Final Results for 9 months ended 31 December 2012
19 March 2013
Embargoed until 07:00
BANGO PLC
("Bango")
Final Results for the nine months ended 31 December 2012
Bango (AIM: BGO), the mobile web payments and analytics company, today announces its Final Results for the nine months ended 31 December 2012.
Bango has aligned its financial year end to the calendar year, resulting in a nine-month trading period, from 1 April 2012 to 31 December 2012, with no interim report produced for the period ending 30 September 2012.
Financial Highlights for the nine months ended 31 December 2012
· Turnover for the nine months of £7.4m (12 months to 31 March 2012: £15.6m), reflecting the shorter accounting period and the managed phase out of the feature phone business
· Gross Profit for the nine months of £1.58m (12 months to 31 March 2012: £2.29m)
· Total loss after tax of £2.4m (12 months to 31 March 2012: loss of £0.93m)
o Technology and personnel investments to support the continued growth of the business
o Increased spend to prepare for the forthcoming release of BlackBerry 10
· Raised £3.25m from existing shareholders in June 2012
Results for the year do not include any material income from the agreements signed with Amazon, Google, Microsoft, MasterCard and Facebook, but do include costs relating to the establishment of these relationships.
Operational Highlights for the nine months ended 31 December 2012
· Bango holds over 200 million billable identities, total reach exceeding 1 billion mobile phone users and is connected to 90+ mobile operators across 5 continents
· Strong momentum with industry leaders:
o Rollout with Facebook across USA, UK, France and Germany
o First Google Play operator billing live in December 2012 with Telstra in Australia
o Microsoft's Windows Phone Store integration underway in initial countries
· Analytics transaction volumes continued to grow at increasing rates
· Major platform upgrade to improve capacity and security
· Product development including new releases of Bango Payments and Bango Analytics
· Management team strengthened with recruitment of CFO and COO
Post Period Highlights
· Global Framework Agreement with Telefónica Digital in January 2013
· Powering BlackBerry with 50 operators worldwide; BlackBerry10 launched in January 2013
· Raised £6.5m from institutional investors in February 2013 to strengthen balance sheet and take advantage of developing opportunities in emerging markets and further business development with major mobile network operators
Ray Anderson, Chief Executive Officer of Bango, commented:
"Having become the established industry mobile operator billing platform of choice, Bango has a central position within the smartphone marketplace, enabled through its innovative and superior payments and analytics products. Key to these products is the powerful and unique Bango Platform, which is capable of supporting significant volumes of transactions, and is a platform in the truest sense in that each partner benefits from the contributions of others; identifying hundreds of millions of users and maximizing the number of one-click payments.
"The period saw much commercial progress across the business including the initial roll-out of services across many geographies with industry leaders such as Facebook, Google Play, and integration with Microsoft's Windows Phone Store. In addition, the fundraising completed in February 2013, provides Bango with the resources to move forward in developing the opportunities presenting themselves in large emerging markets.
"The Board is confident of the many opportunities presenting themselves in its growing marketplace, and expects to see continued growth in end user activity driven by increased mobile operator connections alongside increased roll-out of services with major industry names."
Contact Details:
|
Bango plc |
Newgate Threadneedle |
Cenkos Securities plc |
|
Tel. +44 1223 472777 www.bango.com |
Tel. +44 207 653 9850 |
Tel. +44 207 397 8900
|
|
Ray Anderson, CEO |
Caroline Evans-Jones |
Ken Fleming |
|
Gerry Tucker, CFO |
Fiona Conroy |
Neil McDonald |
About Bango
In the era of mobile technology, collecting payments has emerged as a central and complex challenge. Bango (AIM: BGO) powers payment and analytics on the mobile web, providing users with a massively smooth payment experience.
Bango's pervasive presence across the web creates a platform effect for partners, identifying hundreds of millions of users and maximizing the number of one-click payments. Partners who plug into Bango include Facebook, BlackBerry World, Windows Phone Store, Amazon and major mobile brands including CNN, Cartoon Network and EA Mobile. Visit: www.bango.com
Chairman's Statement
During the nine month period, Bango's industry leading mobile operator billing platform has become the technology of choice for leading mobile operators, the world's largest app stores and major content publishers for the collection of payments from web connected mobile device users.
The Bango Payments Platform is integrated with mobile operator networks to enable easy collection of payments from more than 1 billion phone users around the world. This achieves a significant sales uplift compared with credit cards alone, one Bango believes is further amplified by its unique identification capability allowing one-click billing across network and Wi-Fi environments. Bango believes it is this demonstrable value and important contribution to the mobile internet ecosystem that will ensure it remains at the forefront of the mobile internet payments market.
During the period Bango started to deploy services to collect payments for Facebook and Google, and announced relationships with Microsoft and Telefónica. The relationship with BlackBerry expanded to cover more than 90 mobile operators in 45 countries in preparation for the launch of BlackBerry 10 following the period end. Whilst operator billing remains in the early stages of adoption Bango continue to see high potential in the market.
Bango also continued to drive a shift away from legacy feature phone business since the decision to focus the Bango Platform and marketing on smartphones in 2010. Revenues through Bango's new smartphone app store partners grew to account for over 77% of end user spend in December 2012, with growth continuing into January and February 2013.
Bango serves a large and growing market. Revenues from mobile content, monetized through direct operator billing, is expected to rise from $2bn in 2012 to more than $13bn by 2017, according to Juniper Research. The mobile application download market in particular is expected to show rapid growth; Gartner predicts that by 2014 revenues will reach $58 billion, up from $4.2 billion in 2009.
The Bango team operationally continues to deliver, and in order to support a significant scaling-up in future transaction volumes, Bango has continued to augment operations. Bango was delighted to strengthen its management by recruiting Gerry Tucker as CFO and David Keeling as COO.
I would like to thank all of Bango's employees and partners for their unswerving efforts to make Bango a key player in this exciting, fast-growing, global industry. I would also pass on all our thanks to our investors for their continued support of Bango.
David Sear
Chairman
CEO's Statement
Introduction
Bango enables users to quickly and easily pay for digital content, services and virtual goods on their smartphone. Bango has been a pioneer of mobile payments since 1999, and over the last two years established itself as the industry leading technology and partner of choice.
Bango has built a unique and powerful payments platform, which enables its partners such as Facebook, BlackBerry, Amazon, Microsoft, and others, to provide content and collect payments from consumers by integrating the billing systems of more than 90 mobile operators around the world into a common platform.
Bango reduces the cost and time to market and also provides a superior user experience to enable more sales than a business could get by a simple direct connection to one or more billing systems. The Bango powered payment process benefits from a user's previous interactions across multiple content providers - which a content provider operating alone cannot use. Bango also provides automated settlement, currency and tax management, risk management and reporting systems to reliably collect payments for content providers and powerful analytics to monitor user behavior and marketing.
Overview
Bango has been successfully executing on its plan to support a significant scaling-up in future transaction volumes by investing in its management and operational teams, data centers and innovative payments platform and analytics products.
In the nine month period to 31 December 2012, Bango made significant commercial progress with many of its industry leading partners, such as the roll-out with Facebook across the USA, UK, France and Germany. Important progress has also been made with Mobile Network Operators (MNOs) direct billing integrations which now exceed 90, expanding Bango's reach to more than 1 billion mobile phone users. Dozens of additional integrations are underway to expand this already substantial billing reach. On 17 January 2013, Bango was delighted to announce a global mobile payments partnership with Telefónica. The partnership will integrate Telefónica's global platform, BlueVia, with the Bango Payments Platform.
Bango provides Facebook with mobile web MNO billing as part of an improved mobile payments flow that enables Facebook's mobile web users to easily purchase digital content without using premium SMS messages or being restricted by the limitations of credit cards. Facebook users can enjoy frictionless operator billing, paying on their phone, without entering personal details.
The relationship with Facebook was initially announced in February 2012 and Bango has been pleased with the deployment to date; the Facebook service was launched in the USA in June 2012, the UK in June 2012, Germany in September 2012 and France in November 2012.
In late 2012 Facebook began trialling a paid service called Promoted Posts. This allows Facebook users to 'push' a message posted on Facebook to a wider audience by paying a few dollars. The payment can be quickly and conveniently charged to the users' phone bill through Bango, without disrupting the posting experience. Once a post has been sponsored, Facebook can advise how many friends saw the post, and indicate the increase as a result of promoting it.
Google Play
In December 2012, Bango announced that its first Google Play operator billing integration had been launched with Telstra in Australia. Google Play delivers music, books, movies and apps straight to hundreds of millions of users around the world. Bango expects to deliver further operator connections into Google Play in the coming year, as Android market share continues to grow Mobile Network Operators are increasingly approaching Bango to use the Bango Payments Platform to connect their billing systems to Google Play for Android.
BlackBerry
BlackBerry was Bango's first major app store partner, which launched in September 2010. BlackBerry World now uses Bango direct billing connections to collect payments from more than 50 MNO's in North America, Europe, South America and Asia.
On 30 January 2013, BlackBerry launched BlackBerry 10 (BB10), a new smartphone and tablet platform that improves usability. The devices will be offered as full touchscreen handsets, or as keyboard plus touchscreen, maintaining the appeal of BlackBerry for messaging. Bango has worked extensively with BlackBerry during the period to prepare for the BB10 launch.
Additionally, BB10 increases the number of apps available to BlackBerry users. Based on information from BlackBerry about the number of apps available on BB10, additional content types, and improvements made to the app store user interface, the Board expects the launch of BB10 to increase app sales.
Microsoft
Following the announcement of Bango's relationship with Microsoft in May 2012, Bango began integration of its platform with the Windows Phone Store. Bango is pleased to report that this process of integration is actively underway with mobile operator billing systems in three initial countries.
MasterCard PayPass Wallet
In May 2012, MasterCard announced its relationship with Bango as a technology partner to support its new PayPass digital wallet. In the same way as a wallet holding credit cards, Bango's technology can be used to access bank credentials or pre-paid funds, enabling quick and easy payment collection from users. Mobile wallets are not currently widely used, but Bango is well positioned for when they become more popular.
Wallet providers that integrate with Bango can achieve more rapid deployment of their services to a wide range of Bango connected digital merchants. From the merchant's point of view, Bango significantly improves the user experience by presenting a wallet if the user has it, based on previous interactions or information from the wallet provider - but not presenting a payment method the user does not have.
Amazon
An agreement was signed with Amazon in December 2011 and, as expected, did not generate significant revenue during the nine month financial period. The relationship continue to develop and management is encouraged by the progress to date.
Bango Analytics
Bango Analytics provides important technical and commercial synergies; it is highly valued by customers because it provides information unavailable anywhere else. It is highly complementary with the Bango Payments Platform. Growth in transaction volumes on the analytics platform has continued at increasing rates, driven mainly by increasing numbers of mobile websites and downloaded applications using it.
Significant analytics customers include NBA, CNN, Thomson Reuters and Telefónica. Android, iOS, BlackBerry, Windows, HMTL5 and other platforms are all driving traffic - adding millions of users to the Bango ID database every month.
Strengthened management team
Bango has made several key hires to strengthen its capability to consistently deliver the high levels of service expected by Bango customers and partners as the business continues to grow, transaction volumes increase and Bango continues to innovate. It will also assist Bango to commercialize further opportunities that are arising.
In November 2012 Gerry Tucker was warmly welcomed to the Board as Chief Financial Officer (CFO), replacing Peter Saxton who announced his retirement after eight years with Bango in May 2012. Gerry brings extensive experience gained in leadership roles within NASDAQ listed computer games businesses, a regulated financial trading platform and in Vodafone.
David Keeling also joined Bango's senior management team as Chief Operating Officer (COO) in November 2012, following a thorough international search and selection process. David brings extensive high volume operational and global account management experience to this newly created role following 15 years in key management positions in leading mobile businesses.
Product development
Bango continually progresses its patented, industry leading and innovative technologies. Tools and frameworks are in place for technical integrations with mobile operators, the platform is highly scalable and capable of handling significant increases in volumes, and Bango has unique authentication and identification technology. The Bango Payments Platform delivers a 300% - 1,000% sales uplift compared with traditional credit card methods, and this is amplified further due to the Bango identity database, particularly for the increasing number of Wi-Fi connected users.
New releases of the Bango Payment flows technology and of the Bango Analytics product were made during the nine month period to deploy innovations and improve payment conversion rates and performance.
Following a review of future privacy and security requirements with Bango key partners and prospects, Bango developed and initiated a trial of new privacy technology that will enable Bango's partners to give their users the ability to block access to the information collected about them by Bango, in anticipation of future evolution of privacy policy best practice.
During the final quarter, a major platform refresh was installed and put into production at Bango's primary data center. Faster internet connectivity, a larger array of servers, enhanced security systems and additional storage now enable Bango's core identity server to handle the significantly higher transaction volumes - anticipated by larger partners - whilst maintaining rapid response times. These developments ensure the continual provision of excellent user experience in payment flows while gathering analytical information from apps or web pages.
Market overview
The smartphone user base is growing fast, with the overall global smartphone market estimated to have grown by 46.9% from Q2'11 to Q2'12, with Windows Phone and Android driving the majority of this growth. Android saw in excess of 100% growth in the period, and now enjoys 68.1% of the smartphone market (Canalys, 2012).
The installed base of smartphones, as a percentage of the total mobile phone base, is now thought to be in excess of 50% and is expected to surpass 80% in Western Europe and North America by 2016. Starting from a much lower base today, the regions of APAC (developed), China, Eastern Europe and Latin America by 2016 are expected to grow to reach c. 60% (CCS Insights, 2012).
A strong theme for newer Bango partners is access to emerging markets where credit cards are less popular, and where Android and BlackBerry devices have a higher market penetration than the iPhone. Mobile operators in Colombia, Indonesia, and Egypt were integrated during the nine month period. In addition, Bango is working with major partners to connect with leading operators in Brazil and India; these are more challenging commercially but management believes they present interesting opportunities.
Global mobile app and advertising revenues grew by a CAGR of 129% from 2008 to the end of 2012, with continued growth predicted as smartphone penetration increases (KPCB, 2012).
Outlook
Bango has a unique technology platform, extensive mobile network operator relationships and industry-leading partners at the forefront of developments in the market. Roll-outs continue across several geographies with leading partners and MNOs are continually being added to the Bango system.
Average daily spend between November 2012 and February 2013 increased by 190%, driven primarily by early activity from newly activated customers on a stable cost base. This we believe is very encouraging as an indicator of progress.
Bango expects continued adoption of its technology by industry players with partners such as Facebook and Amazon. In addition, greater end user uptake in BlackBerry World is anticipated following the launch of the BB10 system and devices on 30 January 2013. BlackBerry World is also due to contain additional digital content outside of apps. Bango also believes that there is significant growth potential from mobile operators partnering with Bango to provide services beyond major app stores.
Furthermore, Bango believes emerging markets represent an exciting growth opportunity and is seeing increasing interest from key partners in these areas, in particular Brazil, Latin America, India and other parts of Asia. These geographies could benefit most in terms of sales uplift from the direct to mobile billing that Bango's technology enables, given that credit card use is less prevalent in these markets.
On behalf of the Board, I would like to express my gratitude to Bango's partners and employees for their continued support. Working with mobile operators, content providers, billing companies and other commercial partners and investors, Bango looks forward to increasing success in the year ahead.
Ray Anderson
Chief Executive Officer
CFO's Statement
Financial reporting period
As previously reported, Bango has aligned its fiscal year end to the calendar year and therefore this report is for a nine month trading period to 31 December 2012. The Company will produce an interim report for the period ending 30 June 2013.
Financial review
The financial statements presented here are for the nine month period to 31 December 2012. Results for the period do not include any material income from the agreements signed with Amazon, Microsoft, MasterCard and Facebook, but do include costs relating to the establishment of these relationships.
To provide additional information on underlying activity, Bango has included presentation of gross income from end user activity and fees, which are reported as turnover and then separately discloses the amount attributable to content providers.
Trading results from operations
Turnover for the nine months ended 31 December 2012 was £7.4m (year ended 31 March 2012: £15.6m), a reduction of 37% on a pro-rata basis. This is accounted for by a 42% reduction in end user activity to £6.0m on a pro-rata basis, 57% compared to the previous 12 month period (year ended 31 March 2012: £13.8m), and a 1% increase in other fees to £1.4m on a pro rata basis, a 24% reduction compared to the previous 12 month period (year ended 31 March 2012: £1.8m). As a result, gross profit was £1.6m for the nine months compared to £2.3m for the previous year, an 8% reduction on a pro rata basis.
The decline in end user activity is due to a managed change in the type of end user services from feature phones, our legacy business, to smartphone and app store based direct operator billing.
Bango is encouraged that in the month of December 2012, approximately 77% of end user spending was derived from the newer app store / smartphone business activities as part of a managed phasing out of the legacy feature phone business, compared to 60% in December 2011.
As reported in the Market Update of 17 January 2013, the average daily value of end user payment transactions returned to growth at the end of the nine month period and this trend has continued through January and February, as a result of continued revenues from BlackBerry World and initial revenues from Facebook and Google Play.
Gross margin on end user activity for the period was 3.8% (year ended 31 March 2012: 3.7%), well within Bango's longer term target range of between 2% and 5%.
The operating loss for the nine months was £2.6m (year ended 31 March 2012: £1.1m). Amortization of intangible assets in the nine months was £0.4m (year ended 31 March 2012: £0.3m) as more of the previously capitalized R&D came into use during the period. Depreciation for the nine month period totalled £0.2m (year ended 31 March 2012: £0.2m) and consists largely of charges for computer equipment, office equipment and leasehold improvements.
There was additional investment in operating costs of £0.8m (year ended 31 March 2012: nil) to support the continued growth of the business. These include personnel costs of £0.4m (year ended 31 March 2012: nil) and technology costs of £0.4m (year ended 31 March 2012: nil). Other significant costs were, increased provisions for doubtful debts for the period £0.14m (year ended 31 March 2012: £0.03m) and employee costs for the period of £0.2m (year ended 31 March 2012: nil) related to the winning of contracts.
Bango also incurred costs associated with the preparation for the forthcoming release of BlackBerry 10 and with the establishment of the relationships for Google, Facebook, Microsoft and Amazon.
Finance costs were £5.1k for the nine months (year ended 31 March 2012: nil) relating to finance leases. Bango earned interest of £6.5k (year ended 31 March 2012: £0.5k) relating to cash balances held during the period.
Bango reported a net loss before tax for the nine month period of £2.6m (year ended 31 March 2012: £1.1m). The loss after tax totalled £2.4m for the nine month period compared with £0.9m for the previous year.
Taxation
The tax credit for the nine months is £0.2m (year ended 31 March 2012: £0.2m) and relates to research and development tax credits receivable.
Bango has not recognized a deferred tax asset in the balance sheet of £3.8m (year ended 31 March 2012: £2.9m), due to the unpredictability of future taxable trading profits against which the losses may be utilized.
Loss per share
Basic and diluted loss per share increased to 5.91 pence in the nine month period (year ended 31 March 2012: 2.43 pence).
Balance sheet
Net assets of the Group were £6.5m at 31 December 2012, compared to £5.3m at 31 March 2012.
Intangible assets increased to £3.3m (at 31 March 2012: £2.8m) as a result of on-going internal development work being capitalized.
Current liabilities are £2.2m (at 31 March 2012: £2.9m). Total borrowings stand at £139k (at 31 March 2012: nil). This balance consists of finance lease liabilities. Of the total borrowings, £21.8k is classed as current (at 31 March 2012: nil) and £117k is classed as non-current (at 31 March 2012: nil).
Raising of additional capital
In June 2012, Bango issued £3.25m of new shares on AIM to increase its available investment resources.
In February 2013, post period end, Bango raised £6.5m (approximately US$10m) before expenses in an oversubscribed placing of 3,250,000 new ordinary shares at a price of 200p, with both new and existing institutional investors. The funding will provide support to Bango's strategy of being positioned to take advantage of developing opportunities in emerging markets and further business development with major Mobile Network Operators.
Bango is witnessing increasing interest from key partners in emerging markets which could benefit most from operator billing as credit card use is less prevalent in these markets. In particular, Bango sees opportunities in Brazil through its new relationship with Telefónica as well as with other Mobile Network Operators elsewhere in Latin America. Bango has also spent some time with key partners and mobile operators in India and uncovered similar opportunities there and in other parts of Asia.
Accordingly, Bango intends to use the net proceeds specifically, as follows:
· to increase its capability to underwrite emerging market opportunities. The Directors believe that a stronger balance sheet will demonstrate to key partners that Bango's financial position is not being stretched
· to have greater capacity to fund further business development with a view to gaining more Mobile Network Operator partners. In this regard, the Directors consider that the recently announced Telefónica partnership is potentially significant for Bango and they are keen to enter into further partnerships with other major Mobile Network Operators. The Directors recognize that developing such business will take time and additional resources and they wish to ensure that Bango's existing payment and analytics operations continue to show progress; and
· to generally strengthen Bango's balance sheet to permit alternative sources of financing if required. As noted in the recent market update, Bango has invested more than £1m of its own capital during the second half of 2012 in a hardware and software platform refresh and the additional balance sheet strength gives Bango the opportunity to fund its technology more effectively.
Cash flow
Cash used by operating activities in the nine months was £1.6m (12 months to 31 March 2012: generated £0.1m). Bango saw a significant level of working capital utilization during the nine month period, the key components of which were:
· Reductions in receivables of £0.7m
· Reduction in payables of £0.7m
This reduction included £0.14m relating to overdue debtors provided against primarily relating to legacy business, as well as the effects of reduced end user activity.
Net capital expenditure outflows totalled £0.4m in the nine month period (12 months to 31 March 2012: £0.3m) and were largely attributable to computers and office equipment. The addition of intangible assets totalled £0.9m (12 months to 31 March 2012: £1.1m) and was largely attributable to the capitalization of internal development. These were part of a major hardware and software platform refresh in the primary data center to upscale transactional capacity for payment and analytics transaction volumes.
Net interest paid for the nine month period was £5.1k (year ended 31 March 2012: nil).
Bango's cash balances included balances denominated in foreign currencies - primarily US Dollars and Euros - and these showed exchange gains on translation of £22k for the nine month period (year ending 31 March 2012: £18.8k loss).
At 31 December 2012 Bango had bank facilities related to BACS processing of £0.2m (at 31 March 2012: £0.2m), cash balances of £2.3m (at 31 March 2012: £1.8m) and net debt of £0.1m (at 31 March 2012: nil).
Gerry Tucker
Chief Financial Officer
Audited results for the nine month period ending 31 December 2012
Consolidated statement of comprehensive income
For the 9 months ending 31 December 2012
|
|
9 months to 31 Dec 2012 |
12 months to 31 Mar 2012 |
|||
|
Note |
£ |
£ |
|||
|
Turnover |
3 |
7,351,946 |
15,594,589 |
||
|
Attributable to content providers |
3 |
(4,156,457) |
(8,653,899) |
||
|
|
|
|
|
||
|
|
|
3,195,489 |
6,940,690 |
||
|
Cost of sales - payment providers |
3 |
(1,613,514) |
(4,651,676) |
||
|
|
|
|
|
||
|
Gross profit |
1,581,975 |
2,289,014 |
|||
|
|
|
|
|
||
|
Administrative expenses before share based payment |
3 |
(3,899,092) |
(3,259,457) |
||
|
Share based payments |
3 |
(252,718) |
(142,356) |
||
|
|
|
|
|
||
|
Total administrative expenses |
|
(4,151,810) |
(3,401,813) |
||
|
|
|
|
|
||
|
Operating loss |
|
(2,569,835) |
(1,112,799) |
||
|
|
|
|
|
||
|
Interest payable |
3 |
(5,091) |
- |
||
|
Investment income |
3 |
6,513 |
469 |
||
|
|
|
|
|
||
|
Loss before taxation |
(2,568,413) |
(1,112,330) |
|||
|
|
|
|
|
||
|
Income tax |
|
162,665 |
179,614 |
||
|
|
|
|
|
||
|
Loss and total comprehensive loss for the financial year |
|
(2,405,748) |
(932,716) |
||
|
|
|
|
|
||
|
Attributable to equity holders of the parent |
|
(2,405,748) |
(932,716) |
||
|
|
|
|
|
||
Loss per share attributable to the equity holders of the parent
|
Basic loss per share |
|
(5.91)p |
(2.43)p |
|
|
|
|
|
|
Diluted loss per share |
|
(5.91)p |
(2.43)p |
All of the activities of the group are classified as continuing.
Consolidated balance sheet
As at 31 December 2012
|
|
31 Dec 2012 |
31 Mar 2012 |
|
|
|
£ |
£ |
|
|
ASSETS |
|
|
|
|
Non-current assets |
|
|
|
|
Property, plant and equipment |
|
638,662 |
319,381 |
|
Intangible assets |
|
3,277,947 |
2,797,246 |
|
|
|
3,916,609 |
3,116,627 |
|
|
|
|
|
|
Current assets |
|
|
|
|
Trade and other receivables |
|
2,191,349 |
2,854,332 |
|
Research and Development tax credits |
|
359,113 |
412,691 |
|
Cash and cash equivalents |
2,327,444 |
1,794,164 |
|
|
|
|
|
|
|
|
4,877,906 |
5,061,187 |
|
|
|
|
|
|
|
Total assets |
8,794,515 |
8,177,814 |
|
|
|
|
|
|
|
EQUITY |
|
|
|
|
Capital and reserves attributable to equity holders of the parent company |
|
|
|
|
Share capital |
|
8,346,604 |
7,733,465 |
|
Share premium account |
|
11,842,076 |
9,095,525 |
|
Merger reserve |
|
1,236,225 |
1,236,225 |
|
Other reserve |
|
1,493,876 |
1,241,158 |
|
Accumulated losses |
|
(16,409,584) |
(14,003,836) |
|
|
|
---------------------------------- |
---------------------------------- |
|
Total equity |
|
6,509,197 |
5,302,537 |
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
Current liabilities |
|
|
|
|
Trade and other payables |
|
2,146,363 |
2,875,277 |
|
Finance lease liabilities |
|
21,778 |
- |
|
|
|
|
|
|
|
|
2,168,141 |
2,875,277 |
|
Non-current liabilities |
|
|
|
|
Finance lease liabilities |
|
117,177 |
- |
|
|
|
|
|
|
|
117,177 |
- |
|
|
|
|
|
|
|
Total liabilities |
2,285,318 |
2,875,277 |
|
|
|
|
|
|
|
|
|
|
|
|
Total equity and liabilities |
8,794,515 |
8,177,814 |
|
|
|
|
|
|
Consolidated cash flow statement
For the 9 months ending 31 December 2012
|
|
9 months to 31 Dec 2012 |
12 months to 31 Mar 2012 |
|
|
|
£ |
£ |
|
|
Net cash (used) / generated by operating activities |
|
(1,581,427) |
122,880 |
|
Cash flows used by investing activities |
|
|
|
|
Purchases of property, plant and equipment |
(359,532) |
(248,069) |
|
|
Addition to intangible assets |
(904,097) |
(1,107,083) |
|
|
Interest received |
6,513 |
469 |
|
|
|
|
|
|
|
Net cash used by investing activities |
(1,257,116) |
(1,354,683) |
|
|
Cash flows generated from financing activities |
|
|
|
|
Proceeds from issuance of ordinary shares |
3,557,902 |
331,499 |
|
|
Costs associated with issuance of ordinary shares |
(198,212) |
- |
|
|
Interest payable |
(5,091) |
- |
|
|
Capital payable |
(4,821) |
- |
|
|
|
|
|
|
|
Net cash generated from financing activities |
3,349,778 |
331,499 |
|
|
|
|
|
|
|
Net increase / (decrease) in cash and cash equivalents |
|
511,235 |
(900,304) |
|
|
|
|
|
|
Cash and cash equivalents at beginning of year |
|
1,794,164 |
2,713,226 |
|
Exchange differences on cash and cash equivalents |
|
22,045 |
(18,758) |
|
|
|
|
|
|
|
|
1,816,209 |
2,694,468 |
|
|
|
|
|
|
Cash and cash equivalents at end of year |
|
2,327,444 |
1,794,164 |
|
|
|
|
|
Consolidated statement of changes in equity
For the 9 months ending 31 December 2012
|
|
Share |
Share |
Merger |
Other |
Retained |
Total |
|
|
|
capital |
premium |
reserve |
reserve |
earnings |
|
|
|
Group |
|
account |
|
|
|
|
|
|
|
£ |
£ |
£ |
£ |
£ |
£ |
|
|
|
|
|
|
|
|
|
|
|
Balance at 1 April 2011 |
7,580,482 |
8,917,009 |
1,236,225 |
1,098,802 |
(13,071,120) |
5,761,398 |
|
|
Share based payments |
- |
- |
- |
142,356 |
- |
142,356 |
|
|
Exercise of share options |
152,983 |
178,516 |
- |
- |
- |
331,499 |
|
|
Issue of shares |
- |
- |
- |
- |
- |
- |
|
|
Transactions with owners |
152,983 |
178,516 |
- |
142,356 |
- |
473,855 |
|
|
|
|
|
|
|
|
|
|
|
Loss for the period |
- |
- |
- |
- |
(932,716) |
(932,716) |
|
|
Total comprehensive income |
|
|
|
|
|
|
|
|
for the period |
- |
- |
- |
- |
(932,716) |
(932,716) |
|
|
Balance at 31 March 2012 |
7,733,465 |
9,095,525 |
1,236,225 |
1,241,158 |
(14,003,836) |
5,302,537 |
|
|
|
|
|
|
|
|
|
|
|
Balance at 1 April 2012 |
7,733,465 |
9,095,525 |
1,236,225 |
1,241,158 |
(14,003,836) |
5,302,537 |
|
|
Share based payments |
- |
- |
- |
252,718 |
- |
252,718 |
|
|
Exercise of share options |
142,139 |
195,863 |
- |
- |
- |
338,002 |
|
|
Issue of shares |
471,000 |
2,550,688 |
- |
- |
- |
3,021,688 |
|
|
Transactions with owners |
613,139 |
2,746,551 |
- |
252,718 |
- |
3,612,408 |
|
|
|
|
|
|
|
|
|
|
|
Loss for the period |
- |
- |
- |
- |
(2,405,748) |
(2,405,748) |
|
|
Total comprehensive income |
|
|
|
|
|
|
|
|
for the period |
- |
- |
- |
- |
(2,405,748) |
(2,405,748) |
|
|
Balance at 31 December 2012 |
8,346,604 |
11,842,076 |
1,236,225 |
1,493,876 |
(16,409,584) |
6,509,197 |
|
|
|
|
|
|
|
|
|
|
Selected notes to the financial information
1. General information
Bango plc ("the Company") was incorporated on 8 March 2005 in the United Kingdom. The Company is domiciled in the United Kingdom. The Company's shares are listed on the Alternative Investment Market of the London Stock Exchange ("AIM").
The preliminary statements are for the nine month period ended 31 December 2012 (including the comparatives for the year ended 31 March 2012). The group has changed its year end to make its accounts more understandable by key stakeholders globally. Therefore, it is highlighted that comparative figures are for a year and not nine months.
2. Basis of preparation
The consolidated financial statements have been prepared under the historical cost convention. The Group has prepared its Report and accounts for the nine month period ended 31 December 2012, in accordance with International Financial Reporting Standards ("IFRS") as adopted in the European Union and as applied in accordance with the provisions of the Companies Act 2006. IFRS requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group's accounting policies.
These preliminary financial statements are presented in pounds sterling (GBP) because that is the presentation currency of the group.
The Board of Bango plc approved the release of this preliminary announcement on 18 March 2013.
The preliminary financial information does not constitute statutory financial statements for the 9 month ended 31 December 2012 and year ended 31 March 2012 within the meaning of section 435 of the Companies Act 2006, but is extracted from those financial statements. Statutory accounts for Bango plc for the year ended 31 March 2012 have been delivered to the Registrar of Companies. Statutory accounts for the 9 month period ended 31 December 2012 will be delivered to the Registrar of Companies following the Company's Annual General Meeting.
The auditors have reported on those accounts; their reports were (i) unqualified, (ii) did not include references to any matters to which the auditors drew attention by way of emphasis without qualifying their reports and (iii) did not contain statements under section 498(2) or (3) of the Companies Act 2006.
3. Segment reporting
(a) The Group identifies two operating segments. Management reporting is based principally on the type of customer and strategic decisions are made on the basis of the gross profit generated from each segment. The segments are not separately managed and therefore the Group's headquarters and its research and development activity are considered group operations and are not allocated to any operating segment. Segment information can be analyzed as follows for the reporting periods under review.
9 months to 31 December 2012
|
|
End user |
Other |
Group |
Total |
|
|
activity |
fees |
|
|
|
|
£ |
£ |
£ |
£ |
|
|
|
|
|
|
|
Segment turnover |
5,994,899 |
1,357,047 |
- |
7,351,946 |
|
Attributable to content providers |
(4,156,457) |
- |
- |
(4,156,457) |
|
Cost of sales - payment providers |
(1,613,514) |
- |
- |
(1,613,514) |
|
|
|
|
|
|
|
Segment gross profit |
224,928 |
1,357,047 |
- |
1,581,975 |
|
|
|
|
|
|
|
Administrative expenses |
- |
- |
(3,899,092) |
(3,899,092) |
|
Share based payments charge |
- |
- |
(252,718) |
(252,718) |
|
Interest payable |
- |
- |
(5,091) |
(5,091) |
|
Interest income |
- |
- |
6,513 |
6,513 |
|
|
|
|
|
|
|
Segment net profit/ (loss) |
224,928 |
1,357,047 |
(4,150,388) |
(2,568,413) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment assets |
1,414,023 |
229,964 |
7,150,528 |
8,794,515 |
|
Segment liabilities |
(1,477,874) |
(40,930) |
(766,514) |
(2,285,318) |
|
|
|
|
|
|
|
Net (liabilities)/ assets |
(63,851) |
189,034 |
6,384,014 |
6,509,197 |
|
|
|
|
|
|
12 months to 31 March 2012
|
|
End user |
Other |
Group |
Total |
|
|
activity |
fees |
|
|
|
|
£ |
£ |
£ |
£ |
|
|
|
|
|
|
|
Segment turnover |
13,811,690 |
1,782,899 |
- |
15,594,589 |
|
Attributable to content providers |
(8,653,899) |
- |
- |
(8,653,899) |
|
Cost of sales - payment providers |
(4,651,676) |
- |
- |
(4,651,676) |
|
|
|
|
|
|
|
Segment gross profit |
506,115 |
1,782,899 |
- |
2,289,014 |
|
|
|
|
|
|
|
Administrative expenses |
- |
- |
(3,259,457) |
(3,259,457) |
|
Share based payments charge |
- |
- |
(142,356) |
(142,356) |
|
Interest payable |
- |
- |
- |
- |
|
Interest income |
- |
- |
469 |
469 |
|
|
|
|
|
|
|
Segment net profit/ (loss) |
506,115 |
1,782,899 |
(3,401,344) |
(1,112,330) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment assets |
1,756,717 |
422,750 |
5,998,347 |
8,177,814 |
|
Segment liabilities |
(2,069,479) |
(85,491) |
(720,307) |
(2,875,277) |
|
|
|
|
|
|
|
Net (liabilities)/ assets |
(312,762) |
337,259 |
5,278,040 |
5,302,537 |
|
|
|
|
|
|
Included within the end user segment turnover is £4.02m (12 months ended 31 March 2012: £5.18m) relating to a major strategic partner, whilst there were two partners who contributed £0.44m (12 months ended 31 March 2012: £0.29m) and £0.16m (12 months ended 31 March 2012: £nil) to other fees revenue.
Gross turnover from end user activity is the content access fees paid by end users for accessing chargeable content provided by content providers. Gross profit for this segment is after both content provider and payment provider charges. Assets for this segment are amounts due from payment providers. Liabilities for this segment are mainly fees payable to payment providers for provision of services and fees payable to content providers for provision of content sold by Bango to end users.
Other fees are the amounts paid to Bango by content providers and others for package fees and other services including analytics and operator connections. Assets for this segment are amounts due for package fees and other services. Liabilities for this segment represent deferred income for package fees. Group assets include non-current assets and cash and cash equivalents. Group liabilities relate to administrative expenses.
(b) The Group's turnover from external customers is divided into the following geographical areas. Most non-current assets are based in the UK, except for £8,462 of property, plant and equipment held at the New York office.
|
|
9 months to 31 Dec 2012 |
12 months to 31 Mar 2012 |
|
|
£ |
£ |
|
United Kingdom (country of domicile) |
1,819,016 |
2,583,033 |
|
EU |
601,177 |
829,634 |
|
USA and Canada |
3,447,070 |
11,799,185 |
|
Rest of World |
1,484,683 |
382,737 |
|
|
|
|
|
|
7,351,946 |
15,594,589 |
|
|
|
|
Segment turnover is based on the location of the customers. Of which in other fees £0.44m (12 months ended 31 March 2012: £0.29m) came from a strategic partner based in the USA and Canada, and £0.16m (12 months ended 31 March 2012: £nil) came from a strategic partner based in the United Kingdom. All turnover from end users is spread over many territories.
All of other notes to the accounts are included in the 'Report and accounts for the nine month period ended 31 December 2012' which is available for download from bango.com
This information is provided by RNS
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