Join our daily newsletter At The Bell to receive exclusive market insights
- Payroll manager PayGroup (PYG) has nearly doubled its new contracts over the first half of FY21
- The fintech stock, headquartered in Melbourne, secured $5.4 million in new contracts over the new financial year’s first half — up 93 per cent on the first half of FY20
- Significantly, the contracts secured in FY21’s first half are already worth 98 per of the total contract value (TCV) secured over FY20
- Now, PayGroup is gearing up to release its second-quarter financials, which are due to come out in late October
- On the back of this news, PayGroup shares jumped 7.41 per cent, trading for 58 cents per share
Payroll manager PayGroup (PYG) has nearly doubled its new contracts over the first half of FY21.
The fintech stock, headquartered in Melbourne, secured $5.4 million in new contracts over the new financial year’s first half — up 93 per cent on the first half of FY20.
Significantly, the contracts secured in FY21’s first half are already worth 98 per of the total contract value (TCV) secured over FY20.
All up, 80 new contracts were signed over the first half of the new financial year. That statistic includes both new and existing clients, who opted to upgrade their current packages.
Positively, PayGroup said the global pandemic had provided unique opportunities for its business to grow. For example, transactions across its Treasury Services arm increased by 279 per cent compared to FY20’s second half.
In addition, PayGroup’s Global Channel Partner Program grew to 39 countries, increasing the company’s overall addressable market. Now, the company has 229 employees across 11 countries, servicing nearly 1000 clients.
Moving forward, PayGroup is gearing up to release its second-quarter financials, which are due to come out in late October.
Speaking to the results, PayGroup Managing Director Mark Samlal said he was pleased with the company’s performance over the last half, especially in the context of the pandemic.
“We are continuing to follow the government protocols in each of our regions with respect to operating and re-opening safely, with employee welfare and client service satisfaction as our key priority,” Mark stated.
“We are well-positioned to weather the current business environment and are
increasingly seeing clients seeking to outsource HR and payroll functions to drive greater business efficiencies” he continued.
Mark went on to say a capital raise completed last month has set the company up to take advantage of future business opportunities. While the company is yet to disclose what these might be, more information could be revealed in its upcoming quarterly activity report.
On the back of this news, PayGroup shares jumped 7.41 per cent, trading for 58 cents per share at 2:52 pm AEDT.
