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Bango PLC  -  BGO   

Final Results for 9 months ended 31 December 2012

Released 07:00 19-Mar-2013

RNS Number : 2736A
Bango PLC
19 March 2013
 



19 March 2013

Embargoed until 07:00

BANGO PLC   

("Bango")

 

Final Results for the nine months ended 31 December 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

 

·    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

 

·    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 

 

 

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.

 

 

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

 



CEO's Statement 

 

Introduction

Overview

Facebook

Facebook service was launched in the USA in June 2012, the UK in June 2012, Germany in September 2012 and France in November 2012.

Google Play

 

 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

 

Microsoft

 

MasterCard PayPass Wallet

 

Amazon

 

Bango Analytics

 

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

 

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.

Product development

 

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.

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).

Outlook 

 

 

 

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.

Trading results from operations

 

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.

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

 

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

 

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.

·      Reductions in receivables of £0.7m

·      Reduction in payables of £0.7m

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

 


9 months to  31 Dec 2012

12 months to  31 Mar  2012

Note

£

£

Turnover

3

7,351,946

15,594,589

3

(4,156,457)

(8,653,899)





3,195,489

6,940,690

3

(1,613,514)

(4,651,676)




Gross profit

1,581,975

2,289,014




3

(3,899,092)

(3,259,457)

3

(252,718)

(142,356)





(4,151,810)

(3,401,813)




Operating loss


(2,569,835)

(1,112,799)




3

(5,091)

-

3

6,513

469




Loss before taxation

(2,568,413)

(1,112,330)





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


(5.91)p





(5.91)p

All of the activities of the group are classified as continuing.

 



 

Consolidated balance sheet

                          31 Dec 2012

31 Mar 2012


£

£

ASSETS



Non-current assets




638,662

319,381


3,277,947

2,797,246


3,916,609

3,116,627




Current assets





2,191,349

2,854,332


359,113

412,691

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




8,346,604

7,733,465


11,842,076

9,095,525


1,236,225

1,236,225


1,493,876

1,241,158


(16,409,584)

(14,003,836)


----------------------------------

----------------------------------

Total equity


6,509,197

5,302,537




LIABILITIES




Current liabilities





2,146,363

2,875,277


21,778

-




2,168,141

2,875,277

Non-current 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

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




(359,532)

(248,069)

(904,097)

(1,107,083)

6,513

469



Net cash used by investing activities

(1,257,116)

(1,354,683)

 

Cash flows generated from financing activities



3,557,902

331,499

(198,212)

-

(5,091)

-

(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

 


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

-

-

-

142,356

-  

142,356

152,983

178,516

-

-

-

331,499

-

-

-

-

-

-

152,983

178,516

-

142,356

-

473,855








-

-

-

-

(932,716)

(932,716)







-

-

-

-

(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

-

-

-

252,718

-

252,718

142,139

195,863

-

-

-

338,002

471,000

2,550,688

-

-

-

3,021,688

613,139

2,746,551

-

252,718

-

3,612,408








-

-

-

-

(2,405,748)

(2,405,748)







-

-

-

-

(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. 



 

End user

Other

Group

Total

activity

fees



£

£

£

£





5,994,899

1,357,047

-

7,351,946

(4,156,457)

-

-

(4,156,457)

(1,613,514)

-

-

(1,613,514)





Segment gross profit

224,928

1,357,047

-

1,581,975





-

-

(3,899,092)

(3,899,092)

-

-

(252,718)

(252,718)

-

-

(5,091)

(5,091)

-

-

6,513

6,513





Segment net profit/ (loss)

224,928

1,357,047

(4,150,388)

(2,568,413)









1,414,023

229,964

7,150,528

8,794,515

(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



£

£

£

£





13,811,690

1,782,899

-

15,594,589

(8,653,899)

-

-

(8,653,899)

(4,651,676)

-

-

(4,651,676)





Segment gross profit

506,115

1,782,899

-

2,289,014





-

-

(3,259,457)

(3,259,457)

-

-

(142,356) 

(142,356) 

-

-

-

-

-

-

469

469





Segment net profit/ (loss)

506,115

1,782,899

(3,401,344)

(1,112,330)









1,756,717

422,750

5,998,347

8,177,814

(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

£           

£

1,819,016

2,583,033

601,177

829,634

3,447,070

11,799,185

1,484,683

382,737



7,351,946

15,594,589



 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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Final Results for 9 months ended 31 December 2012 - RNS