PKW Parkwood Hldgs.

RNS Number:6790P
Parkwood Holdings PLC
9 January 2002

                            Parkwood Holdings plc

                         ("Parkwood" or "The Group")


                            TRADING STATEMENT AND

                      ANNOUNCEMENT OF NEW CONTRACT WINS



Trading Statement

The Group is pleased to provide an update on trading performance for the year
ended 31st December 2001. As a result of a good trading performance in the
second half of the year, it is expected that Group results for the year will
be in line with market expectations.


The Group's core local authority based businesses in Leisure and Grounds
Management have continued to perform strongly, whilst the Healthcare Division
has traded profitably in the second half of the year.


In addition, the Group's continuing focus on working capital management has
resulted in a reduction of over 25% in the Group's net debt position during
2001.


Contract Wins

PFI / PPP

Parkwood is pleased to announce that a consortium named Boxwood Leisure in
which Parkwood is a key player has been appointed as preferred bidder for a
significant Leisure Public Private Partnership (PPP) contract for the London
Borough of Bexley. The PPP contract is for a term of 33 years and would
require the consortium to invest approximately #25 million over the first 3
years to build new local authority leisure facilities in Bexley.


Glendale Leisure, the Group's local authority leisure management business,
will operate the facilities on behalf of Boxwood both during and after the
initial construction period. It is expected that operational income to
Glendale should be in the region of #5 million per annum after construction is
completed, although income will be at lower levels during the initial 3 year
construction period. It is our aim to achieve contract signature before the
end of 2002, but it is unlikely that this contract will have a material impact
on revenues in the year 2002.


Funding for the consortium is principally provided by senior debt from the
Barclays PFI unit, with whom the Group has successfully worked on its other 2
PFI projects.


Best Value Contracts

In addition to the Bexley contract, the Group is pleased to announce the award
of 2 new contracts in Glendale Grounds Management. The first of these is for a
term of 5 years with an approximate annual value of #900k with Maidstone
Borough Council, while the second is a 6 year contract with an annual value of
at least #550k with a Council based in the South of England. Both these
contracts are expected to commence operations in the early Spring of 2002,
with the precise scope of the latter contract currently in the process of
being finalised.


In addition, Glendale Leisure is currently in final negotiations with a local
authority based in the North of England with regard to the award of a 7 year
contract with an annual value of approximately #2 million. It is expected that
successful negotiations will result in this contract starting in Spring 2002.




Summary

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


"It is pleasing to confirm the improved financial performance of Parkwood in
the year ended 31st December 2001. Management remains focussed on delivering
improved margins and turnover growth, combined with continued strong working
capital controls, in order to ensure that this improvement in performance is
continued in the years ahead.


It is also pleasing to announce the preferred bidder status on the Bexley
project and the new contracts secured through the Best Value process. Recent
contract awards and extensions have allowed the Group to increase its forward
order book from the levels disclosed in the interim results in September."


For further information please contact:


Parkwood Holdings plc

Tony Hewitt, Executive Chairman           01772 627111

Doug Eadie, Group Finance Director      01772 627111

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