Trading Statement

    Dated 16th January 2004

                             Parkwood Holdings plc                             

("Parkwood" or "The Group")

                               TRADING STATEMENT                               

                                    UPDATE                                     

Latest company estimates for the year ended 31 December 2003 indicate that
Parkwood's profits will be below expectations. The Directors now expect that
net profits before tax of approximately £650,000 will be achieved. The result
before amortisation of goodwill, profit from associates and joint venture
losses is expected to be around £850,000.

The majority of the fall in expected profits is within the Group's "green"
business, Glendale, with certain of the newer contracts performing less well
than anticipated during their first year. Performance has mainly been affected
by lower revenues. The reduction in revenue is attributed to a number of
factors, a lower demand for additional works and in certain circumstances, less
ongoing work than contracted for.

The Group's leisure business has continued to grow as planned and results
anticipated are in line with recent expectations.

Losses in the Group's Healthcare business also remain as forecast, with losses
having been reduced in the second half.

The year has been one of growth and investment for the group, with expansion of
over 10 per cent in sales. The growth in turnover has, however, not resulted in
greater profitability owing to the performance of certain new contracts.
Structural and overhead commitments have also been made to allow for yet
further growth. Examples include:

  * Diversification and expansion of the Glendale business as described in the
    interim statement and the creation of a regional structure which will allow
    improvements in the control of operations;
   
  * Investment in a separate finance and support function for the Leisure
    business in preparation for the considerable growth anticipated from
    projects already underway;
   
  * Augmentation of the PFI project team to support existing projects and those
    that are at varying stages of completion. This part of the business has
    grown rapidly, building on the initial successes that the group has had
    within the PFI and PPP marketplace. This investment will contribute to both
    joint venture and operational business for the group in the years to come.
   
The Group's order book, which had increased to £220 million at the half year,
increased further to £230 million at 31st December 2003. This represents an
increase of 38 per cent from the order book of £166 million at 31st December
2002.

The directors expect that 2004 will show double digit growth in turnover to
over £55 million, with most of this growth resulting from projects already
underway coming on stream. The directors consider that structures are now in
place to support this expansion.

The full year dividend for 2003 is likely to be unchanged from the 2.2p per
share paid last year.

A further update on progress will be provided with the preliminary announcement
of the Group's results for the year ended 31st December 2003, which is expected
to be released on Friday 19th March 2004.

For further information please contact:

Parkwood Holdings plc

Tony Hewitt, Executive Chairman 01772 627111

Charles Bithell, Group 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 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 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.
   




END