Parkwood finds trading a challenge

PRESTON-based Parkwood Holdings, which manages golf courses, swimming pools and also runs some PFI contracts, has said first quarter trading has proven to be “challenging” for the group.

In a trading statement it said that a contract termination at Ecological Sciences, its green waste recycling and composting business in Devon, would impact on the group’s results.

Meanwhile, weak customer demand meant that its green services division Glendale continued to find trading in the first quarter of the year difficult, particularly in horticulture and countryside.

Despite this, in March the division started two 10-year grounds management contracts, and retained a contract with Birmingham City Council, bringing in combined annual revenues of around £3.4m.

Parkwood Leisure is trading in line with the budget for the year, the group said. In April it started a four year management contract with Wycombe District Council, worth around £4m a year.

At the end of March 2009 (quarter one), the group’s order book stood at £521m, compared with £546m a year earlier.

Parkwood said it is continuing negotiations to sell the equity and subordinated debt that it holds in leisure related PFI/PPP investments.

“Management are continuing to focus on resolving issues in the underperforming business areas,” it said in the statement to the stock market.