Despite the group breaking the £200m revenue mark “for the first time”, Mazars’ operating profit fell by £4.2m to £31m in FY20.
This can be attributed to a 14.2% year-on-year increase in Mazars’ employee benefit expenses to £108.8m.
The group claimed that while revenues grew, the year in which Covid-19 heavily impacted H2 “was not about financial performance”.
Instead, Mazars said that the FY20 was “dominated by an overriding priority for the firm which was to support the team”.
Phil Verity, UK senior partner at the company, said: “This has been a year of unique and unexpected challenges. Our people have demonstrated unwavering resilience, spirit and determination, which has enabled us to deliver for, and support our clients against a difficult backdrop.
“Despite the many challenges, we have taken the opportunity to plan ahead by launching our four-year strategy, enabling us to emerge from the pandemic with real positivity and momentum.”
The firm ended the year with £106.1m in total assets, compared to £100.9m in FY19, and reduced net borrowings to £13m.