Parallel Media

Freed from a constrictive arrangement with its Asian partner, golf-focused marketing and event management outfit Parallel has holed out its first profit since listing.

Executive chairman and 29% shareholder David Ciclitira, who has been running the business for almost 20 years, is relieved to have bought out of the agreement with the 49%-owned associate as ‘we now have the freedom to act that we weren’t allowed before’.

Parallel now organises and sells sponsorship for the Ladies European Tour and the Tour de Las Americas, as well as for two men’s European Tour events, the Kazakhstan Open and the Samsung Ladies Masters. Last October the company was appointed exclusive commercial partner for the World Cup of Golf at its long-term home at the Mission Hills Club in China and Ciclitira promises another new tournament later in the summer.

Last year from such events the company made pre-tax profits of £360,000 from revenues of £4.6m, a turnaround from losses of £1.1m on £2.6m sales for 2005. Ciclitira attributes the improvement to reducing the cost of running events and a renewed sales effort. He is more excited about events since, having this January secured the first deal for the World Cup and a 12-year title sponsorship contract with watchmaker Omega, and with a broadening of the offering into sailing and tennis in train.

‘You’re not going to see spectacular growth in 2007 as these events take time to bed down, but 2008 should be significant,’ says Ciclitira. ‘We’ve now got a slimmer structure, we’ve added good staff, we’ve got rid of our burden of debt and now we can see the cash coming in.’

Looking further forward, Ciclitira sees opportunities opening up around the preparations for the London Olympics in 2012, anticipating corporate activity aplenty in the sports marketing arena. Debt-free and now profitable, Parallel, valued only slightly more than last year’s sales, could reward a punt.