Accountancy service provider PayStream, has posted pre-tax profits of £5.8m up from £5.1m for the 12 months ending 31 March 2020.
The company, which is headquartered in Altrincham, saw its turnover increase by over £70m – with accounts showing the group made an overall turnover of £475m up from £403m in the last year.
Despite the increase, the group noted that the revenue it made from limited company clients began to decline in the second half of the year.
Paystream said this fall was a result of the “changes to off-payroll working for the private sector that had been due to take effect from April 2020” – a move which was later pushed back to April 2021 due to the Covid-19 pandemic.
Nonetheless, the company said it saw an “acceleration in growth” from contractor clients ahead of the predicted changes to off payroll working in the second quarter, as many in this sector looked to begin working under umbrella companies.
PayStream said that Covid-19 has had “multiple impacts on the company” which it has “responded to fully”.
It stated in the update: “The initial uncertainty on how this crisis would unfold and impact our financial position meant that it was prudent to take advantage of government assistance in the form of both the deferment of VAT liabilities and also the claim of grants through the Coronavirus Job Retention Scheme.
“As some of the financial risks we were concerned about did not subsequently materialise and both the profitability and cashflow have remained steady, we decided to settle the VAT liabilities ahead of the extended deadline and also repay furlough sums received in respect of those PayStream employees we were subsequently able to retain.”