Trading Statement
July 12 2006 - 3:00AM
UK Regulatory
Parkwood Holdings plc
RNS release 7.00am, 12 July 2006
Trading update
On entering the close period ahead of its interim results announcement,
Parkwood Holdings plc is pleased to report that overall trading has exceeded
expectations and that results for the first six months to 30th June 2006 are
expected to show growth on the prior year period.
Parkwood Leisure continues to trade well, particularly in increasing leisure
facility income which has been seen to offset much of the impact of additional
utility costs. A number of announcements have been made since the year end
which note the considerable increase in the Leisure order book, which is
reported as �224 million at the end of June 2006 (December 2005: �143million).
This order book excludes full year revenues of �3 million from 2007 onwards
from the Group's recently formed private health & fitness business, which will
show small losses in 2006 due to start up costs.
As set out in market forecasts, the performance from Glendale, the `green
services' division, is expected to continue to improve, building on
improvements reported at the 2005 year end. Revenue growth of around 25% is
already forecast for the full year, principally arising from a full year of
businesses and contracts acquired in 2005. The new businesses and contracts
acquired are being assimilated into the division with management focussed on
their successful integration. This division is not expected to continue such
high levels of growth in the near future during this consolidation period.
The Group will continue to invest strongly in Leisure and PFI/PPP assets over
the coming months and into 2007. This is expected to bring an increase in debt
and gearing by the year end, in line with market forecasts.
Revenues for 2006 do not now depend on the winning of any new business. Final
results will be subject to the continued levels of trading performance within
each of the Group's main businesses. The directors are confident of being able
to match the results of 2005, despite the extra costs to the Leisure business
of utilities and the start up of the private health and fitness business.
Tony Hewitt, Executive Chairman, commented:
We are pleased to have made a good start to the year. Prospects for the
remainder of the year and continued growth are strong.
For further information, please contact:
Tony Hewitt Executive Chairman 01772 627111
Charles Bithell Financial Director 01772 627111 / 07717 630531
Neil Boom Gresham PR Ltd 020 7404 9000
Information on Parkwood Holdings plc can be accessed via the company's website
at www.parkwood-holdings.co.uk
Notes to editors:
About Parkwood Holdings plc:
Parkwood Holdings plc specialises in providing outsourced and support services,
predominantly to the public sector across England and Wales 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.
Project Management - Undertakes PFI, PPP and similar bids on behalf of joint
ventures and the Group. Parkwood Project Management is also responsible for
project management of contracts and the management of other funds such as the
lifecycle funds associated with the project agreements.
Healthcare - A nursing agency and an ambulance and patient transport business,
Parkwood Healthcare is expanding its operations from London and the South East
into other parts of England and Wales, dealing both with the NHS and the
private sector.
END
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