Looking at the collaboration between Payroll HQ and an Outsourcing HR company on their LinkedIn promotions, it's clear Pay Group have identified they lack a services model for HR. They have the technology but no resources strong in HR processes or employment law. To meet the growing challenge of their competitors in the the payroll tech space they have the HR and Payroll covered, but cannot back up the services side of HR for mid sized businesses. They will need to acquire or partner with a HR services company that facilitates contract reviews and can add value to their HR modules with SWAS based HR similar to their competitor Employment Innovations. Whether they choose to dig into their kitty or upset their investors further with another capital raising is a 50/50 question. The only evidence is Marks response from the investor presentation which did not rule a further capital raising out of the equation.
PYG Price at posting:
49.5¢ Sentiment: Hold Disclosure: Held
