Parkwood Holdings plc                             

12 January 2007

                                Trading update                                 

Parkwood Holdings Plc is pleased to report that profits for the year ended 31st
December 2006 are anticipated to be ahead of market expectations on turnover,
including joint ventures, of �95 million, an increase of 20% over 2005.

Cash balances at the year end were healthy at �3.5 million and the Group's
order book has been restated (excluding private sector activity) to �430
million at the year end. The Group's core local authority businesses, Glendale,
its `green services' division, and Parkwood Leisure, its leisure management
arm, have both performed strongly.

Glendale has seen its margins increase further and prior year losses in the
nursery business, Coblands, acquired in September 2005, have been eliminated.
Both Coblands and Civic Trees (acquired in February 2006) have been
successfully integrated within the division. The core grounds management
business signed its largest ever contract - expected to be valued at around
�100 million over the life of the contract - with the City of Liverpool in
October 2006. This contract will run as a joint venture - Glendale Liverpool
Limited - to manage the parks and gardens in the city for a period of 12 years
until 2018. Glendale's golf management business has also been successful in
acquiring new business and at the year end manages eight golf courses.

Parkwood Leisure, which operates 48 leisure facilities around the country for
local authorities, has now entered the private sector health and fitness
market. It acquired two loss-making clubs in Hertfordshire in Spring 2006 and a
new flagship facility in Salisbury began operating just before Christmas.
Following investment and operational changes, the Group expects the acquired
private health and fitness clubs to become profitable in 2007. Overall the
Leisure division's profits are ahead of expectations.

Continuing difficulties in Parkwood Healthcare, where a new patient transport
contract in the North Midlands incurred exceptional start up costs and
operational difficulties in its first five months has again resulted in losses
in this division.

Parkwood Projects, the PFI/PPP business within the Group, signed two leisure
projects during the year. The Group has continued to invest in its PFI/PPP
projects under construction during the year through equity and sub-ordinated
debt and at the year end these investments totalled �2.7 million. The level of
non-recourse debt associated with PFI/PPP investments totals �32 million.

An update on progress will be provided with the Group's preliminary results for
the year to 31 December 2006, which are expected to be released on Monday 12
March 2007.

For further information, please contact:

Tony Hewitt - Executive Chairman - 01772 627111

Terry Bowman - Interim Group Finance Director - 01772 627111

Neil Boom - Gresham PR Limited - 0207 404 9000

Information on Parkwood Holdings plc can be accessed via the company's website
at www.parkwood-holdings.co.uk.


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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