PYG - PayGroup Limited

[System]

PayGroup Limited is a Software as a Service (SaaS) company that provides Payroll and HR outsourcing and Cloud-based Human Capital Management software to multinational companies in Asia-Pacific markets. Their solutions help medium to large businesses with employees across multiple countries reduce their operational and compliance risk.

PayGroup's solutions are delivered to approximately 410 client entities with 31,000 customers across 18 countries. The Group is forecast to generate pro forma revenues of $7.6m and pro forma NPAT of $2.6m for FY18. It has a diverse and loyal client base, with the largest Cloud or BPO client entity representing less than 5% of the Group's service revenue for FY17 and 90% client retention rate.

The Company is addressing the Asia Pacific BPO Services market valued at US$20.177 billion, with the Emerging Asia Pacific segment growing at 10.3%.

It is anticipated that PYG will list on the ASX during April 2018.

www.paygrouplimited.com

 

[greggles]

PayGroup Limited has had an encouraging start on its first day of trading. Listed at 50c and is currently trading at 72.5c, a gain of 45%.

PYG has a tightly held register with the top 20 holding 85.3% of the 51,671,466 shares on issue. IPO allocations were scaled back due to the offer being oversubscribed.

Watching this one with interest.

 

[greggles]

More share price gains for PYG which finished the day at its high of 91c, up another lazy 24.66%.

PayGroup has turned out to be one of the better performing IPOs of recent times.

 

[Dona Ferentes]

More share price gains for PYG which finished the day at its high of 91c, (June 2018)
...PayGroup has turned out to be one of the better performing IPOs of recent times.

and, sadly that was about it. Around the 70c mark looks closer to the mark:

From the outset, the company has maintained its Pan Asian focus (MESA+), utilising India and Philippines to grow the business <smart-shoring (!)>. The first leg is PayAsia group of companies, including an Aust presence.. that now has 875 client entities.

Listed on ASX in May 2018 and acquired Astute One as a second leg at end of that year.. Astute is a leading SaaS platform provider to workforce management companies and the corporate sector, with over 300 clients in Australia and New Zealand.

Clients are typically medium to large multinational companies with employees in multiple countries across Asia Pacific. The Group operates as a "trusted partner to perform the outsourced payroll process for the client employees, contractors , banking, treasury, lodgement of statutory submissions including taxation, superannuation, pension, provident funds, and other social benefits. Beyond its SaaS Payroll Services, the Group’s SaaS HCM software platform supports clients in managing aspects of their employees’ life cycle, plus regional and mobile-enabled workflows for critical processes (such as employee and manager self-service, leave management and expense management)."

 

[frugal.rock]

Thanks for highlighting this one Dona.
This is exactly the kind of company that is experiencing growth from the current situation.

 

[Dona Ferentes]

all through the the day ... volume within 69-70c. ...then a near 10% jump at close on skinny trade. Funny it happens on same day there's a concerted publicity ramp.

 

[Dona Ferentes]

- the optimism implied in the recent 17 Dec Update is not reflected in any SP lift

Trading conditions improve for AstuteOne as Employment Rebounds in Australia and New Zealand
Increase in timesheets processed by AstuteOne as workforce management companies increase placements and contracts
- Timesheets up 43% in November 2020 from June 2020
- Treasury revenues up more than 60% in November 2020 from June 2020
- 37 new client entities signed to date in FY21
Strong momentum continuing for FY21, with Government Training Organisations increasing adoption of outsourced HR services and HCM SaaS solutions
- Group sales funnel up more than 310% PCP (Q2 FY21 vs Q2 FY20)

Outlook
Mr Mark Samlal, PayGroup’s Managing Director said of the AstuteOne performance,

“Increased activity for our clients in the workforce management sector is a leading indicator of economic recovery. It’s very pleasing to see the increased business confidence in Australia and New Zealand, reflecting more buoyant employment conditions following the easing of lock down restrictions. This is having a positive impact on volumes for our AstuteOne business and the acquisition of new clients."

“Our revenues will continue to grow in FY21 as new clients increase their hiring, and as existing clients increase their volumes as demand increases. Our new GTO clients have hiring volumes that are directly linked to apprentices being hired in greater numbers .... "

PayGroup expects to release its updated FY21 sales data in the week commencing 4 January 2021.

6 months, daily:

 

[Dona Ferentes]

6 monthly; with a lift over the last few days (missed it):

- the optimism implied in the recent 17 Dec Update is not reflected in any SP lift

Trading conditions improve for AstuteOne as Employment Rebounds in Australia and New Zealand
PayGroup expects to release its updated FY21 sales data in the week commencing 4 January 2021.

and here they are :

• Total Contract Value of $8.2m signed in the nine months to 31 December 2020 (Q1-Q3 FY21; 200% increase PCP - $4.1m FY20)
• $2.8m of TCV signed in Q3 FY21 (a 115% increase on PCP – $1.3m in Q3 FY20)
• Continued record sales growth for SwaS, SaaS and Treasury Services
• Strong momentum exiting FY21 and entering FY22 – over 115 new client entities signed during the nine months to 31 December 2020, and further development supported by strongest sales pipeline .

- PYG has to work hard for the growth (PayGroup is committed to expanding our global sales channels to sustain the momentum... ). There must be a lot of competition

 

[frugal.rock]

6 monthly; with a lift over the last few days (missed it):

This lift may be ending the 4 month saucer trend and popping (sliding?)/ exiting over the lip?
I see it inversing the trend that ended 4 months ago (inverse correlation price pattern, volume fangs etc.

Dunno if that's right, just what I see/ think. If I don't put it in writing, it may just remain an untested hypothesis for ever!

Either way, I pose the question;
Have you really missed it?

Not held.

 

[Dona Ferentes]

since 70c in March it has been pretty much downhill (that is a Technical term) for PYG, which hit an all-time low of 44c on 31 May. Then the FY21 results helped stop the drift.

The highlight of the FY21 result was a breakthrough to positive full year EBITDA of $1.6 million, improving $2.2 million on the figure for FY20, driven by revenue growth, increased cost efficiencies, and enhanced operating leverage.

OUTLOOK
PayGroup’s record results and significant operational progress across FY21 provide strong momentum heading into FY22. Industry tailwinds are anticipated to present further opportunities for growth as businesses increasingly digitise their human resources functions, and as hybrid and remote working environments become normal.

PayGroup expects the investment in sales teams in FY21 to continue to provide growth in leads and new contracts. There are plans for further improvements in operational leverage including continued monetisation activities which is expected to enhance margins. Investment into product innovation led by Jerome Gouvernel, who was recently appointed Chief Product Officer, will further strengthen PayGroup’s offering and operational leverage through automation.

PayGroup remains well capitalised with $12.2m of cash at 28 May 2021. This includes proceeds raised as part of the Placement and Share Purchase Plan (announced 31 March 2021).

CEO Mark Samlal describes PayGroup’s proposition as firstly, to enter a client relationship by solving its complex needs for payroll, compliance and governance, and then up-sell the client into other strategic areas that it offers, such as its HCM suite, its talent management, onboarding, rostering, timesheets, leave management, expense management, and its treasury services, which handle the movement of payroll funds around the region. In Australia, it could also be the company’s superannuation freedom-of-choice service, which cuts in whenever a client onboards a new employee or a contractor. Most recently, to accommodate for work conditions made necessary by COVID-19, PYG has also included facial recognition and temperature checks. All of these are designed to monetise further a client’s employees.

But the most crucial measure for PayGroup that investors should watch, he says, is the number of payslips that it generates, and the unit economics of each one of those payslips, which flow into margins. The company posted a 28% increase in the number of payslips processed in FY21, a significant increase given the deterioration in employment markets throughout the year, and a result that underscores the importance of PayGroup’s mission-critical payroll solutions to customers.

There has been a litany of well-publicised “underpayment” corporate scandals recently, and this is bringing the company’s specialised capability onto the radar of more clients, as the complexity of the payroll process seems only to increase. Samlal says the market is looking for a solution that makes every single payslip accurate and on time – a simple need that he says is the core ethos of PayGroup.

 

[Dona Ferentes]

since 70c in March it has been pretty much downhill (that is a Technical term) for PYG, which hit an all-time low of 44c on 31 May. Then the FY21 results helped stop the drift.

going nowhere ... then going to the moon. Previous close, 36.5c, as high as 94.5c

• PayGroup Limited has entered into a Scheme Implementation Agreement with Deel, Inc. and Deel Australia Holdings Pty Ltd under which Deel Australia will acquire 100% of PayGroup shares for a cash offer price of A$1.00 per share, via a scheme of arrangement

 

[System]

On November 28th, 2022, PayGroup Limited (PYG) was removed from the ASX's Official List in accordance with Listing Rule 17.11, following implementation of the scheme of arrangement between PYG and its shareholders in connection with the acquisition of all the issued capital in PYG by Deel Australia Holdings Pty Ltd, a wholly owned subsidiary of Deel, Inc.