PKW Parkwood Hldgs.

Trading Statement Parkwood Holdings plc ("Parkwood" or "The Group") TRADING UPDATE AND CONTRACT WIN Trading Update Parkwood Holdings plc is pleased to provide an update on trading performance for the year ended 31st December 2004. Profits before tax for the year are expected to be above market expectations on turnover as forecast of around � 67.5 million. The Group's core local authority based businesses in Leisure and Grounds Management have performed well in the year, with Glendale improving from a difficult year in 2003 and Parkwood Leisure delivering strong margins. The integration of the CCL Leisure Limited business acquired in May 2004 has been successfully completed with the transfer of the business into Parkwood Leisure at the end of December 2004. The trading results from CCL and the costs of the reorganisation process following the acquisition have been in line with expectations. The Group's total performance has been held back by the performance in Parkwood Healthcare, which although likely to show an improvement on prior year, has continued to be disappointing. The Group has successfully focussed on its balance sheet during the year and its working capital management, resulting in a considerable reduction in interest costs and a net cash position of around �1.4 million at the year end, before restricted cash and long term borrowings relating to a PFI venture. The Group's order book has increased by 21% from �230million at 31st December 2003 to �278 million at 31st December 2004. Contract Win - PFI Parkwood is pleased to announce that since the interim results were announced it has been appointed as preferred bidder on a further leisure Public Private Partnership (PPP) Project, with Solihull Metropolitan Borough for the building of a new Leisure Centre and the refurbishment of one other. This is expected to lead to an operating contract for Parkwood Leisure with an annual value of � 2.75 million and a duration of 30 years. The Group currently has four Leisure PFI/PPP projects which are at preferred bidder. It is hoped that most of these projects will reach financial close during 2005, although it is unlikely that they will contribute greatly to turnover or profits in the year. Summary As predicted at the beginning of the year, 2004 represented a year of consolidation for the Parkwood Group after a difficult year in 2003. The trading performance of Parkwood Leisure has been very strong, of Glendale has improved and we continue to work on that of the Healthcare division. Investment has been made during the year in CCL Leisure Limited and in the Group's project management and PFI activities. Parkwood is now well placed to increase turnover towards �75 million in 2005. An update on progress will be provided with the Group's preliminary results for the year to 31st December 2004, which are expected to be released on Monday 14th March 2005. For further information please contact: Parkwood Holdings plc Tony Hewitt, Executive Chairman 01772 627111 Charles Bithell, Finance Director 01772 627111 Notes for Editors; Parkwood Holdings plc specialises in providing outsourced service to the public sector across England and Wales under long term contracts. Its main areas of operation are as follows: * Glendale - The management of parks and open spaces for a predominantly local authority client base. This operation is currently being expanded into related "green" businesses under the "Think Green - Think Glendale" strapline. * Parkwood Leisure - The management of a diverse range of leisure facilities, again predominantly for local authority clients. This Division is also the operator or provider of services under most of the Group's contracts won under the PFI/PPP procurement process. * Parkwood Healthcare - The provision of non emergency patient transport to NHS Trusts under the "National Ambulance Service" banner, together with the provision of nurses on an agency basis to both NHS Trusts and the private sector. * Parkwood PFI Projects - The provision of PFI, PPP and other similar bids on behalf of Joint Ventures and the Group, generating long term operating business. This division is also responsible for the project management of contracts on behalf of the Group's associates and JVs and management of other funds such as the lifecycle funds associated with the project agreements. 2 END

Copyright