The PayGroup Ltd (ASX: PYG) share price has moved higher today after the company announced a contract win.
The human capital management (HCM) solutions company saw its share price reach as high as 59 cents at market open. However, at the time of writing, the Paygroup share price has dropped to back 56 cents, up 1.83%.
Let's take a look at PayGroup's new deal.
New contract
PayGroup signed a new three-year agreement with Volvo Group Singapore, with a total contract value of $120,000.
The contract will see PayGroup provide Volvo with a number of software as a service (SaaS) human capital management modules. This includes Core HR, E Leave, E Claims, and E Time, including a GPS-enabled clock in and out. In addition, to sweeten the deal for Volvo, PayGroup will supply its software-with-a-service (SwaS) payroll as part of the contract. The combined product service suite is the company's first collective offering.
PayGroup said the contract win demonstrated the rapid progress it had achieved to date. In particular, the integration of recently acquired TalentOz's HCM technology with PayGroup's SwaS products.
What did management say?
Commenting on the deal, PayGroup managing director Mark Samlal said:
This is an important H2 contract win for PayGroup, particularly following our acquisition of TalentOz in July 2020 – which provided PayGroup with a full service HCM product suite that covers the entire 'hire to retire' lifecycle.
The contract with Volvo highlights the opportunities being opened up by our enhanced suite of HCM products. In conjunction with our market leading payroll services, our addressable markets and customer targets are being increased across many regions.
Mr Samlal said sales of new contracts in H1 FY20 were $5.4 million, 98% of the total new contract wins in FY20.
We expect this strong sales momentum to continue into H2 FY20 and we are highly confident of the growth we can deliver.
