Annual Report 2011  
 
 
 
 
Bango is the leading provider of mobile payment and 
analytics technology for businesses targeting users of 
internet enabled mobile devices.  
 
Bango’s unique technology and operator relationships, 
plus millions of consumer profiles worldwide, enable 
businesses and developers to market and sell digital 
content more effectively to mobile device users. 
 
With over 5 billion mobile phones worldwide, Bango 
Payment technology leverages operator billing, credit 
cards, PayPal plus unique ‘social payment’ 
functionality, enabling any phone user to purchase 
content and services from their device using the 
optimum payment method available to them. 
 
Bango Analytics provides website owners and app 
developers with the most accurate and detailed 
information available. The technology delivers business 
critical insights into how customers visit mobile sites 
and use mobile applications.  
 
Content and services are becoming digitized at an ever 
increasing rate and the internet usage model is 
becoming dominated by mobile devices. Bango is a 
key technology provider in this evolving, fast growing, 
global industry. 
  01 Contents  
 
 
 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 ………………………………......... 17 
 Remuneration Committee report …………………………………….. 18 
 Independent auditor’s report to the members of Bango PLC ..……. 19 
 Consolidated balance sheet …..………………………………………. 20 
 Consolidated statement of comprehensive income ………………… 21 
 Consolidated cash flow statement …………………………………… 22 
 Consolidated statement of changes in equity ………………………. 23 
 Notes to the financial statements ……………………………………. 24 
 Independent auditor’s report to the members of Bango PLC …… 40 
 Company balance sheet ……………………………………………..... 41 
 Notes to the financial statements ……………………………………. 42   
Highlights 02 
 
Highlights  
Financial highlights 
• Gross profit grew 7% to £1.29m in second half (H2) from 
£1.21m in H1, giving a total for the year of £2.49m 
(£2.67m) 
• EBITDA for the year showed a deficit of £0.5m (£0.1m) 
with the deficit reduced from £0.3m in H1 to £0.2m in 
H2 
• H2 underlying positive EBITDA (before share-based 
payments) after adjusting for £0.12m costs to accelerate 
sales model transition and £0.11m additional profit 
recognition for operator integrations 
• Loss after tax £0.70m (£0.01m profit) with H2 loss of 
£0.27m improved from H1 loss of £0.43m  
• Cash balance of £2.71m as at 31 March 2011 (£2.74m 
at 31 March 2010) 
• Revenue for the year of £19.3m (£26.1m) with low 
margin end user activity down 29% to £17.46m 
(£24.69m) and high margin revenues up 29% to £1.86m 
(£1.44m) 
 
(comparative data for FYE 31 March 2010 except where indicated) 
Operational highlights 
• Business re-focused on high growth, higher margin 
smartphone market 
• Agreement with RIM to provide billing and settlement 
for BlackBerry App World  
• More than 60 new, direct carrier integrations now 
underway 
• Announced second major app store agreement – Opera - 
in June 2011 
• Successful launch of operator billing for BlackBerry App 
World in multiple markets 
• Further app store business won with global mobile 
content providers 
• Major Bango Analytics customers, including Turner, 
extend use of technology and deepen commitment 
• New operator engagements including Vodafone Global 
Payments gateway, Telefónica O2 for analytics and 
Telecom New Zealand for payments and age verification 
services 
• Major new users including McDonalds, Sears, 
PlayPhone and Glu Mobile 
Bango Analytics growth Content provider growth  03 Chairman’s statement  
 
Chairman’s statement 
 
This is my first report as Bango's Chairman, having been 
appointed on 1 April 2011, following the retirement of Lindsay 
Bury. The Board would like to thank Lindsay for his contribution to 
Bango over the past 10 years and wishes him well in his 
retirement. 
The year was one of transition for both Bango and the market it 
serves. Since inception, Bango has applied its technology and 
marketing across all internet enabled phones. To date, the 
majority of these were so called ‘feature phones’ which had 
limited local processing power and therefore the most common 
content types were relatively low value items such as ringtones, 
short videos and simple games.  
Traditionally, smartphones, with much richer capabilities, touch 
interfaces and a powerful operating system, such as the iPhone, 
occupied a smaller niche due to their high price. However, during 
the last year or so, with the increasing success of Apple, 
BlackBerry and Android powered devices, and lower prices for 
entry level models it is becoming clear that smartphones are set to 
be a major, if not the dominant, segment of the market.  
According to IDC, the global smartphone market will grow by 55 
percent in 2011 to 472 million units as people upgrade from 
feature phones to smartphones. Gartner reported that in Q1 2011, 
smartphones accounted for 23.6 percent of overall sales of 428 
million mobile phones, an increase of 85 percent year-on-year. 
During the year Bango began a transition in its business to focus 
on this smartphone opportunity. It focused on providing its 
technology and relationships to major ‘app stores’ providing 
applications for smartphones and to major publishers targeting 
smartphones with valuable services and applications.  
Bango serves 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. In 
2009, mobile application download revenue exceeded $4.2 
billion, reports Gartner, with a prediction of revenue growing to 
$29.5 billion by the end of 2013. Major mobile phone 
manufacturers, mobile operators and internet businesses are 
driving the uptake of the mobile internet. 
Bango has unique and proven technology which is at the heart of 
its payment network. Unlike some ‘mobile payment’ companies, 
which focus on payment for content delivered to a PC from a 
user’s phone bill, Bango focuses on services and apps purchased 
on and delivered to the mobile device.   
Coupled with mobile operator relationships and traction with the 
largest players in the industry, this gives Bango, a competitive 
advantage. Bango technology handles the current generation of 
downloadable apps, with charging for download during the use of 
the application and subscription based services. Bango technology 
also works with newer HTML5 web technology which is expected 
to become more important in the coming years. 
With major players such as Apple, Google and Microsoft battling to 
gain a position in this key marketplace, the competitive pressures 
on app stores to perform effectively should drive more 
opportunities for Bango. 
During the year, Bango appointed Rudy Berger as a Non-Executive 
Director. He has extensive relevant experience in strategic 
planning and international business development, and is based in 
Silicon Valley. Rudy's experience and independent perspective has 
already proved valuable as Bango's relationships with larger 
companies on the US west coast become increasingly significant. 
I would like to thank Bango's employees and partners for their 
unswerving efforts to make Bango a key player in this exciting, 
fast-growing, global industry. 
David Sear 
Chairman CEO’s statement 04 
 
CEO’s statement 
 
In line with Bango's strategy to focus on smartphones, a key 
development for the year has been the success and momentum 
we are experiencing in enabling mobile operator payments for 
‘mobile applications’ (apps) for smartphone users.  
Bango is now selling content to BlackBerry users in many 
countries by enabling them to buy applications in the 
BlackBerry App Store (called ‘BlackBerry App World’) using 
their mobile phone bill. This increases the value of sales 
through BlackBerry App World, giving developers a stronger 
motivation to target the BlackBerry platform. Bango is 
expanding this capability across dozens of new mobile 
operators around the world.  
The ability of the Bango system to provide a common 
connection point to dozens of diverse billing systems from 
mobile operators around the world, coupled with the automated 
settlement, currency and tax management, risk management 
and reporting systems to deliver payments to thousands of 
content providers is a powerful tool for any business building an 
app store. 
End user spend from the smartphone and app store sector grew 
during the year, but not enough to offset the decline in the 
feature phone market over the year. Correspondingly, total end 
user spending and the gross margin on that revenue declined 
over the year. However, as app store revenues continued to 
accelerate, total end user spend returned to growth in May and 
has continued to grow since then. 
Bango relationship with BlackBerry and additional 
app stores  
Bango provides mobile network operator (''carrier'') billing for 
BlackBerry App World. The first mobile operator, AT&T, went 
live towards the end of the first half, enabling BlackBerry 
application developers to benefit from increased revenues. 
During the second half, Bango connected and commissioned 
many new mobile operators, both in its pool of existing 
connections, such as Vodafone UK and T-Mobile USA and new 
connections, and a small number of these were active at the 
year end.  
In January 2011 the overall value of sales through the 
BlackBerry App World surpassed any one of Bango's traditional 
content providers. As of June 2011 they have grown to more 
than our top three traditional content providers combined.  
Shortly after the year end, Bango announced its second major 
app store agreement - providing operator billing for the Opera 
Mobile Store. This is provided as part of Opera’s browser to 
more than 100 million users around the world. 
App stores can use any of the active Bango mobile operator 
billing integrations and Bango connects new mobile operators 
as required for our app store customers. More than 60 
additional mobile operator integrations are now in progress. The 
integrations involve not only technical connection, but also may 
involve three way commercials involving the operator, Bango 
and the app store. The processes for cash collection, tax 
treatments and reconciliation are also set up in Bango's 
automatic systems to ensure high volumes of transactions can 
be processed at low cost.  
Bango is actively progressing significant opportunities with 
additional app store providers, which will also have benefits for 
our other customers, including RIM and traditional content 
providers, as Bango scales out into other territories with these 
new prospects. Bango payment technology will soon appear in 
new markets such as Indonesia, Mexico and the Middle East, 
markets where mobile content is a passion for the young mobile 
customer base. 
We have been extremely encouraged by the quick uptake of 
Bango's payment platform by BlackBerry app developers, the 
success that BlackBerry developers are seeing on this important 
smartphone platform, and the interest in Bango technology 
from other large industry players. 
A wide range of applications are being sold. These include 
business tools and services, communications and time 
management utilities and a broad range of eBooks and audio 
books, alongside a wide selection of games. 
Bango looks forward to being able to update the market as 
these relationships develop. 
Sales of content for feature phones 
The sales of mobile content and services to primarily feature 
phone users has, as previously discussed, been impacted by 
industry factors - primarily relating to consumer refund policies 
of US mobile operators. Bango believes that the opportunity for 
growth in this market is limited, and therefore action has been 
taken to reduce costs in this area while still retaining the 
capacity to support our largest content providers. This will 
ensure that this sector of the business generates cash and 
profit going forward. 
Bango's largest traditional content providers in the feature 
phone sector are also consolidating and shifting to address the 
smartphone opportunity. The ‘long tail’ of smaller content 
providers is being directed towards the app stores where 
Bango's payment services are usable indirectly at lower cost to 
Bango.  
The growth of Android 
Canalys reported that in Q4 2010, Android powered 
smartphones became the fastest selling with 33% share of 
smartphone shipments, ahead of Nokia (31%) iPhone (16%) 
and BlackBerry (14%). Google provides an app store called 
Android Market for Android, but there are other app stores 
being developed to target the fast growing Android user base. 
iPhone users are restricted by Apple in their choice of content 
and apps, and how they can be marketed and sold, but Android 
enables much more choice and innovation. This represents a 
significant opportunity for Bango. App stores using mobile 
operator billing provided by Bango demonstrate significant 
extra sales volume.  05 CEO’s statement  
 
 
 
Product development  
There have been three areas of activity for Bango product 
development during the year: 
(1) Operational scalability in the payment network 
With increasing numbers of mobile operators connecting to 
Bango, the technology used to manage risk and ensure 
transactions can be processed in volume at very low cost has 
been developed significantly over the year. 
 
(2) New Bango Payment and Analytics services 
New services include innovative ways to identify and 
authenticate Android and other devices to enable secure mobile 
payments and the provision of ‘in-application toolkits’ to enable 
the collection of detailed analytical data from within running 
applications across smartphones including iPhone, Android, 
BlackBerry, Windows Phone 7 and Nokia. In addition, the 
technology has been adapted to better serve larger screen 
‘tablet’ devices such as Apple iPad and BlackBerry Playbook. 
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. 
(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 partners and content providers to be able to 
meet their present and future needs. 
As well as expecting considerable growth in revenue from 
smartphones, Bango has seen rapid growth in volumes of 
analytics transactions from our largest customers, with volume 
in March 2011 being 4.3 times higher than in March 2010.  
The current system architecture and data centres are scalable 
to sustained transaction volumes more than ten times those 
being seen today. At the end of 2010 a project was initiated to 
design and plan a transition to a next generation platform that 
will enable Bango to quickly and economically further scale up 
capacity which may be required.  
Financial performance 
Gross revenue in FY2011 reduced by 26% to £19.3m 
compared with the previous year, with revenue in the second 
half of the year at £8.72m compared with £10.6m in the first 
half year. Revenue from outside the UK accounted for 83.5% 
(£16.1m) of total revenue for the year, up from 83.2% 
(£21.7m) in the previous year. 
Gross profit in the second half grew 7% compared with the first 
half, to give a gross profit for the year of £2.49m.  
End user revenue reduced by 29% year on year, 22% half on 
half. Gross profit on end user activity reduced by 48% to 
£0.64m from £1.23m, whilst margin percentage reduced from 
5.0% to 3.7% because the costs of providing connections to 
payment providers, charged to cost of sales, are fixed even if 
sales volumes decrease.  
Gross profit from other fees increased by £0.4m to £1.85m 
reflecting app store revenues and growth in analytics revenues, 
which increased from £0.13m to £0.33m. 
During the second half of the year and after the year end, 
Bango reduced certain sales, marketing and technical support 
functions related to the feature phone business. One time costs 
associated with some of these reductions, recognized in the 
year ending 31 March 2011 amounted to approximately 
£0.12m. The cost saving in the following financial year is 
expected to be £0.3m, ensuring that the legacy feature phone 
business continues to be cash and margin generative. 
The increase in gross profit in the second half and the return to 
an underlying profit - after allowing for the expenses associated 
in acceleration of the transition, recognition of £0.11m of 
profit from mobile operator connections, and a slightly faster 
depreciation rate - demonstrates progress with our newer, larger 
customers. 
Administrative expenses increased by £0.37m (12.3%) to 
£3.22m from £2.85m in the previous year with increased 
depreciation and amortization accounting for £0.15m of the 
increase. 
The loss before tax was £0.84m, compared with the loss of 
£0.25m in FY10, with £0.46m arising in the first half of the 
year and £0.38m in the second half year.  
After an R&D tax credit of £0.22m and payment of US taxes of 
£0.08m, the loss after tax £0.696m.  
The cash used by operating activities for the year was £1.16m 
(£0.04m) broadly in line with the loss for the year plus some 
consumption of positive working capital arising from the 
reduction in end user spend. 
Expenditure on assets totaled £1.11m (£1.04m), including 
£1.03m (£0.88m) on internal R&D mainly on projects relating 
to operational scalability in future periods. 
In January 2011 the Company raised £2.4m before expenses 
by the issue of new ordinary shares at a price of 135 pence per 
share.  
At 31 March 2011 Bango had cash balances of £2.71m 
(£2.74m).  CEO’s statement 06 
 
 
 
Strategy and outlook for FY ending March 2012  
Bango's strategy is to leverage its central position as a 
payments network in the smartphone marketplace and the 
Board believes it is well positioned to benefit from the 
increased level of business activity in this space. With 
considerable technical and commercial investment made to 
date, the Bango platform can handle significant increases in 
transaction volumes without the need for major additional 
capital or operational expenditure.  
Bango expects to see continued revenue growth in both end 
user activity and other fees, driven by an increasing number of 
content providers and a growing volume of transactions from 
existing content providers.  
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 app stores. 
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  07 Success stories  
 
Success stories 
 
With our unique technology and key partnerships we have helped leading app stores, mobile businesses and brands become successful 
on mobile. Our mobile billing and analytics solutions enable them to market and sell more mobile content and services. Here are some of 
our success stories. 
 
 
 
 
 
 
GoSpoken 
GoSpoken is an innovative digital bookshop offering e-books and 
audio books designed for mobile phones and tablets. Customers 
are able to make purchases from the extensive catalogue of 
bestseller titles and download them straight to their mobile 
device. The business started in 2007 and counts former British 
special services soldier and best selling author Andy McNab 
amongst its founders. 
GoSpoken use Bango to provide customers with a quick and easy 
way to purchase e-books and audio books by placing a charge on 
their mobile phone bill. This click-to-pay consumer experience is 
seamless and secure, maximizing conversion rates and delivering 
a marked increase in sales for GoSpoken. 
Telefónica UK 
Telefónica UK is a leading communications company for 
consumers and businesses in the UK, with over 22 million 
mobile customers through the O2 brand. Through its O2 Active 
mobile site, O2 offers subscribers a personalized service with fast 
access to a wide range of leading content including Facebook, 
Twitter, BBC news and Sky Sports, among others.  
Bango provides Telefónica UK with advanced, real-time mobile 
analytics to deliver insights into customer interactions across all 
of their mobile websites. Powerful filtering tools enable fast and 
flexible analysis, supporting a wide variety of viewpoints into the 
data. Telefónica UK gains visibility into both their own 
subscribers and prospective customers coming from different 
networks and over Wi-Fi. With Bango Analytics Telefónica UK 
can quickly and easily optimize the content and services across 
each mobile site, delivering a much improved user experience. 
Dada 
Dada Entertainment is an international leader in community and 
entertainment services for web and mobile. Dada’s latest 
MusicBox mobile application gives users access to a massive 
library of content containing over 100,000 of the hottest 
ringtones and wallpapers, updated on a daily basis. 
Dada use Bango mobile billing within their MusicBox application 
to present customers with a seamless in-app payment experience. 
Android customers on AT&T and T-Mobile are able to place a 
charge on their mobile phone bill and download the latest 
ringtones and wallpapers directly to their mobile device from the 
application. 
 
 
 
 
 
 
Opera 
The Opera Mobile Store is one of the top ten app stores for 
mobile phone users available worldwide today. The store is 
quickly and easily accessed through a single-click from the 
Opera Mini or Opera Mobile browsers, making it immediately 
accessible to more than 100 million customers. The Opera 
Mobile Store is also accessible through any other mobile 
browser by going to mobilestore.opera.com. Every Opera 
Mobile Store user will discover apps and content targeting 
their specific mobile device, local market and currency. 
Bango enables Opera Mobile Store customers to purchase 
apps and pay for content within apps on their mobile phone 
bill or through a credit card. Bango delivers the optimal 
payment experience for each individual customer wherever 
they are, maximizing revenues for developers.  
RIM (Research in Motion) 
BlackBerry App World is one of the largest global app stores 
providing over 40 million BlackBerry smartphone users with 
access to all the latest mobile applications for their devices. 
Many apps are pay to use, customers can either pay to 
download the app or download for free and then pay to unlock 
specific features and content.  
RIM chose to partner with Bango to enable customers to 
apply charges for apps directly to their mobile phone bill. 
Bango provides all operator billing, using the Bango mobile 
payments platform to activate new connections in BlackBerry 
markets worldwide.   
In addition, Bango acts as the merchant of record for 
BlackBerry App World content sales. All connection, 
collection, reporting and settlement tasks are performed by 
Bango as RIM’s payments global partner for operator-billed 
payments.    
 
 
 
         Success stories 08 
 
 
  09 Products, Business model, Key market developments  
 
Products 
 
Bango delivers a complete billing and analytics solution for app 
stores, mobile apps and websites.  
Bango Payment delivers everything from simple pay-to-
download solutions through to advanced subscription services. 
We provide the latest direct operator billing technology 
worldwide, along with credit card, debit card and PayPal 
connections designed to exceed even the most demanding, 
large-scale app store, in-app and web payment requirements. 
Bango takes care of all the merchant of record, taxation and 
settlement complexities, handles large-scale developer on-
boarding with automatic account creation and mass out 
payment of earnings.  
We deliver detailed real-time reporting to app store owners and 
developers, covering payments, refunds and app or website use, 
as well as comprehensive marketing campaign measurement. 
Detailed customer care tools allow fast transaction lookup from 
mobile number, with easy refund and subscription 
management, everything you need to give your customers the 
best possible experience. 
Bango Analytics provides a complete end-to-end measurement 
solution designed to excel in today’s world of mobile internet, 
smartphones and tablets. It delivers accurate, independent 
customer insights from the initial point of contact within 
marketing campaigns through website navigation and app 
usage to specific goals. 
Bango leverages unique relationships with mobile network 
operators, handset manufacturers and browser developers to 
deliver over 8 times greater accuracy than traditional PC 
analytics solutions. Our server-based user identification 
technology returns an anonymous, persistent User ID for all 
customers each time they visit any website or application – 
giving you a consistent view across all your properties.  
Real-time, ad-hoc reporting with advanced filtering and 
segmentation of data, allows you to quickly get to the important 
facts in the way you want.  
Bango Analytics makes it easy to understand customer’s paths 
and behavior across all your websites or applications, while our 
unique mobile data delivers precise details about each 
customer’s carrier, including virtual network operators such as 
Virgin Mobile, and their connections, including Wi-Fi. 
Business model 
Bango sells content to end users. Bango pays the variable costs 
charged by payment providers and pays a pre-agreed amount to 
the content provider for each sale. The remaining part of each 
transaction is retained by Bango. Fixed percentages are not 
earned on each transaction – on average 2% is retained for 
high volume customers, while 5% is retained at low volume 
levels. 
Bango also charges monthly fees for the platform functionality 
along with custom integration and consultancy fees. Fees vary 
from a few dollars to thousands of dollars a month depending 
on the range and flexibility of services required. Integration and 
consultancy fees are priced to meet specific customer 
requirements. 
 
With Bango Analytics, a monthly fee is paid depending on the 
volume of data being recorded, stored and analyzed. 
Additionally a fee for advanced functionality and user accounts 
is applied. Typical monthly fees start from £29 ($49) per 
month, while enterprise customers pay upwards of £3,000 - 
£6,000 ($5,000 - $10,000) per month depending on data 
volumes and specific requirements.  
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 for 
our larger scale offerings where service level agreements and 
long form contracts are required. 
Key market 
developments 
The battle to establish the mobile smartphone standard has 
been the defining feature of this last year. The market 
opportunity – there are now over 5 billion mobile phone users 
worldwide (source: GSMA) – is driving significant investment in 
devices and services that increase mobile phone usage, 
including mobile commerce services. Significant developments 
include: 
• The ascendency of Google’s Android smartphone operating 
system. The rate of growth in North America now exceeds the 
iPhone 
• The popularity of RIM BlackBerry devices in emerging 
markets. The overall decline in the popularity of Nokia 
devices, the company has yet to deliver a competitive 
smartphone product 
• More mobile content ‘app stores’ are being rolled-out as 
device makers present a package of services around their 
smartphone products 
• Device independent app stores are attractive for developers, 
offering a cross-platform channel to market and better 
merchandizing support than manufacturers can provide. App 
store vendors include Amazon and mobile browser maker 
Opera Software provide these 
• M&A activity in the mobile payments sector, as big payment 
processors including Visa, American Express and PayPal look 
for positioning and know-how in the sector 
• Nokia shake-up steps up a gear through closer alignment with 
the Windows Phone 7 platform. Expect further downsizing 
during the current year 
• Mobile web adopted as a strategic differentiator by Google, 
Yahoo, HP, RIM, Opera and others. Outside of Apple iOs, 
more browser based service delivery to mobile devices is 
happening 
• The return of paid mobile content after a period in which 
advertising-funding was positioned as the business model for 
content   
 
 
Products, Business model, Key market developments 10  
11 Directors  
 
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 20 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 25 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. 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ray Anderson 
CEO 
Anil Malhotra 
SVP Marketing & Alliances 
Peter Saxton 
CFO 
   
Directors 12 
 
             
 
 
 
 
Rudy Burger 
Non-executive Director 
Martin Rigby 
Non-executive Director 
David Sear 
Non-executive Director 
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. 
 
 
 
 
 
 
 
 
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 managing 
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. 
 
 
 
 
   
13 Company information  
 
Company information 
 
Company registration number 05386079 
 
Registered office 5 Westbrook Centre 
 Milton Road 
 Cambridge 
 CB4 1YG 
 Tel:  +44 (0)1223 472 777 
 Fax:  +44 (0)1223 472 778 
 
Directors Mr D Sear - Non-executive Chairman (appointed Director 20 August 2010,  
 appointed Chairman 1 April 2011) 
  
 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 (appointed 3 June 2010) 
  
 Mr L C N Bury – Non-executive Chairman (resigned as Chairman 31 March 2011, 
 resigned as Director 31 May 2011) 
 
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 
 101 Cambridge Science Park 
 Milton Road 
 Cambridge 
 CB4 0FY 
 
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 20 West 22
nd
 Street 
Suite 906 
New York, NY 10010 
 Tel:  +1 866 528 6897 
 Fax:  +1 646 349 3023 
 
 
 www.bango.com 
 sales@bango.com   
 Directors’ report 14 
 
Directors’ report 
 
The Directors present the Annual Report and audited financial 
statements of Bango PLC for the year ended 31 March 2011. 
 
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 and 
the sale of such mobile content to end users via this technology 
platform.  
 
Bango enables businesses of all sizes to quickly and easily benefit 
from the expansion of the worldwide 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 
2011 and future developments is contained in the Chairman’s 
statement and the CEO’s statement on pages 5 and 6.  The key 
financial performance indicators are gross margin, net profit and 
cash balances. 
 
The Directors have reviewed the appropriateness of adopted 
accounting policies, with particular focus on revenue recognition 
in compliance with IAS 18.  After taking account of the variety of 
processes adopted by payment providers, together with the range 
of contractual arrangements in place with content providers and 
the terms and conditions operated with end users, the Directors 
have continued to recognise revenue on end user activity as 
principal and not as agent. 
 
Key performance indicators 
Key performance indicators are used to control and measure 
financial and operational performance and reviewed to ensure that 
plans are achieved and corrective action taken where necessary. 
 
Relationships with content providers are fundamental to the Bango 
business model.  During the year, the number of active content 
provider relationships for payment and/or analytic services showed 
an encouraging increase from about 300 to about 1,400 mainly as 
a result of activity within the BlackBerry AppWorld.          
 
Analytics events grew during the year and by March 2011 had 
increased four-fold compared with the level one year before. 
 
A review of product development, financial performance and 
strategy and outlook for FY2012 is contained in the CEO’s 
Statement on pages 5 and 6. 
 
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 2011 At 31 March 2010 
Mr D Sear - - 
Mr R Anderson 6,624,036 6,624,036 
Mr A Malhotra 3,887,000 3,887,000 
Mr P Saxton 225,000 225,000 
Mr L C N Bury 865,000 1,160,000 
Mr M Rigby  17,934 18,684 
Dr R Burger - - 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
 
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 
2011 
At 31 
March 
2010 
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 31,250 
25 March 2010  £0.595 31,250 31,250 
10 December 2010 £1.315 31,250 - 
17 March 2011 £0.825 31,250 - 
Total  655,000 592,500 
Mr D Sear    
7 February 2011 £1.530 100,000 - 
 
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 2011, the Group had an average of 46 
days (2010: 56 days) creditors outstanding in trade payables, 
accruals and deferred income.  The average days for the company 
was 37 (2010: 33) 
 
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, 19 and 21 for further information.   
15 Directors’ report  
 
Directors’ report 
 
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 
 
Currency risk 
Overseas currency sales are largely offset by costs in the same 
currency and hence exposure to currency risk and impact on 
margin is considered relatively small.  See note 21 for further 
information.  The group manages its foreign exchange exposure on 
a net basis.  No forward exchange or other such financial 
instruments have been used in the period. 
  
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.  The Group manages this risk 
by a commitment to research and development combined with 
ongoing dialogue with trading partners and sector specialists to 
ensure that market developments are understood.   
 
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.  The Group manages access 
risk by investment in relationships and regular dialogue with 
payment providers and content providers who are actual or 
potential users of those payment providers.  The Group manages 
payment risk by undertaking regular credit risk analysis using third 
parties combined with other sources of market intelligence, 
together with monitoring of payment performance.    
 
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.   
  
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 elected to prepare the Group financial statements in 
accordance with International Financial Reporting Standards as 
adopted by the European Union (IFRSs) and separate parent 
company financial statements under United Kingdom Generally 
Accepted Accounting Practice (United Kingdom Accounting 
Standards and applicable laws).  Under Company Law the 
directors must not approve the financial statements unless they 
are satisfied that they give a true and fair view of the state of 
affairs and profit or loss of the Company and 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 and that the parent financial statements are 
prepared under UK Accounting Standards. 
 
• Prepare the financial statements on the going concern 
basis unless it is inappropriate to presume that the 
Company will continue in business. 
 
The Directors are responsible for keeping adequate accounting 
records that are sufficient to show and explain the company’s 
transactions and disclose with reasonable accuracy at any time the 
financial position of the company and 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 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. 
   
Directors’ report 16 
 
Directors’ report 
 
 
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 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
17 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 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. 
• 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. The Directors 
expect the current level of investing activities to continue but 
expect to see a substantial reduction in the net cash used by 
operating activities as a result of improvements in the key 
performance areas.  For these reasons, 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. 
 
   
Remuneration Committee report 18 
 
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 2011 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. 
   
19 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 group financial statements of Bango plc for 
the year ended 31 March 2011 which comprise the consolidated 
balance sheet, the consolidated statement of comprehensive 
income, 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 their 
preparation 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 group financial statements and for being 
satisfied that they give a true and fair view. Our responsibility is to 
audit and express an opinion on the group 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/private.cfm 
Opinion on financial statements 
In our opinion the group financial statements: 
 give a true and fair view of the state of the group's affairs as 
at 31 March 2011 and of its loss for the year then ended;  
 have been properly prepared in accordance with IFRSs as 
adopted by the European Union; 
 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 group financial statements are 
prepared is consistent with the group 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 2011.  
 
 
 
 
 
Alison Seekings, Senior Statutory Auditor 
for and on behalf of Grant Thornton UK LLP 
Statutory Auditor, Chartered Accountants 
Cambridge 
26 August 2011 
   
 
Consolidated balance sheet 20 
 
Consolidated balance sheet 
 
 2011 2010
Note £  £ 
 
ASSETS 
Non-current assets 
Property, plant and equipment 5 240,620 315,792 
Intangible assets 5 2,030,918 1,163,591 
 - --- --- --- --- --- --- --- --- --- --- -- - --- --- --- --- --- --- --- --- --- --- ---
  2,271,538 1,479,383 
 
Current assets 
Trade and other receivables 6 3,354,033 4,018,967 
Cash and cash equivalents 2,713,226 2,735,460 
 - --- --- --- --- --- --- --- --- --- --- -- - --- --- --- --- --- --- --- --- --- --- ---
 6,067,259 6,754,427 
- --- --- --- --- --- --- --- --- --- --- -- - --- --- --- --- --- --- --- --- --- --- ---
Total assets 8,338,797 8,233,810 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = =
 
EQUITY 
Capital and reserves attributable to equity holders of the parent company 
Share capital  7 7,580,482 7,176,989 
Share premium account  8,917,009 7,005,012 
Merger reserve  1,236,225 1,236,225 
Other reserve  1,098,802 981,236 
Accumulated losses  (13,071,120) (12,375,035) 
 
  --------------------------------- - --- --- --- --- --- --- --- --- --- --- ---
Total equity  5,761,398 4,024,427 
  = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = =
 
LIABILITIES    
Current liabilities    
Trade and other payables 8 2,577,399 4,209,383 
  --------------------------------- - --- --- --- --- --- --- --- --- --- --- ---
Total liabilities 2,577,399 4,209,383 
   
- --- --- --- --- --- --- --- --- --- --- -- - --- --- --- --- --- --- --- --- --- --- ---
Total equity and liabilities 8,338,797 8,233,810 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = =
 
These financial statements were approved by the Directors on 26 August 2011 and are signed on their behalf by: 
 
 
 
 
 
Mr R Anderson Mr P Saxton 
Director Director  
 
 
Company registration number 05386079 
 
 
 
 
 
 
 
 
 
 
 
The notes on pages 24 to 39 are an integral part of these consolidated financial statements. 
   
21 Consolidated statement of comprehensive income  
 
Consolidated statement of 
comprehensive income 
 
 2011 2010 
Note £  £ 
 
Gross revenue 4 19,324,857 26,133,109 
Cost of sales (16,829,874) (23,465,448) 
 - --- --- --- --- --- --- --- --- --- --- - - --- --- --- --- --- --- --- --- --- --- - 
Gross profit 2,494,983 2,667,661 
    
Administrative expenses before share based payment   (3,215,195) (2,845,417) 
Share based payments   (117,566) (64,845) 
  -------------------------------- - --- --- --- --- --- --- --- --- --- --- - 
Total administrative expenses    (3,332,761) (2,910,262) 
  -------------------------------- - --- --- --- --- --- --- --- --- --- --- - 
Operating loss  (837,778) (242,601) 
    
Interest payable  (103) (8,834) 
Investment income 14 516 1,165 
  -------------------------------- - --- --- --- --- --- --- --- --- --- --- -- 
Loss before taxation (837,365) (250,270) 
    
Income tax 15 141,280 260,311 
  -------------------------------- --------------------------------- 
(Loss) / profit and total comprehensive income for the financial year  (696,085) 10,041 
  = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
Attributable to equity holders of the parent  (696,085) 10,041 
  = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
 
Earnings / (loss) per share attributable to the equity holders of the parent 
Basic earnings / (loss) per share 16 (1.90)p 0.03p 
  
Diluted earnings / (loss) per share 16 (1.90)p 0.03p 
 
All of the activities of the Group are classed as continuing. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The notes on pages 24 to 39 are an integral part of these consolidated financial statements  
Consolidated cash flow statement 22 
 
Consolidated cash flow statement 
 
 2011 2010 
Note £  £ 
 
 
Net cash used by operating activities 17 (1,228,970) (51,465) 
 
Cash flows used by investing activities 
Purchases of property, plant and equipment (77,767) (159,489) 
Addition to intangible assets (1,031,400) (875,740) 
Interest received 516 1,165 
 -------------------------------- -------------------------------- 
Net cash generated from/used by investing activities (1,108,651) (1,034,064) 
 
Cash flows generated from financing activities 
Proceeds from issuance of ordinary shares 2,315,490 3,003,540 
Interest payable (103) (8,834) 
 -------------------------------- -------------------------------- 
Net cash generated from financing activities 2,315,387 2,994,706 
 
  -------------------------------- -------------------------------- 
Net (decrease) / increase in cash and cash equivalents    (22,234) 1,909,177 
Cash and cash equivalents at beginning of year  2,735,460 826,283 
-------------------------------- -------------------------------- 
Cash and cash equivalents at end of year  2,713,226 2,735,460 
  = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The notes on pages 24 to 39 are an integral part of these consolidated financial statements.  
 
23 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 2009 5,673,712 5,504,749 1,236,225 916,391 (12,385,076) 946,001 
Share based payments - - - 64,845 - 64,845 
Exercise of share options 5,603 4,121 - - - 9,724 
Issue of new 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 
       
       
Balance at 1 April 2010 7,176,989 7,005,012 1,236,225 981,236 (12,375,035) 4,024,427 
Share based payments - - -   117,566 -    117,566 
Exercise of share options 43,649 39,547 - - - 83,196 
Issue of shares 359,844 1,872,450 - - - 2,232,294 
Transactions with owners 7,580,482 8,917,009 1,236,225 1,098,802 (12,375,035) 6,457,483 
       
Loss for the period - - - - (696,085) (696,085) 
Total comprehensive income      
for the period - - - - (696,085) (696,085) 
Balance at 31 March 2011 7,580,482 8,917,009 1,236,225 1,098,802 (13,071,120) 5,761,398 
       
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The notes on pages 24 to 39 are an integral part of these consolidated financial statements.   
 
Notes to the financial statements 24 
 
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 2011 
(including the comparatives for the year ended 31 March 2010) 
were approved by the Board of Directors on 26 August 2011. 
 
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 note 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.  The US 
subsidiary only performs a sales and support function for services 
provided by Bango.net Limited.  Due to the nature and set up of 
the US operation as a support centre for the UK, the functional 
currency of Bango Inc has to date been considered to be sterling.  
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. 
 
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. Subsidiary 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  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. 
• 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 amortised 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.  Development costs previously 
recognized as an expense are not included in the amount 
recognized as an asset.  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 statement of comprehensive 
income.     
 
25 Notes to the financial statements  
 
Notes to the financial statements 
 
3.5  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. 
 
3.6  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 amortised 
cost using the effective interest method, less provision for 
impairment.  Any change in their value through impairment or 
reversal of impairment is recognized in profit or loss. 
 
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 discounted at the original effective 
interest rate. 
 
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 recognised outside profit or loss.  Tax relating to items 
recognised in other comprehensive income is recognised in other 
comprehensive income, and tax relating to items recognised 
directly in equity is recognised directly in 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, when it is 
recognised in other comprehensive income.  Deferred tax relating to 
items recognised directly in equity is recognised directly in equity. 
 
3.9  Operating lease agreements 
Rentals applicable to operating leases where the risks and rewards 
or ownership are not transferred are charged to profit or loss net of 
any incentives received from the lessor on a straight-line basis over 
the period of the lease. 
 
3.10  Revenue recognition 
End user activity arises from the provision of mobile internet 
content to end users facilitated through mobile network operators 
and other payment providers. End users make a prepayment to the 
Group prior to accessing chargeable mobile internet content. 
 
End user activity is recognised as gross revenue at the time at 
which end users access chargeable mobile internet content.  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. 
 
Other fees includes revenue from the sale of access licences to 
content providers and is recognised evenly over the period of the 
contract since the services are provided evenly over this period. 
 
Other fees also includes revenue from service contracts and is 
recognized in the financial statements over the period of the 
contract. 
 
Other fees also includes revenue from services provided to mobile 
phone operators and content providers and is recognized in the 
financial statements over the period of the contract in proportion to 
the element of the services provided at the balance sheet date. 
 
Revenue is measured by reference to the fair value of consideration 
receivable by the Group for services provided, excluding VAT. 
 
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.     
 
Notes to the financial statements 26 
 
Notes to the financial statements 
 
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, over the 
remaining vesting period. 
 
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 
statement of comprehensive income.   
 
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 profit or loss for the period. 
 
3.14  Segment reporting 
In identifying its operating segments, management recognise 
two service lines – the provision of a mobile payment platform 
allowing end users to purchase content, and the provision of 
services, including licence fees and analytics technology to 
provide accurate information about users, to content providers 
and other organisations.  The revenue and margin generated 
from each of these segments is separately reported but where 
costs and assets are managed and utilised on a group basis, 
these are not allocated to a segment. 
 
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 profit or loss. 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. 
 
Interest income and expenses are reported on an accrual basis 
using the effective interest method. 
 
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. 
 
Retained earnings 
Retained earnings include all current and prior period retained 
profits. 
 
3.17  Significant accounting estimates and judgements 
 
Revenue recognition 
Based on the status Bango plays within transactions and 
consistent with the prior year, revenue has been reported gross 
consistent with Bango being the principal in the transaction.  In 
arriving at this judgement the Directors have considered the 
risks the group faces from the variety of processes adopted by 
payment providers, together with the range of contractual 
arrangements in place with content providers and the terms and 
conditions operated with end users.  See note 4 for further 
details.   
 
 
 
 
   
 
27 Notes to the financial statements  
 
Notes to the financial statements 
 
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.  See note 7 for further details. 
 
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 due to the unpredictability of future 
taxable trading profits from which these differences may be 
deducted (note 15). 
 
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 £2,030,918 (2010 : 
£1,163,591). 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
Notes to the financial statements 28 
 
Notes to the financial statements 
 
4  Segment reporting 
(a)  The Group identifies two operating segments.  Management reporting is based principally on the type of customer and strategic 
decisions are made on the basis of the gross profit generated from each segment.  The segments are not separately managed and 
therefore the Group’s headquarters and its research and development activity are considered group operations and are not allocated to 
any operating segment.  Segment information can be analysed as follows for the reporting periods under review.   
 
Year ended 31 March 2011 
 End user Other Group Total 
 activity fees   
     
 £ £ £ £ 
     
Segment revenue 17,461,790 1,863,067 - 19,324,857 
  
Segment gross profit 643,316 1,851,667 - 2,494,983 
    
Segment assets 2,095,037 508,221 5,735,539 8,338,797 
 
Segment liabilities (2,136,865) (35,116) (405,418) (2,577,399) 
--------------------------------- ---------------------------------- ----------------------------------- ---------------------------------- 
Net assets (41,828) 473,105 5,330,121 5,761,398 
= = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
 
Year ended 31 March 2010 
 End user Other Group Total 
 activity 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 revenues 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.  Assets for this segment are amounts due from 
payment providers.  Liabilities for this segment are mainly fees payable to payment providers for provision of services and fees payable to 
content providers for provision of content sold by Bango to end users. 
 
Other fees are the amounts paid to Bango by content providers and others for package fees and other services including analytics.  
Assets for this segment are amounts due for package fees and other services.  Liabilities for this segment represent deferred income for 
package fees.  
 
Group assets include non-current assets and cash and cash equivalents.  Group liabilities relate to administrative expenses. 
 
(b)  The Group’s revenue from external customers is divided into the following geographical areas.  All non-current assets are based in 
the UK. 
 2011 2010 
 £   £ 
United Kingdom (country of domicile) 3,185,826 4,397,990 
EU 452,077 606,252 
USA 15,120,714 20,843,390 
Rest of World 566,240 285,477 
 ------------------------------------------------------------- -------------------------------------------------------------- 
 19,324,857 26,133,109 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
Segment revenue is based on the location of the customers.   
 
29 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 2009   176,679 71,859 734,430 982,968 
Additions         - - 159,489 159,489 
 ----------------------------------------- ----------------------------------- ----------------------------------------------- - ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- 
At 31 March 2010 176,679 71,859 893,919 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 
 ----------------------------------------- ----------------------------------- ----------------------------------------------- - ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- -- 
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 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
 
 Leasehold 
improvements
Office 
equipment
Computer 
equipment Total 
 £ £ £ £  
 
Cost 
At 1 April 2010   176,679  71,859 893,919 1,142,457 
Additions         14,243 11,756 51,768 77,767 
 ----------------------------------------- ----------------------------------- ----------------------------------------------- - ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- - 
At 31 March 2011 190,922 83,615 945,687 1,220,224 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
 
Depreciation 
At 1 April 2010 145,039 65,292 616,334 826,665 
Charge for the year 28,846 7,951 116,142 152,939 
 ----------------------------------------- ----------------------------------- ----------------------------------------------- - ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- -- 
At 31 March 2011 173,885 73,243 732,476 979,604 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
 
Net book value 
At 31 March 2011 17,037 10,372 213,211 240,620 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
   
 
Notes to the financial statements 30   
 
Notes to the financial statements 
 
5.2 Intangible assets 
 
     Domain Names Internal 
Development
Total 
 £££ 
 
Cost 
At 1 April 2009  32,887 352,471 385,358 
Additions         - 875,740 875,740 
 ----------------------------------------- ----------------------------------------- ----------------------------------------- 
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 
 ------------------------------------- ------------------------------------- ------------------------------------- 
At 31 March 2010 32,887 64,620 97,507 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
 
Net book value 
At 31 March 2010 - 1,163,591 1,163,591 
       = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
    
 
 Domain NamesInternal 
Development
Total 
 £££ 
 
Cost 
At 1 April 2010   32,887 1,228,211 1,261,098 
Additions         - 1,031,400 1,031,400 
 ----------------------------------------- ----------------------------------------- ----------------------------------------- 
At 31 March 2011 32,887 2,259,611 2,292,498 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = =              = = = = = = = = = = = = = = = = = = = = = = = = 
 
Depreciation 
At 1 April 2010 32,887 64,620 97,507 
Charge for the year - 164,073 164,073 
 ------------------------------------- ------------------------------------- ------------------------------------- 
At 31 March 2011 32,887 228,693 261,580 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
 
Net book value 
At 31 March 2011 - 2,030,918 2,030,918 
       = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
    
 
 Amortisation is shown within administrative expenses in the income statement. 
  
 6  Trade and other receivables 
 2011 2010 
 £ £ 
 
Trade receivables 1,268,337 1,145,601 
Other receivables 935,896 471,804 
Prepayments and accrued income 1,222,408 2,475,876 
 ------------------------------------ ------------------------------------ 
Total 3,426,641 4,093,281 
Impairment of trade and other receivables (72,608) (74,314) 
 - --- --- --- --- --- --- --- --- --- --- ---- - - --- --- --- --- --- --- --- --- --- --- ---- - 
 3,354,033 4,018,967 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
 
 
 
 
 
 
   
 
31 Notes to the financial statements  
 
Notes to the financial statements 
 
At 31 March 2011, some of the unimpaired trade receivables are past their due date.  The age of financial assets past due but not 
impaired is as follows:   
 2011 2010 
 £ £ 
 
Not more than one month  97,300 54,513 
One to two months 187,427 38,850 
Three to twelve months 92,874 126,044 
More than twelve months 33,901 26,033 
 ------------------ ------------------ 
 411,502 245,440 
 = = = = = = = = = = = = = = = = = = = = = = = = = 
 
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. 
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 provision for trade receivables is provided below: 
 2011 2010 
 £ £ 
 
Brought forward provision 74,314 79,227 
Debts written off in the year (63,902) (80,464) 
Increase in provision  62,196 75,551 
 ------------------ ------------------- 
Carry forward provision 72,608 74,314 
 = = = = = = = = = = = = = = = = = = = = = = = = = 
 
 7  Share capital and employee share options 
Allotted, called up and fully paid: 
 
Ordinary shares of 20p each in Bango PLC No  £ 
 
As at 1 April 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 
   
Issue of new shares 1,799,220 359,844 
Exercise of share options 218,242 43,649 
 ------------------------- ----------------------- 
As at 31 March 2011 37,902,409 7,580,482 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
 
During the year 1.799m new shares were issued at 135.0 pence per share.  The total proceeds were £2,232,294 (net of issue costs of 
£196,653) of which £359,844 was recognised as share capital and £1,872,450 as share premium. 
 
During the year 218,242 share options were exercised at exercise prices between 23 pence and 106.5 pence and a par value of 20 
pence per share.  The total proceeds were £83,196 of which £43,649 was recognised as share capital and £39,547 as share premium. 
 
 
 
 
 
 
   
 
Notes to the financial statements 32 
 
Notes to the financial statements 
 
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 2011 Year ended 31 March 2010 
 Average Options Average Options 
 exercise price  exercise price  
 per share  per share  
 p No p No 
Outstanding at 1 April 2010 64 3,455,635 67 2,902,074 
Granted 131 502,800 51 661,157 
Lapsed 42 (159,486) 64 (79,620) 
Exercised 39 (218,242) 30 (28,018) 
Expired - - - 42 
 ----------------------------------- ----------------------------------- ----------------------------------- ------------------ - --- --- --- --- ---- 
Outstanding at 31 March 2011 75 3,580,707 64 3,455,635 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
Exercisable at 31 March 2011 70 2,662,746 69 2,407,662 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
 
 The weighted average share price at date of exercise of options exercised during the year was 125.11 pence (2010: 47.55 pence). 
 
 The fair value of options granted during the year was determined using the Black-Scholes valuation model. Significant inputs into the 
model include a weighted average share price of 130.64 pence (2010: 50.71 pence) at the grant date, the exercise prices, weighted 
average volatility of 48.7% (2010: 49.3%), dividend yield of nil, an expected option life of five years and an annual risk-free interest 
rate of 2.32% (2010: 2.72%). 
  
 For the share awards there was sufficient share price data for Bango plc to calculate the company's volatility. 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
33 Notes to the financial statements  
 
Notes to the financial statements 
 
At 31 March 2010, the Group had the following outstanding options and exercise prices: 
 
  2011 2010 
 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 
19 May 2010 - - - 50.00 40,000 2 
2 April 2012 - - - 31.00 40,000 24 
2 May 2012 - - - 31.00 15,000 25 
25 August 2012 31.00 20,000 17 31.00 40,000 29 
24 February 2013 31.00 45,000 23 31.00 45,000 35 
27 August 2013 29.00 15,000 29 29.00 15,000 41 
27 February 2014 29.00 298,500 35 29.00 346,500 47 
27 May 2014 31.00 40,000 38 31.00 40,000 50 
27 July 2014 29.00 40,000 40 29.00 40,000 52 
28 August 2014 50.00 46,000 41 50.00 46,000 53 
18 February 2015 50.00 106,000 47 50.00 106,000 59 
1 March 2015 50.00 230,000 47 50.00 230,000 59 
22 June 2015 50.00 24,500 51 50.00 24,500 63 
21 September 2015 202.00 190,000 54 202.00 190,000 66 
1 March 2016 177.50 116,000 59 177.50 146,000 71 
25 May 2016 140.00 210,000 62 140.00 210,000 74 
9 October 2016 106.50 87,335 66 106.50 99,085 78 
22 March 2017 50.00 76,250 72 50.00 76,250 84 
23 March 2017 50.50 170,626 72 50.50 182,126 84 
19 September  2017 41.00 171,565 78 41.00 187,940 90 
31 January 2018 23.00 251,622 82 23.00 276,027 94 
15 October 2018 53.50 126,957 91 53.50 139,050 102 
19 February 2019 44.00 191,020 95 44.00 204,655 107 
19 January 2019 44.00 115,377 94 44.00 125,377 106 
11 August 2019 46.50 25,000 101 46.50 25,000 113 
1 October 2019 44.50 219,265 103 44.50 231,375 115 
17 March 2020 59.50 263,640 108 59.50 274,750 120 
24 September   2020 167.00 183,125 114 - - - 
10 December    2020 131.50 31,250 116 - - - 
7 February   2021 153.00 100,000 118 - - - 
17 March   2021 82.50 186,675 120 - - - 
 
  - --- --- --- --- --- --- --- --- --- --   ------------------------------  
At 31 March  3,580,707 76  3,455,635 79 
  
 
= = = = = = = = = = = = = = = = = = = = = = = = =  = = = = = = = = = = = = = = = = = = = = = = = = = 
 
 8  Trade and other payables 
 2011 2010 
 £ £ 
 
Trade payables 2,373,998 3,921,538 
Social security and other taxes 45,082 89,256 
Accruals and deferred income 158,319 198,589 
 ------------------------------ - --- --- --- --- --- --- --- --- --- -- 
 2,577,399 4,209,383 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
 
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 34 
 
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: 
 
 2011 2010 
 £ £ 
 
No later than 1 year 193,787 171,775 
Later than 1 but no later than 5 years 314,222 370,771 
More than 5 years - - 
 ------------------------------ - --- --- --- --- --- --- 
 508,009 542,546 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
 
The UK lease expires on 14 November 2013.  The US office lease expires on 30 September 2013. 
 
10  Expenses by nature 
 2011 2010 
 £ £ 
Employee benefit expense 2,421,696 2,156,286 
Depreciation & amortisation 317,012 167,961 
Other expenses 17,423,927 24,051,463 
 ------------------------- ------------------------- 
 20,162,635 26,375,710 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
Analysed as:   
Cost of sales 16,829,874 23,465,448 
Administrative expenses 3,215,195 2,845,417 
Share based payments 117,566 64,845 
 ------------------------ ------------------------ 
 20,162,635 26,375,710 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
 
 11  Profit or loss before taxation 
 
Profit or loss before taxation is stated after charging: 
 
 2011 2010 
 £ £ 
Auditor's remuneration: 
Fees payable to the Company’s auditor for the audit of the financial statements  2,500 2,500 
Fees payable to the company’s auditors for other services: audit of company’s subsidiaries 27,500 27,500 
Other services relating to tax 45,690 29,375 
Other services 12,561 7,500 
 
Operating lease expenses: 
Land and buildings 186,263 159,676 
 
Finance charges – bank interest payable  103 8,834 
 
Exchange rate variances  148,182 (86,073) 
 
Depreciation on property, plant and equipment 152,939 103,074 
Amortization of intangible assets  164,073 64,887 
Research and development costs 365,138 234,840 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
 
  
 
 
 
 
 
 
   
 
35 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: 
 2011 2010 
 No No 
 
Administrative staff 6 5 
Marketing staff 6 5 
Sales staff 5 4 
Technical staff 13 13 
Executive Directors 3 3 
Support staff 10 12 
 -------- ------- 
 43 42 
 = = = = = = = = = = = 
 
The aggregate payroll costs of the above were: 
 2011 2010 
 £ £ 
 
Wages and salaries 2,046,505 1,864,999 
Social security costs 194,416 166,538 
Other pension costs 63,209 59,904 
Share based remuneration 117,566 64,845 
 ----------------------- ----------------------- 
 2,421,696 2,156,286 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
 
Included in the above payroll costs is £772,500 (2010 : £605,575 ) capitalised within internal development (note 5.2) 
The Directors have identified nine  (2010: seven) key management personnel, including Directors. Compensation to key management is 
set out below: 
 2011 2010 
 £ £ 
Wages and salaries 446,447 496,585 
Social security costs 48,460 39,298 
Pension 28,494 30,155 
Share based compensation 57,268 52,753 
 ------------------ ----------------- 
 580,669 618,791 
 = = = = = = = = = = = = = = = = = = = = = = = = = 
 
13 Directors 
Remuneration in respect of Directors was as follows: 
 2011 2010 
 £ £ 
 
Emoluments 317,378 268,904 
 = = = = = = = = = = = = = = = = = = = = = = = = 
 
2011 Wages and 
salaries 
Pension and other 
benefits 
Sums paid to 
third parties for 
directors services 
Fees Total 
 £ £ £ £ £ 
R Anderson 72,389 - - - 72,389 
A Malhotra 103,550 1,929 - - 105,479 
P Saxton 83,507 - - - 83,507 
L Bury 18,617 - - - 18,617 
M Rigby - - 15,750 - 15,750 
R Burger   - - - 11,813 11,813 
D Sear - - - 9,823 9,823 
 ----------------- ------------ -------------- -------------- ----------------- 
 278,063 1,929 15,750 21,636 317,378 
     = === === =     = === ==      == === =     = === ==     = === === = 
 
 
 
   
 
Notes to the financial statements 36 
 
Notes to the financial statements 
 
2010 Wages and salaries Pension and other 
benefits 
Sums paid to third 
parties for directors 
services 
Fees 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 
      = = = = = = = = = = = =      = = = = = = = =      = = = = = = = = = = = = = = = = = = = = = = = = =      = = = = = = = = = = = =
 
The highest paid director received total salary of £103,550 (2010: £100,557), pension contributions of £1,929 (2010 : £4,652), and 
share based compensation of £nil (2010 : £nil). 
 
The number of directors who accrued benefits under pension schemes was one (2010 : one). 
 
The total share based compensation for directors was £28,514 (2010 : £8,908) 
 
During the year no share options were exercised by the Directors.  For details of directors shareholdings please see directors report. 
 
 14  Investment income 
 2011 2010 
 £ £ 
Bank interest receivable 516 1,165 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
 
15  Income tax expense 
 2011 2010 
 £ £ 
Current tax - overseas 78,151 - 
Deferred tax - - 
R&D tax credits receivable (219,431) (260,311) 
------------------------------ - --- --- --- --- --- --- --- --- --- --- 
 (141,280) (260,311) 
============== === == == == == == == 
 
Income tax expense for the year differs from the standard rate of taxation as follows: 
  
Loss on ordinary activities before taxation (837,365) (250,270) 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
Loss on ordinary activities multiplied by standard rate of tax of 28% (2010: 28%) (234,462) (70,076) 
Effect of :   
Expenses not deductible for tax purposes 35,674 (41,093) 
Differences between capital allowances and depreciation (6,010) 7,798 
Unutilised tax losses 204,798 114,196 
Other temporary differences - (10,825) 
Overseas tax 78,151 - 
 R&D tax credits receivable (219,431) (260,311) 
------------------------------ - --- --- --- --- --- --- --- --- --- --- 
Total tax  (141,280) (260,311) 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
 
At 31 March 2011 the unutilised tax losses carried forward amounted to £11.9 million (2010: £11.3 million). 
 
Unrecognized deferred tax assets: 
 2011 2010 
 £ £ 
 
Share option deduction 96,739 118,055 
Tax losses 3,088,542 3,171,829 
Other temporary differences  2,052 2,212 
Accelerated capital allowances (422,200) (335,920) 
------------------------------ - --- --- --- --- --- --- --- --- --- --- 
 2,765,133 2,956,176 
============== === == == == == == == 
 
   
 
37 Notes to the financial statements  
 
Notes to the financial statements  
 
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 (loss) / profit attributable to equity holders of the Company by the weighted 
average number of ordinary shares in issue during the year. 
 
 2011 2010 
 £ £ 
(Loss) / profit attributable to equity holders of the Company (696,085) 10,041 
   
Weighted average number of ordinary shares in issue 36,564,487 30,113,120 
  
Earnings (basic) per share (1.90) p 0.03 p 
 
 (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.  
 
 2011 2010 
 £ £ 
(Loss) / profit attributable to equity holders of the company (696,085) 10,041 
   
Weighted average number of ordinary shares (as adjusted for dilutive options in the prior year) 36,564,487 32,542,820 
   
Earnings (diluted) per share (1.90) p 0.03 p 
 
At 31 March 2011 options over 3,580,707 (2010: 3,455,635) 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 
 2011 2010 
 £ £ 
(Loss) / profit for the financial year (696,085) 10,041 
Depreciation and amortization 317,012 167,961 
Taxation in income statement (141,280) (260,311) 
Investment income (516) (1,165) 
Interest payable 103 8,834 
Share-based payment expense 117,566 64,845 
Decrease in receivables 884,365 445,111 
Decrease in payables  (1,631,984) (595,303) 
 - --- --- --- --- --- --- --- --- --- --- --- - --- --- --- --- --- --- --- --- --- --- --- 
 
(1,150,819) (159,987) 
Corporation tax (paid) / rebate (78,151) 108,522 
 ---------------------------------- ---------------------------------- 
Net cash used by operations (1,228,970) (51,465) 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
Notes to the financial statements 38 
 
Notes to the financial statements 
 
18  Financial assets and liabilities 
 
Financial assets included in the balance sheet relate to the following IAS 39 categories:   
 2011 2010 
 £ £ 
 
Loans and receivables 5,450,671 5,608,636 
------------------------------ - --- --- --- --- --- --- --- --- --- --- 
Total financial assets 5,450,671 5,608,636 
============= === == == == == == == 
 
These financial assets are included in the balance sheet within the following headings: 
 2011 2010 
 £ £ 
Current assets 
Trade and other receivables 2,737,445 2,873,176 
Cash and cash equivalents 2,713,226 2,735,460 
------------------------------ - --- --- --- --- --- --- --- --- --- --- 
Total financial assets 5,450,671 5,608,636 
============== === == == == == == == 
 
Financial liabilities included in the balance sheet relate to the following IAS 39 categories: 
 2011 2010 
 £ £ 
 
Financial liabilities measured at amortized cost  2,532,317 4,120,127 
---------------------- - --- --- --- --- --- --- -- 
Total financial liabilities 2,532,317 4,120,127 
========== === == == == = 
 
These financial liabilities are included in the balance sheet within the following headings: 
 2011 2010 
 £ £ 
Current liabilities 
Trade payables 2,373,998 3,921,538 
Accruals and deferred income 158,319 198,589 
--------------------- - --- --- --- --- --- --- --- --- --- --- 
Total financial liabilities 2,532,317 4,120,127 
========== === == == == == == == 
 
19  Credit risk analysis 
The Group’s exposure to credit risk is limited to the carrying amount of financial assets and cash and cash equivalents 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 Group completes regular credit checks on those payment providers 
accounting for significant individual balances.  In addition, the terms and conditions of trade with content providers allow the group to 
withhold payment of the relevant part of the content provider earnings until payment is received from the payment provider.  
 
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.     
 
 
 
 
 
   
 
39 Notes to the financial statements  
 
Notes to the financial statements 
 
20  Liquidity risk analysis and capital management 
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, taking account of operating activities and investing activities.   
 
At 31 March 2011 the Group’s trade and other payables had contractual maturities which are summarized below: 
 2011 2010 
 £ £ 
 
Current within 6 months 2,567,490 4,203,053 
Current 6 to 12 months 9,909 6,330 
 --------------------- -- -- -- -- -- -- -- -- -- -- 
Trade and other payables 2,577,399 4,209,383 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
 
The Group’s capital management objectives are to ensure the Group’s ability to continue as a going concern and to provide an adequate 
return to shareholders, via sufficient cash resources, through profitable trading and equity issues to mitigate liquidity risk.   
 
During the year the Group successfully issued new shares on the AIM market and raised £2.2m (2010 :£3.0m) and the Directors 
consider that the capital management objectives have been satisfied. 
 
At 31 March 2011 the Group had no borrowings. 
 
Capital for the reporting period under review is summarised as follows: 
 2011 2010 
 £ £ 
 
Total equity 5,761,398 4,024,427 
Less cash and cash equivalents (2,713,226) (2,735,460) 
 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 
 3,048,172 1,288,967 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
 
21  Market risk analysis 
 
21.1 Interest risk sensitivity  
The Group has no borrowings on which it is subject to interest rate risk.  The risk associated with interest earned on cash balances is low, 
given the low level of interest currently being earned. 
 
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. 
 2011 2010 
 £ £ £ £ £ £ 
Nominal amounts Financial 
assets 
Financial 
liabilities 
Net assets/ 
(liabilities) 
Financial 
assets 
Financial 
liabilities 
Net assets/ 
(liabilities) 
US $                    
USD 
2,134,242 1,636,140 498,102 3,326,912 3,590,933 (264,021) 
Euro                    
EUR 
167,719 97,958 69,761 83,137 350,618 (267,481) 
Australian $         
AUD 
8,644 2,477 6,167 - - - 
Canadian $         CAD 170,855 3,693 167,162 - - - 
New Zealand $    NZD 101,715 - 101,715 - - - 
 - --- --- --- --- --- --- --- -- ------------------------ -------------------- - --- --- --- --- --- --- --- -- ------------------------ ---------------------- 
Short term exposure 2,583,175 1,740,268 842,907 3,410,049 3,941,551 (513,502) 
 =========== =========== ========= =========== =========== ========== 
   
 
Report of the independent auditor to the members of Bango PLC 40 
 
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 2011 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 
and express an opinion on 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/private.cfm 
 
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 2011; 
 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 2011.  
 
 
  
Alison Seekings  
Senior Statutory Auditor 
for and on behalf of Grant Thornton UK LLP 
Statutory Auditor, Chartered Accountants 
Cambridge  
26 August 2011   
 
41 Company balance sheet  
 
Company balance sheet 
 
 2011 2010 
Note £  £ 
 
Fixed assets 
Investment in subsidiary 4 5,303,088 5,185,522 
  --------------------- --------------------- 
    
 
Current assets 
Debtors due within one year 5 5,005 20,559 
Debtors due after one year 5 11,874,398 9,707,205 
Cash at bank  - - 
 ------------------------ --------------------- 
 11,879,403 9,727,764 
Creditors falling due within one year                                                                            6     53,525 28,828 
------------------------ -------------------- 
Net current assets                                                                                11,825,878 9,698,936 
  = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
 
Total assets less current liabilities 17,128,966 14,884,458 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
 
Capital and reserves 
Share capital  7 7,580,482 7,176,989 
Share premium account 8 8,917,009 7,005,012 
Other reserve 8 1,098,802 981,236 
Retained earnings 8 (467,327) (278,779) 
 
  ----------------------- ----------------------- 
Shareholders’ funds  17,128,966 14,884,458 
  = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
 
 
 
These financial statements were approved by the Directors on 26 August 2011 and are signed on their behalf by: 
 
 
 
 
Mr R Anderson Mr P Saxton 
Director Director 
 
Company registration number 05386079   
 
Notes to the financial statements 42 
 
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 summarised 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 over the 
remaining vesting period. 
 
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 2011 of £188,548 (2010: £98,446) 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 35 of 
the Group accounts.  A charge of £26,154 (2010 : £4,460) 
has been recognised within the parent company’s own figures 
relating to wages and salaries. 
 
   
 
43 Notes to the financial statements 
 
Notes to the financial statements 
 
4  Investments 
 £ 
Cost 
Shares in subsidiary undertakings at 1 April 2010  5,185,522 
Share based payments 117,566 
 - --- --- --- --- --- --- --- --- --- --- --- 
Shares in subsidiary undertakings at 31 March 2011 5,303,088 
 = = = = = = = = = = = = = = = = = = = = = = = 
 
Net book amount 
At 31 March 2011 5,303,088 
  
 
= = = = = = = = = = = = = = = = = = = = = = = 
At 31 March 2010 5,185,522 
 = = = = = = = = = = = = = = = = = = = = = = = 
 
Details of subsidiary undertakings at 31 March 2011 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 
 2011 2010 
 £ £ 
 
Amounts due from Group undertakings 11,874,398 9,707,205 
Other debtors 5,005 20,559 
 ------------------------ - --- --- --- --- --- --- -- 
 11,879,403 9,727,764 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
 
6  Creditors 
 2011 2010 
 £ £ 
 
Trade creditors 26,041 10,142 
Accruals and deferred income 10,098 1,300 
Amounts owed to group undertakings 17,386 17,386 
 -------------- - --- --- --- --- - 
 53,525 28,828 
 = = = = = = = = = = = = = = = = = = = = = = 
 
 
 
 
 
   
 
Notes to the financial statements 44 
 
Notes to the financial statements 
 
7  Share capital 
 
Allotted, called up and fully paid: 
 
Ordinary shares of 20p each in Bango PLC No  £ 
 
As at 1 April 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 
   
Issue of new shares 1,799,220 359,844 
Exercise of share options 218,242 43,649 
 ---------------------------------- ---------------------------------- 
As at 31 March 2011 37,902,409 7,580,482 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
 
During the year 1.799m new shares were issued at 135.0 pence per share.  The total proceeds were £2,232,294 (net of issue costs of 
£196,653) of which £359,844 was recognised as share capital and £1,872,450 as share premium. 
 
During the year 218,242 share options were exercised at exercise prices between 23 pence and 106.5 pence and a par value of 20 
pence per share.  The total proceeds were £83,196 of which £43,649 was recognised as share capital and £39,547 as share premium. 
 
During the year 502,800 options were granted to employees, including 62,500 to Peter Saxton, a Director and 100,000 to David Sear, a 
non-executive Director. 
 
At the period end, 3,580,707 options were outstanding. 
 
 
8  Reserves 
  Share Other Retained 
  Premium reserve earnings 
  Account £ £ 
  £ 
 
At 1 April 2010  7,005,012 981,236 (278,779) 
   
Issue of new shares  1,872,450 - - 
Exercise of share options  39,547 - - 
Share based payments  - 117,566 - 
Loss for the year  - - (188,548) 
  -------------------------------------- -------------------------------- ------------------------------- 
At 31 March 2011  8,917,009 1,098,802 (467,327) 
  = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = =