Parasol likely to hoist For Sale sign within 18 months

Parasol, an umbrella company to IT contractors, is likely to hoist a ‘For Sale’ sign over its entire business within the next 18 months, as part of its push for a new round of investment.

Founder Rob Crossland, who set up the brolly in 2000, said in an interview that he expected its owners Inflexion, a private equity firm, to sell its stake sometime between now and next July.  

It would represent the second management buyout for Warrington-based Parasol, following Inflexion’s £9.4m investment for a majority equity shareholding in the business, which was part of its £23m takeover.

That takeover, in 2006, included a package from HSBC of £12m in debt facilities, disclosed terms of the deal stated at the time, while the remaining investment was put in by Parasol’s management.

With a growing number of ‘flexible employees’ (8,300 at the time of writing), and with fresh contracts at A-list recruiters and hirers, the management is eyeing the new investment to take Parasol international.

“We have lots of ambition and opportunities for growth, both in the UK and abroad,” Mr Crossland said in an interview with the Manchester Evening News.

“We want to move to the next level to become a true business [-to-] business services group”.

He added that Parasol’s turnover and profits were forecast to grow in the year ahead, helped by an internal injection of £500,000, following a dip in its 2010 trading year.

For the latest financial year however, Parasol returned to the black. It reported turnover up 13% from £338m to £383m, and pre-tax profits leapt 69% from 2.7m to £4.7m, on the back of investment in sales, marketing, processes and IT.