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PayGroup (ASX:PYG) releases strong September results and FY22 guidance

Finance
ASX:PYG
18 October 2021 08:30 (AEST)
PayGroup (ASX:PYG) - Managing Director, Mark Samlal

Source: Spark Plus

PayGroup (PYG) is releasing its annual recurring revenue (ARR) guidance for the 2022 financial year.

The payroll and human capital management business expects to bring in $37 million in ARR over FY22. By comparison, PYG’s ARR over the previous financial year totalled $27.2 million.

PYG also revealed on Monday that it had signed $9.6 million in new contracts over the first half of FY22, with $5 million in contracts signed in the September quarter alone.

That’s a new quarterly record for the company, which said it was experiencing increasing demand for its mission-critical core payroll solutions.

All the new contracts run for three years with automatic renewals, with PYG noting an expansion in the services it provides to the Laser Clinics International franchise network.

All up, PayGroup had processed 7.5 million payslips and other transactions at the end of 1H FY22, a 25 per cent increase on the previous six months’ results.

Founder and Managing Director Mark Samlal said the Global Partner Program sales channel was also helping deliver PYG new contracts.

“We are delighted to report the strong growth of the core payroll business across 1H FY22, and provide upgraded guidance underpinned by the significant sales momentum we are experiencing,” Mr Samlal said.

“PayGroup continues to benefit from the investment in our sales team, with our pipeline of opportunities now 5 times bigger than this time last year.

“We remain focused on scaling our core payroll business, which provides a large and growing number of end users to drive ongoing monetisation opportunities.”

At the end of the September quarter, the company had $7.6 million worth of cash in the bank and no reported debt.

Shares in PayGroup were trading up 6.32 per cent at 50.5 cents each at 12:55 pm AEDT.

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