My Digital, a leader in payroll and accounting software, has reported a 21 per cent increase in revenue to £3.4m.

Founded in 2015 and based in Stockport, My Digital also grew EBITDA from £700,000 to £1.1m.

Profit after tax was £300,000 following continued investment in product development, operational capacity and market expansion.

My Digital was ranked in the top three of BusinessCloud’s FinTech 50 and has continued to invest heavily in technology, with a particular focus on automation and artificial intelligence. AI is now embedded across its software development and quality assurance processes.

The company’s development capability has also been significantly strengthened through its 55-person Indian subsidiary.

Contractor payroll leader My Digital takes on national payroll market

During the year, My Digital completed the strategic acquisition of Meteor Human Capital, expanding its service offering and strengthening its operational footprint across both the UK and India.

The acquisition forms part of a broader strategy to combine software and services into a more comprehensive payroll solution.

Having established a strong position in the contractor and temporary labour payroll sector, My Digital is now expanding into the significantly larger payroll bureau market.

The UK payroll bureau sector services around 12 million employees, compared with an estimated 660,000 in the contractor market, highlighting a substantial growth opportunity.

During the year, the company continued its share buyback programme, reflecting confidence in its long-term prospects while maintaining a disciplined approach to capital allocation.

Current trading remains strong, with the board confident in the company’s ability to deliver sustained growth, increased profitability and long-term value for shareholders.

CEO Daniel Moss said: “Payroll is a huge market undergoing rapid technological change, and we believe AI and automation will fundamentally reshape how payroll is delivered over the next decade.

“With strong recurring revenues, deep domain expertise and growing technical capability, My Digital is well positioned to capitalise on that opportunity.”