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- Payroll services business PayGroup (PYG) has announced strong results for its AstuteOne subsidiary over the November period
- The company delivered a 43 per cent increase in timesheets recorded during the month compared to June this year when COVID-19 was at its peak
- Along with the volume increase, PYG noted that treasury revenues were up more than 60 per cent in November as well
- An additional 37 new client entities were signed to AstuteOne during the first half of FY21, representing a total contract value of $1.1 million
- PayGroup provided an outlook for the remainder of FY21, stating it expects revenue to continue to grow over the period as more people return to work
- Shares in PYG are trading up a healthy 12 per cent at 60.5 cents each
PayGroup (PYG) has announced strong results from its AstuteOne subsidiary over the November period.
Astute delivered a 43 per cent increase in timesheets recorded over the month, as compared to June this year when COVID-19 was at its peak.
The jump in work is being credited to the easing of COVID-19 restrictions as many of the company’s clients are in the workforce management businesses.
“It’s very pleasing to see the increased business confidence in Australia and New Zealand, reflecting more buoyant employment conditions following the easing of lockdown restrictions,” PYG Managing Director Mark Samlal said.
“This is having a positive impact on volumes for our AstuteOne business and the acquisition of new clients,” he added.
Along with the volume increase, PayGroup noted that treasury revenues were up more than 60 per cent in November as well.
Additionally, an extra 37 new clients were signed to AstuteOne during the first half of FY21, representing a total contract value of $1.1 million.
This includes substantial growth in the Government Training Organisation (GTO) sector, which is being driven by the federal government’s business stimulus package for apprentices.
Looking ahead, PayGroup expects the recent uplift in work to continue into the second half of FY21.
“Our revenues will continue to grow in FY21 as new clients increase their hiring, and as existing clients increase their volumes as demand increases,” Mark said.
“Our new GTO clients have hiring volumes that are directly linked to apprentices being hired in greater numbers. These GTOs are seeing a greater need to digitise their pay-to-bill workflows,” he added.
PayGroup shares are trading up a healthy 12 per cent at 60.5 cents per share at 3:49 pm AEDT.
