Profits fall at Parkwood

HEALTHCARE to gardening group Parkwood Holdings today revealed a fall in profits but added it was “well-placed” to survive the recession.

The Preston-based group, which provides a range of services to the public sector from managing swimming pools and running an agency for nurses to taking care of golf courses and moving trees, said profits for the year to December 31, fell to £1.28m from £2.6m last time. Revenue for the period increased by 16% to £120.3m.

Parkwood, which employs 5,600 people, said the fall in profits was a result of reorganisation and cost-savings in its Glendale business. Profits in the division fell from £1.9m to £140,000 following poor trading in golf and horticulture.

The group’s project management division, which undertakes PFI and PPI bids on behalf of joint ventures, saw its profits fall from £300,000 to £80,000, while losses in Parkwood’s healthcare division reduced from £600,000 to £360,000.

Parkwood Leisure, which manages swimming pool, sports halls and gyms, is now the group’s most profitable division and generated an operating profit of £3.5m compared to £2.4m last time.

The group said that it is looking to sell six of its special purpose companies in a move to raise £4m.

Tim Hewitt, executive chairman, said that while Parkwood, like many businesses, is facing challenging times, the strength of its order book with the public sector, which stands at £517m, underpins its business.

He says: “It has been a difficult period for Parkwood with profit from continuing operations before taxation well below expectations. Profits in the leisure division have been offset by losses in Glendale, the `green services division’ where investment in new projects has failed to produce adequate returns.

“However, with the majority of its business in the public sector and a strong order book, Parkwood is well placed to endure the current recession.”