Could anyone shed any light as to possible reasons for sourcetree 1.5.6 running extreamlly slowly; would it be anything to do with the fact that the repo is on a parallels virtual machine?
Running in a VM might make things slower, it mostly depends on the resources you give it. We'd need more details to comment further - OS version, memory usage, disk space free, hg or git, size of repo, whether it's slow because of a lot of refreshing or whether each refresh feels slow in itself.
In addition to Steve's response, you could run Activity Monitor (spotlight > type in "Activity Monitor") to see if SourceTree is using any CPU and its memory usage as follows:
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