PKW Parkwood Hldgs.

RNS Number:9334N
Parkwood Holdings PLC
17 July 2000

                  Parkwood Holdings plc
               ("Parkwood" or "the Group")
                            
                     Trading Update

The  Group's  main  local authority based  businesses  in
leisure  and grounds management have continued to perform
well in the first half of the year 2000, with results  in
these  businesses  expected to be  in  line  with  market
expectations.   Initial  results  from  the  three  major
contracts  that commenced in the first half at  Lewisham,
Southend and Birmingham are encouraging, with performance
across these contracts being in line with budgets.

Group results, however, are affected by first half losses
in  Glendale  Countryside  and Parkwood  Healthcare,  the
Group's  two smallest operations.  As a result  of  these
losses, it is expected that overall Group results for the
year will fall short of current market expectations.

The  losses  in  Glendale Countryside have mainly  arisen
from  the  landscapes construction activity,  which  also
produced losses in 1999.  As a result of these continuing
losses and the low margins and high risk inherent in this
activity,   the  Group  has  decided  to  withdraw   from
landscape construction by the end of August.  Discussions
are  currently in progress which may lead to the existing
management  team  taking this business over.  This  would
minimise closure costs to the Group.

The first half of the year has historically proven to  be
quieter in terms of new contract wins, a trend which  has
continued this year.  The Group has successfully disposed
of  the  Hermes Health Studio, a private health  club  in
Taunton, for a total cash consideration of #74k, with  an
associated profit of #20k.  This disposal was due to  the
small scale of this operation, which was no longer a good
fit  with  the Group.  The sale and leaseback of Parkwood
House, the Group's Head Office, which was reported in the
1999  Annual  Report, will also contribute an exceptional
gain  of #464k to reported figures for the first half  of
the year 2000.

In PFI, progress on the signature of the flagship Defence
Animal  Centre  contract  has  been  frustratingly  slow.
However,  the  Group  has  good reason  to  believe  that
financial close is now approaching on this project.   The
PFI  unit has a further three projects where the  Group's
consortia are shortlisted as one of two bidders.

Future Board Changes

In the annual report published in April, Tony Hewitt, the
Group  Chairman and Chief Executive stated that, in  line
with  the  practice  outlined in the Combined  Code,  the
Group  would  seek to separate the roles of Chairman  and
Chief  Executive.   In  line with  this  statement,  Tony
Hewitt has informed the Board that he wishes to step down
as Chief Executive in one year's time or earlier in 2001,
as  and  when  a suitable successor can be appointed.  He
will continue as Chairman.

Summary

Tony  Hewitt,  Parkwood's Chairman and  Chief  Executive,
said that:

"Clearly, it is disappointing to report that figures  for
the  year 2000 will fall short of expectations,  but  the
action  announced today to withdraw from  the  landscapes
construction business should swiftly lead to the  removal
of  the  cause  of this year's disappointing performance.
This  will  leave the Group with greater focus and  allow
the  strong  results  from our main  businesses  to  flow
through to Group profits."


For further information, please contact:

Parkwood Holdings plc
Tony Hewitt, Chairman and Chief Executive    01772 627111
Doug Eadie, Finance Director

Square Mile Communications
Nick  Oborne  / Stephanie  Smart           020 7601 1000

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