Trading Statement
16 July 2003 - 7:28PM
UK Regulatory
Parkwood Holdings plc
("Parkwood" or "The Group")
TRADING STATEMENT
In advance of entering the close period ahead of its interim results
announcement, Parkwood Holdings plc is pleased to report that overall trading
has been in line with expectations and that results for the first six months to
30th June 2003 are in line with budget. However, the pre tax profit figure will
be lower than in the first half of 2002, due mainly to the fact that Parkwood
Healthcare's losses in the first half of 2003 have increased compared to the
first half of 2002. Parkwood Healthcare's losses are forecast to reduce in the
second half of 2003.
Parkwood Leisure continues to trade well and will report a significant increase
in profits in the first half. Trading in Glendale is ahead of budget, but
behind last year, due to continuing revenue investment in new markets as part
of the future development of this business.
As announced on 30th June, the Group has now signed its biggest contract to
date, to provide leisure management services to the London Borough of Bexley
through a PPP contract with a 32 year term. The Group can confirm that
financial close has taken place on this contract and that Parkwood Leisure is
contracted to commence the operation of five existing leisure facilities with
an annual turnover in excess of �3 million on 1 September 2003. As a result of
this award (and other smaller contract wins in the last six months), the
Group's forward order book has increased significantly from �166 million at 31
December 2002 to �220 million, representing an increase of over 30%.
The final outturn for the year 2003 will depend on the signature of the 3 other
Leisure PFI/PPP projects that remain at the preferred bidder stage (in
Cornwall, Norfolk and Croydon). An update on progress on these deals will be
provided with interim results, which are expected to be published on Monday,
15th September 2003.
As a result of the substantial growth that Parkwood Leisure will achieve over
the next 3 years from the Group's success in the PFI/PPP market, Andrew Holt
has decided to concentrate on managing Parkwood Leisure and to stand down from
his role as Group Chief Executive with effect from 1st August 2003, although he
remains on the Group Board. Tony Hewitt, currently Executive Chairman, will
assume the responsibilities of Chief Executive from the same date.
The Group also regrets to announce the resignation of Doug Eadie, Group Finance
Director who leaves to pursue other opportunities after the interim results are
announced in September. The Board wishes to take this opportunity to thank Doug
for his contribution to the Group over the last five years. The recruitment of
a replacement Group Finance Director will commence immediately.
For further information please contact:
Parkwood Holdings plc
Tony Hewitt, Executive Chairman 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 three 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"
logo.
* Parkwood Leisure - The management of a diverse range of leisure facilities,
again predominantly for local authority clients. This Division is also the
beneficiary of 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 a similar client base.
END