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PayGroup poised for long-term growth after COVID-19 tailwinds

As some people return to the office while others continue to work remotely, it’s a complex task for companies to stay compliant with payroll and human resources management.
As some people return to the office while others continue to work remotely, it’s a complex task for companies to stay compliant with payroll and human resources management. As a result, COVID-19 has given significant tailwinds to payroll and human capital management provider, PayGroup (ASX: PYG). PayGroup brings regulatory and compliance expertise to over 1000 clients across 42 countries, mostly in the Asia-Pacific. “We’ve had terrific momentum. Many organisations found out about the way they pay people and the way they manage talent and as a result of that, PayGroup was able to write some record contracts during our last financial year,” said Managing Director Mark Samlal when he spoke on Reach Markets’ fortnightly webcast series ‘The Insider: Meet the CEOs’.  PayGroup signed at least $13 million in new contracts in FY 2021, adding to the 14-fold increase in payslips processed since the company’s IPO in 2018. PayGroup’s strategy is to provide payroll and HCM solutions for its clients’ mission-critical problems, building trust, repetitive revenue and upselling.   
“We’re very interested in ensuring everybody is compliantly paid and talent is managed. That’s where we bring core value to our client base,” said Mark.
  “All key decision makers look at that and say ‘Are you compliant? Are you scalable? Are you in the cloud? Do you have regulatory and compliance expertise? Do you have referenceable customers that have re-signed?’ And the answer is ‘Yes’ to all of those,” said Mark.  
“We have a fantastic, deep relationship with our clients so we’re now looking to monetise our clients further,” said Mark, citing PayGroup’s 95% client retention rate.  
PayGroup’s clients take them on board for compliant payroll solutions. They are then upsold on human capital management solutions that focus on AI and automation.  “Our clients can implement chatbots so you don’t always have to call HR. There is also facial recognition and controls that do temperature checks before they will let you into the building,” explained Mark, referencing PayGroup’s readiness for both remote and in-house workforces.  Another key part of PayGroup’s growth strategy is in its global partnerships. The company has a network of partners around the world with no presence in PayGroup’s main region of focus, the Asia-Pacific. When a client approaches a partner about services in their Asia-Pacific branches, they are passed on to PayGroup.   
“When their organisation sells on our behalf, the client acquisition costs are far lower and we don’t have to own the marketing and legal costs. It’s definitely a high margin channel for us,” said Mark. 
  After an exciting year of opportunities, PayGroup is poised to continue on a rapid growth trajectory.   
“We’re looking to build the story around one view of your workforce, repetitive revenue and continue to focus on where we understand our best value to be – compliant, trusted payroll solutions with over 95% retention rate,” Mark concluded.
  Mark Samlal recently joined us for our fortnightly webcast ‘The Insider: Meet the CEOs’. This article summarises some of the information he shared with us during the session. You can watch a full recording below, or you can click here to book into our next session where we will be joined by Bryan Granzien, Executive Chairman of Carpentaria Resources (ASX: CAP),  Samantha Cheetham, CEO & Managing Director of SDI Limited (ASX: SDI), and Sam Hosack, Managing Director of Prospect Resources Limited (ASX: PSC). ‘The Insider’ is a great way to hear directly from the CEOs of fast growing Australian businesses. You will get valuable insights to their industries and companies’ future prospects.   The Insider: Meet the CEOs – Event Details: Date: Wednesday, 28th April Time: 12pm AEST Format: Online, 3 x 15 minute presentations This is a free event. Click here to book your spot.     Reach does not assume responsibility for the accuracy or completeness of any information provided, and the views expressed are not reflective of Reach Markets position. Any advice contained within this presentation is general advice and does not consider your personal circumstance, you should consider whether it’s appropriate for you.  The information we are giving you is for educational purposes only. “Investing is about understanding your risk” and every time you invest in the share market there is a risk of loss. Past performance is not a reliable indicator of future performance    

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