Annual Report 2010                      
 
 
 
Bango is the leading provider of mobile  
payment and analytics technology.  
Bango powers businesses targeting  
the fast-growing market of internet enabled  
mobile phone users.  
 
Bango’s unique technology, mobile operator 
relationships and consumer profiles enable  
businesses and developers to sell more  
digital content and applications to mobile phone 
users worldwide. 
 
Bango analytics provides website owners and  
app developers the most accurate information  
about customers visiting their site and using  
their mobile applications.  
 
The mobile market is rapidly moving to an  
internet based model and Bango continues  
to be a key player in this exciting, fast-growing, 
global industry.  
 
  Contents 01 
 
 
 Contents ……………………………………………………………… 1 
 Highlights ……………………………………………………………. 2 
 Chairman’s statement ………………………………………………. 3 
 CEO’s statement …………………………………………………….. 4 
 Success stories ………………………………………………………. 7 
 Products ………………………………………………………………. 9 
 Business model ……………………………………………………..... 9 
 Key market developments ……………………………………………. 9 
 Directors ……………………………………………………………….. 11 
 Company information …………………………………………………. 13 
 Directors’ report ……………………………………………………….. 14 
 Corporate governance statement ………………………………......... 16 
 Remuneration Committee report …………………………………….. 17 
 Independent auditor’s report to the members of Bango PLC ..……. 18 
 Consolidated balance sheet …..………………………………………. 19 
 Consolidated income statement ……………………………………… 20 
 Consolidated cash flow statement …………………………………… 21 
 Consolidated statement of changes in equity ………………………. 22 
 Notes to the financial statements ……………………………………. 23 
 Independent auditor’s report to the members of Bango PLC ……… 39 
 Company balance sheet ……………………………………………..... 40 
 Notes to the financial statements ……………………………………. 41   
02 Highlights 
 
Highlights  
Financial highlights 
• Revenues up 48% to £26.1m (£17.6m)  
• Maiden profit after tax of £10k (loss of £478k)  
• Cash balance of £2.74m as at 31 March 2010 (£0.83m 
at March 31 2009) 
• Investment in assets of £1.04m (£0.4m) including 
£0.88m (£0.35m) on internal development for future 
products and services 
 
 
 
 
Operational highlights 
• Continued migration of large US content providers to 
the Bango system 
• Deployment of unique Bango technology to one-click 
carrier billing via Wi-Fi 
• T-Mobile USA off-deck mobile web billing integration 
with Bango 
• Bango develops capability to enable RIM to provide 
operator billing for BlackBerry App World 
• Major new customers including Fox Mobile and Turner 
Broadcasting System Inc            Chairman’s statement 03 
 
Chairman’s statement 
 
Bango has made excellent progress this year as demonstrated by 
both its results for the financial year to end of March 2010 and 
the signing of major new customers that are leaders in the mobile 
internet. In addition, the Company has grown sales by 48% while 
reducing operating expenses – resulting in a profitable second 
half, and a maiden profit for the full year. 
  
Bango enables commerce on the mobile web for hundreds of 
businesses. It delivers the most efficient means of collecting 
payments as well as providing reliable, accurate tools for 
measuring actual consumer behavior and returns on marketing 
investment. 
  
Mobile content providers using Bango enjoy higher view-to-
purchase conversion rates than those using alternative methods. 
Simply put, they make more sales. Bango’s largest US customers 
are increasing profitability and providing better customer 
experiences by migrating from legacy Premium SMS suppliers to 
Bango’s web based systems. 
  
Bango’s systems provide simplicity to the user and increased sales 
to content providers. The unique and sophisticated technology is a 
result of many years of development and refinement, and has 
become closely integrated with the billing systems of major mobile 
network operators. As a result, Bango is therefore able to maintain 
its competitive advantage.  
 
Bango is serving a large and growing market. The worldwide 
mobile content market is expected to surpass $64 billion by 
2012, up from $20 billion in 2007, according to Juniper 
Research. Major mobile phone manufacturers, mobile operators 
and internet businesses are driving the uptake of the mobile 
internet.  
 
The growth in mobile content sales and the switch to an internet 
model for payment and delivery gives Bango the opportunity to 
become a significant player in this important sector.  
 
Bango’s growth is driven both by businesses that are new to 
mobile content and services sales and by established mobile 
content sellers. They are transitioning their business from the 
older Premium SMS payment method to the Bango platform to 
benefit from the increasing popularity of the mobile internet and 
the increased sales opportunities through Bango.  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Bango can deliver further substantial growth in transaction 
volumes through its unique technology, operator relationships and 
strong operational foundation without a significant increase in 
operating expenses.  
 
The placement of 7.5 million new shares in January 2010 raised 
£3 million net of expenses. This strengthened the balance sheet 
and gives the Company flexibility to accelerate mobile operator 
payments to key customers, thereby improving margin and growth 
opportunities.  
 
With its ability to facilitate commerce on the mobile web, the 
Board is pleased to see that Bango is already benefitting from the 
growth in this market and, in anticipation of this burgeoning 
market, looks to the future with confidence. 
  
I would like to thank Bango's executive directors and staff for their 
unswerving efforts to make Bango a dominant player in this 
exciting, fast-growing, global industry.  
 
 
 
Lindsay Bury 
Chairman  
04 CEO’s statement 
 
CEO’s statement 
 
Following a year which saw continued growth and our first 
profitable year, we have built a strong sales pipeline and an 
impressive portfolio of customers. Mobile web usage is 
accelerating and mobile payments are becoming increasingly 
important to providers of content and services. As a provider of 
a mobile payments platform and associated analytics tools, 
Bango is a major beneficiary of this trend. Business is 
progressing well at Bango, sales are up and operating costs are 
down.  
 
The key development in the business during the last year has 
been the start of the migration of some of the world’s largest 
content providers away from Premium SMS onto the Bango 
platform. It is commercially more attractive because Bango 
delivers significantly higher conversion rates, in terms of clicks 
to collect payments, compared to other alternative payment 
mechanisms. This translates into higher profits for Bango 
customers enabling them, in turn, to out-spend their 
competitors in marketing. 
  
Bango has seen a significant increase in transactional volumes 
taking place on its platform as part of this migration, and a 
resulting increase in transaction fees generated from this 
activity. The success of these migrations, new Bango features 
released in March 2010 and the recent strengthening of 
Bango’s balance sheet means that we are well positioned for 
the future.  
 
 
Growing transaction volumes 
End user revenue grew by 55% year on year.  
 
The improved sales, financial predictability and customer 
experience Bango is able to offer customers, is what drives 
content providers to use the Bango system instead of SMS 
based solutions. To accelerate this change, a small team was 
established in January 2010 to focus on this opportunity, 
alongside the established sales team which is focused on 
winning new customers.  
 
As more Mobile Network Operators (MNOs) have connected to 
Bango and allowed integration with their billing services, more 
customers have been enabled to access content sold through 
Bango's payment system, in turn, driving transaction volumes. 
The AT&T and Sprint contracts won in the previous financial 
year have driven most of the growth in US transactions. 
Additionally, connections to the T-Mobile USA and Virgin 
Mobile USA billing systems in November 2009 further 
expanded Bango’s US coverage. Discussions are progressing 
with other MNOs including Verizon.  
 
Bango has a sales pipeline of large and medium sized content 
providers, and other businesses, that want to collect payment 
from mobile users or analyze their behavior. Some have not yet 
started the transition from legacy SMS to mobile web. Others 
want to move from the traditional PC web to the mobile internet 
to benefit from the increasing volume and spending power of 
mobile phone users. As customers sign-up and start using the 
Bango Service, their success in selling their products via the 
mobile web should drive more transaction volume.  
 
In addition to payments collected by mobile websites, Bango 
has also introduced products to support payment collection 
from within mobile applications (apps). The popularity of 
mobile applications is driving more developers and content 
providers to commit resources to developing mobile 
applications, as another channel to engage with consumers and 
generate revenue. According to Juniper Research, mobile 
application revenues will be worth £25 billion in 2014. 
  
Growing the Bango customer base 
Bango has succeeded in winning business from many large 
customers during the year including: Fox Mobile, Yahoo, 
Cellfish, Turner Broadcasting System Inc, Go-spoken, Monotype 
Imaging, Sendme Inc, Telenav and All Night Media. 
 
Bango Analytics had its first full year of sales and has 
successfully seen leading brands adopting the product to 
measure the effectiveness of their mobile marketing 
campaigns. The Turner Broadcasting win, covering mobile sites 
such as CNN.com, Adult Swim, Family Guy, Cartoon Network 
and CNN Money was significant – not just in revenue terms but 
also because we are able to focus our innovation and services 
on meeting the needs of an organization which is a leader in 
the provision of ad-funded content.  
 
 
Product development  
There have been three areas of activity for Bango product 
development during the year:  
 
(1) Improvements and innovation in existing services. Alongside 
many incremental improvements, Bango has added the 
innovative capability to use operator billing when users are 
connected through a non-operator (eg Wi-Fi) network, as well as 
optimizations to the user experience for iPhones, Android 
devices and BlackBerry handsets. 
  
(2) New Bango Payment and Analytics services. New services 
include the ability to use Bango Payment from within a mobile 
application as well as from a website, and new services to allow 
deeper integration with the Bango CRM system. A new service 
offering focused on larger Enterprise customers was launched 
during the year. New offerings to open up emerging markets 
such as Brazil and India are under development for initial 
release in 2010.  
 
(3) R&D to support growing transaction volumes and numbers 
of customers. Bango has deployed new hardware and data-
warehouse technologies to support increasing usage volumes. 
New services were developed to allow partners, such as RIM, to 
create customer accounts in the Bango system using their sign-
up processes, to enable rapid on-boarding of thousands of new 
customers to the Bango system without manual involvement at 
Bango. 
  
Bango regularly reviews procedures, capabilities and scalability 
plans with larger customers to be able to meet their present 
and future needs. Information on consumers grew from 40 
million unique mobile subscribers in March 2009 to more than 
73 million in March 2010. The 100 million mark was passed 
during June 2010.  
 
As major businesses become more reliant on Bango, they are 
undertaking extensive due diligence of systems and procedures, 
helping to improve and refine processes going forwards. 
Security checks, on-site audits and capacity testing have been 
undertaken by companies including Turner, RIM and Yahoo.  
   
CEO’s statement 05 
 
 
 
Financial performance 
Gross revenue in FY2010 grew by 48% to £26.1m compared 
with the previous year, with revenue in the second half of the 
year up by 12% compared to the first half year. Revenue from 
outside the UK accounted for 83.2% (£21.7m) of total revenue 
for the year, up from 61% (£10.8m) in the previous year.  
 
Gross profit in the second half grew 1% compared with the first 
half, to give a gross profit for the year of £2.67m.  
 
End user revenue grew by 55% year on year, 13% half on half. 
Gross profit on end user activity grew by 21% to £1.23m from 
£1.02m, whilst margin percentage reduced from 6.4% to 5.0% 
as a result of the earlier decision to lower transaction fees for  
larger content provider customers, resulting in significant 
increases in revenue from larger customers and the opportunity 
for substantial future growth. 
  
Gross profit from content providers decreased by £0.2m to 
£1.44m reflecting the full effect of the decision made in early 
2008 to change the sales process for content providers by 
introducing simpler and cheaper products, requiring reduced 
sales effort and reducing sales and marketing costs by about 
£0.7m year on year. As a result, some migration occurred with 
existing customers moving to cheaper Bango products. 
 
Sales of new Bango Analytics products, launched in February 
2009, made a small contribution to content provider revenues, 
with annualized revenues at the year-end of £225k.  
 
Administrative expenses decreased by £0.41m (12.6%) to 
£2.85m from £3.26m in the previous year, as a result of 
continuing improvement in sales and marketing efficiencies, 
plus increased development focus on activities with benefits in 
future periods. 
  
The loss before tax was £0.25m, improved by 61% compared 
with the loss of £0.65m in FY09.  
 
After an R&D tax credit of £0.26m, Bango achieved its maiden 
profit after tax of £10k. This compares with an after tax loss in 
the previous year of £0.48m.  
 
The cash used by operating activities for the year was £0.05m 
(£0.38m) broadly in line with the profit for the year.  
Expenditure on assets totaled £1.04m (£0.41m), including 
£0.88m (£0.35m) on internal R&D mainly on projects relating 
to high volume analytics processing in future periods.  
 
In January 2010 the Company raised £2.994m net from the 
issue of new ordinary shares at a price of 43p to provide 
increased working capital.  
 
 
Industry trends 
Bango management sees a number of trends that are growing 
the market opportunity for Bango: 
 
• More sophisticated devices are achieving widespread 
adoption 
• The adoption of the mobile web is increasing globally  
• Mobile broadband technology enables the delivery of richer 
content to consumers  
• More mobile users are using the internet and buying 
products on their phones 
• The functionality and usability of mobile web browsers 
continues to improve 
• Businesses are placing more emphasis on the mobile 
channel 
• MNOs are moving to open up opportunities for third 
parties reaching out to their subscribers 
• Increased interest in paid content models as ad-funding 
becomes more challenging 
• Increased competition for useful shelf space in the MNO 
portals and application stores 
• Growing recognition of the value of behavioral or 
personalized marketing 
• Businesses are focussing on payment conversion rates as 
competition becomes more intense 
  
Once a mobile website is established, it is immediately 
accessible to mobile internet users around the world. Once 
available, a web enabled system has a number of requirements 
that make it an expensive and potentially risky undertaking for 
any business. These factors also make a comprehensive and 
highly effective outsourced Bango offering an attractive 
alternative. The types of issues that Bango can address include, 
users who need to be geo-located, age-verified for certain 
content types, MNOs identified or currency and payment 
options accepted. In addition, the appropriate taxes must be 
collected and paid, payment fraud risk mitigated, and 
assurances made that products are not available to banned 
locations or inappropriate consumers.  
 
Direct to mobile  
Traditionally consumers have been encouraged to obtain digital 
content on a PC and transfer it to a mobile device. With the 
mobile phone replacing the iPod as the most popular music 
device and more phones having internet capability, consumers 
are becoming increasingly comfortable with the direct delivery 
of digital products, including software, audio-books, e-books, 
video games, music, and video to their mobile phones. 
  
This shift to direct delivery is being driven by benefits to both 
buyers and sellers of these products. For buyers, downloaded 
products are immediately available for use, without the 
inconvenience of a side-load. For sellers, direct delivery 
increases the speed of user wish fulfillment and maximizes the 
chances of repeat sales.  
 
Bango’s technology and relationships are focused on enabling 
successful mobile web business models because mobile 
devices are increasingly the way in which consumers will be 
connected to content in the future. Many of the world’s largest 
content providers agree with Bango and are starting to use 
Bango’s services and products to replace traditional SMS driven 
content delivery. 
 
Payment and conversation rates  
Traditional internet payment mechanisms such as PayPal have 
been targeting the mobile market for many years but continue 
to show very poor conversion rates. If these systems become 
more effective, they could open up a new opportunity for Bango 
to collect payments from some user groups.  
   
06 CEO’s statement  
 
 
 
App stores  
Application stores such as the BlackBerry App World, Nokia 
OVI store and the Apple App Store are new and increasingly 
important channels for vendors of applications in particular. In 
the case of the Nokia, BlackBerry and Android app stores, 
Bango sees opportunities to help these increase their 
conversion rates by adding Bango payment services. In 
addition, content providers can use Bango alongside 
application stores.  
 
 
Apple currently limits the functionality of the iPhone mobile 
browser to prevent the download of applications, music or video 
unless they have come through an ‘Apple approved channel’ or 
have been side-loaded. This has restricted the size of the 
market for content providers targeting that device. Several 
content providers are now using Bango to charge iPhone users 
for chat, information or streaming services, which are not 
blocked by the iPhone and Apple’s walled garden philosophy.  
 
 
Outlook and strategy for FY ending March 2011  
Bango’s strategy is to leverage its central position in the 
growing commercial mobile internet world in order to benefit 
from the increased level of business activity in this space. With 
considerable technical investment made to date, the Bango 
platform can handle very significant increases in transaction 
volumes without the need for major additional capital 
expenditure.  
 
Bango expects to see continued revenue growth driven by an 
increasing number of customers and a growing volume of 
transactions from established customers. The investments 
made in previous years mean Bango has a stable, automated, 
highly scalable system. This coupled with a proven business 
model and carefully managed cost base means Bango is well 
positioned for profitable growth in the year ahead.  
 
Bango is supporting RIM to drive the success of the BlackBerry 
App World. Enabling success for thousands of BlackBerry App 
developers brings many benefits to RIM, Mobile operators and 
Bango. It is Bango's intention to support Android, iPhone and 
Nokia developers, as well as those on other platforms, either 
directly or through the major application stores.  
 
The new Bango Analytics product is building a good reputation 
for precision and quality. Bango sometimes encounters 
competition from Nielsen or Omniture in its larger prospects, 
but according to prospects they do not have the accuracy or 
quality of data Bango can provide. The ability to measure the 
success of marketing activity accurately can also be a benefit 
for Bango Payment customers.  
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 
  Success stories 07 
 
Success stories 
 
With our unique technology and key mobile operator partnerships we have helped thousands of brands and app developers become 
successful on mobile. Our mobile billing and analytics solutions have enabled them to market and sell more mobile content and services. 
Below you will find a selection of our recent success stories.  
 
Touchnote 
Touchnote is a digital greeting card company that enables people to 
create and post cards using their mobiles from anywhere in the world. 
Consumers can create the cards, personalize them, using their own 
photos or photos from the Touchnote gallery. 
 
Touchnote uses Bango to enable consumers to easily pay for 
Touchnote cards via in-app billing - using phone bill, credit card and 
PayPal from within the application. Touchnote customers get a fast 
and secure payment experience that yields high conversion rates and 
successful transactions, across multiple territories and networks.  
 
 
Fox Mobile Group 
Fox Mobile Group (FMG) is one of the world's leading mobile 
entertainment providers, which reaches nearly one billion mobile users 
via its well-known mobile consumer services. These include Jamster 
and Jamba portals, which are available in more than 15 countries 
worldwide. 
 
The Bango mobile billing platform enables Jamster and Jamba 
customers to purchase mobile content fast and securely, delivering a 
more efficient payment experience within their phone across all 
territories.  
 
 
Sprint Application Developers Program 
Sprint is the third largest mobile carrier in the US. Through their 
Application Developers Program, the carrier provides developers 
access to Sprint’s enabling capabilities, creating a solution that meets 
their needs.  
 
Sprint partnered with Bango to provide Sprint developers with a 
complete mobile analytics solution that gives them independent real-
time information about their customers, as they use their apps. As 
well as showing developers how their customers interact with 
marketing campaigns and navigate their website. 
 
 
RIM (Research In Motion) 
With over 41 million subscribers, BlackBerry is the number one 
selling smartphone in the US. Available in more than 65 countries, 
nearly 30 million BlackBerry smartphone users have downloaded 
BlackBerry App World. 
 
Bango has been introduced as the “Merchant of Record for carrier 
billed transactions” for BlackBerry App World, enabling BlackBerry 
App World purchases to be applied directly to the customer’s monthly 
bill. 
 
 
Turner Broadcasting System Inc 
Turner Broadcasting System Inc is one of the world’s largest 
media entertainment organizations. It operates a number of 
globally recognized media, sports and entertainment brands. 
These include CNN and CNN International, PGA, the NBA, 
Cartoon Network and Sports Illustrated.  
 
Bango licensed its mobile analytics solution to Turner 
Broadcasting System Inc. Bango provides sophisticated analysis 
and reporting functions that enable media brands to understand 
how mobile users interact with on-line services.   
 
 
 
 
08 Case studies   
 
 
 
“Fox Mobile Group is pleased to work with Bango to bring 
their mobile web billing services to our Jamba and Jamster 
customers.”  
 
“We are committed to strengthening the user experience 
across our services and we are excited to be able to offer 
our customers a more efficient billing option.” 
 
Soren Schafft, General Manager of Americas for Fox 
Mobile Group 
 
“In the world of mobile commerce in-app billing solutions 
are very limited. A quick and simple integration with Bango 
Payment has allowed us to give our Touchnote customers   
the speed and convenience of familiar operator billing. 
 
“By using Bango’s new technology we provide our 
customers with a slick and consistent payment experience 
that delivers higher conversion rates.” 
 
Raam Thakrar, CEO Touchnote 
  Products, Business model, Key market developments 09 
 
Products  Business model 
 
Through one easy integration with Bango’s innovative mobile 
billing and analytics products, on-line businesses and app 
developers sell more content and build closer relationships 
with their customers. 
 
Bango develops and markets two lines of products: 
 
Bango Payment delivers more sales with more successful 
transactions that give bigger profits. 
 
Businesses and app developers using Bango Payment benefit 
from: 
 
 25% more sales from mobile websites and applications 
 
 Optimized payment experience on all mobile devices 
including smartphones  
 
 In-app billing solution for all mobile platforms – including 
Android, BlackBerry, iPhone, Symbian, Windows Mobile 
and Palm OS  
 
 Simple integration to collect one-time payments, distribute 
trials or sell subscriptions and features from within 
applications 
 
 Quick and easy billing through both mobile network and 
Wi-Fi connections 
 
 International coverage, with immediate international reach 
for no extra work  
 
 Analytics to measure and increase conversion rates 
 
 Automatic credit card billing to complement operator 
billing 
 
 
Bango Analytics provides independent and accurate data 
about mobile visitors, reporting precise customer insights in 
real-time. 
 
Businesses using Bango Analytics benefit from: 
 
 8x greater accuracy for measuring mobile campaigns, apps 
and mobile sites  
 
 Unique ID for each visitor – essential for measurement and 
CRM 
 
 Real-time and ad-hoc reporting of marketing campaign, 
applications and mobile site analytics 
 
 Better understanding of visitors paths and behavior 
 
 Complete reporting across all operator networks, Wi-Fi and 
mobile platforms 
 
 Enriched data through key partnerships with operators and 
other mobile providers 
 
 Unbiased, independent data you can trust 
 
 
 
Bango charges for its services through a mixture of transaction  
fees and monthly fees.  Where Bango collects payments 
through its billing partners, part of each payment transaction is 
retained by Bango. Around 2% is retained for very high volume 
customers, 5% is retained at low volume levels.  Monthly fees 
vary from a few dollars to thousands of dollars a month 
depending on the range and flexibility of services required. 
 
With Bango Analytics, a monthly fee is paid depending on the 
traffic volumes being analyzed. Typical monthly fees range from 
$49 to $500 per month. Enterprise customers will pay 
according to specific load and access requirements, typically in 
the range of $5,000 - $10,000 per month. A range of Bango 
services are available without charge for testing or for small 
scale users. Most services are purchased on a recurring monthly 
basis, but annual contracts are available with some offerings. 
 
 
Key market 
developments 
 
Anticipated in Bango’s FY 2009 Annual Report, the last twelve 
months saw the use of the mobile web grow rapidly across key 
markets, and more significantly in the US, driving businesses 
towards the ‘browse and buy’ model that is served by Bango 
products. Significant developments include: 
 
• Fast growth in the smartphones market (BlackBerry, HTC, 
iPhone) – championing the idea of browsing the web on a 
mobile device 
 
• Increase in Wi-Fi usage to connect to the internet from 
mobile devices 
 
• Google’s acquisition of AdMob demonstrated the importance 
of mobile advertising 
 
• App developers demanding greater control over their apps 
and alternatives routes for distribution, alongside app stores 
 
• Nokia re-positions as an internet company, targets brands 
with consumer content services 
 
• Mobile operators launched consumer marketing for mobile 
internet, with specific handsets and data plan pricing 
 
• Verizon Wireless and T-Mobile USA start to match the 
consumer choice delivered by AT&T and Sprint 
 
   
Accurate data
Precise filtering
10 Products, Business model, Key market developments              
Directors 11 
 
Directors             
 
 
 
 
Ray has over 25 years experience in starting, growing and selling 
businesses. He was named ‘Technology Entrepreneur of the Year’ 
in February 2006. Ray co-founded Bango in 1999 after realizing 
that the convergence of the internet with the ubiquity of mobile 
phones could open up huge opportunities for content and service 
providers. In 1988, Ray established IXI which created the industry 
standard network GUI - X.desktop. IXI was an early leader in the 
creation of the web. It sponsored the first ever WWW conference at 
CERN and shipped the world’s first commercial web browser. 
 
 
 
 
 
 
 
 
Anil is a highly experienced, senior marketing and business 
development manager, with over 17 years experience in building 
entrepreneurial, fast-growth start-up businesses in the internet, 
software publishing and technology sectors. He co-founded Bango 
with Ray Anderson in 1999 and was formerly with IXI, where Anil 
won worldwide deals with US, Japanese and European industry 
giants including IBM, Digital and Sun Microsystems. 
 
 
 
 
 
 
 
 
 
 
 
Peter provides the financial leadership, direction and policy 
guidance to the Company as it continues to grow rapidly. He has 
over 20 years experience in all financial disciplines including 
accounting, fund-raising and acquisitions. From 1996 to 2001 he 
was Finance Director at PayPoint, the UK’s leading branded utility 
bill payment Company. From start-up, Peter was responsible for 
all finance activity and enabled the Company to profitably process 
more than £2 billion of payments per year. 
 
 
 
 
 
 
 
 
 
Lindsay Bury is Chairman of Electric and General Investment Trust 
plc and ServicePower Technologies plc. He has in recent years 
been a Non-executive Director of The Sage Group plc, chairman of 
South Staffordshire Group and a number of other listed as well as 
private software and technology companies. 
Ray Anderson 
CEO 
Anil Malhotra 
SVP Marketing & Alliances 
Peter Saxton 
CFO 
Lindsay Bury
Chairman   
12 Directors  
 
             
 
 
 
 
David Sear 
Non-executive Director 
Rudy Burger 
Non-executive Director 
Martin Rigby 
Non-executive Director 
 
 
Martin is founder and joint managing Director of ET Capital 
Limited, a shareholder in the Company. He has been a venture 
capital investor for over 20 years making and manages 
investments in innovative technology businesses, principally in 
network services, software and hardware. 
 
 
 
 
 
 
 
 
Rudy is the Managing Partner of Woodside Capital, an investment 
bank for emerging growth companies. Rudy has founded five 
companies, all in the digital media technologies sector. He is a 
leading expert in digital technologies and international business 
development. Dr.Burger serves on the boards of several US and 
European companies. He has a BSc and MSc from Yale University 
and a PhD from Cambridge University. 
 
 
 
 
 
 
 
 
David Sear is Divisional Managing Director at Travelex Global 
Business Payments, a company which provides international 
payment services to 35,000 businesses across 14 countries. David 
joined Travelex in March 2006 from Voca Ltd (previously BACS), 
where he helped to transform the company at the centre of the UK's 
payments industry. Prior to Voca, David was Chief Operating Officer 
at WorldPay Group plc. Earlier in his career David spent seven years 
at Equifax Cheque Services, the world's largest cheque guarantee 
company, becoming European Managing Director. 
 
 
   
Company information 13 
 
Company information 
 
Company registration number 05386079 
 
Registered office 5 Westbrook Centre 
 Milton Road 
 Cambridge 
 CB4 1YG 
 Tel:  +44 (0)8700 340 360 
 Fax:  +44 (0)1223 472 778 
 
Directors Mr L C N Bury – Non-executive Chairman 
 Mr R Anderson - CEO 
 Mr A Malhotra - SVP Marketing & Alliances 
 Mr P Saxton - CFO 
 Mr M Rigby – Non-executive Director 
 Dr R Burger – Non-executive Director 
  
Company Secretary Mr H Goldstein 
  
Bankers HSBC Bank Plc 
 Vitrum 
 St Johns' Innovation Park 
 Cambridge 
 CB4 0DS 
 
Solicitors Taylor Wessing 
 24 Hills Road 
 Cambridge 
 CB2 1JW 
 
Independent auditor Grant Thornton UK LLP 
 Chartered Accountants and Registered Auditors 
 Byron House 
 Cambridge Business Park 
 Cowley Road 
 Cambridge 
 CB4 0WZ 
 
Nominated adviser and broker Cenkos Securities Ltd 
 6.7.8 Tokenhouse Yard 
 London 
 EC2R 7AS 
 
Public relations advisor Threadneedle Communications 
 3rd Floor, Aldermary House 
 10-15 Queen Street 
 London 
 EC4N 1TX 
 
US office 330 Madison Avenue 
6th Floor 
New York, NY 10017 
 Tel:  +1 866 528 6897 
 Fax:  +1 646 349 3023 
 
 
 
 www.bango.com 
 sales@bango.com
 
 
   
14 Directors’ report 
 
Directors’ report 
 
The Directors present the Annual Report and audited financial 
statements of Bango PLC for the year ended 31 March 2010. 
 
Principal activities and business review 
The principal activity of the Company during the year was as 
investment holding company for Bango.net Limited and other 
subsidiaries. 
 
The principal activity of the Group during the year was the 
development, marketing and sale of technology to enable mobile 
phone users to easily choose and purchase services, games, 
pictures, videos, music and ringtones on their mobile phones. 
 
Bango enables businesses of all sizes to quickly and easily benefit 
from the expansion of the world wide web to mobile phones. 
Bango technology and services have been used by many leading 
brands.  
 
A review of the Group’s performance for the year ended 31 March 
2010 and future developments is contained in the Chairman’s 
statement and the CEO’s statement. 
 
Key performance indicators 
The Group made a profit of £10,041 (£74,886 before share 
based payment costs) for the year ended 31 March 2010 (2009: 
loss of £477,497, £415,001 before share based payment costs).  
The Directors do not recommend payment of a dividend. 
 
The Directors and their interests 
The Directors who served the company throughout the year, 
together with their beneficial interests in the shares of the 
Company were as follows: 
 
 Ordinary shares Ordinary shares 
 of 20p each  of 20p each 
 At 31 March   
2010 
At 31 March 
2009 
   
Mr R Anderson 6,624,036 6,424,036 
Mr A Malhotra 3,747,000 4,027,000 
Mr P Saxton 225,000 225,000 
Mr L C N Bury 1,158,920 950,000 
Mr M Rigby  20,754 20,754 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
 
Dr R Burger was appointed director on 3 June 2010 and Mr D 
Sear was appointed director on 20 August 2010. 
 
The Directors did not exercise any share options during the year. 
 
The Directors’ interests in share options of the company were as 
follows: 
Options to buy ordinary shares of 20p each 
Date of grant Option 
price 
At 31 
March 
2010 
At 31 March 
2009 
Mr P Saxton    
1 March 2005 £0.500 200,000 200,000 
21 September 2005 £2.020 50,000 50,000 
25 May 2006 £1.400 50,000 50,000 
22 March 2007 £0.500 76,250 76,250 
31 January 2008 £0.230 91,250 91,250 
19 February 2009 £0.440 62,500 62,500 
1 October 2009 £0.445 31,250 - 
25 March 2010  £0.595 31,250 - 
Total 592,500 530,000 
 
The share options were granted at market price and vest over a 
three year period in twelve equal quarterly instalments.  Vested 
options will lapse unless exercised within ten years of the date of 
grant. 
 
Creditor payment policy and practice 
It is the Group's policy that payments to suppliers are made in 
accordance with those terms and conditions agreed between the 
Group and its suppliers, provided that there has been compliance 
with all trading terms.  Content providers are the main suppliers to 
the Group.  At 31 March 2010, the Group had an average of 56 
days (2009: 94 days) creditors outstanding in trade payables, 
accruals and deferred income. 
 
Share capital 
Details of changes in the share capital of the Company during the 
year are given in note 7 to the financial statements.  
 
Directors’ indemnity arrangements 
The Company has purchased and maintained throughout the year 
Directors’ & Officers’ liability insurance in respect of itself and its 
Directors. 
 
Financial risk management objectives and policies 
The Group’s activities expose it to some financial risks.  The 
Group monitors these risks but does not consider it necessary to 
use any derivative financial instruments to hedge these risks.  See 
notes 6, 8 and 18 for further information. 
 
Liquidity risk 
The Company seeks to manage financial risk by ensuring sufficient 
liquidity is available to meet foreseeable needs and to invest in 
cash assets safely and profitably.  See note 20 for further 
information. 
 
Credit risk 
Credit risk arises from exposure to outstanding receivables.  
Potential new customers are assessed for credit risk before credit 
is given, to minimize credit exposure.  See note 19 for further 
information. 
 
Principal risks and uncertainties 
The key business risks affecting the group are set out below: 
 
Financial 
See financial risk management and policies section above. 
 
Technology 
The Group’s revenue is dependent on its technology keeping pace 
with developments in mobile phone technology, including volumes 
of data and growth in applications. 
 
Payment Providers 
The current business model is dependent on payment providers.  
These are therefore key trading relationships to the Group and 
Bango’s access and revenue from the end-user is subject to 
influence by the payment providers. 
 
Retention of staff 
The Group’s performance depends largely on its ability to recruit 
and retain key individuals with the right experience and skills.  To 
ensure that the Group retains the highest calibre staff, a number 
of schemes have been implemented linked to the group results, 
including bonus and share option schemes.   
    
Directors’ report 15 
 
Directors’ report 
 
Employment policies 
The Group is committed to following the applicable employment 
laws in each territory in which it operates.  The Group is 
committed to fair employment practices including the prohibition 
of all forms of discrimination and attempts as far as possible to 
give equal access and fair treatment to all employees on the  
basis of merit.  Wherever possible we provide the same 
opportunities for disabled people as for others.  If employees 
become disabled we would make reasonable effort to keep them in 
our employment, with appropriate training where necessary.     
 
Health and safety policies 
The Group is committed to conducting its business in a manner 
which ensures high standards of health and safety for its 
employees, visitors and the general public.  It complies with all 
applicable and regulatory requirements. 
 
Directors’ responsibility 
The following statement, which should be read in conjunction with 
both reports of the auditor set out on pages 18 and 39, is made in 
order to distinguish for shareholders the respective responsibilities 
of the Directors and of the auditors in relation to the financial 
statements. 
 
The Directors are responsible for preparing the Annual Report and 
the financial statements in accordance with applicable law and 
regulations. 
 
Company law requires the Directors to prepare financial 
statements for each financial year.  Under that law the Directors 
have prepared the Group financial statements in accordance with 
International Financial Reporting Standards (IFRSs) as adopted by 
the European Union and separate parent company financial 
statements under United Kingdom Accounting Standards (United 
Kingdom Generally Accepted Accounting Practice).  The financial 
statements are required by law to give a true and fair view of the 
state of affairs of the company and the Group and of the profit or 
loss of the Group for that period.  In preparing these financial 
statements, the Directors are required to: 
 
• Select suitable accounting policies and then apply them 
consistently. 
 
• Make judgments and estimates that are reasonable and 
prudent. 
 
• State that the Group financial statements comply with 
IFRSs as adopted by the European Union and that the 
parent financial statements are prepared under United 
Kingdom Accounting Standards (United Kingdom 
Generally Accepted Accounting Practice). 
 
• Prepare the financial statements on the going concern 
basis unless it is inappropriate to presume that the 
Group will continue in business. 
 
The Directors are responsible for keeping adequate accounting 
records that disclose with reasonable accuracy at any time the 
financial position of the company and the Group and to enable 
them to ensure that the financial statements comply with the 
Companies Act 2006.  They are also responsible for safeguarding 
the assets of the company and the Group and hence for taking 
reasonable steps for the prevention and detection of fraud and 
other irregularities. 
 
In so far as the Directors are aware: 
 
• There is no relevant audit information of which the 
Company's auditors are unaware. 
 
• The Directors have taken all steps that they ought to 
have taken to make themselves aware of any relevant 
audit information and to establish that the auditors are 
aware of that information. 
 
The Directors are responsible for the maintenance and integrity of 
the corporate and financial information included on the Group's 
website.  Legislation in the United Kingdom governing the 
preparation and dissemination of financial statements may differ 
from legislation in other jurisdictions. 
 
 
Auditor 
A resolution to re-appoint Grant Thornton UK LLP as auditor for 
the ensuing year will be proposed at the Annual General Meeting 
in accordance with section 489 of the Companies Act 2006. 
 
 
BY ORDER OF THE BOARD 
 
 
 
 
 
 
 
 
Company Secretary 
Mr H Goldstein   
16 Corporate governance statement  
 
Corporate governance statement 
 
Audit Committee 
The Audit Committee comprises the Chairman and all other Non-
executive Directors. 
 
The Committee’s main role and responsibilities are to: 
 
• Monitor the integrity of the financial statements of the 
Group. 
• Review the Group’s internal financial controls and risk 
management systems. 
• Make recommendations to the Board, for it to put to the 
shareholders for their approval in relation to the 
appointment of the external auditor and to approve the 
remuneration and terms of reference of the external 
auditor. 
• Discussion of the nature, extent and timing of the 
external auditor’s procedures and discussion of the 
external auditor’s findings. 
• Review and monitor the external auditor’s independence 
and objectivity and the effectiveness of the audit 
process. 
• Develop and implement policy on the engagement of the 
external auditor to supply non-audit services. 
• Report to the Board, identifying any matters in respect of 
which it considers that action or improvement is 
required. 
• Ensure a formal channel is available for employees and 
other stakeholders to express any complaints in respect 
of financial accounting and reporting. 
 
The Group does not currently have an internal audit function, 
which the Board considers appropriate for a Group of Bango’s size. 
The Committee is scheduled to meet twice each year and at other 
times if necessary. The Audit Committee will review risk 
assessments and the need for an internal audit function on a 
periodic basis. 
 
Internal control procedures 
The Board is responsible for the Group’s system of internal 
controls and risk management, and for reviewing the effectiveness 
of these systems. These systems are designed to manage, rather 
than eliminate, the risk of failure to achieve business objectives,  
 
• The business plan is updated on a periodic basis to take 
into account the most recent forecasts. On a monthly 
basis, actual results are compared to the latest forecast 
and market expectations and presented to the Board on 
a timely basis. 
• Regular reviews by the Board and by the senior 
management team of key performance indicators. 
• A limited number of senior management are able to sign 
cheques and authorize payments. Payments are not 
permitted without an approved invoice. 
• Reconciliations of key balance sheet accounts are 
performed and independently reviewed by the finance 
team. 
• A disaster recovery plan and back-up system is 
documented and in place. 
 
The Board in conjunction with the Audit Committee keeps under 
review the Group’s internal control system on a periodic basis.  
 
Communications with shareholders 
The Board recognizes the importance of regular and effective 
communication with shareholders. The primary forms of 
communication are: 
 
• The annual and interim statutory financial reports and 
associated investor and analyst presentations and 
reports. 
• Announcements relating to trading or business updates 
released to the London Stock Exchange. 
• The Annual General Meeting provides shareholders with 
an opportunity to meet the Board of Directors and to ask 
questions relating to the business. 
 
Going concern 
After making enquiries, at the time of approving the financial 
statements, the Directors have a reasonable expectation that the 
Company and the Group have adequate resources to continue in 
operational existence for the foreseeable future. For this reason, 
the Directors continue to adopt the going concern basis in 
preparing the financial statements and to provide reasonable, but 
not absolute assurance against material misstatement or loss. 
 
The key features of the Group’s internal controls are described 
below: 
 
• A clearly defined organizational structure with 
appropriate delegation of authority. 
• The approval by the Board of a one year budget, 
including monthly income statements, balance sheets 
and cash flow statements. The budget is prepared in 
conjunction with senior managers to ensure targets are 
feasible. 
   
Remuneration Committee report 17 
 
Remuneration Committee report 
 
The Remuneration Committee comprises the Chairman and all 
other Non-executive Directors. 
  
The Committee’s main role and responsibilities are as follows: 
 
• To review, and determine on behalf of the Board, the 
specific remuneration and incentive packages for each of 
the Group’s Executive Directors. 
 
• To review, and make recommendations to the Board in 
respect of, the design of remuneration structures and 
levels of pay and other incentives for employees of the 
Group, including share option awards and any 
adjustments to the terms of share ownership and share 
option schemes. 
 
• To be responsible for reporting to the Group’s 
shareholders in relation to remuneration policies 
applicable to the Group’s Executive Directors. 
 
The Committee may invite the Chief Executive Officer and Chief 
Finance Officer to attend meetings of the Remuneration 
Committee. The Chief Executive Officer is consulted on proposals 
relating to the remuneration of the Chief Finance Officer and of 
other senior executives of the Group. The Chief Executive Officer 
is not involved in setting his own remuneration. 
 
The Committee may use remuneration consultants to advise it in 
setting remuneration structures and policies. The Committee is 
exclusively responsible for appointing such consultants and for 
setting their terms of reference. 
 
The Committee’s terms of reference are reviewed and approved by 
the Board. These are available for inspection at the Group’s 
registered office. 
 
Remuneration policy 
The Group’s policy on remuneration is to provide a package of 
benefits, including salary, performance-related bonuses and share 
options, which reward success and individual contributions to the 
Group’s overall performance appropriately, while avoiding paying 
more than is necessary for this purpose. In addition, the 
Remuneration Committee takes into account remuneration 
packages of comparable companies when making 
recommendations to the Board. 
 
Performance-related elements of remuneration are designed to 
align the interests of Executive Directors with those of 
shareholders and accordingly are set as a significant proportion of 
total remuneration. 
 
Share options 
The Group considers that active participation in a share option 
plan is an effective means of incentivizing and retaining high 
quality people. Directors and employees are eligible to participate 
in the scheme. Further details of the option plan and outstanding 
options as at 31 March 2010 are given in note 7 to the financial 
statements. 
 
Service agreements 
The Executive Directors have service agreements with Bango PLC. 
The agreements include restrictive covenants which apply during 
employment and for a period of twelve months after termination. 
 
 
 
The agreements can be terminated on twelve months’ notice in 
writing by either the Company or by the Executive Director. 
 
Non–executive Directors 
The remuneration of the Non-executive Directors is determined by 
the Executive Directors.  Their appointments can be terminated on 
six months’ notice in writing by the Company. 
 
Directors’ emoluments 
Details of remuneration in respect of the Directors is provided in 
note 13. 
   
18 Report of the independent auditor to the members of Bango PLC  
 
Independent auditor’s report to the 
members of Bango PLC 
 
We have audited the financial statements of Bango plc for the year 
ended 31 March 2010 which comprise the consolidated balance 
sheet, the consolidated income statement, the consolidated cash 
flow statement, the consolidated statement of changes in equity 
and the related notes. The financial reporting framework that has 
been applied in the preparation of the group financial statements 
is applicable law and International Financial Reporting Standards 
(IFRSs) as adopted by the European Union. 
This report is made solely to the company’s members, as a body, 
in accordance with Chapter 3 of Part 16 of the Companies Act 
2006. Our audit work has been undertaken so that we might state 
to the company’s members those matters we are required to state 
to them in an auditor’s report and for no other purpose. To the 
fullest extent permitted by law, we do not accept or assume 
responsibility to anyone other than the company and the 
company’s members as a body, for our audit work, for this report, 
or for the opinions we have formed. 
 
Respective responsibilities of directors and auditors 
As explained more fully in the Directors’ Responsibilities 
Statement set out on page 15, the directors are responsible for the 
preparation of the financial statements and for being satisfied that 
they give a true and fair view. Our responsibility is to audit the 
financial statements in accordance with applicable law and 
International Standards on Auditing (UK and Ireland). Those 
standards require us to comply with the Auditing Practices Board’s 
(APB’s) Ethical Standards for Auditors. 
Scope of the audit of the financial statements 
A description of the scope of an audit of financial statements is 
provided on the APB's website at ww.frc.org.uk/apb/scope/UKNP. 
Opinion on financial statements 
In our opinion: 
 the financial statements give a true and fair view of the 
state of the group's affairs as at 31 March 2010 and of the 
group's profit for the year then ended;  
 the group financial statements have been properly prepared 
in accordance with IFRS as adopted by the European Union; 
 the financial statements have been prepared in accordance 
with the requirements of the Companies Act 2006 
 
Opinion on other matter prescribed by the Companies Act 
2006 
In our opinion the information given in the Directors' Report for 
the financial year for which the financial statements are prepared 
is consistent with the financial statements. 
Matters on which we are required to report by exception 
We have nothing to report in respect of the following matters 
where the Companies Act 2006 requires us to report to you if, in 
our opinion: 
 certain disclosures of directors’ remuneration specified by 
law are not made; or 
 we have not received all the information and explanations 
we require for our audit. 
 
Other matter 
We have reported separately on the parent company financial 
statements of Bango Plc for the year ended 31 March 2010.  
 
 
 
 
 
Alison Seekings, Senior Statutory Auditor 
for and on behalf of Grant Thornton UK LLP 
Statutory Auditor, Chartered Accountants 
Cambridge 
23 August 2010 
   
 
Consolidated balance sheet 19 
 
Consolidated balance sheet 
 
 2010 2009
Note £  £ 
 
ASSETS 
Non-current assets 
Property, plant and equipment 5 315,792 259,377 
Intangible assets 5 1,163,591 352,738 
 - --- --- --- --- --- --- --- --- --- --- -- - --- --- --- --- --- --- --- --- --- --- ---
  1,479,383 612,115 
 
Current assets 
Trade and other receivables 6 4,018,967 4,312,289 
Cash and cash equivalents 2,735,460 826,283 
 - --- --- --- --- --- --- --- --- --- --- -- - --- --- --- --- --- --- --- --- --- --- ---
 6,754,427 5,138,572 
- --- --- --- --- --- --- --- --- --- --- -- - --- --- --- --- --- --- --- --- --- --- ---
Total assets 8,233,810 5,750,687 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = =
 
EQUITY 
Capital and reserves attributable to equity holders of the parent company 
Share capital  7 7,176,989 5,673,712 
Share premium account  7,005,012 5,504,749 
Merger reserve  1,236,225 1,236,225 
Other reserve  981,236 916,391 
Accumulated losses  (12,375,035) (12,385,076) 
 
  --------------------------------- - --- --- --- --- --- --- --- --- --- --- ---
Total equity  4,024,427 946,001 
  = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = =
 
LIABILITIES    
Current liabilities    
Trade and other payables 8 4,209,383 4,804,686 
  --------------------------------- - --- --- --- --- --- --- --- --- --- --- ---
Total liabilities 4,209,383 4,804,686 
   
- --- --- --- --- --- --- --- --- --- --- -- - --- --- --- --- --- --- --- --- --- --- ---
Total equity and liabilities 8,233,810 5,750,687 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = =
 
These financial statements were approved by the Directors on 23 August 2010 and are signed on their behalf by: 
 
 
 
 
 
Mr R Anderson Mr P Saxton 
Director Director  
 
 
Company registration number 05386079 
 
 
 
 
 
 
 
 
 
 
 
The notes on pages 23 to 38 are an integral part of these consolidated financial statements. 
   
20 Consolidated income statement  
 
Consolidated income statement 
 
 2010 2009 
Note £  £ 
 
Gross revenue 4 26,133,109 17,607,176 
Cost of sales (23,465,448) (14,947,758) 
 - --- --- --- --- --- --- --- --- --- --- - - --- --- --- --- --- --- --- --- --- --- -
Gross profit 2,667,661 2,659,418 
    
Administrative expenses before share based payment   (2,845,417) (3,256,390) 
Share based payments   (64,845) (62,496) 
  -------------------------------- - --- --- --- --- --- --- --- --- --- --- -
Total administrative expenses    (2,910,262) (3,318,886)
  -------------------------------- - --- --- --- --- --- --- --- --- --- --- -
Operating loss  (242,601) (659,468) 
    
Interest payable  (8,834) - 
Investment income 14 1,165 13,426 
  -------------------------------- - --- --- --- --- --- --- --- --- --- --- --
Loss before taxation (250,270) (646,042) 
    
Income tax 15 260,311 168,545 
  -------------------------------- ---------------------------------
Profit / (loss) and total comprehensive income for the financial year  10,041 (477,497) 
  = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = =
Attributable to equity holders of the Company  10,041 (477,497) 
  = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = =
 
Earnings / (loss) per share attributable to the equity holders of the Company 
Basic earnings / (loss) per share 16 0.03 (1.72) 
  
Diluted earnings / (loss) per share 16 0.03 (1.72) 
 
All of the activities of the Group are classed as continuing. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The notes on pages 23 to 38 are an integral part of these consolidated financial statements  
Consolidated cash flow statement 21 
 
Consolidated cash flow statement 
 
 2010 2009 
Note £  £ 
 
 
Net cash used by operating activities 17 (51,465) (376,069) 
 
Cash flows generated from/used by investing activities 
Purchases of property, plant and equipment (159,489) (59,748) 
Addition to intangible assets (875,740) (352,471) 
Interest received 1,165 13,426 
Interest payable (8,834) - 
 -------------------------------- -------------------------------- 
Net cash generated from/used by investing activities (1,042,898) (398,793) 
 
Cash flows generated from financing activities 
Proceeds from issuance of ordinary shares 3,003,540 475,112 
 -------------------------------- -------------------------------- 
Net cash generated from financing activities 3,003,540 475,112 
 
  -------------------------------- -------------------------------- 
Net increase / (decrease) in cash and cash equivalents    1,909,177 (299,750) 
Cash and cash equivalents at beginning of year  826,283 1,126,033 
-------------------------------- -------------------------------- 
Cash and cash equivalents at end of year  2,735,460 826,283 
  = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = =
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The notes on pages 23 to 38 are an integral part of these consolidated financial statements.  
 
22 Consolidated statement of changes in equity  
 
Consolidated statement of changes  
in equity 
 
 
 Share Share Merger Other Retained Total
 capital premium reserve reserve earnings  
Group  account     
 £ £ £ £ £  £ 
 
Balance at 1 April 2008 5,383,282 5,320,067 1,236,225 853,895 (11,907,579) 885,890 
Share options issued in share-      
based payments - - - 62,496 - 62,496 
Exercise of share options 21,430 13,107 - - - 34,537 
Issue of new shares 269,000 171,575 - - - 440,575 
Transactions with owners 5,673,712 5,504,749 1,236,225 916,391 (11,907,579) 1,423,498 
      
Loss for the period - - - - (477,497) (477,497)
Total comprehensive income     
for the period - - - - (477,497) (477,497)
Balance at 31 March 2009 5,673,712 5,504,749 1,236,225 916,391 (12,385,076) 946,001 
       
       
Balance at 1 April 2009 5,673,712 5,504,749 1,236,225  916,391 (12,385,076) 946,001 
Share options issued in share-      
based payments - - - 64,845 - 64,845 
Exercise of share options 5,603 4,121 - - - 9,724 
Issue of shares 1,497,674 1,496,142 - - - 2,993,816 
Transactions with owners 7,176,989 7,005,012 1,236,225 981,236 (12,385,076) 4,014,386 
      
Profit for the period - - - - 10,041 10,041 
Total comprehensive income     
for the period - - - - 10,041 10,041 
Balance at 31 March 2010 7,176,989 7,005,012 1,236,225 981,236 (12,375,035) 4,024,427 
       
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The notes on pages 23 to 38 are an integral part of these consolidated financial statements.   
 
Notes to the financial statements 23 
 
Notes to the financial statements 
 
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 address of the registered office of the Company, 
which is also its principal place of business, is given on page 13. 
The Company’s shares are listed on the Alternative Investment 
Market of the London Stock Exchange ("AIM"). 
 
The financial statements for the year ended 31 March 2010 
(including the comparatives for the year ended 31 March 2009) 
were approved by the Board of Directors on 23 August 2010. 
 
2  Basis of preparation 
The consolidated financial statements have been prepared under 
the historical cost convention. 
 
The Group has prepared its Annual Report 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. The areas involving a high degree of 
judgement or complexity, or areas where assumptions and 
estimates are significant to the consolidated financial statements 
are disclosed in notes 3.17. 
 
These financial statements are presented in pounds sterling (GBP) 
because that is the presentation currency of the group.  Every 
entity within the group has its own functional currency. Foreign 
operations are included in accordance with the policies set out in 
notes 3.13. 
 
3  Principal accounting policies 
The principal accounting policies applied in the preparation of 
these consolidated financial statements are set out below. These 
policies have been consistently applied to all the years presented, 
as amended for the adoption of IAS1 Presentation of Financial 
Statements (revised 2007) and IFRS 8 Operating Segments, 
unless otherwise stated. 
 
The adoption of IAS 1 (revised 2007) does not affect the financial 
position or the results of the Group, but gives rise to additional 
disclosures.  The measurement and recognition of the Group’s 
assets, liabilities, income and expenses is unchanged.  IAS 1 
(revised 2007) affects the presentation of owner changes in 
equity.  IAS 1 (revised 2007) requires presentation of a 
comparative balance sheet at the beginning of the first 
comparative period.  Management considers that this is not 
necessary this year because the 2008 balance sheet is the same 
as previously published.  
 
This year the Group adopted IFRS 8 Operating Segments, which 
replaces IAS 14 Segment Reporting.  The standard is applied 
retrospectively.  The adoption of IFRS 8 has not changed the 
segments which are disclosed.  Under IFRS 8  the accounting 
policy for identifying segments is based on the internal 
management reporting information that is regularly reviewed by 
the chief operating decision maker. 
 
3.1  Basis of consolidation 
On 9 June 2005 Bango PLC acquired the entire issued share 
capital of Bango.net Limited by way of a share for share exchange.  
As the shareholders were the same before and after this 
transaction, the share for share exchange qualifies as a common 
control transaction and falls outside of the scope of IFRS 3, 
Business Combinations.  
 
No goodwill has been recorded and the difference between the 
parent company's cost of investment and Bango.net Limited's 
share capital and share premium is presented as a merger reserve 
within equity on consolidation.  
 
The consolidated financial statements incorporate the financial 
statements of the Company and all entities controlled by it after 
eliminating internal transactions. Control is achieved where the 
Group has the power to govern the financial and operating policies 
of a Group undertaking so as to obtain economic benefits from its 
activities. Undertakings’ results are adjusted, where appropriate, 
to conform to group accounting policies. 
 
3.2  Property, plant and equipment 
Property, plant and equipment is stated at historical cost less 
accumulated depreciation. Residual values and useful economic 
lives are assessed annually.  Depreciation is provided to write off 
the cost of all property, plant and equipment to its residual value 
on a straight-line basis over its expected useful economic lives, 
which are as follows: 
 
Leasehold improvements  20% straight-line  
Office equipment   20% straight-line 
Computer equipment 10% - 33.3% straight-line 
 
3.3  Intangible assets 
Intangible assets are measured initially at historical cost and are 
amortized on a straight-line basis over the expected useful 
economic lives: 
 
Domain names  33.3% straight-line 
Internal Development 20% straight line 
 
3.4  Impairment of property, plant and equipment and 
intangible assets 
At each balance sheet date, the Group reviews the carrying 
amounts of its property, plant and equipment and intangible 
assets for any indication that those assets have suffered an 
impairment loss. Until completion of the development project, 
when amortisation can be charged on the intangible asset, the 
assets are subject to an annual impairment test.  If any such 
indication exists, the recoverable amount of the asset is estimated 
in order to determine the extent of the impairment loss, if any. 
The recoverable amount is the higher of the fair value less costs to 
sell and value in use. 
 
3.5  Research and development 
Expenditure on research activities is recognized as an expense in 
the period in which it is incurred.  An internally-generated 
intangible asset arising from the Group's development activities is 
recognized only if all of the following conditions are met: 
 
• Completion of the intangible asset is technically feasible 
so that it will be available for use or sale. 
• The Group intends to complete the intangible asset and 
use or sell it. 
• The Group has the ability to use or sell the intangible 
asset. 
• The intangible asset will generate probable future 
economic benefits.  Among other things, this requires 
that there is a market for the output from the intangible 
asset or for the intangible asset itself, or, if it is to be 
used internally, the asset will be used in generating such 
benefits.   
 
24 Notes to the financial statements  
 
Notes to the financial statements
 
• There are adequate technical, financial and other 
resources to complete the development and to use or sell 
the intangible asset. 
• The expenditure attributable to the intangible asset 
during its development can be measured reliably. 
 
Internally-generated intangible assets are amortized on a straight-
line basis over their useful economic lives. Where no internally-
generated intangible asset can be recognized, development 
expenditure is recognized as an expense in the period in which it 
is incurred. 
 
The cost of an internally generated intangible asset comprises all 
direct attributable costs necessary to create, produce and prepare 
the intangible asset to be capable of operating in the manner 
intended by management.  Directly attributable costs comprise 
employee salary and other employment costs incurred, on a time 
apportioned basis, on the project development.  These costs are 
recognized as intangible assets.  Until completion of the project, 
these assets are subject to impairment testing only.  Amortisation 
commences upon completion of the asset, and is shown within 
administrative expenses in the income statement.   
 
3.6  Loans and receivables 
a) Cash and cash equivalents 
Cash and cash equivalents comprise cash in hand and bank 
deposits available on demand. 
 
b) Trade and other receivables 
Trade and other receivables are recognized initially at fair value 
and are measured subsequent to initial recognition at amortized 
cost using the effective interest method, less provision for 
impairment.  Any change in their value through impairment or 
reversal of impairment is recognized in the income statement. 
 
Provision against trade receivables is made when there is objective 
evidence that the Group will not be able to collect all amounts due 
to it in accordance with the original terms of those receivables. 
The amount of the write-down is determined as the difference 
between the asset's carrying amount and the present value of 
estimated future cash flows. 
 
3.7  Trade and other payables 
Trade and other payables are initially measured at fair value, and 
are subsequently measured at amortized cost, using the effective 
interest rate method. 
 
3.8 Income taxes 
Current income tax liabilities comprise those obligations to fiscal 
authorities relating to the current or prior reporting period, that are 
unpaid at the balance sheet date. They are calculated according to 
the tax rates and tax laws applicable to the fiscal periods to which 
they relate, based on the taxable profit for the year. All changes to 
current tax assets or liabilities are recognized as a component of 
tax expense in the income statement, except where it relates to 
items charged or credited directly to equity. 
Deferred income taxes are calculated using the liability method on 
temporary differences. This involves the comparison of the 
carrying amounts of assets and liabilities in the consolidated 
financial statements with their respective tax bases. In addition, 
tax losses available to be carried forward as well as other income 
tax credits to the Group are assessed for recognition as deferred 
tax assets. However, deferred tax is not provided on the initial 
recognition of goodwill, nor on the initial recognition of an asset or 
liability unless the related transaction is a business combination 
or affects tax or accounting profit.  Deferred tax on temporary 
differences associated with shares in subsidiaries and joint 
ventures is not provided if reversal of these temporary differences 
can be controlled by the Group and it is probable that reversal will 
not occur in the foreseeable future.  In addition, tax losses 
available to be carried forward as well as other income tax credits 
to the Group are assessed for recognition as deferred tax assets.  
 
Deferred tax liabilities are always provided for in full. Deferred tax 
assets are recognized to the extent that it is probable that the 
underlying deductible temporary differences will be able to be 
offset against future taxable income. Deferred tax assets and 
liabilities are calculated, without discounting, at tax rates that are 
expected to apply to their respective period of realization, provided 
they are enacted or substantively enacted at the balance sheet 
date. 
 
Deferred tax is recognized as a component of tax expense in the 
income statement, except where it relates to items charged or 
credited directly to other comprehensive income. 
 
3.9  Operating lease agreements 
Rentals applicable to operating leases where the risks and rewards 
or ownership are not transferred are charged to the income 
statement net of any incentives received from the lessor on a 
straight-line basis over the period of the lease. 
 
3.10  Revenue recognition 
End users make a prepayment to the Group prior to accessing 
chargeable mobile internet content. 
 
Content access fees are received from end users and are 
recognized as revenue at the time at which end users access 
chargeable mobile internet content and recognised as gross 
revenue.  In some cases, third party payment processors elect to 
refund their customers without returning content to the content 
provider and this is treated as an additional payment provider cost 
included in cost of sale.      
 
Where there has been no activity on an end user account for a 
period of 60 days, the balance remaining is released to revenue in 
accordance with the end user terms and conditions, because of 
operating policies of mobile network operators relating to number 
reissue. 
 
Revenue from the sale of licences to content providers and service 
contracts is recognized in the financial statements over the period 
of the contract. 
 
Revenue from services provided to mobile phone operators and 
content providers are recognized in the financial statements over 
the period of the contract. 
 
Revenue is measured by reference to the fair value of 
consideration receivable by the Group for services provided, 
excluding VAT.   
 
 Notes to the financial statements 25 
 
Notes to the financial statements
3.11  Employee benefits 
All accumulating employee-compensated absences that are 
unused at the balance sheet date are recognized as a liability. 
 
Payments to defined contribution retirement benefit schemes are 
charged as an expense in the period to which they relate.   
 
3.12  Share-based payment transactions 
The Group issues equity settled share-based compensation to 
certain employees (including Directors). Equity settled share-
based payments are measured at fair value at the date of grant. 
The fair value determined at the grant date of the equity-settled 
share-based payment is expensed on a straight-line basis over the 
vesting period, together with a corresponding increase in equity, 
based upon the Group’s estimate of the shares that will eventually 
vest. These estimates are subsequently revised if there is any 
indication that the number of options expected to vest differs from 
previous estimates. Any cumulative adjustment prior to vesting is 
recognized in the current period. No adjustment is made to any 
expense recognized in prior periods. 
 
Fair value is measured by an external valuer using the Black-
Scholes option pricing model. The expected life used in the model 
has been adjusted, based on management’s best estimate, for the 
effects of non-transferability, exercise restrictions and behavioural 
considerations. 
 
Where the terms of an equity-settled transaction are modified, as 
a minimum an expense is recognized as if the terms had not been 
modified. In addition, an expense is recognized for any increase in 
the value of the transaction as a result of the modification, as 
measured by the date of modification. 
 
Where an equity-settled transaction is cancelled, it is treated as if 
it had vested on the due date of the cancellation, and any expense 
not yet recognized for the transaction is recognized immediately. 
However, if a new transaction is substituted for the cancelled 
transaction, and designated as a replacement transaction on the 
date that it is granted, the cancelled and new transactions are 
treated as if they were a modification of the original transaction, 
as described in the previous paragraph. 
 
Share-based payment transactions are shown separately in the 
Consolidated income statement.   
 
3.13  Foreign currencies 
Monetary assets and liabilities in foreign currencies are translated 
into sterling at the rates of exchange prevailing at the balance 
sheet date. Transactions in foreign currencies are translated into 
sterling at the rate of exchange prevailing at the date of the 
transaction. Exchange gains and losses are included in the income 
statement for the period. 
 
3.14  Segment reporting 
A segment is a distinguishable component of the Group services 
as reported internally and reviewed by the Board and chief 
operating decision maker. 
 
3.15  Financial instruments/liabilities 
Financial liabilities and equity instruments are classified 
according to the substance of the contractual arrangements 
entered into. An equity instrument is any contract that evidences a 
residual interest in the assets of the entity after deducting all of  
its financial liabilities. 
 
Where the contractual obligations of financial instruments 
(including share capital) are equivalent to a similar debt 
instrument, those financial instruments are classed as financial 
liabilities. Financial liabilities are presented as such in the 
balance sheet. Finance costs and gains or losses relating to 
financial liabilities are included in the income statement. Finance 
costs are calculated so as to produce a constant rate of return on 
the outstanding liability. 
 
Where the contractual terms of share capital do not have any 
terms meeting the definition of a financial liability then this is 
classed as an equity instrument. Dividends and distributions 
relating to equity instruments are debited direct to equity. 
 
3.16 Share capital and reserves 
 
Share Capital 
Ordinary shares are classified as equity. Equity instruments issued 
by the Company are recorded at the proceeds received, net of 
direct issue costs. 
 
Share premium 
Share premium represents the excess over nominal value of the 
fair value of consideration received for equity shares, net of 
expenses of the share issue. 
 
Merger reserve 
The merger reserve represents the difference between the parent 
company's cost of investment and a subsidiary’s share capital and 
share premium where a group reorganisation qualifies as a 
common control transaction. 
 
Other reserve 
The other reserve represents equity-settled share-based employee 
remuneration until such share options are exercised. 
 
3.17  Significant accounting estimates and judgements 
 
Share options 
Share options are granted on a discretionary basis and vest evenly 
over a three year period.  The fair value of options granted is 
determined using the Black-Scholes valuation model, which 
requires a number of estimates and assumptions.  The significant 
inputs into the model are share price at grant date, exercise price, 
expected option life, expected volatility and the risk free rate.  
Volatility is measured as the standard deviation of expected share 
price returns based on a statistical analysis of competitors’ share 
prices. 
 
Trade receivables 
Trade receivables are stated net of a provision for bad and 
doubtful debts, based on the Group’s best estimate of the 
likelihood of recovery on a specific basis.  Details of the bad debt 
provision and trade receivables is provided in note 6.   
 
Deferred tax 
A deferred tax asset is recognized where the Group considers it 
probable that a tax credit will be received in the future.  This 
specifically applies to tax losses and to outstanding vested share 
options at the balance sheet date.  No deferred tax asset is 
currently being recognised (note 15). 
   
 
26 Notes to the financial statements  
 
Notes to the financial statements 
 
Development costs 
Judgement is applied when deciding whether the recognition 
requirements for development costs have been met.  Judgements 
are based on the information available at each balance sheet date.  
Economic success of any product development is uncertain at the 
time of recognition as it may be subject to future technical 
problems.  The carrying value of capitalised development costs is 
£1,163,591 (2009 : £352,471). 
 
3.18  Standards and interpretations not yet applied by the Group 
The following new Standards and Interpretations, which are yet to 
become mandatory, have not been applied in the Group's financial 
statements. 
 
• IFRS 9 Financial Instruments (effective 1 January 2013) 
• IFRIC 19 Extinguishing Financial Liabilities with Equity 
Instruments (effective 1 July 2010) 
• Improvements to IFRSs (Issued 16 April 2009)  
• Group Cash-settled Share-based Payment Transactions – 
Amendment to IFRS 2 (effective 1 January 2010) 
• IAS 24 (Revised 2009) Related Party Disclosures 
(effective 1 January 2011) 
 
Based on the Group's current operations and accounting policies, 
management does not expect material impacts on the Group's 
financial statements when the standards and interpretations 
become effective.  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
Notes to the financial statements 27 
 
Notes to the financial statements 
 
4  Segment reporting 
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 margin 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 analysed as follows for the reporting periods under review.   
 
Year ended 31 March 2010 
 End user Content Group Total 
 activity provider   
  fees   
 
£ £ £ £ 
     
Segment revenue 24,691,741 1,441,368 - 26,133,109 
   
Segment gross profit 1,226,293 1,441,368 - 2,667,661 
     
Segment assets 2,891,751 248,601 5,093,458 8,233,810 
     
Segment liabilities (3,539,876) (35,038) (634,469) (4,209,383) 
---------------------------------- ---------------------------------- ---------------------------------- ---------------------- --- --- --- --- 
Net assets (648,125) 213,563 4,458,989 4,024,427 
= = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
 
End user activity arises from content access fees paid to Bango by end users for accessing chargeable content provided by content 
providers.  Cost of sales for this segment includes both content provider and payment provider charges.  Content provider fees are the 
amounts paid to Bango by content providers for package fees and other services.   
 
Year ended 31 March 2009 
 End user Content Group Total 
 activity provider   
  fees   
 £ £ £ £ 
     
Segment revenue 15,912,581 1,694,595 - 17,607,176 
  
Segment gross profit 1,015,842 1,643,576 - 2,659,418 
    
Segment assets 3,367,338 273,976 2,109,373 5,750,687 
 
Segment liabilities (4,257,947) (92,350) (454,389) (4,804,686) 
--------------------------------- ---------------------------------- ------------------------------------ ---------------------------------- 
Net assets (890,609) 181,626 1,654,984 946,001 
= = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
 
The Group’s revenues from external customers are divided into the following geographical areas.  All non-current assets are based in the 
UK. 
 
Year ended 31 March 2010 
 United 
Kingdom 
Rest of EU USA & 
Canada 
Rest of 
World 
Total 
 £ £ £ £ £ 
Segment revenue 4,397,990 606,252 20,843,390 285,477 26,133,109 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
 
Year ended 31 March 2009 
 United 
Kingdom 
Rest of EU USA & 
Canada 
Rest of 
World 
Total 
 £ £ £ £ £ 
Segment revenue 6,782,898 635,117 9,807,272 381,889 17,607,176 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
 
Segment revenue is based on the location of the customers.   
 
28 Notes to the financial statements  
 
Notes to the financial statements 
 
5  Non-current assets 
 
5.1 Property, plant and equipment  
 
 Leasehold 
improvements
Office 
equipment
Computer 
equipment Total 
 £ £ £ £  
 
Cost 
At 1 April 2008   176,679 71,859 674,682 923,220 
Additions         - - 59,748 59,748 
Disposals  - - - - 
 ----------------------------------------- ----------------------------------- ----------------------------------------------- - ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- - 
At 31 March 2009 176,679 71,859 734,430 982,968 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
 
Depreciation 
At 1 April 2008 74,367 47,306 483,191 604,864 
Charge for the year 35,336 9,196 74,195 118,727 
Depreciation on disposals  - - - - 
 ----------------------------------------- ----------------------------------- ----------------------------------------------- - ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- -- 
At 31 March 2009 109,703 56,502 557,386 723,591 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
 
Net book value 
At 31 March 2009 66,976 15,357 177,044 259,377 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
 
 Leasehold 
improvements
Office 
equipment
Computer 
equipment Total 
 £ £ £ £  
 
Cost 
At 1 April 2009   176,679 71,859 734,430 982,968 
Additions         - - 159,489 159,489 
Disposals  - - - - 
 ----------------------------------------- ----------------------------------- ----------------------------------------------- - ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- 
At 31 March 2010 176,679 71,859 839,919 1,142,457 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
 
Depreciation 
At 1 April 2009 109,703 56,502 557,386 723,591 
Charge for the year 35,336 8,790 58,948 103,074 
Depreciation on disposals  - - - - 
 ----------------------------------------- ----------------------------------- ----------------------------------------------- - ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- -- 
At 31 March 2010 145,039 65,292 616,334 826,665 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
 
Net book value 
At 31 March 2010 31,640 6,567 277,585 315,792 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
   
 
Notes to the financial statements 29   
 
Notes to the financial statements 
 
5.2 Intangible assets 
 
 Domain NamesInternal 
Development
Total 
 £££ 
 
Cost 
At 1 April 2008   32,887 - 32,887 
Additions         - 352,471 352,471 
Disposals - - - 
 ----------------------------------------- ----------------------------------------- ----------------------------------------- 
At 31 March 2009 32,887 352,471 385,358 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = =              = = = = = = = = = = = = = = = = = = = = = = = = 
 
Depreciation 
At 1 April 2008 28,537 - 28,537 
Charge for the year 4,083 - 4,083 
Depreciation on disposals - - - 
 ------------------------------------- ------------------------------------- ------------------------------------- 
At 31 March 2009 32,620 - 32,620 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
 
Net book value 
At 31 March 2009 267  352,471 352,738 
       = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
    
 
     Domain Names Internal 
Development
Total 
 £££ 
 
Cost 
At 1 April 2009  32,887 352,471 385.358 
Additions         - 875,740 875,740 
Disposals - - - 
 ----------------------------------------- ----------------------------------------- ----------------------------------------- 
At 31 March 2010 32,887 1,228,211 1,261,098 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
 
Depreciation 
At 1 April 2009 32,620 - 32,620 
Charge for the year 267 64,620 64,887 
Depreciation on disposals - - - 
 ------------------------------------- ------------------------------------- ------------------------------------- 
At 31 March 2010 32,887 64,620 97,507 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
 
Net book value 
At 31 March 2010 - 1,163,591 1,163,591 
       = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
    
 
 Amortisation is shown within administrative expenses in the income statement. 
  
 6  Trade and other receivables 
 2010 2009 
 £ £ 
 
Trade receivables 1,145,601 1,360,835 
Other receivables 471,804 449,095 
Prepayments and accrued income 2,475,876 2,581,586 
 ------------------------------------ ------------------------------------ 
Total 4,093,281 4,391,516 
Impairment of trade and other receivables (74,314) (79,227) 
 - --- --- --- --- --- --- --- --- --- --- ---- - - --- --- --- --- --- --- --- --- --- --- ---- - 
 4,018,967 4,312,289 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = =   
 
30 Notes to the financial statements  
 
Notes to the financial statements 
At 31 March 2010, some of the unimpaired trade receivables are past their due date.  The age of financial assets past due but not 
impaired is as follows:   
 2010 2009 
 £ £ 
 
Not more than one month  54,513 100,092 
One to two months 38,850 80,229 
Three to twelve months 126,044 63,302 
More than twelve months 26,033 - 
 ------------------ -------------------- 
 245,440       243,623 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
 
Trade and other receivables are usually due within 30-60 days and do not bear any effective interest rate.  All trade receivables are 
subject to credit risk exposure.   
Trade receivables from content providers consist of numerous accounts with no significant individual balances.  Provision for impairment 
has been made where the debt is not considered likely to be recoverable, although successful recovery can take over twelve months 
where a debtor has agreed a payment plan with Bango. 
Trade receivables from payment providers include significant individual balances from two major US mobile networks, Sprint Spectrum 
LP (“Sprint”) and AT&T Mobility LLC (“AT&T”).    
The fair value of these short term financial assets is not individually determined as the carrying amount is a reasonable approximation of 
fair value.  There is no material difference between fair value and book value. 
A reconciliation of bad debt provisions is provided below: 
 2010 2009 
 £ £ 
 
Brought forward provision 79,227 50,000 
Debts written off in the year (80,464) (81,517) 
Increase in provision  75,551 110,744 
 ------------------------------------ ------------------------------------ 
Carry forward provision 74,314 79,227 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
 
 7  Share capital 
Authorised share capital: 
 
 2010 2009 
 £ £ 
37,500,000 (2009: 37,500,000) ordinary shares of 20p each in Bango PLC 7,500,000 7,500,000 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
 
Allotted, called up and fully paid: 
 
Ordinary shares of 20p each in Bango PLC No  £ 
 
As at 1 April 2008 26,916,409 5,383,282 
   
Issue of new shares 1,345,000 269,000 
Exercise of share options 107,148 21,430 
   
 ---------------------------------- ---------------------------------- 
As at 31 March 2009 28,368,557 5,673,712 
   
Issue of new shares 7,488,372 1,497,674 
Exercise of share options 28,018 5,603 
 ---------------------------------- ---------------------------------- 
As at 31 March 2010 35,884,947 7,176,989 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
   
 
Notes to the financial statements 31 
 
Notes to the financial statements 
 
7  Employee share options 
The Group issues share options to Directors and to employees under either an HM Revenue and Customs approved Enterprise 
Management Incentive (EMI) scheme or an unapproved scheme. Employees resident overseas are eligible to participate in the scheme 
but their options do not qualify as HM Revenue and Customs approved.  
 
The grant price for share options is equal to the average quoted market price of the Company shares on the date of grant. Options vest 
evenly over a period of one to three years following grant date. If share options remain unexercised after a period of ten years from the 
date of grant, the options expire. Share options are forfeited if the employee leaves the Group before the options vest. 
 
Movements in the number of share options outstanding and their related weighted average exercise prices are as follows: 
 
 Year ended 31 March 2010 Year ended 31 March 2009 
 Average Options Average Options 
 exercise price  exercise price  
 per share  per share  
 p No p No 
Outstanding at 1 April 2009 67 2,902,074 68 2,727,626 
Granted 51 661,157 48 375,435 
Lapsed 64 (79,620) 64 (93,839) 
Exercised 30 (28,018) 32 (107,148) 
Expired - 42 - - 
 ----------------------------------- ----------------------------------- ----------------------------------- ------------------ - --- --- --- --- ---- 
Outstanding at 31 March 2010 64 3,455,635 67 2,902,074 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
Exercisable at 31 March 2010 69 2,407,662 75 2,172,434 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
 
 The weighted average share price at date of exercise of options exercised during the year was 47.55 pence (2009: 32 pence). 
 
 The fair value of options granted outstanding was determined using the Black-Scholes valuation model. Significant inputs into the model 
include a weighted average share price of 50.71 pence (2009: 48.75 pence) at the grant date, the exercise prices shown above, 
weighted average volatility of 49.3% (2009: 68.5%), dividend yield of nil, an expected option life of five years and an annual risk-free 
interest rate of 2.72% (2009: 3.51%). 
  
 For the two most recent share awards there was sufficient share price data for Bango plc to calculate the company's volatility. 
 
 For previous awards, where there was insufficient share price data for Bango plc, the expected volatility was calculated as follows:- 
 
 The volatility of the Group's share price on each date of grant was calculated as the average of volatilities of share prices of companies in 
the Peer Group on the corresponding dates. The volatility of share price of each company in the Peer Group was calculated as the 
average of standard deviations of daily continuously compounded returns on the Company's stock, calculated over 1, 2, 3, 4 and 5 years 
back from the date of grant. This method estimates volatility of the companies' share prices over a period commensurate with the 
option's expected life. Furthermore, this method is designed such that it gives proportionately more weight to recent historical returns, 
which are likely to reflect current volatility better due to the argument of volatility persistence.  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
32 Notes to the financial statements  
 
Notes to the financial statements 
 
At 31 March 2010, the Group had the following outstanding options and exercise prices: 
 
  2010 2009 
 Average Options Remaining Average Options Remaining 
 exercise  contractual exercise  contractual 
 price per share  life price per share life 
       
Expiry date Pence Number Months Pence Number  Months 
       
2 May 2010 50.00 60,000 1 50.00 60,000 13 
19 May 2010 50.00 40,000 2 50.00 40,000 14 
2 April 2012 31.00 40,000 24 31.00 40,000 36 
2 May 2012 31.00 15,000 25 31.00 15,000 37 
25 August 2012 31.00 40,000 29 31.00 40,000 41 
24 February 2013 31.00 45,000 35 31.00 45,000 47 
27 August 2013 29.00 15,000 41 29.00 35,000 53 
27 February 2014 29.00 346,500 47 29.00 346,500 59 
27 May 2014 31.00 40,000 50 31.00 40,000 62 
27 July 2014 29.00 40,000 52 29.00 40,000 64 
28 August 2014 50.00 46,000 53 50.00 46,000 65 
18 February 2015 50.00 106,000 59 50.00 106,000 71 
1 March 2015 50.00 230,000 59 50.00 230,000 71 
22 June 2015 50.00 24,500 63 50.00 24,500 75 
21 September 2015 202.00 190,000 66 202.00 190,000 78 
1 March 2016 177.50 146,000 71 177.50 151,835 83 
25 May 2016 140.00 210,000 74 140.00 210,000 86 
9 October 2016 106.50 99,085 78 106.50 111,897 90 
22 March 2017 50.00 76,250 84 50.00 76,250 96 
23 March 2017 50.50 182,126 84 50.50 195,075 96 
9 July 2017 - - - 47.00 4,000 99 
19 September  2017 41.00 187,940 90 41.00 201,395 102 
31 January 2018 23.00 276,027 94 23.00 287,472 106 
15 October 2018 53.50 139,050 102 53.50 149,370 114 
19 February 2019 44.00 204,655 107 44.00 216,780 119 
19 January 2019 44.00 125,377 106 -- - 
11 August 2019 46.50 25,000 113 -- - 
1 October 2019 44.50 231,375 115 -- - 
17 March 2020 59.50 274,750 120 -- - 
  ------------------------------ ------------------------------  
At 31 March  3,455,635 2,902,074  
  
 
= = = = = = = = = = = = = = = = = = = =  = = = = = = = = = = = = = = = = = = = = =  
 
 8  Trade and other payables 
 2010 2009 
 £ £ 
 
Trade payables 3,921,538 4,501,921 
Social security and other taxes 89,256 77,159 
Accruals and deferred income 198,589 225,606 
 ------------------------------ - --- --- --- --- --- --- --- --- --- --- --- 
 4,209,383 4,804,686 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
 
Trade and other payables are due within one year and are non-interest bearing. There is no material difference between book value and 
fair value. 
 
 
 
   
 
Notes to the financial statements 33 
 
Notes to the financial statements 
 
 9  Commitments 
  
The Group leases two offices under a non-cancellable operating leases for which the future aggregate minimum lease payments are as 
follows: 
 
 2010 2009 
 £ £ 
 
No later than 1 year 171,775 192,446 
Later than 1 but no later than 5 years 370,771 512,017 
More than 5 years - - 
 ------------------------------- - --- --- --- --- --- --- --- --- --- --- --- 
 542,546 704,463 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
 
The UK lease expires on 14 November 2013.  The US office lease first expires on 31 October 2010. 
 
10  Expenses by nature 
 2010 2009 
 £ £ 
Employee benefit expense 2,156,286 2,183,945 
Depreciation & amortisation 167,961 122,810 
Other expenses 24,051,463 15,959,889 
 ---------------------------------- ---------------------------------- 
 26,375,710 18,266,644 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
Analysed as:   
Cost of sales 23,465,448 14,947,758 
Administrative expenses 2,845,417 3,256,390 
Share based payments 64,845 62,496 
 ---------------------------------- ---------------------------------- 
 26,375,710 18,266,644 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
 
 11  Profit or loss before taxation 
 
Profit or loss before taxation is stated after charging: 
 
 2010 2009 
 £ £ 
Auditor's remuneration: 
Fees payable to the Company’s auditor for the audit of the financial statements  2,500 2,500 
Audit of the financial statements of the Company’s subsidiaries 27,500 27,500 
Other services relating to tax 29,375 3,600 
Other services - - 
 
Operating lease expenses: 
Land and buildings 159,676 156,381 
Plant and equipment - 547 
 
Depreciation on property, plant and equipment 103,074 118,727 
Amortization of intangible assets  64,887 4,083 
Research and development costs 234,840 418,161 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
 
  
 
 
 
 
 
 
 
   
 
34 Notes to the financial statements  
 
Notes to the financial statements 
 
12  Employee benefit expense 
The average number of staff employed by the Group during the financial year amounted to: 
 2010 2009 
 No No 
 
Administrative staff 5 4 
Marketing staff 5 7 
Sales staff 4 4 
Technical staff 13 12 
Executive Directors 3 3 
Support staff 12 10 
 - --- --- --- --- --- --- --- --- --- --- --- - --- --- --- --- --- --- --- --- --- --- --- 
 42 40 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
 
The aggregate payroll costs of the above were: 
 2010 2009 
 £ £ 
 
Wages and salaries 1,864,999 1,880,525 
Social security costs 166,538 183,650 
Other pension costs 59,904 57,274 
Share based remuneration 64,845 62,496 
 ---------------------------------- ---------------------------------- 
 2,156,286 2,183,945 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
 
Included in the above payroll costs is £605,575 (2009 : £265,734 ) capitalised within internal development (note 5.2) 
 
The Directors have identified seven  (2009: six) key management personnel, including Directors. Compensation to key management is 
set out below: 
 2010 2009 
 £ £ 
Wages and salaries 496,585 348,995 
Social security costs 39,298 37,458 
Pension 30,155 16,951 
Share based compensation 52,753 45,673 
 ---------------------------------- ---------------------------------- 
 618,791 449,077 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
 
13 Directors 
Remuneration in respect of Directors was as follows: 
 2010 2009 
 £ £ 
 
Emoluments 268,904 254,775 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
 
2010 Wages and 
salaries 
Pension and 
other 
benefits 
Sums paid 
to third 
parties for 
directors 
services 
Total 
 £ £ £ £ 
R Anderson 43,875 - - 43,875 
A Malhotra 100,557 4,652 - 105,209 
P Saxton 77,682 - - 77,682 
L Bury 26,388 - - 26,388 
M Rigby - - 15,750 15,750 
 ---------------------- ---------------------- ---------------------- ---------------------- 
 248,502 4,652 15,750 268,904 
      = = = = = = = = = = = = = = = =      = = = = = = = = = = = = = = = =      = = = = = = = = = = = = = = = =      = = = = = = = = = = = = = = = =
   
 
Notes to the financial statements 35 
 
Notes to the financial statements 
 
2009 Wages and 
salaries 
Pension and 
other 
benefits 
Sums paid 
to third 
parties for 
directors 
services 
Total 
 £ £ £ £ 
R Anderson 34,659 - - 34,659 
A Malhotra 100,800 4,200 - 105,000 
P Saxton 80,749 - - 80,749 
L Bury  - 18,617 18,617 
M Rigby - - 15,750 15,750 
 ---------------------- ---------------------- ---------------------- ---------------------- 
 216,208 4,200 34,367 254,775 
      = = = = = = = = = = = = = = = =      = = = = = = = = = = = = = = = =      = = = = = = = = = = = = = = = =      = = = = = = = = = = = = = = = = 
 
The highest paid director received total salary of £100,557 (2009: £100,800), pension contributions of £4,652 (2009 : £4,200), and 
share based compensation of £nil (2009 : £nil). 
 
The number of directors who accrued benefits under pension schemes was one (2009 : one). 
 
The total share based compensation for directors was £8,908 (2009 : £21,627) 
 
During the year no share options were exercised by the Directors.  For details of directors shareholdings please see directors report. 
 
 14  Investment income 
 2010 2009 
 £ £ 
Bank interest receivable 1,165 13,426 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
 
 
15  Income tax expense 
 2010 2009 
 £ £ 
Current tax - - 
Deferred tax - - 
R&D tax credits received (260,311) (168,545) 
------------------------------- - --- --- --- --- --- --- --- --- --- --- --- 
 (260,311) (168,545) 
============== === == == == == == == 
 
Income tax expense for the year differs from the standard rate of taxation as follows: 
  
Loss on ordinary activities before taxation (250,270) (646,042) 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
Loss on ordinary activities multiplied by standard rate of tax of 28% (2009: 28%) (70,076) (180,891) 
Effect of :   
Expenses not deductible for tax purposes (41,093) (220,060) 
Differences between capital allowances and depreciation 7,798 (1,046) 
Unutilised tax losses 114,196 412,287 
Other temporary differences (10,825) (10,290) 
 R&D tax credits received (260,311) (168,545) 
------------------------------- - --- --- --- --- --- --- --- --- --- --- --- 
Total tax  (260,311) (168,545) 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
 
At 31 March 2010 the unutilised tax losses carried forward amounted to £11.3 million (2009: £11.7 million).   
 
36 Notes to the financial statements  
 
Notes to the financial statements 
 
Unrecognized deferred tax assets: 
 2010 2009 
 £ £ 
 
Share option scheme 118,055 19,204 
Tax losses 3,171,829 3,286,103 
Other temporary differences  2,212 11,615 
Accelerated capital allowances (335,920) 8,177 
------------------------------- - --- --- --- --- --- --- --- --- --- --- 
 2,956,176 3,325,099 
============== === == == == == == == 
 
No deferred tax asset has been recognized in respect of the above temporary differences due to the unpredictability of future taxable 
trading profits from which these differences may be deducted.  
  
 16 Earnings per share 
  
(a) Basic 
Basic earnings per share are calculated by dividing the profit / (loss) attributable to equity holders of the Company by the weighted 
average number of ordinary shares in issue during the year. 
 
 2010 2009 
 £ £ 
Profit / (loss) attributable to equity holders of the Company 10,041 (477,497) 
  
Weighted average number of ordinary shares in issue 30,113,120 27,794,361 
 
Earnings (basic) per share 0.03 (1.72) 
 
 (b) Diluted 
Diluted earnings per share is calculated by adjusting the weighted average number of shares outstanding to assume conversion of all 
dilutive potential ordinary share options.  
 
 2010 2009 
 £ £ 
Profit / (loss) attributable to equity holders of the company 10,041 (477,497) 
   
Weighted average number of ordinary shares as adjusted for dilutive options 32,542,820 27,794,361 
   
Earnings (diluted) per share 0.03 (1.72) 
 
At 31 March 2010 options over 3,455,635 (2009: 2,902,074) ordinary shares were outstanding.    
 
There were no actual or potential share transactions occurring after the balance sheet date that would have significantly changed the 
number of ordinary shares or potential ordinary shares outstanding at the end of the year if those transactions had occurred before the 
end of the reporting period.  
 
17  Cash generated/used by operations 
 2010 2009 
 £ £ 
Profit / (loss) for the financial year 10,041 (477,497) 
Depreciation and amortization 167,961 122,810 
Taxation in income statement (260,311) (168,545) 
Investment income (1,165) (13,426) 
Interest payable 8,834 - 
Share-based payment expense 64,845 62,496 
Decrease / (increase)  in receivables 445,111 (1,805,589) 
(Decrease) / increase in payables  (595,303) 1,735,137 
 - --- --- --- --- --- --- --- --- --- --- --- - --- --- --- --- --- --- --- --- --- --- --- 
 
(159,987) (544,614) 
Corporation tax rebate 108,522 168,545 
 ---------------------------------- ---------------------------------- 
Net cash used by operations (51,465) (376,069) 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
 
   
 
Notes to the financial statements 37 
 
Notes to the financial statements 
 
18  Financial assets and liabilities 
 
Financial assets included in the balance sheet relate to the following IAS 39 categories:   
 
 2010 2009 
 £ £ 
 
Loans and receivables 5,608,636 4,705,070 
------------------------------- - --- --- --- --- --- --- --- --- --- --- 
Total financial assets 5,608,636 4,705,070 
============== === == == == == == == 
 
These financial assets are included in the balance sheet within the following headings: 
 
 2010 2009 
 £ £ 
Current assets 
Trade and other receivables 2,873,176 3,878,787 
Cash and cash equivalents 2,735,460 826,283 
Other financial assets - - 
------------------------------- - --- --- --- --- --- --- --- --- --- --- 
Total financial assets 5,608,636 4,705,070 
============== === == == == == == == 
 
Financial liabilities included in the balance sheet relate to the following IAS 39 categories: 
 
 2010 2009 
 £ £ 
 
Financial liabilities measured at amortized cost  3,921,538 4,501,921 
------------------------------- - --- --- --- --- --- --- --- --- --- --- 
Total financial liabilities 3,921,538 4,501,921 
============== === == == == == == == 
 
These financial liabilities are included in the balance sheet within the following headings: 
  
 2010 209 
 £ £ 
Current liabilities 
Trade payables 3,921,538 4,501,921 
------------------------------- - --- --- --- --- --- --- --- --- --- --- 
Total financial liabilities 3,921,538 4,501,921 
============== === == == == == == == 
 
 
 
 
 
 
 
 
   
 
38 Notes to the financial statements  
 
Notes to the financial statements 
 
19  Credit risk analysis 
The Group’s exposure to credit risk is limited to the carrying amount of financial assets recognized at the balance sheet date, as 
summarized in note 18. 
 
The Group continuously monitors defaults of customers and other counterparties, identified individually or by group, and incorporates 
this information into its credit risk controls.  Where available at reasonable cost, external credit ratings and/or reports on customers and 
other counterparties are obtained and used.  The Group’s policy is to deal only with creditworthy counterparties. 
 
The Group’s management considers that all the financial assets that are not impaired for each of the reporting dates under review are of 
good credit quality including those that are past due.  See note 6 for further information on financial assets that are past due. 
 
None of the Group’s financial assets are secured by collateral or other credit enhancements. 
 
In respect of trade and other receivables, the Group is not exposed to any significant credit risk exposure to any single counterparty or 
any group of counterparties having similar characteristics. 
 
The credit risk for liquid funds and other short-term financial assets is considered negligible, since the counterparties are reputable 
banks with high quality external credit ratings.     
 
20  Liquidity risk analysis 
The Group manages its liquidity needs by carefully monitoring cash outflows due in day-to-day business.  Liquidity needs are monitored 
in various time bands, on a day-to-day and week-to-week basis, as well as on a monthly basis.  Long-term liquidity needs are identified 
on a quarterly basis. 
 
At 31 March 2010 the Group has contractual maturities which are summarized in Note 9 Commitments. 
 
21  Market risk analysis 
 
21.1 Interest risk sensitivity  
The Group has no borrowings on which it is subject to interest rate risk. 
 
21.2 Foreign currency sensitivity 
Exposure to currency exchange rates arise from the Group’s overseas sales and purchases, which are primarily denominated in US Dollars 
and Euros.   
 
The amounts to be paid and received in a specific currency are expected to largely offset one another, so no hedging activity is 
undertaken. 
 
Foreign currency denominated financial assets and liabilities, translated into Sterling at the closing rate, are as follows. 
 
 2010  2009 
  £ 
Nominal amounts US $ € US $ € 
Financial assets 3,326,912 83,137 3,693,165 93,826 
Financial liabilities 3,590,933 350,618 4,746,697 76,104 
 - --- --- --- --- --- --- --- -- - --- --- --- --- --- - - --- --- --- --- --- --- - - --- --- --- --- --- --- - 
Short term exposure (264,021) (267,481) (1,053,532) 17,722 
 ------------------------ ----------------- -------------------- -------------------- 
 
   
 
Report of the independent auditor to the members of Bango PLC 39 
 
Independent auditor’s report to the 
members of Bango PLC 
 
We have audited the parent company financial statements of 
Bango Plc for the year ended 31 March 2010  which comprise 
the company balance sheet, and the related notes. The 
financial reporting framework that has been applied in their 
preparation is applicable law and United Kingdom Accounting 
Standards (United Kingdom Generally Accepted Accounting 
Practice). 
This report is made solely to the company’s members, as a 
body, in accordance with Chapter 3 of Part 16 of the 
Companies Act 2006. Our audit work has been undertaken so 
that we might state to the company’s members those matters 
we are required to state to them in an auditor’s report and for 
no other purpose. To the fullest extent permitted by law, we do 
not accept or assume responsibility to anyone other than the 
company and the company’s members as a body, for our audit 
work, for this report, or for the opinions we have formed. 
 
Respective responsibilities of directors and auditors 
As explained more fully in the Directors’ Responsibilities 
Statement, the directors are responsible for the preparation of 
the parent company financial statements and for being satisfied 
that they give a true and fair view. Our responsibility is to audit 
the parent company financial statements in accordance with 
applicable law and International Standards on Auditing (UK 
and Ireland). Those standards require us to comply with the 
Auditing Practices Board’s (APB’s) Ethical Standards for 
Auditors. 
 
Scope of the audit of the financial statements 
A description of the scope of an audit of financial statements is 
provided on the APB's website at 
www.frc.org.uk/apb/scope/UKNP. 
 
Opinion on financial statements 
In our opinion the parent company financial statements: 
 give a true and fair view of the state of the company's 
affairs as at 31 March 2010; 
 have been properly prepared in accordance with United 
Kingdom Generally Accepted Accounting Practice; and 
 have been prepared in accordance with the requirements 
of the Companies Act 2006. 
 
Opinion on other matter prescribed by the Companies Act 
2006 
In our opinion the information given in the Directors' Report for 
the financial year for which the financial statements are 
prepared is consistent with the parent company financial 
statements. 
 
Matters on which we are required to report by exception 
We have nothing to report in respect of the following matters 
where the Companies Act 2006 requires us to report to you if, 
in our opinion: 
• adequate accounting records have not been kept by the 
parent company, or returns adequate for our audit have not 
been received from branches not visited by us; or 
• the parent company financial statements are not in 
agreement with the accounting records and returns; or 
• certain disclosures of directors’ remuneration specified by 
law are not made; or 
• we have not received all the information and explanations 
we require for our audit. 
 
Other matter 
We have reported separately on the group financial statements 
of Bango Plc for the year ended 31 March 2010.  
 
      
    
Alison Seekings  
Senior Statutory Auditor 
for and on behalf of Grant Thornton UK LLP 
Statutory Auditor, Chartered Accountants 
Cambridge  
23 August 2010   
 
40 Company balance sheet  
 
Company balance sheet 
 
 2010 2009 
Note £  £ 
 
Fixed assets 
Investment in subsidiary 4 5,185,522 5,120,677 
  ---------------------------------- ---------------------------------- 
    
 
Current assets 
Debtors due within one year 5 20,559 1,012 
Debtors due after one year 5 9,707,205 6,835,734 
Cash at bank  - - 
 ---------------------------------- ---------------------------------- 
 9,727,764 6,836,746 
Creditors falling due within one year                                                                             6   28,828 42,904 
---------------------------------- ---------------------------------- 
Net current assets                                                                                9,698,936 6,793,842 
  = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
 
Total assets less current liabilities 14,884,458 11,914,519 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
 
Capital and reserves 
Share capital  7 7,176,989 5,673,712 
Share premium account 8 7,005,012 5,504,749 
Other reserve 8 981,236 916,391 
Retained earnings 8 (278,779) (180,333) 
 
  ---------------------------------- ---------------------------------- 
Shareholders’ funds  14,884,458 11,914,519 
  = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
 
 
 
These financial statements were approved by the Directors on 23 August 2010 and are signed on their behalf by: 
 
 
 
 
Mr R Anderson Mr P Saxton 
Director Director 
 
Company registration number 05386079   
 
Notes to the financial statements 41 
 
Notes to the financial statements 
 
1  Accounting policies 
 
Basis of accounting 
The separate financial statements of the Company are 
presented as required by the Companies Act 2006. They have 
been prepared under the historical cost convention and in 
accordance with applicable United Kingdom accounting 
standards and law. 
 
The principal accounting policies are summarized below. They 
have all been applied consistently throughout the year. 
 
Investments 
Fixed asset investments are shown at cost less provision for 
impairment. 
 
Share based payments 
The Company issues equity settled share-based compensation 
to certain employees (including Directors). Equity settled share-
based payments are measured at fair value at the date of grant. 
The fair value determined at the grant date of the equity-settled 
share-based payment is credited to reserves on a straight-line 
basis over the vesting period, together with a corresponding 
increase in the book value of the Company’s investment in 
subsidiaries, based upon the Company’s estimate of the shares 
that will eventually vest. These estimates are subsequently 
revised if there is any indication that the number of options 
expected to vest differs from previous estimates. Any 
cumulative adjustment prior to vesting is recognized in the 
current period. No adjustment is made to any expense 
recognized in prior periods. 
 
Fair value is measured by an external valuer using the Black-
Scholes option pricing model. The expected life used in the 
model has been adjusted, based on management’s best 
estimate, for the effects of non-transferability, exercise 
restrictions and behavioural considerations. 
 
Where the terms of an equity-settled transaction are modified, 
as a minimum an expense is recognized as if the terms had not 
been modified. In addition, an expense is recognized for any 
increase in the value of the transaction as a result of the 
modification, as measured by the date of modification. 
 
Where an equity-settled transaction is cancelled, it is treated as 
if it had vested on the due date of the cancellation, and any 
expense not yet recognized for the transaction is recognized 
immediately. However, if a new transaction is substituted for 
the cancelled transaction, and designated as a replacement 
transaction on the date that it is granted, the cancelled and 
new transactions are treated as if they were a modification of 
the original transaction, as described in the previous paragraph. 
 
 
Related party transactions 
In accordance with Financial Reporting Standard Number 8: 
Related Party Disclosures, the company is exempt from 
disclosing transactions with wholly owned entities that are part 
of the Group headed by Bango PLC as it is a parent company 
publishing consolidated financial statements. 
 
2  Profit for the year 
The Company has made full use of the exemptions as permitted 
by Section 408(1) of the Companies Act 2006 and accordingly 
the profit and loss account of the Company is not presented as 
part of the accounts. The parent company loss for the year 
ended 31 March 2010 of £98,446 (2009: £122,307) is 
included in the Group result for the financial year. 
 
The auditor’s remuneration for audit and non-audit services to 
the Company was borne entirely by Bango.net Limited, a wholly 
owned subsidiary. 
 
3  Directors and employees 
Details of Directors’ interests in the shares and options of the 
Company are provided in the Directors’ report on page 14. 
 
There are no employees employed directly by the Company. 
 
Details of Directors’ remuneration are disclosed on page 36 of 
the Group accounts.  A charge of £4,460 (2009 : £4,436) has 
been recognised within the parent company’s own figures 
relating to wages and salaries. 
 
   
 
42 Notes to the financial statements 
 
Notes to the financial statements 
 
4  Investments 
 £ 
Cost 
Shares in subsidiary undertakings at 1 April 2009  5,120,677 
Share based payments 64,845 
 - --- --- --- --- --- --- --- --- --- --- --- 
Shares in subsidiary undertakings at 31 March 2010 5,185,522 
 = = = = = = = = = = = = = = = = = = = = = = = 
 
Net book amount 
At 31 March 2010 5,185,522 
  
 
= = = = = = = = = = = = = = = = = = = = = = = 
At 31 March 2009 5,120,677 
 = = = = = = = = = = = = = = = = = = = = = = = 
 
Details of subsidiary undertakings at 31 March 2010 are as follows: 
 
 Country of 
incorporation 
Class of share 
capital held 
Held by the 
company 
Nature of business 
    
Bango.net Limited England & Wales Ordinary 100% Development, marketing and sale 
of technology for mobile phone 
users to purchase services for 
their mobile phones 
     
Bango GmbH Germany Ordinary 100% Non-trading 
     
Bango Inc Delaware, USA Common 100% Sales office for Bango.net 
Limited services in USA 
     
 
5  Debtors 
 2010 2009 
 £ £
 
Amounts due from Group undertakings 9,707,205 6,835,734
Other debtors 20,559 1,012
 ------------------------------ - --- --- --- --- --- --- --- --- --- --- ----
 9,727,764 6,836,746
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = =
 
6  Creditors 
 2010 2009
 £ £
 
Trade creditors 10,142 15,381 
Accruals and deferred income 1,300 10,137 
Amounts owed to group undertakings 17,386 17,386 
 ------------------------------- - --- --- --- --- --- --- --- --- --- ---
 28,828 42,904
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = =
 
 
 
 
 
   
 
Notes to the financial statements 43 
 
Notes to the financial statements 
 
7  Share capital 
 
Authorised share capital: 
 
 2010 2009 
 No £ No £ 
     
Ordinary shares of 20 pence each  37,500,000 7,500,000 37,500,000 7,500,000 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
 
Allotted, called up and fully paid: 
 
Ordinary shares of 20p each in Bango PLC No  £ 
 
As at 1 April 2008 26,916,409 5,383,282 
   
Issue of new shares 1,345,000 269,000 
Exercise of share options 107,148 21,430 
   
 ---------------------------------- ---------------------------------- 
As at 31 March 2009 28,368,557 5,673,712 
   
Issue of new shares 7,488,372 1,497,674 
Exercise of share options 28,018 5,603 
 ---------------------------------- ---------------------------------- 
As at 31 March 2010 35,884,947 7,176,989 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
 
8  Reserves 
  Share Other Retained 
  Premium reserve Reserves 
  Account £ £ 
  £ 
 
At 1 April 2009  5,504,749 916,391 (180,333) 
   
Issue of new shares  1,496,142 - - 
Exercise of share options  4,121 - - 
Share based payments  - 64,845 - 
Loss for the year  - - (98,446) 
  -------------------------------------- -------------------------------- ------------------------------- 
At 31 March 2010  7,005,012 981,236 (278,779) 
  = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = =