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PayGroup (ASX:PYG) announces strong Q1 results and FY22 guidance

Finance
ASX:PYG
22 July 2021 13:30 (AEDT)

PayGroup (PYG) is expecting an annual recurring revenue (ARR) of up to $37 million in the 2022 financial year.

Specifically, PYG said it was expecting between $35 million and $37 million ARR, which was well above FY21’s ARR of $27.2 million

The fintech company released its FY22 guidance after recording strong growth in its first quarter of FY22.

PYG said it ended the period having signed $4.6 million worth of new contracts during the period, a 53 per cent increase year on year.

It also processed a record 6.7 million annualised payslips and transactions amid a rise in demand for PYG’s payroll and human capital management services.

Founder and Managing Director Mark Samlal said it was shaping up to be another strong year for the company.

“FY22 will be a significant year for PayGroup. The guidance we announced highlights the exciting growth profile of the business and our ability to consistently execute on our proven strategy,” Mr Samlal said.

“With the platform now in place and our technology roadmap underway, we are focused on extracting the significant embedded value across the group in the interest of long-term shareholder value creation.”

Since the end of Q1 FY22, PayGroup has signed a $1 million contract with makeup giant Coty.

The company ended the June quarter with $12.5 million worth of cash in the bank and debt-free, stating it was well capitalised for future growth.

PYG shares were trading down 0.93 per cent at 53 cents per share at 2:45 pm AEST.

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