PKW Parkwood Hldgs.

    Parkwood Holdings Plc

10 January 2007

                                Trading Update                                 

Parkwood Holdings Plc, the specialist support services group, is pleased to
announce that profits before exceptional items for the year ended 31 December
2007 are anticipated to be slightly ahead of market expectations on turnover,
including joint ventures, of approximately �107 million, an increase of 13% on
2006. The core businesses of Glendale and Parkwood Leisure have both continued
to perform well.

Glendale, the `green services division', has completed two acquisitions in the
year as it moved to strengthen its operations in the South West with the
purchase of the DPL Holdings Group in November and to establish a base in
Scotland as a result of the purchase of Landscape Construction (Scotland) in
June. The core grounds management business enjoyed a record year whilst the
Coblands nursery business continued to make profitable progress. The Golf
Management business suffered as a result of the very poor summer and its
operating profits were down on those achieved in 2006.

Verdia Horticulture Limited, Glendale's joint venture with TEG Group Plc, which
was formed in July, has agreed its first project; the establishment of an
in-vessel composting unit to be located alongside the Glendale green
waste-recycling activity on a new site near Exeter. The project is anticipated
to come on line in the second half of 2008.

Parkwood Leisure saw the number of leisure facilities under management increase
from 48 to 54 in the year as profits from the public sector management
activities increased. The division's private health and fitness business failed
to make a profit. Monthly operating break even is now anticipated from Quarter
1 of 2008. The division's profits overall were in line with expectations.

Parkwood Leisure will commence two new contracts in January 2008 at Portsmouth
City Council for a term of 25 years and the flagship Cardiff International Pool
where a 10 year contract has been signed.

Parkwood Healthcare continued to be loss making as reported at the half-year
stage due to ongoing difficulties in the patient transport business. The Group
has been seeking a buyer for this activity and, whilst interest has been
received for parts of the operation, early disposal of the business is not
anticipated. Accordingly, the Group will take a one-off exceptional charge to
cover the expected losses for the remaining 19 months of the North Midlands
contract, which has been loss making since commencement. The Group continues to
seek a cost effective exit from this contract before that time. In any event,
the impact on Group performance will be significantly reduced in 2008.

Parkwood Projects (Projects) completed its first leisure DBOM (design, build,
operate and manage) contract in December which will see Parkwood Leisure manage
a further 12 leisure facilities on behalf of Portsmouth City Council and
Projects manage the redevelopment of the Mountbatten Leisure Centre in the city
including the building of a new 50 metre pool. The Group has continued to
invest in PFI/PPP projects under construction through sub-ordinated debt. At
the year end these investments totalled �4.5 million (2006 - �2.7 million). The
level of non-recourse debt associated with the Group's PFI/PPP investments now
totals �78 million (2006 - �32 million).

Cash balances at the year-end were �4.8 million (2006 - �3.5 million) and the
order book has grown to �530 million; an increase of 28% over 2006.

An update on progress will be provided with the Group's preliminary results for
the year to 31 December 2007, which are expected to be released on Monday 10
March 2008.

For further information, please contact: -

Tony Hewitt Executive Chairman - 01772 627111

Terry Bowman Group Finance Director - 01772 627111/07825 607358

Neil Baldwin Brewin Dolphin - 0113 241 0126

Notes to editors:

About Parkwood Holdings plc:

Parkwood Holdings Plc specialise 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, 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.

Projects Management - Undertake PFI, PPP and similar bids on behalf of joint
ventures and the Group. Parkwood Projects Management is also responsible for
project management of contracts and the management of other funds such as
lifecycle funds associated with the project agreements.

Healthcare - A nursing agency and ambulance and patient transport business,
dealing both with the NHS and the private sector.



END

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