- Business process outsourcer PayGroup (PYG) achieved record sales growth across all business sectors in Q3 FY21
- The company received record cash receipts of $4.6 million, a 48 per cent increase on the prior corresponding period
- Additionally, the company signed a total contract value (TCV) of $2.8 million, an increase of 115 per cent over the $1.3 million signed in Q3 FY20
- Pleasingly, PayGroup delivered positive operating cash flow of $632,000, with funds coming from customer receipts as well as government grants and tax
- Overall, the company still burnt more than $4.4 million on staff, administration and corporate costs
- As of December 31, PayGroup had a cash balance of just over $4.9 million
- PayGroup is down 4.55 per cent on the market and shares are trading at 63 cents
Business process outsourcer PayGroup (PYG) achieved record sales growth across all business sectors in Q3 FY21.
The company received record cash receipts of $4.6 million, a 48 per cent increase on the prior corresponding period (pcp).
For these first three quarters, organic growth contributed to 92 per cent of total sales, while the acquisition of TalentOz and Payroll HQ contributed the remaining eight per cent.
PayGroup credits its organic sales growth to direct sales and the Global Partner Program (GPP), which the company expects to expand further.
Additionally, the company signed $2.8 million in total contract value (TCV), an increase of 115 per cent over the $1.3 million signed in Q3 FY20.
This brings the total TCV to $8.2 million and PayGroup is on track to deliver record sales in FY21.
During the quarter, 115 new entities were added to Pyagroup’s portfolio, with 37 coming from PayGroup’s subsidiary, Astute One. PYG chalks this up to improved trading conditions and employment rebounds.
Financials
Pleasingly, PayGroup delivered positive operating cash flow of $632,000, with funds coming from customer receipts as well as government grants and tax.
Overall, the company still burnt through more than $4.4 million on staff, administration and corporate costs.
As of December 31, PayGroup had a cash balance of just over $4.9 million.
“The swift integration of our recent acquisitions – Payroll HQ and TalentOz – has provided an additional boost to annual recurring revenue (ARR) and the increase in clients is providing us a solid base to grow our ARR in FY22,” Managing Director Mark Samlal said.
“We expect to see growth continue into FY22 as the economic recovery continues and new clients increase hiring and as existing clients increase their volumes as demand increases,” he added.
PayGroup is down 4.55 per cent on the market and shares are trading at 63 cents at 1:53 pm AEDT.