PARKWOOD HOLDINGS PLC
ANNOUNCEMENT OF PRELIMINARY RESULTS FOR THE YEAR ENDED 31 DECEMBER 2004
Parkwood Holdings plc, the public sector support services specialist, announces
its preliminary results for the year ended 31 December 2004.
Financial Highlights:
* Turnover (excluding joint ventures) increased by 34% to �67.7 million
(2003: �50.6 million)
* Operating profit before goodwill amortisation* of �1.65 million (2003: �
0.91 million)
* Profit before taxation of �1.40 million (2003: �0.60 million)
* Earnings per share before goodwill amortisation* of 5.1 pence (2003: 2.9
pence)
* Dividend for the year maintained at 2.2 pence per share (final dividend for
the year 1.3 pence per share)
* Group order book increased to �278 million (2003: �230 million)
Key Events:
* Significant increase in the size of the Group's Leisure business following
the acquisition of CCL Leisure Limited in May 2004
* Excellent results from the Group's Leisure division and improved results in
Glendale offset by weak results in Parkwood Healthcare and investment in
PFI and PPP bidding
* Financial close on a leisure PFI with Penzance District Council in March
2004
Tony Hewitt, Executive Chairman, commented:
"With a much better year under our belt, confidence in the Group's future is
high. Parkwood continues to invest for the long term, building on the many
opportunities it now has to further increase sales and profits.".
For further information, please contact:
Parkwood Holdings plc
Tony Hewitt, Executive Chairman 01772 627111
Charles Bithell, Finance Director 01772 627111 / 07717 630531
* goodwill amortisation - �122,000 (2003: �133,000)
Notes for Editors:
Parkwood Holdings plc specialises in providing outsourced service to the public
sector across England and Wales under long term contracts. Its main areas of
operation are as follows:
* Glendale - The management of parks and open spaces for a predominantly
local authority client base. This operation is being expanded into related
"green" businesses such as golf management and organic waste recycling,
further enhancing our proposition: "Think Green - Think Glendale".
* Parkwood Leisure - The management of a diverse range of leisure facilities,
again predominantly for local authority clients. This Division is also the
operator or provider of services under most of the Group's contracts won
under the PFI/PPP procurement process.
* Parkwood Healthcare - The provision of non emergency patient transport to
NHS Trusts under the "National Ambulance Service" banner, together with the
provision of nurses on an agency basis to both NHS Trusts and the private
sector.
* Parkwood PFI Projects - The provision of PFI, PPP and other similar bids on
behalf of Joint Ventures and the Group, generating long term operating
business. This division is also responsible for the project management of
contracts on behalf of the Group's associates and JVs and management of
other funds such as the lifecycle funds associated with the project
agreements.
Parkwood Holdings plc
PRELIMINARY RESULTS FOR THE YEAR TO 31 DECEMBER 2004
CHAIRMAN'S STATEMENT
Net profits before tax in 2004 amounted to �1.4 million which was a pleasing
result. The year was of strategic importance, with a significant increase in
the size of the Leisure Division as a result of an acquisition and the
continued diversification of the `green' business of Glendale. Parkwood is a
complex business for its size. The strength of its order book and diversity of
its activities provides for long term sustainability.
Results
Group sales increased by one third to �68 million from �51 million in the
previous year. Operating profits (before goodwill amortisation of �122,000)
improved in 2004 and amounted to �1.65 million with an excellent performance in
the Group's Leisure Division of �1.54 million including the benefit of the
acquisition of CCL Leisure Limited (before exceptional reorganisation costs of
�249,000), and a commendable �1.38 million (2003: �0.81 million) in the `green
services' division, Glendale. Again the Group's Healthcare division failed to
perform and produced losses of �0.33 million (2003: �0.53 million).
The Group's cash position improved significantly as a result of both the
acquisition and improved trading and there was a positive cash inflow at the
operating level of �3.6 million for the year. The Group's involvement in the
construction of new leisure facilities through its PFI/PPP subsidiaries and
associated companies meant that total capital expenditure including joint
ventures rose to over �20 million (2003: �6 million) of which the vast majority
was financed through the senior debt facility on each project. Gearing at the
year end, excluding non-recourse debt relating to PFIs, amounted to 17%
compared to 70% at the previous year end.
Dividends
The Board is keen to strengthen the Group's balance sheet and was anticipating
a reduced dividend, but the better performance achieved in 2004 has enabled
reserves to be increased by �0.4 million, whilst maintaining a dividend of 2.2p
per share for the full year. A final dividend of 1.3p per share will therefore
be paid on 13th May 2005 to all shareholders on the register on 15th April
2005.
Order Book and Prospects
Last year I set a new medium term order book target of �500 million and I am
pleased to report that the acquisition of CCL Leisure and new business wins
took the order book to �278 million (2003: �230 million) at the year end and
with further wins since then it now stands at �330 million. This is a
significant increase and sales in excess of �75 million are secured for 2005.
The public private partnerships (PFI & PPPs) that the Group has developed in
recent years require complex links with funders, architects, builders, advisors
and others. As well as providing long term operating contracts these projects
provide project management and investment income for the future. Continuing
investment in management is planned to support the Group in bidding for PFI and
PPP projects.
Parkwood now has over 100 term contracts and Leisure sites of which the
majority are with the public sector. We have determined that we will seek to
increase our presence in the private sector and the Group will continue to
invest in this task in 2005. In particular Glendale's move into the golf market
will be encouraged.
Management and Board
There were no changes in the Group Board during the year although it has been
decided that for the future the Board will be enlarged. A new non-executive
director is being recruited and is expected to be appointed and take up office
immediately after the AGM on 28th April 2005.
Succession planning is of key importance and in September 2004 we were pleased
to welcome Nick Temple-Heald as the new Managing Director of Glendale. Nick was
formerly with The Scotts Company (UK) Limited where he was responsible for
their UK operations and specialises in growing media.
At the year end we lost the services of Liz Semain the Managing Director of
Parkwood Healthcare and although no immediate replacement has been found the
board has been strengthened by the temporary appointment of Peter Fair, one of
Parkwood Leisure's regional directors.
Staff
Staff numbers increased significantly during the year as we welcomed those who
joined Parkwood as a result of the acquisition of CCL Leisure. The total number
of people employed by the Group peaked at over 3,800 in the summer of 2004 when
all seasonal part-time and casual employees are included. All our staff are to
be congratulated for the part they play in providing essential services to the
communities in which we live and work.
Outlook
With a much better year under our belt, confidence in the Group's future is
high. Parkwood continues to invest for the long term, building on the many
opportunities it now has to further increase sales and profits.
A W Hewitt
Executive Chairman
14 March 2005
PARKWOOD HOLDINGS PLC
CONSOLIDATED PROFIT AND LOSS ACCOUNT
Year Ended 31 December 2004
Existing Acquisition 2004 2003
Operations �000 Total �000
�000 �000
Turnover: Group and share of joint 58,071 10,971 69,042 51,329
ventures
Less: share of joint ventures (1,385) - (1,385) (720)
turnover
Group Turnover - continuing 56,686 10,971 67,657 50,609
operations
Cost of sales (42,843) (8,391) (51,234) (39,362)
Gross profit 13,843 2,580 16,423 11,247
Administrative expenses (12,357) (2,534) (14,891) (10,466)
Group operating profit before 1,620 283 1,903 914
goodwill amortisation
and reorganisation costs
Exceptional reorganisation costs - (249) (249) -
Goodwill amortisation (134) 12 (122) (133)
Group operating profit 1,486 46 1,532 781
Share of operating profit in
- Associated undertaking 252 - 252 236
- Joint ventures 90 - 90 122
342 - 342 358
Total operating profit - continuing 1,828 46 1,874 1,139
operations
Net interest payable and similar
charges
- Group (46) (143)
- Associated undertaking (145) (140)
- Joint ventures (281) (253)
(472) (536)
Profit on ordinary activities before 1,402 603
taxation
Tax on profit on ordinary activities (560) (187)
Profit on ordinary activities after 842 416
taxation
Dividends paid and proposed (438) (396)
Retained profit for the year 404 20
transferred to reserves
Earnings per share - basic 4.5 p 2.2p
Earnings per share before goodwill - 5.1 p 2.9p
basic
Earnings per share - diluted 4.5 p 2.2p
The Group has no recognised gains and losses other than the result for the
current and prior years. Accordingly, a statement of total recognised gains and
losses has not been presented.
PARKWOOD HOLDINGS PLC
CONSOLIDATED BALANCE SHEET
31 December 2004
At 31 December
2004 2003
Restated
�000
(note 1)
�000
Fixed assets
Goodwill 410 525
Negative goodwill (75) -
Tangible assets 11,395 4,773
11,730 5,298
Investments in joint ventures
Share of gross assets 14,291 7,207
Share of gross liabilities (14,232) (6,949)
59 258
Investment in associates 425 351
12,214 5,907
Current assets
Stocks 863 518
Debtors due within one year 9,541 7,156
Debtors due after more than one year 1,456 1,256
Cash at bank and in hand 2,110 -
13,970 8,930
Creditors: amounts falling due within one year (12,876) (9,366)
Net current assets/(liabilities) 1,094 (436)
Total assets less current liabilities 13,308 5,471
Creditors: amounts falling due after more than one year (5,905) (1,230)
Provisions for liabilities and charges (2,892) (158)
4,511 4,083
Capital and reserves
Called up share capital 196 196
Investment in own shares (164) (188)
Capital redemption reserve 401 401
Share premium account 2,227 2,227
Profit and loss account 1,851 1,447
Equity shareholders' funds 4,511 4,083
PARKWOOD HOLDINGS PLC
SUMMARY CASH FLOW STATEMENT
Year ended 31 December 2004
2004 2003
�000 �000
Net cash inflow from operating activities 3,617 2,724
Net cash outflow from returns on investments (46) (143)
and servicing of finance
UK corporation tax paid (173) (173)
Net expenditure on tangible fixed assets (5,325) (814)
Subordinated debt repaid by/(invested in) joint 3 (413)
ventures and associated undertaking
Sale of own shares by Employee Benefit Trust 24 43
Net cash outflow from capital expenditure and (5,298) (1,184)
financial investment
Net cash inflow/(outflow) from acquisitions and 1,750 (64)
disposals
Equity dividends paid (401) (413)
Net cash (outflow)/inflow before financing (551) 747
Capital element of finance lease rental (1,107) (982)
payments
Bank loan 4,458 -
Increase / (decrease) in cash in the year 2,800 (235)
RECONCILIATION OF NET CASHFLOW MOVEMENT TO NET DEBT
2004 2003
�000 �000
Increase/(decrease) in cash in the year 2,800 (235)
Cash outflow from reduction in debt and lease 1,107 982
financing
Movement on bank loan (4,458) -
Change in net debt resulting from cashflows (551) 747
New finance leases (1,301) (1,500)
Increase in net debt (1,852) (753)
Net debt at 1 January (2,877) (2,124)
Net debt at 31 December (4,729) (2,877)
Notes
1. Results and Accounting Policies
The preliminary results for the year ended 31st December 2004 were approved by
the board of directors on 14 March 2005. The financial information set out
above does not constitute the Company's statutory accounts for the year ended
31 December 2004 or 2003 as detailed in section 240 of the Companies Act 1985,
but is derived from those accounts. Statutory accounts for 2003 have been
delivered to the Registrar of Companies and those for 2004 will be delivered
following the Company's annual general meeting. The auditors have reported on
these accounts; their report was unqualified and did not contain a statement
under s237(2) or (3) of the Companies Act 1985.
The preliminary announcement has been prepared in accordance with applicable
United Kingdom accounting standards under the historical cost convention. The
principal accounting policies of the Group have remained unchanged from those
set out in the Group's 2003 annual report and financial statements with the
exception of the adoption of UITF Abstract 38. "Accounting for ESOP trusts",
where investments in own shares have been reclassified to shareholders' funds
in both current and comparative periods.
2. Analysis of Turnover, profit before tax and net assets.
Turnover, profit before tax and net assets all of which originated and arose in
the United Kingdom are attributable to the following classes of business:
2004 Turnover Profit before Net assets/
tax
�000 (liabilities)
�000 *
�000
Leisure 26,463 1,543 (1,997)
Glendale 34,858 1,375 3,998
Parkwood Healthcare 5,891 (334) 1,049
Parkwood PFI Projects 384 (205) 658
Other 61 (476) 803
67,657 4,511
Operating profit before goodwill amortisation and 1,903
reorganisation costs
CCL Leisure - exceptional reorganisation costs (249)
Goodwill amortisation (122)
Share of net profit in joint ventures and (84)
associated undertaking
Group interest payable (46)
Profit before taxation 1,402
2003 Turnover Profit before Net assets/
tax
�000 (liabilities)
�000
�000
Leisure 14,414 947 (636)
Glendale 29,074 814 4,118
Parkwood Healthcare 6,803 (529) 1,169
Parkwood PFI Projects 277 - -
Other 41 (318) (568)
50,609 4,083
Operating profit before goodwill 914
amortisation
Goodwill amortisation (133)
Share of net loss in joint ventures and associated (35)
undertaking
Group interest payable (143)
Profit before taxation 603
* Net assets/(liabilities) for the trading businesses excludes cash/
(borrowings) and intercompany balances. "Other" includes cash �2,110,000 (2003:
overdraft�690,000). The net assets of Parkwood PFI Projects were included
within "Other" in 2003 and have been separately analysed in 2004.
3. The final dividend is payable on 13th May 2005 to shareholders on the
register on 15th April 2005.
4. Earnings per share for the year to 31 December 2004 have been calculated on
the profit attributable to ordinary shareholders of �842,000 using the weighted
average number of shares in issue during the period.
5. The Annual Report will be posted to shareholders on or around 30 March
2005. Copies will be available from:
The Company Secretary, Parkwood Holdings plc, Parkwood House, Cuerden Park,
Berkeley Drive, Bamber Bridge, Preston PR5 6BY
The results will not be advertised in any newspaper
ENDS
END
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