Invicta Law sees profit rise by £470k in 2020/21 financial year

Invicta Law, the alternative business structure controlled by Kent County Council, saw profit for the financial year ended 31 March 2021 rise by 330% to £674,000 (2019/20: £204,000).

The firm's accounts showed turnover meanwhile increased to £9.244m, up from £8.942m. Administrative expenses were £3.022m, down from £3.475m. Operating profit was £863,000 (2019/20: £270,000).

At 31 March 2021, Invicta Law had cash balances of £1.437m (up from £1.131m) and net current assets of £2.113m together with long-term contracts with the county council.

The amounts owed by the ultimate parent undertaking (the county council) rose from £1.396m to £1.637m.

Invicta Law received £58,000 in compensation under the Coronavirus Job Retention Scheme for part of the wages, associated national insurance contributions and employer pension contributions of employees who were placed on furlough.

In relation to post balance sheet events, the accounts revealed that – effective 1 April 2021 - £1.8m of share premium was cancelled via a special resolution, and credited to the profit and loss account reserve.

It was also noted that on 30 April 2021, Invicta Law repaid £500,000 of the loan balance outstanding to the county council.

In its accounts Invicta Law said: “The directors are pleased with the progress that has been made by the company during the year, as the company now looks to focus on some key growth areas.

“Like many UK businesses we have been impacted by COVID-19 and took steps to prepare our IT and employees for home working. The impact of moving to home working and changing our working practices have been positive for our employees and client experience.”