special purpose companies which will result in a net cash inflow of £4 million. The proceeds will be used to reduce the Group's borrowings and the disposal will also reduce the Group's overall level of gearing. The Group has also renegotiated its banking facilities for the next 12 months.

The Group's order book was £508 million at 31 October 2009 (30 June 2009: £500 million).

For further information, please contact:

Tony Hewitt / Mike Quayle              01772 627111