Bango is the leading provider of payment  
and analytics products for businesses  
targeting the fast growing market of  
internet enabled mobile phone users. 
 
Bango’s unique technology, mobile operator 
relationships and consumer profiles enable  
higher payment conversion rates for the  
world’s leading mobile content businesses. 
 
Bango analytics provides website owners 
the most accurate information about the 
users visiting their site using mobile phones. 
 
The mobile market is moving to an internet  
based model, positioning Bango strongly  
for the future.  
 
 
  Contents  .................................................................................................1
Highlights  ...............................................................................................2
Chairman’s statement ..............................................................................3
CEO’s statement ......................................................................................4
Case studies ............................................................................................5
Products  ...............................................................................................10
Business model .....................................................................................10
Key market developments ......................................................................10
Directors ...............................................................................................12
Company information .............................................................................13
Directors’ report .....................................................................................14
Corporate governance statement .............................................................14
Remuneration Committee report .............................................................17
Report of the independent auditor to the members of Bango PLC .............18
Consolidated balance sheet ....................................................................19
Consolidated income statement ..............................................................20
Consolidated cash flow statement ...........................................................21
Consolidated statement of changes in equity ...........................................22
Notes to the financial statements ............................................................23
Report of the independent auditor to the members of Bango PLC .............41
Company balance sheet .........................................................................42
Notes to the financial statements ............................................................43 
Contents  01  
02 Highlights 
 
Highlights 
 
* OPEX = Sales, Marketing, Overheads inc. R&D, Finance & Depreciation   
 
Financial highlights 
• Revenues up 28% to £17.6m (£13.76m). Up 61.0% 
between firs t and s econd half of FY09 
• Gross profit stable at £2.66m (£2.77m). Composite 
percentage margin reduced to 15.1% (20.1%), reflecting 
rapid growth in end us er transactional revenues 
• Loss for the year before tax & share based payments 
reduced to £0.58m (£1.58m) 
• In tern al cos ts red u ced b y 25. 1% to £3. 14m (£4. 19m ), 
resulting in a second half performance close to breakeven, 
before benefit of an R&D tax credit that generated a net 
retained profit 
• Cas h b alan ce of £0. 83m as at 31 M arch 09. (£1. 13m at 
March 31 2008) 
 
 
 
Operational highlights 
• End us er s pend increas ed 69% between the firs t and 
second half of the year  
• Several major US customers started their transition 
from using Premium SMS aggregators to Bango during 
the year, causing a five fold increase in US revenues 
• Bango Analytics, the new mobile marketing product line, 
launched in February 2008 now has m ore than fifty 
paying customers in cluding m ajor brands 
• New capabilities added to Bango platform to benefit from 
growth in W i-Fi connected mobiles            Chairman’s statement 03 
 
Chairman’s statement 
 
I am pleased to report on continued strong progress at Bango, as 
demonstrated in its results for the financial year to March 2009. 
 
The company has grown sales by 28% while reducing operating 
ex penses – resulting in significantly reduced losses, and a break-
even second half period. The trends in sales growth, profitability and 
transaction volumes point to a positive outlook for Bango. 
 
Bango has built leadership in mobile web payment with its services . 
Bango is now enabling the largest US content providers, in 
particular, to generate increased growth and provide better 
customer experiences by migrating from legacy Premium SMS 
suppliers to Bango’s web based systems.  
 
Bango’s unique technology, mobile operator relationships and 
consumer profiles enable higher payment conversion rates for the 
world’s leading mobile content businesses. Sim p ly p u t, th ey m ake 
more sales. 
 
The Bango system that provides this simplicity to the user and the 
increased sales to the content prov iders is highly s ophis ticated. The 
technology has required many years of development and refinement 
– involving transactions from more then 30 million unique mobile 
users.  It is also closely integrated with the billing systems of major 
mobile network operators and credit card processors. 
 
Bango is serving a large and growing market.  The worldwide mobile 
content market will exceed $64 billion b y 2012, u p from $20 b illion 
in 2007, according to Juniper Research.  Major mobile phone 
makers, mobile operators and internet businesses are driving the 
uptake of the mobile internet.  
 
The growth in mobile content sales and the s witch to an internet 
model for payment and delivery gives Bango the opportunity to 
develop a defensible position of dominance in this important 
industry sector.  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Bango’s growth is driven both by businesses that are new to mobile 
content sales and by established mobile content sellers who are 
starting to transition their business from the older “Premium SMS” 
methods of content sales to the Bango platform.  Both can benefit 
from the increasing popularity of the mobile internet and the 
increased sales opportunities through Bango. 
 
The growth of revenue in the US market has been very pleasing. The 
management has positioned Bango well for further substantial 
growth by improving operational efficiency and driving down the cost 
per sale.    
 
I would like to thank the whole Bango team and shareholders for 
their continued commitment to maintaining Bango’s leadership and 
success in this marketplace as it continues to grow. 
 
 
Linds ay Bury 
Chairman  
04 CEO’s statement 
 
CEO’s statement 
 
Business is progressing well at Bango.  Sales are up.  Operating 
costs are down.  Bango has a strong pipeline of prospects and 
increasing transaction volumes from existing customers.  With a 
large market opportunity ahead, Bango has continued to develop its 
unique technology to adapt to market conditions and maintain our 
competitive advantage. 
 
Approximately 70% of Bango’s revenue growth has come from 
customers that increased their use of the Bango payment service 
during the year. The remainder is from new customers signed up 
during the year. They chose Bango to benefit from the potential of 
the internet as a channel for their content to reach mobile 
consumers, now that web access is increasingly possible on mobile 
devices. 
 
Many Bango customers are starting their transition from using 
SMS aggregators to send payment messages to the commercially 
more attractive and consumer friendly mobile web model.  It is 
commercially more attractive because Bango delivers significantly 
higher conversion rates of clicks to collected payments than 
alternatives. This translates into significantly higher profits for 
Bango customers or their ability to out-spend their competitors in 
marketing. 
 
Following investment in developing web self-service systems at 
www.bango.com and the restructuring of the sales and marketing 
organization, Bango has reduced the cost of customer acquisition.  
The costs of operating the largely automated services are stable, so 
Bango expects to derive some valuable economies of scale in the 
future as absolute gross margins continue to grow ahead of costs. 
 
Growing transaction volumes 
End user revenue grew by 36% year on year, and 61% half on half. 
It is now running at 2.7 times the level experienced in early June 
2008. Gross profit on end user spend was maintained. Margin 
percentage reduced from 8.7% to 6.4% overall as a result of 
Bango’s decision, reported previously, to lower transaction fees for 
larger content provider customers, resulting in significant increases 
in revenue from larger customers and the opportunity for 
substantial future growth.  
 
Bango sees significant potential for growth in the volume and end 
user value of transactions from our current customers. Internal 
estimates indicate that the Top 10 customers have moved around 
5-10% of their operator billing activity from legacy SMS 
aggregators to Bango during the year.  There are compelling 
business reasons for much of the rest to move to Bango and the 
company is working with our customers and the mobile operators to 
facilitate this transition.  
 
As new mobile network operators (MNO) connect to Bango to 
provide their billing services to Bango customers, this will also drive 
transaction volumes. The AT&T and Sprint contracts won before the 
beginning of the year under report drove most of the growth in US 
transactions. In April 2009 Bango signed an agreement with T-
Mobile USA to further expand Bango’s US coverage. This will enable 
increased transaction volumes for existing and future customers.   
 
Growth also comes from new customers, Bango has a sales pipeline 
of large and medium sized businesses that have either not yet 
started the transition from legacy SMS to mobile web or who want 
to move from the traditional “PC” web to the mobile web to benefit 
from the increasing volume and spending power of mobile phone 
users.  As customers sign up and start using the Bango service, 
their success in selling their products via the mobile internet drives 
more transaction volume. 30% of transaction volumes came from 
customers won during the year. 
 
Growing the Bango customer base 
Bango’s self-serve process, coupled with web marketing, PR and 
industry reputation has generated several thousand customer sign-
ups at www.bango.com for both payment and analytics customers.  
Bango sales and marketing teams then support these customers to 
upgrade their basic product, which generates more customers 
paying a recurring monthly fee, and motivated to drive end user 
spending. 
 
In early 2008 Bango introduced a range of simpler and lower cost 
products, requiring reduced sales effort and allowing us to reduce 
sales and marketing costs by about £0.7m year on year. Some 
migration occurred with existing customers moving to lower cost 
Bango products, although the impact was only £0.08m year on year. 
This move put Bango in a stronger position for future growth and 
strengthened our competitive position.  
 
In January 2009, Bango changed from a policy of encouraging free, 
indefinite, use of low end “Analytics S” products to one of offering a 
one month “free trial” of the more capable “Analytics M” product 
which normally incurs a small monthly fee.  Around 10% of these 
trials upgraded to a paying customer.  This was a higher rate than 
the number of customers upgrading from the “free” product in a 
similar time period, and it appears that prospects were more 
motivated to integrate and test the product during the first month.    
 
Shortly after the year end Bango expanded this process to Payment 
products. More than 11,700 users registered for the free “Bango 
Starter” payment product. The plan is now to offer them a more 
functional product for a small monthly fee.  Extended use of the 
free product, other than an initial trial period will be phased out. 
 
Sales and marketing activity 
Bango decided in early 2008 to reduce prices and strengthen the 
self-serve product proposition.  This was to enable a reduction in 
customer acquisition costs and grow sales and margins without 
increasing expenditure. For the second year running, costs have 
been reduced while sales and operating margins have grown, 
demonstrating the success of this approach. 
 
The “self serve” sign up at Bango.com was augmented by a small 
telesales team during the year, enabling Bango’s “industry experts” 
to focus on larger accounts with more complex requirements. This 
ensures Bango assist larger prospects transition from using SMS 
aggregators to the Bango “mobile web billing” platform.  
 
Bango Analytics had its first year of sales, and is off to a promising 
start with several leading brands adopting the product to measure 
the effectiveness of their mobile marketing campaigns. 
 
With its reputation for accuracy and independence of measurement, 
Bango is seeing the first signs of Bango Analytics being used as an 
“independent measurement” of page traffic and quality – to enable 
mobile website owners to sell advertising space at higher prices.  
 
 
 
 
 
 
 
   
CEO’s statement 05  
 
 
 
Product development  
The development focus during the year was on improving the 
ability of Bango systems and partners to collect payments from 
consumers in the key countries of USA, UK, Spain and Germany 
where content provider customers see most opportunity. 
 
A key success factor in selling to mobile users is the “payment 
conversion rate” – the proportion of users who choose to buy 
something from whom payment can be collected.  An 
improvement in conversion rate of 2% can lead to a 20% or 
more improvement in profit for the content provider.  
 
Unique technologies developed by Bango during the year have 
succeeded in improving payment conversion rates by 1 to 20% 
or more compared with alternatives. 
 
During the year the Bango UserID system was expanded to 
embrace users connecting their mobile phones through Wi-Fi or 
“non-operator” connections. This enabled Bango – and therefore 
our customers - to improve conversion rates when users access 
content providers through such routes, especially when using 
credit cards.  Bango technology also has potential benefit to 
mobile operators, who otherwise lose sight of their subscribers 
when they “bypass” the carrier networks though Wi-Fi 
connections.  
 
Bango data showed that mobile phone access via Wi-Fi grew from 
a 2% share to a 7% share over the 2008 calendar year. This 
traffic is invisible to mobile operators. Bango can provide them 
with useful and accurate information about the behavior of their 
consumers and can also enable operator billing when subscribers 
are not using an operator network –a big profit opportunity for the 
operators.  
 
For example, Bango can use mobile operator billing to collect 
payments from iPhone users browsing over Wi-Fi. The operator 
would not be able to do this as they are not involved in the 
activity between the user of the iPhone and the content 
provider’s website. Bango’s operator alliances team is now 
discussing these new opportunities with selected mobile 
operators. 
 
The Bango roadmap for the coming year concentrates on further 
improving the conversion rates of Bango Payment products, 
especially in the territories where the most powerful content 
providers focus.  This gives Bango customers a significant 
competitive edge compared with others, and Bango is dedicated 
to giving them the tools to succeed in their markets.  
 
Bango is negotiating with several mobile operators who want to 
open up their billing capabilities to a broader audience. Bango 
expects to make announcements of the fruits of this work in 
2009. 
 
In March 2009 Bango appointed Lee Davies to the role of Chief 
Technology Officer (CTO), reflecting the increasing need for 
Bango to engage at a technology planning level with influential 
partners and peers in the mobile internet, such as Yahoo, 
Vodafone, Nokia, AT&T, Sprint, Google and Microsoft.  As these 
organizations increasingly consider Bango as a technology or 
service provider, it is important to better understand their 
architectures and roadmaps so Bango can better supply them or 
compete with potential alternatives. 
New analytics product for mobile marketing 
The beginning of the year saw the launch of Bango Analytics, a 
new product that enables businesses of all sizes to get a better 
return from their investment in marketing and advertising 
campaigns on the mobile web.  Bango provides more accurate 
and comprehensive data than any alternative. Information about 
mobile users responding to campaigns and what they do is 
captured and presented in an easy to use form to enable 
informed decision-making.  
  
It is a widely held view within advertising agencies that the 
inability to measure the effectiveness of mobile marketing is 
holding back investment.   Gartner (IT) forecasts the mobile 
advertising market could grow to £5.5 billion in global revenue in 
2011, up from less than £500M a year in 2007. Tools such as 
Bango Analytics which can demonstrate or even improve the 
return on this investment should be able to attract a significant 
part of this expenditure. 
 
Bango Analytics can be used to measure the conversion rates of 
existing payment products. Bango believes this will demonstrate 
the benefits of moving to Bango Payment products by those who 
use alternative ways to collect payments from mobile users. 
 
Being early to market, exploiting our 9 years of technology 
development and with an established initial customer base, and 
low costs of sale, Bango is well positioned to capitalize on this 
growth. The company has packaged its unique technology for a 
new set of customers – those that use the mobile web for 
marketing or customer engagement rather than for selling digital 
content. 
 
System availability, reliability and scalability 
Bango services are delivered by software running in our 
datacenters, enabling us to sign up new customers and grow 
them with little or no extra operating cost. System availability is 
vital to our customers. Less than two hours of service were lost 
in the 12 months.  
 
Bango regularly reviews procedures, capabilities and scalability 
plans with larger customers to ensure the ability to meet their 
present and future needs. Several have advised the Company 
that they require capacity for ten or twentyfold transactional 
volume increases in the coming year.   
 
Privacy has become an increasingly important issue for the 
industry and consumers over the year. Bango recognizes the 
importance that individuals place on their personal data. Bango 
collects information about the websites that mobile phone users 
visit, where they spend their money or their time, and about their 
mobile operator, choice of handset over time, and potentially 
other information such as credit card data, phone number and so 
on.  
 
Bango holds information on more than 40 million unique mobile 
subscribers, and this is growing at the rate of more than 1 million 
a month.  It is therefore vital that we continue to comply with 
best practice on privacy and data security. We therefore 
appointed Tim Moss to the role of “Chief Data Officer” (CDO) in 
February 2009 to ensure we meet or exceed industry best 
practice and ensure the necessary security of consumer data. 
 
 
 
 
 
 
   
06 CEO’s statement 
 
 
 
Financial performance 
Gross revenue in FY2009 grew by 28% compared with the 
previous year to £17.6m and in the second half of the year by 
61% compared with the first half year.  Revenue from outside 
the UK accounted for 61% (£10.8m) of total revenue for the 
year, up from 22% (£3.1m) in the previous year. 
 
Gross profit in the second half grew 12% compared with the first 
half, to give a gross profit for the year of £2.66m.     
 
End user revenue grew by 36% year on year, and 69% half on 
half, and is now running at about 2.7 times the level experienced 
in early June 2008.  Absolute margin on end user spend was 
maintained at £1.01m, whilst margin percentage reduced from 
8.7% to 6.4% as a result of Bango’s decision, as reported 
previously, to lower transaction fees for larger content provider 
customers, resulting in  significant increases in revenue from 
larger customers and the opportunity for substantial future 
growth.  
 
In early 2008 Bango changed the sales process for content 
providers by introducing simpler and cheaper products, requiring 
reduced sales effort and reducing sales and marketing costs by 
about £0.7m year on year. As a result, some migration occurred 
with existing customers moving to cheaper Bango products. 
Gross margin from content provider fees only reduced by 
£0.08m year on year, whilst putting Bango in a much stronger 
position for future growth. 
 
Sales of Bango Analytics products, launched during the year, 
made a small contribution to content provider revenues although 
not significant enough to warrant separate analysis at this stage. 
 
Administrative expenses decreased by about £1.15m (26.2%) 
to £3.26m from £4.41m in the previous year, mainly as a result 
of significant improvements in sales and marketing efficiencies. 
 
The loss before tax was £0.65m, improved by 65% compared 
with the loss of £1.83m in FY07, and the retained loss for the 
year was further reduced to £0.48m by the receipt of £0.17m 
from R&D tax credits.  
 
The cash outflow from operations was £0.55m (£0.87m) 
broadly in line with the loss before tax.  Expenditure on assets 
totalled £0.41m, including £0.35m on internal R&D relating to 
analytics product development which was completed in April 
2009 when we released Analytics 4.0.  In July 2008 the 
Company raised £0.48m from the issue of new ordinary shares 
to some existing major shareholders at the then market price of 
33.5p to give the company the flexibility to accelerate payments 
to certain customers.    
 
Industry trends 
Bango management sees a number of trends that are growing the 
market opportunity for Bango: 
 
• More sophisticated devices are achieving widespread 
adoption 
• The adoption of the mobile web is increasing globally  
• Mobile broadband technology enables the delivery of richer 
content to consumers  
• More mobile users are using the internet and buying 
products on their phones 
• The functionality and usability of mobile web browsers 
continues to improve 
• Businesses are placing more emphasis on the mobile 
channel 
• MNO’s are moving to open up opportunities for third parties 
reaching out to their subscribers 
• Increased interest in “paid content” models as “ad funding” 
becomes more challenging 
• Increased competition for “useful shelf space” in the MNO 
portals and “Application Stores” 
• Growing recognition of the value of behavioral or 
personalized marketing 
• Businesses are focussing on payment conversion rates as 
competition becomes more intense 
  
Once a mobile web site is established, it is immediately 
accessible to mobile users around the world. Users must be geo-
located, age-verified for certain content types, MNO’s identified 
and a variety of currencies and payment options might be 
accepted. The appropriate taxes must be collected and paid, 
payment fraud risk mitigated, and assurances made that 
products are not available to banned locations or inappropriate 
consumers. These and other requirements of a web enabled 
system make it an expensive and potentially risky undertaking 
for any business. These factors also make a comprehensive and 
highly effective outsourced Bango offering an attractive 
alternative. 
 
Traditionally consumers have been encouraged to obtain digital 
content on a PC and transfer it to a mobile device. With the 
mobile phone replacing the iPod as the most popular music 
device and more phones having internet capability, consumers 
are becoming increasingly comfortable with the direct delivery of 
digital products, including software, audio-books, e-books, 
computer games, video games, music, and video to their mobile 
phones.  
 
This shift to direct delivery is being driven by benefits to both 
buyers and sellers of these products. For buyers, downloaded 
products are immediately available for use, without the 
inconvenience of a “side-loading”. For sellers, direct delivery 
increases the speed of user wish fulfilment and maximizes the 
chances of repeat sales. 
 
Bango’s technology and relationships are focused on enabling 
successful mobile web business models because mobile devices 
are increasingly the way in which consumers will be connected to 
content in the future. Many of the world’s largest content 
providers agree with Bango and are starting to use Bango’s 
services and products to replace traditional SMS driven content 
delivery. 
 
Traditional internet payment mechanisms such as PayPal have 
been targeting the mobile market for many years but continue to 
show very poor conversion rates.  Bango expects that during 
2009 and 2010 PayPal will make changes to its systems to 
become more effective and this could open up a new opportunity 
for Bango to collect payments from some user groups. 
 
 
 
 
 
 
 
   
CEO’s statement 07  
 
 
 
“Application Stores” such as the Nokia OVI Store and the Apple 
App Store are an alternative for vendors of applications in 
particular.  In the case of the Nokia, Blackberry and Android app 
stores, Bango sees opportunities to help these increase their 
conversion rates by adding Bango payment services, and in any 
case content providers can use Bango where they do their own 
marketing and sell via the app stores where customers discover 
their products through that route. 
 
The iPhone case is more interesting.  Apple has restricted the 
functionality from its mobile phone browser to prevent the 
download of applications, music or video unless they have come 
through an “Apple approved channel” or by side-loading.  This has 
restricted the size of the market for content providers targeting 
that device. Several content providers are however using Bango 
to charge iPhone users for chat, information or streaming 
services, which are not blocked by the iPhone.  
 
Outlook and strategy for FY ending March 2010  
Bango’s strategy for the coming year is to focus on deepening 
success in key markets where the largest customers and biggest 
immediate opportunities are located.  Global reach is a benefit of 
the Bango system, but Bango’s most successful customers are 
focusing on getting higher returns from key successful markets 
so Bango will align its focus accordingly for the current financial 
year.  
 
The market continues to develop broadly in the way Bango’s 
management envisaged.  Two years ago, the mobile internet was 
seen by many as a novelty, last year it was a minority activity. 
Today it is seen as an important and growing driver of consumer 
usage of mobile devices – with devices such as the Blackberry 
and the iPhone having mainstream appeal, and internet 
companies such as Google getting more involved in mobile 
phones. 
 
The new Bango Analytics product is building a good reputation for 
precision and quality. Bango encounters competition from 
Nielsen or Omniture in our larger prospects, but according to  
these prospects they do not have the accuracy or quantity of 
data Bango can provide. 
 
Bango expects to see continued revenue growth in the year 
ahead, driven by an increasing number of customers and a 
growing volume of transactions.  
 
Bango sees gross margin percentage on transactional revenues 
being maintained by delivery of more of Bango’s unique value to 
both content providers and mobile operators. The investments 
made in previous years mean Bango has a stable, automated, 
highly scalable system. This coupled with a proven business 
model and carefully managed cost base means Bango is well 
positioned for profitable growth in the year ahead. The mobile 
internet is still in its early stages but Bango management is 
confident of its ability to adapt to benefit from market 
developments. 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 08 Case studies 
 
Case studies 
 
We work closely with our customers and partners to deliver the best mobile billing and analytics solution that will help them market and sell 
more mobile content and services. Through our innovative products, we have helped thousands of brands become successful on mobile. 
These are some of our recent success stories. 
 
GoSpoken 
GoSpoken is an innovative international mobile e-book and audio 
book company that offers a wide selection of titles for purchase 
and download on a mobile phone. The business started in 2007 
and counts former special services soldier and best selling
author Andy McNab amongst its founders. 
 
How Bango helps 
• Bango Payment technology is used to sell mobile books to 
users around the world 
 
• To increase conversion rates by using Bango’s optimal operator 
billing experience 
 
• Specially adapted payment flows on smartphones and high end 
devices, which form a large percentage of the customer base 
 
• Provide accurate and precise information about mobile 
traffic levels, conversion rates and other Key Performance 
Indicators through Bango Analytics  
 
 
Flirtomatic 
Flirtomatic is a mobile “meet and make friends” service that 
allows people to meet, chat and flirt with others via a 
sophisticated mobile website. The service launched in the  
United States in 2009 and is proving a big hit with American consumers, 
especially iPhone users. 
 
How Bango helps 
• Provides mobile billing to over 150 million US subscribers, 
enabling Flirtomatic’s American customers to enjoy premium as 
well as standard features of the service 
 
• Provides an optimized payment experience to iPhone, Blackberry 
and other customers using high-end smartphones 
 
• Give a consistent operator billing experience to phone users who 
connect via Wi-Fi 
 
• Boost mobile content sales with higher conversion rates and 
more successful transactions 
 
 
Dada 
Dada S.p.A. is an international leader in Community & 
Entertainment services for web and mobile. The company is 
listed on the MTA market of Borsa Italiana (DA.MI). Its Dada 
Entertainment business is a joint venture with Sony Music, 
operating in North America, which provides market leading music 
entertainment for consumption on mobile phones. 
 
How Bango helps 
• Enables the expansion of their popular web music sites to music fans   
browsing from mobile phones 
 
• Provides fast and secure operator billing for their subscription 
services across the US 
 
• Provides a complete picture of users coming to their mobile site so 
Dada can match users’ interests and reward loyal customers 
 
• Maximizes conversion rates and provide detailed reporting 
of transactions and revenues across the user base 
 
 
 
 
 
“By using Bango to deliver a consistent 
operator billing experience to all our customers 
we have seen a marked increase in sales. 
Conversion rates using operator billing are 
much higher than using other methods and 
easier for our consumers. No other billing 
solution lets our smartphone customers simply 
click to pay.” 
Steve Crawford  
Operations Director of GoSpoken 
 
“An increasing number of our 
customers are using smartphones and connect 
via Wi-Fi to access mobile content. With the 
new Bango Payment technology we 
can now give them the speed and convenience 
of familiar operator billing which helps greatly 
to increase our potential revenues.” 
Mark Curtis  
CEO of Flirtomatic 
 
“We already help our community of music fans 
and artists to benefit from a great Web 2.0 
experience. We want to bring this experience to 
mobile and thanks to Bango’s seamless mobile 
billing platform, we can do just that. Through our 
mobile site our users can interact and consume 
mobile content from our extensive catalogue of 
mobile content.” 
Massimiliano Pellegrini, CEO of Dada 
 
“We already help our community of music fans 
and artists to benefit from a great Web 2.0 
experience. We want to bring this experience to 
mobile and thanks to Bango’s seamless mobile 
billing platform, we can do just that. Through our 
mobile site our users can interact and consume 
mobile content from our extensive catalogue of 
mobile content.” 
Massimiliano Pellegrini 
CEO of Dada 
  Case studies 09 
 
 
 
 
Telefonica O2 
On e of th e b ig five global mobile networks, Telefonica O2 
partners with Bango to deliver subscribers easy mobile payments 
across key markets of Spain, the UK and Germany. 
 
 
 
 
 
O2 has additionally leveraged Bango technology to deliver its 
customers key mobile web functionality for managing access 
to content of different audience ratings and populating its 
mobile search capabilities, delivered through the operator’s 
partners hip with Yahoo! 
 
How Bango helps 
 
 
 
 
 
• Enables content providers to quickly and easily use 
operator billing to sell mobile content using O2’s 
approved “Payforit” billing channel 
 
• Enables strategic O2 content partners to secure 
operator billing for age verified subscribers 
 
• Give content providers access to O2 iPhone customers 
for operator billing
 
 
Sprint 
Sprint Nextel is one of the “Tier 1” mobile network operators 
covering all customer segments across the United States . T h e 
operator provides sophisticated mobile data capabilities
to over 50 m illion s ubs cribers , including m obile web brows ing and content.  
 
How Bango helps 
• Launched m obile web (aka W AP) billing to Sprint’s 
s ubs criber bas e, in conjunction with Sprint 
 
• Brings on third party services from content providers 
who m arket through Sprint and direct-to-consumer, 
enabling their customers to pay on their phone bill 
 
• Collaborates with the operator to standardize mobile 
web “best practice” through the Mobile Marketing 
Association, the in dus try-wide representative body 
 
 
 
 
EA Mobile 
Electronic Arts, the leading global interactive entertainment 
software company, uses Bango to bring the same successful 
browse and buy experience offered on their PC internet site to  
 
the EA mobile site. 
 
 
How Bango helps 
• Prov ides optimized, targeted billing options adapted for 
each customer’s mobile handset 
 
• Reporting and metrics with particular emphasis on the 
growing smartphone channel 
 
• Enables payments to credit cards and to the customer’s 
phone bill, depending on location and network factors and 
prior customer payment history 
 
 
• Ens ures customers connecting via Wi-Fi and other “off 
network” connections can still charge their EA mobile 
games to the phone bill  
 
“An increasing proportion of subscribers are 
choosing Wi-Fi connectivity at home or in 
specific locations to augment our 3G 
connectivity. This innovation by Bango, one of 
our accredited payment intermediaries with 
Payforit, brings the benefits of tried and trus ted 
operator billing to subscribers, even when they 
connect over Wi- F i. ” 
Mike Short  
VP of Telefonica Europe 
 
 
“Sprint has the highes t data ARPU in the US 
market at £15.50 (Q2 2009) with 5 
successive quarters of data revenue growth.” 
 
“Sprint is now th e 6th highest rank network 
operator worldwide, measured by data 
revenues.” 
Chetan Sharm a Cons ulting Grou p , 2009 
 
“EA M obile rem ains the top publis her with 
$49m Q1 revenues and beat its fiscal year 
2009 target. It has consolidated its position as 
the number one global mobile games publisher. 
Backed by a strong slate of releases for the 
iPhone, and the continued success of its games 
for operators' portals, it achieved $49m 
revenues in Q1 2009” 
Jack Kent  
Research Analyst, Screen Digest 
 
  10 Products, Business model, Key market developments 
 
Products  Business model 
 
Through one easy integration with Bango’s innovative mobile 
billing and analytics products, on-line businesses sell more and 
build closer relationships with their mobile customers. 
 
Bango develops and markets two lines of products: 
 
Bango Payment delivers more successful transactions with 
higher conversion rates that give bigger profits. 
 
Businesses using Bango Payment benefit from: 
 
 Optimized payment experience on all mobile devices 
including smartphones  
 
 Quick and easy billing through both mobile network and Wi-Fi 
connections 
 
 International coverage, with immediate international reach 
for no extra work  
 
 Analytics to measure and increase conversion rates 
 
 Automatic credit card billing to complement operator billing 
 
 
Bango Analytics provides independent and highly accurate data 
reporting precise customer insights in real-time. 
 
Businesses using Bango Analytics benefit from: 
 
 Unique ID for each visitor – essential for measurement and 
CRM 
 
 Real-time reporting of marketing campaign and mobile site 
analytics 
 
 Complete reporting across all operator networks, Wi-Fi and 
smartphones 
 
 Enriched data through key partnerships with operators and 
other mobile providers 
 
 Unbiased, independent data you can trust 
 
 
Premium service and self-service with worldwide reach 
Whether our customer is one of the world’s largest brands or a 
small mobile business start-up, everybody can benefit from 
Bango by visiting www.bango.com to manage the services  
they require. 
 
Enterprise service team 
We tailor our award winning solutions to meet the requirements  
and high expectations of the world’s largest brands. Enterprise  
customers get an account manager within a dedicated team of  
experts that provide support across all mobile payment and  
analytics solutions. 
 
Self-service 
Customers can connect to any Bango service, manage  
marketing information, configure pricing, and access detailed 
reports about their visitors, customers and revenues. This can 
all be accomplished from the bango.com website through a  
a range of web services. 
 
 
 
through its billing partners, part of each payment transaction is 
retained by Bango. Around 2% is retained for very high volume 
customers, and up to 10% is retained at low volume levels.  
Monthly fees vary from a few dollars to thousands of dollars a 
month depending on the range and flexibility of services required. 
 
With Bango Analytics, a monthly fee is paid depending on the 
traffic volumes being analyzed. Typical monthly fees range from 
$49 to $500 per month. Enterprise customers will pay 
according to specific load and access requirements, typically in 
the range of $5,000 - $10,000 per month. A range of Bango 
services are available without charge for testing or for small 
scale users. Most services are purchased on a recurring monthly 
basis, but annual contracts are available with some offerings. 
 
 
Key market 
developments 
 
Anticipated in Bango’s FY 2008 Annual Report, the last twelve 
months saw the use of the mobile web grow rapidly across key 
markets, driving businesses towards the “browse and buy” model 
that is served by Bango products. Significant developments 
include: 
 
• Fast growth in the smartphones market (Blackberry, Nokia 
high-end devices, iPhone) – championing the idea of browsing 
the web on a mobile device 
 
• Increase in Wi-Fi usage to connect to the internet from mobile 
devices 
 
• Google launched “Android” – to cut the cost of mobile devices 
and make them more “open” to content publishers and 
software developers 
 
• Nokia re-positions as an internet company, targets brands with 
consumer content services 
 
• Mobile operators launched consumer marketing for mobile 
internet, with specific handsets and competition on data plan 
pricing 
 
• Verizon Wireless and T-Mobile USA start to open up content 
portals to match the consumer experience delivered by AT&T 
and Sprint 
 
• Vodafone started providing free “unlimited” mobile web access 
from phones 
 
• UK mobile operators started mandating mobile web payment 
(Payforit) instead of Premium SMS 
 
 
 
 
Bango charges for its services through a mixture of transaction 
fees and monthly fees.  Where Bango collects payments  
 
 
 
 
     Products, Business model, Key market developments 11 
 
Campaign
Tracking
Accurate data
Wi-Fi
connections Directors
Ray has over 25 years experience in starting, growing and selling
businesses. He was named “Technology Entrepreneur of the Year”
in February 2006. Ray co-founded Bango in 1999 after realizing
that the convergence of the internet with the ubiquity of mobile
phones could open up huge opportunities for content and service
providers. In 1988, Ray established IXI which created the industry
standard network GUI - X.desktop. IXI was an early leader in the
creation of the web. It sponsored the first ever WWW conference at
CERN and shipped the world’s first commercial web browser.
Anil is a highly experienced, senior marketing and business
development manager, with over 17 years experience in building
entrepreneurial, fast-growth start-up businesses in the internet,
software publishing and technology sectors. He co-founded Bango
with Ray Anderson in 1999 and was formerly with IXI, where Anil
won worldwide deals with US, Japanese and European industry
giants including IBM, Digital and Sun Microsystems.
Peter provides the financial leadership, direction and policy
guidance to the Company as it continues to grow rapidly. He has
over 20 years experience in all financial disciplines including
accounting, fund-raising and acquisitions. From 1996 to 2001 he
was Finance Director at PayPoint, the UK’s leading branded utility
bill payment Company. From start-up, Peter was responsible for
all finance activity and enabled the Company to profitably process
more than £2 billion of payments per year.
Lindsay Bury is Chairman of Electric and General Investment Trust
plc and ServicePower Technologies plc. He has in recent years
been a Non-executive Director of The Sage Group plc, chairman of
South Staffordshire Group and a number of other listed as well as
private software and technology companies.
Martin is founder and joint managing Director of ET Capital
Limited, a shareholder in the Company. He has been a venture
capital investor for over 20 years making and manages
investments in innovative technology businesses, principally in
network services, software and hardware.
Ray Anderson
CEO
Anil Malhotra
SVP Marketing & Alliances
Peter Saxton
CFO
Lindsay Bury
Chairman
Martin Rigby
Non-executive Director
12 Directors  
Company information 13 
 
Company information 
 
Company registration number 05386079 
 
Registered office 5 Westbrook Centre 
 Milton Road 
 Cambridge 
 CB4 1YG 
 Tel:  +44 (0)8700 340 360 
 Fax:  +44 (0)1223 472 778 
 
Directors Mr L C N Bury – Non-executive Chairman 
 Mr R Anderson - CEO 
 Mr A Malhotra - SVP Marketing & Alliances 
 Mr P Saxton - CFO 
 Mr M Rigby – Non-executive Director 
  
Company Secretary Mr H Goldstein 
  
Bankers HSBC Bank Plc 
 Vitrum 
 St Johns' Innovation Park 
 Cambridge 
 CB4 0DS 
 
Solicitors Taylor Wessing 
 24 Hills Road 
 Cambridge 
 CB2 1JW 
 
Independent auditor Grant Thornton UK LLP 
 Chartered Accountants and Registered Auditors 
 Byron House 
 Cambridge Business Park 
 Cowley Road 
 Cambridge 
 CB4 0WZ 
 
Nominated adviser and broker Panmure Gordon (UK) Limited 
 155 Moorgate 
 London 
 EC2M 6XB 
 
Public relations advisor ICIS 
 10 - 15 Queen Street 
 London 
 EC4N 1TX 
 
US office 330 Madison Avenue 
6th Floor 
New York, NY 10017 
 Tel:  +1 866 528 6897 
 Fax:  +1 646 349 3023 
 
 
 
 www.bango.com 
 sales@bango.com
 
 
 
 
 
 
 
 
   
14 Directors’ report 
 
Directors’ report 
 
The Directors present the Annual Report and audited financial 
statements of Bango PLC for the year ended 31 March 2009. 
 
Principal activities and business review 
The principal activity of the Company during the year was as 
investment holding company for Bango.net Limited and other 
subsidiaries. 
 
The principal activity of the Group during the year was the 
development, marketing and sale of technology to enable mobile 
phone users to easily choose and purchase services, games, 
pictures, videos, music and ringtones on their mobile phones. 
 
Bango enables businesses of all sizes to quickly and easily benefit 
from the expansion of the world wide web to mobile phones. 
Bango technology and services have been used by many leading 
brands.  
 
A review of the Group’s performance for the year ended 31 March 
2009 and future developments is contained in the Chairman’s 
statement and the CEO’s statement. 
 
Key performance indicators 
The Group made a loss of £477,497 (£415,001 before share 
based payment costs) for the year ended 31 March 2009 (2008: 
loss of £1,835,309, £1,577,249 before share based payment 
costs).  The Directors do not recommend payment of a dividend. 
 
The Directors and their interests 
The Directors who served the company throughout the year, 
together with their beneficial interests in the shares of the 
Company were as follows: 
 
 Ordinary shares Ordinary shares 
 of 20p each  of 20p each 
 At 31 March   
2009 
At 31 March 
2008 
   
Mr R Anderson 6,424,036 5,947,260 
Mr A Malhotra 4,027,000 4,007,000 
Mr P Saxton 225,000 200,000 
Mr L C N Bury 950,000 700,000 
Mr M Rigby  20,754 21,999 
Mr Geoff Seabrook - 44,000 
 = ======== ====== ====== ========= ====== ====== 
 
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 
2009 
At 31 March 
2008 
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 - 
Total 530,000 467,500 
 
 
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 2009, the Group had an average of 94 
days (2008: 68 days) creditors outstanding in trade payables, 
accruals and deferred income. 
 
Donations 
The Group made charitable donations during the year of £1,085 
(2008: £670).  There were no donations to political parties. 
 
Share capital 
Details of changes in the share capital of the Company during the 
year are given in note 7 to the financial statements.  
 
Directors’ indemnity arrangements 
The Company has purchased and maintained throughout the year 
Directors’ & Officers’ liability insurance in respect of itself and its 
Directors. 
 
Financial risk management objectives and policies 
The Group’s activities expose it to some financial risks.  The 
Group monitors these risks but does not consider it necessary to 
use any derivative financial instruments to hedge these risks.  See 
notes 6, 8 and 18 for further information. 
 
Liquidity risk 
The Company seeks to manage financial risk by ensuring sufficient 
liquidity is available to meet foreseeable needs and to invest in 
cash assets safely and profitably.  See note 20 for further 
information. 
 
Credit risk 
Credit risk arises from exposure to outstanding receivables.  
Potential new customers are assessed for credit risk before credit 
is given, to minimize credit exposure.  See note 19 for further 
information. 
 
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’ report 15 
 
Directors’ report 
 
Directors’ responsibility 
The following statement, which should be read in conjunction with 
both reports of the auditor set out on pages 18 and 41, is made in 
order to distinguish for shareholders the respective responsibilities 
of the Directors and of the auditors in relation to the financial 
statements. 
 
The Directors are responsible for preparing the Annual Report and 
the financial statements in accordance with applicable law and 
regulations. 
 
Company law requires the Directors to prepare financial 
statements for each financial year.  Under that law the Directors 
have prepared the Group financial statements in accordance with 
International Financial Reporting Standards (IFRSs) as adopted by 
the European Union and separate parent company financial 
statements under United Kingdom Accounting Standards (United 
Kingdom Generally Accepted Accounting Practice).  The financial 
statements are required by law to give a true and fair view of the 
state of affairs of the company and the Group and of the profit or 
loss of the Group for that period.  In preparing these financial 
statements, the Directors are required to: 
 
• Select suitable accounting policies and then apply them 
consistently. 
 
• Make judgments and estimates that are reasonable and 
prudent. 
 
• State that the Group financial statements comply with 
IFRSs as adopted by the European Union and that the 
parent financial statements are prepared under United 
Kingdom Accounting Standards (United Kingdom 
Generally Accepted Accounting Practice). 
 
• Prepare the financial statements on the going concern 
basis unless it is inappropriate to presume that the 
Group will continue in business. 
 
The Directors are responsible for keeping proper accounting 
records that disclose with reasonable accuracy at any time the 
financial position of the company and the Group and to enable 
them to ensure that the financial statements comply with the 
Companies Act 1985.  They are also responsible for safeguarding 
the assets of the company and the Group and hence for taking 
reasonable steps for the prevention and detection of fraud and 
other irregularities. 
 
In so far as the Directors are aware: 
 
• There is no relevant audit information of which the 
Company's auditors are unaware. 
 
• The Directors have taken all steps that they ought to 
have taken to make themselves aware of any relevant 
audit information and to establish that the auditors are 
aware of that information. 
 
The Directors are responsible for the maintenance and integrity of 
the corporate and financial information included on the Group's 
website.  Legislation in the United Kingdom governing the 
preparation and dissemination of financial statements may differ 
from legislation in other jurisdictions. 
 
 
Auditor 
The Board intends to review the appointment of the auditor for the 
ensuing year and following that review the Board will make a 
proposal at the Annual General Meeting in accordance with 
section 489 of the Companies Act 2006. 
 
 
BY ORDER OF THE BOARD 
 
 
 
 
 
 
 
 
Company Secretary 
Mr H Goldstein   
16 Corporate governance statement 
 
Corporate governance statement 
 
Audit Committee 
The Audit Committee comprises the Chairman and the Non-
executive Director. 
 
The Committee’s main role and responsibilities are to: 
 
• Monitor the integrity of the financial statements of the 
Group. 
 
• Review the Group’s internal financial controls and risk 
management systems. 
 
• Make recommendations to the Board, for it to put to the 
shareholders for their approval in relation to the 
appointment of the external auditor and to approve the 
remuneration and terms of reference of the external 
auditor. 
 
• Discussion of the nature, extent and timing of the 
external auditor’s procedures and discussion of the 
external auditor’s findings. 
 
• Review and monitor the external auditor’s independence 
and objectivity and the effectiveness of the audit 
process. 
 
• Develop and implement policy on the engagement of the 
external auditor to supply non-audit services. 
 
• Report to the Board, identifying any matters in respect of 
which it considers that action or improvement is 
required. 
 
• Ensure a formal channel is available for employees and 
other stakeholders to express any complaints in respect 
of financial accounting and reporting. 
 
The Group does not currently have an internal audit function, 
which the Board considers appropriate for a Group of Bango’s size. 
The Committee is scheduled to meet twice each year and at other 
times if necessary. The Audit Committee will review risk 
assessments and the need for an internal audit function on a 
periodic basis. 
 
Internal control procedures 
The Board is responsible for the Group’s system of internal 
controls and risk management, and for reviewing the effectiveness 
of these systems. These systems are designed to manage, rather 
than eliminate, the risk of failure to achieve business objectives,  
 
• The business plan is updated on a periodic basis to take 
into account the most recent forecasts. On a monthly 
basis, actual results are compared to the latest forecast 
and market expectations and presented to the Board on 
a timely basis. 
 
• Regular reviews by the Board and by the senior 
management team of key performance indicators. 
 
• A limited number of senior management are able to sign 
cheques and authorize payments. Payments are not 
permitted without an approved invoice. 
 
• Reconciliations of key balance sheet accounts are 
performed and independently reviewed by the finance 
team. 
 
• A disaster recovery plan and back-up system is 
documented and in place. 
 
The Board in conjunction with the Audit Committee keeps under 
review the Group’s internal control system on a periodic basis.  
 
Communications with shareholders 
The Board recognizes the importance of regular and effective 
communication with shareholders. The primary forms of 
communication are: 
 
• The annual and interim statutory financial reports and 
associated investor and analyst presentations and 
reports. 
 
• Announcements relating to trading or business updates 
released to the London Stock Exchange. 
 
• The Annual General Meeting provides shareholders with 
an opportunity to meet the Board of Directors and to ask 
questions relating to the business. 
 
Going concern 
After making enquiries, at the time of approving the financial 
statements, the Directors have a reasonable expectation that the 
Company and the Group have adequate resources to continue in 
operational existence for the foreseeable future. For this reason, 
the Directors continue to adopt the going concern basis in 
preparing the financial statements. 
and to provide reasonable, but not absolute assurance against 
material misstatement or loss. 
 
The key features of the Group’s internal controls are described 
below: 
 
• A clearly defined organizational structure with 
appropriate delegation of authority. 
 
• The approval by the Board of a one year budget, 
including monthly income statements, balance sheets 
and cash flow statements. The budget is prepared in 
conjunction with senior managers to ensure targets are 
feasible. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
Remuneration Committee report 17 
 
Remuneration Committee report 
 
The Remuneration Committee comprises the Chairman and the 
Non-executive Director. 
  
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 2009 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 
Remuneration in respect of the Directors was as follows: 
 
 2009 2008
 £'000 £'000
  
Aggregate emoluments  254,775 314,258
Aggregate emoluments of 
highest paid Director 
100,800 100,500  
18 Report of the independent auditor to the members of Bango PLC  
 
Report of the independent auditor to 
the members of Bango PLC 
 
We have audited the Group financial statements of Bango PLC for 
the year ended 31 March 2009 which comprise the consolidated 
balance sheet, the consolidated income statement, the 
consolidated cash flow statement, the consolidated statement of 
changes in equity and notes 1 to 21. These Group financial 
statements have been prepared under the accounting policies set 
out therein. 
 
We have reported separately on the parent company financial 
statements of Bango PLC for the year ended 31 March 2009. 
 
This report is made solely to the company’s members, as a body, 
in accordance with Section 235 of the Companies Act 1985.  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 
The Directors' responsibilities for preparing the Annual Report and 
the Group financial statements in accordance with United 
Kingdom law and International Financial Reporting Standards 
(IFRSs) as adopted by the European Union are set out in the 
statement of Directors' responsibilities. 
 
Our responsibility is to audit the Group financial statements in 
accordance with relevant legal and regulatory requirements and 
International Standards on Auditing (UK and Ireland). 
 
We report to you our opinion as to whether the Group financial 
statements give a true and fair view and whether the Group 
financial statements have been properly prepared in accordance 
with the Companies Act 1985.  We also report to you whether in 
our opinion the information given in the Directors' report is 
consistent with the financial statements.  The information given in 
the Directors’ report includes that specific information presented 
in the CEO’s statement and the Chairman’s statement that is 
cross-referred from the business review section of the Directors’ 
report. 
 
In addition we report to you if, in our opinion, we have not 
received all the information and explanations we require for our 
audit, or if information specified by law regarding Directors' 
remuneration and other transactions is not disclosed.  
 
We read other information contained in the Annual Report and 
consider whether it is consistent with the audited Group financial 
statements. The other information comprises only the Chairman's 
statement, the CEO's statement, the Directors' report, the 
Corporate Governance statement and the Remuneration 
Committee report.  We consider the implications for our report if 
we become aware of any apparent misstatements or material 
inconsistencies with the Group financial statements.  Our 
responsibilities do not extend to any other information. 
 
Basis of audit opinion 
We conducted our audit in accordance with International 
Standards on Auditing (UK and Ireland) issued by the Auditing 
Practices Board. An audit includes examination, on a test basis, of 
evidence relevant to the amounts and disclosures in the Group 
financial statements.  It also includes an assessment of the 
significant estimates and judgments made by the Directors in the 
preparation of the Group financial statements, and of whether the 
accounting policies are appropriate to the Group's circumstances, 
consistently applied and adequately disclosed. 
 
We planned and performed our audit so as to obtain all the 
information and explanations which we considered necessary in 
order to provide us with sufficient evidence to give reasonable 
assurance that the financial statements are free from material 
misstatement, whether caused by fraud or other irregularity or 
error.  In forming our opinion we also evaluated the overall 
adequacy of the presentation of information in the Group financial 
statements. 
 
Opinion 
In our opinion: 
 
• The Group financial statements give a true and fair view, 
in accordance with IFRSs as adopted by the European 
Union, of the state of the Group's affairs as at 31 March 
2009 and of its loss for the year then ended; 
 
• The Group financial statements have been properly 
prepared in accordance with the Companies Act 1985; 
and 
 
• The information given in the Directors' report is 
consistent with the financial statements. 
 
 
Grant Thornton UK LLP 
Registered Auditor 
Chartered Accountants 
 
Cambridge 
18 August 2009 
   
 
 
Consolidated balance sheet 19 
 
Consolidated balance sheet 
 
 2009 2008
Note £  £ 
 
ASSETS 
Non-current assets 
Property, plant and equipment 5 259,377 318,356 
Intangible assets 5 352,738 4,350 
 - --- --- --- --- --- --- --- --- --- --- -- - --- --- --- --- --- --- --- --- --- --- ---
  612,115 322,706 
 
Current assets 
Trade and other receivables 6 4,312,289 2,506,700 
Cash and cash equivalents 826,283 1,126,033 
 - --- --- --- --- --- --- --- --- --- --- -- - --- --- --- --- --- --- --- --- --- --- ---
 5,138,572 3,632,733 
- --- --- --- --- --- --- --- --- --- --- -- - --- --- --- --- --- --- --- --- --- --- ---
Total assets 5,750,687 3,955,439 
 ========= ====== ===== == ========= ====== ====== ==
 
EQUITY 
Capital and reserves attributable to equity holders of the parent company 
Share capital  7 5,673,712 5,383,282 
Share premium account  5,504,749 5,320,067 
Merger reserve  1,236,225 1,236,225 
Other reserve  916,391 853,895 
Accumulated losses  (12,385,076) (11,907,579) 
 
  - --- --- --- --- --- --- --- --- --- --- -- - --- --- --- --- --- --- --- --- --- --- ---
Total equity  946,001 885,890 
  = ======== ====== ===== == ========= ====== ====== ==
 
LIABILITIES    
Current liabilities    
Trade and other payables 8 4,804,686 3,069,549 
  - --- --- --- --- --- --- --- --- --- --- -- - --- --- --- --- --- --- --- --- --- --- ---
    
Total liabilities 4,804,686 3,069,549 
   
- --- --- --- --- --- --- --- --- --- --- -- - --- --- --- --- --- --- --- --- --- --- ---
Total equity and liabilities 5,750,687 3,955,439 
 ========= ====== ===== == ========= ====== ====== ==
 
These financial statements were approved by the Directors on 14 August 2009 and are signed on their behalf by: 
 
 
Mr R Anderson Mr P Saxton 
Director Director  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The notes on pages 23 to 40 are an integral part of these consolidated financial statements. 
   
 
20 Consolidated income statement 
 
Consolidated income statement 
 
 2009 2008 
Note £  £ 
 
Revenue 4 17,607,176 13,758,468 
Cost of sales (14,947,758) (10,993,053) 
 - --- --- --- --- --- --- --- --- --- --- - - --- --- --- --- --- --- --- --- --- --- -
Gross profit 2,659,418 2,765,415 
    
Administrative expenses before share based payment   (3,256,390) (4,409,832) 
Share based payments   (62,496) (258,060) 
  - --- --- --- --- --- --- --- --- --- --- - - --- --- --- --- --- --- --- --- --- --- -
Total administrative expenses    (3,318,886) (4,667,892)
  - --- --- --- --- --- --- --- --- --- --- - - --- --- --- --- --- --- --- --- --- --- -
Operating loss 4 (659,468) (1,902,477) 
    
Investment income 14 13,426 67,168 
  - --- --- --- --- --- --- --- --- --- --- - - --- --- --- --- --- --- --- --- --- --- --
Loss before taxation (646,042) (1,835,309) 
    
Income tax 15 168,545 - 
  - --- --- --- --- --- --- --- --- --- --- - - --- --- --- --- --- --- --- --- --- --- --
Loss for the financial year  (477,497) (1,835,309) 
  = ======== ====== ====== = = ==== ==== ====== ====== =
Attributable to equity holders of the Company  (447,497) (1,835,309) 
  = ======== ====== ====== = = ======== ====== ====== =
 
Loss per share for loss attributable to the equity holders of the Company 
Basic loss per share 16 (1.72) (6.82) 
  
Diluted loss per share 16 (1.72) (6.82) 
 
All of the activities of the Group are classed as continuing. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The notes on pages 23 to 40 are an integral part of these consolidated financial statements  
Consolidated cash flow statement 21 
 
Consolidated cash flow statement 
 
 2009 2008 
Note £  £ 
 
 
Net cash used by operating activities 17 (376,069) (873,341) 
 
Cash flows generated from/used by investing activities 
Purchases of property, plant and equipment (59,748) (21,804) 
Addition to intangible assets (352,471) - 
Interest received 13,426  67,168 
 - --- --- --- --- --- --- --- --- --- --- - - --- --- --- --- --- --- --- --- --- --- - 
Net cash generated from/used by investing activities (398,793) 45,364 
 
Cash flows generated from financing activities 
Proceeds from issuance of ordinary shares 475,112 22,916 
 - --- --- --- --- --- --- --- --- --- --- - - --- --- --- --- --- --- --- --- --- --- - 
Net cash generated from financing activities 475,112 22,916 
 
  - --- --- --- --- --- --- --- --- --- --- - - --- --- --- --- --- --- --- --- --- --- - 
Net decrease in cash and cash equivalents    (299,750) (805,061) 
Cash and cash equivalents at beginning of year  1,126,033 1,931,094 
- --- --- --- --- --- --- --- --- --- --- - - --- --- --- --- --- --- --- --- --- --- - 
Cash and cash equivalents at end of year  826,283 1,126,033 
  = ======== ====== ====== = = ======== ====== ====== =
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The notes on pages 23 to 40 are an integral part of these consolidated financial statements. 
 
   
22 Consolidated statement of changes in equity 
 
Consolidated statement of changes  
in equity 
 
 
 Share Share Merger Other Accumulated Total
 capital premium reserve reserve losses  
Group  account     
 £ £ £ £ £  £ 
 
At 1 April 2007 5,369,548 5,310,885 1,236,225  595,835 (10,072,270) 2,440,223 
       
Loss for the financial year - - - - (1,835,309) (1,835,309)
 - --- --- --- --- --- --- --- --- --- -- - --- --- --- --- --- --- --- --- --- -- - --- --- --- --- --- --- --- --- --- -- - --- --- --- --- --- --- --- --- --- -- - --- --- --- --- --- --- --- --- --- --- - --- --- --- --- --- --- --- --- --- --- 
Total income/(expense) - - - - (1,835,309) (1,835,309) 
recognized for 2007/8       
Exercise of share options 13,734 9,182 - - - 22,916 
Share based payment        
charge - - - 258,060 - 258,060 
 - --- --- --- --- --- --- --- --- --- -- - --- --- --- --- --- --- --- --- --- --- - --- --- --- --- --- --- --- --- --- --- - --- --- --- --- --- --- --- --- --- --- - --- --- --- --- --- --- --- --- --- --- - --- --- --- --- --- --- --- --- --- --- 
 13,734 9,182 - 258,060 (1,835,309) (1,554,333) 
 - --- --- --- --- --- --- --- --- --- -- - --- --- --- --- --- --- --- --- --- --- - --- --- --- --- --- --- --- --- --- --- - --- --- --- --- --- --- --- --- --- --- - --- --- --- --- --- --- --- --- --- --- - --- --- --- --- --- --- --- --- --- --- 
At 31 March 2008 5,383,282 5,320,067 1,236,225 853,895 (11,907,579) 885,890 
     
Loss for the financial year - - - - (477,497) (477,497) 
 - --- --- --- --- --- --- --- --- --- -- - --- --- --- --- --- --- --- --- --- --- - --- --- --- --- --- --- --- --- --- --- - --- --- --- --- --- --- --- --- --- --- - --- --- --- --- --- --- --- --- --- --- - --- --- --- --- --- --- --- --- --- --- 
Total income/(expense) - - - - (477,497) (477,497) 
recognized for 2008/9     
Issue of new shares 269,000 181,575 - - - 450,575 
Share issue costs - (10,000) -  - (10,000) 
Exercise of share options 21,430 13,107 - - - 34,537 
Share-based payment      
Charge - - - 62,496 - 62,496 
 - --- --- --- --- --- --- --- --- --- -- - --- --- --- --- --- --- --- --- --- -- - --- --- --- --- --- --- --- --- --- --- - --- --- --- --- --- --- --- --- --- --- - --- --- --- --- --- --- --- --- --- -- - --- --- --- --- --- --- --- --- --- -- 
 290,430 184,682 - 62,496 (477,497) 60,111 
 - --- --- --- --- --- --- --- --- --- -- - --- --- --- --- --- --- --- --- --- -- - --- --- --- --- --- --- --- --- --- --- - --- --- --- --- --- --- --- --- --- --- - --- --- --- --- --- --- --- --- --- -- - --- --- --- --- --- --- --- --- --- -- 
At 31 March 2009 5,673,712 5,504,749 1,236,225 916,391 (12,385,076) 946,001 
 = ======== ====== ===== = ======== ====== ===== = ======== ====== ===== = ======== ====== ===== = ======== ====== ===== = ======== ====== ===== 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The notes on pages 23 to 40 are an integral part of these consolidated financial statements.   
 Notes to the financial statements 23 
 
Notes to the financial statements 
 
1  General information 
Bango PLC (“the Company”) was incorporated on 8 March 2005 
in the United Kingdom. The Company is domiciled in the United 
Kingdom. The address of the registered office of the Company, 
which is also its principal place of business, is given on page 13. 
The Company’s shares are listed on the Alternative Investment 
Market of the London Stock Exchange ("AIM"). 
 
The financial statements for the year ended 31 March 2009 
(including the comparatives for the year ended 31 March 2008) 
were approved by the Board of Directors on 14 August 2009. 
 
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 1985.  IFRS requires the use of 
certain critical accounting estimates. It also requires management 
to exercise its judgement in the process of applying the Group’s 
accounting policies. The areas involving a high degree of 
judgement or complexity, or areas where assumptions and 
estimates are significant to the consolidated financial statements 
are disclosed in notes 3.18. 
 
These financial statements are presented in pounds sterling (GBP) 
because that is the presentation currency of the group.  Every 
entity within the group has its own functional currency. Foreign 
operations are included in accordance with the policies set out in 
notes 3.13. 
 
3  Principal accounting policies 
The principal accounting policies applied in the preparation of 
these consolidated financial statements are set out below. These 
policies have been consistently applied to all the years presented, 
unless otherwise stated. 
 
3.1  Basis of consolidation 
On 9 June 2005 Bango PLC acquired the entire issued share 
capital of Bango.net Limited by way of a share for share exchange.  
As the shareholders were the same before and after this 
transaction, the share for share exchange qualifies as a common 
control transaction and falls outside of the scope of IFRS 3, 
Business Combinations.  
 
No goodwill has been recorded and the difference between the 
parent company's cost of investment and Bango.net Limited's 
share capital and share premium is presented as a merger reserve 
within equity on consolidation.  
 
The consolidated financial statements incorporate the financial 
statements of the Company and all entities controlled by it after 
eliminating internal transactions. Control is achieved where the 
Group has the power to govern the financial and operating policies 
of a Group undertaking so as to obtain economic benefits from its 
activities. Undertakings’ results are adjusted, where appropriate, 
to conform to group accounting policies. 
 
3.2  Property, plant and equipment 
Property, plant and equipment is stated at historical cost less 
accumulated depreciation. Residual values and useful economic 
lives are assessed annually.  Depreciation is provided to write off 
the cost of all property, plant and equipment to its residual value 
on a straight-line basis over its expected useful economic lives, 
which are as follows: 
 
Leasehold improvements  20% straight-line  
Office equipment   20% straight-line 
Computer equipment 33.3% straight-line 
 
3.3  Intangible assets 
Acquired intangible assets are measured initially at historical cost 
and are amortized on a straight-line basis over the expected useful 
economic lives: 
 
Domain names  33.3% straight-line 
Internal Development 20% straight line 
 
3.4  Impairment of property, plant and equipment and 
intangible assets 
At each balance sheet date, the Group reviews the carrying 
amounts of its property, plant and equipment and intangible 
assets for any indication that those assets have suffered an 
impairment loss. Until completion of the development project, 
when amortisation can be charged on the intangible asset, the 
assets are subject to an annual impairment test.  If any such 
indication exists, the recoverable amount of the asset is estimated 
in order to determine the extent of the impairment loss, if any. 
The recoverable amount is the higher of the fair value less costs to 
sell and value in use. 
 
3.5  Loans and receivables 
 
a) Cash and cash equivalents 
Cash and cash equivalents comprise cash in hand and bank 
deposits available on demand. 
 
b) Trade receivables 
Trade receivables are recognized initially at fair value and are 
measured subsequent to initial recognition at amortized cost using 
the effective interest method, less provision for impairment.  Any 
change in their value through impairment or reversal of 
impairment is recognized in the income statement. 
 
Provision against trade receivables is made when there is objective 
evidence that the Group will not be able to collect all amounts due 
to it in accordance with the original terms of those receivables. 
The amount of the write-down is determined as the difference 
between the asset's carrying amount and the present value of 
estimated future cash flows. 
 
3.6  Trade payables 
Trade payables are initially measured at fair value, and are 
subsequently measured at amortized cost, using the effective 
interest rate method. 
 
3.7 Income taxes 
Current income tax liabilities comprise those obligations to fiscal 
authorities relating to the current or prior reporting period, that are 
unpaid at the balance sheet date. They are calculated according to 
the tax rates and tax laws applicable to the fiscal periods to which 
they relate, based on the taxable profit for the year. All changes to 
current tax assets or liabilities are recognized as a component of 
tax expense in the income statement, except where it relates to 
items charged or credited directly to equity.   
24 Notes to the financial statements 
 
Notes to the financial statements
 
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 equity. 
 
There is no income tax liability unpaid at the balance sheet date. 
 
3.8  Operating lease agreements 
Rentals applicable to operating leases where the risks and rewards 
or ownership are not transferred are charged to the income 
statement net of any incentives received from the lessor on a 
straight-line basis over the period of the lease. 
 
3.9  Revenue recognition 
End users make a prepayment to the Group prior to accessing 
chargeable mobile internet content. 
 
Content access fees are received from end users and are 
recognized as revenue at the time at which end users access 
chargeable mobile internet content. 
 
Where there has been no activity on an end user account for a 
period of 90 days, the balance remaining is released to revenue in 
accordance with the end user terms and conditions, because of 
operating policies of mobile network operators relating to number 
reissue. 
 
Revenue from the sale of licences to content providers and service 
contracts is recognized in the financial statements over the period 
of the contract. 
 
Revenue from services provided to mobile phone operators and 
content providers are recognized in the financial statements over 
the period of the contract. 
 
3.10  Employee benefits 
All accumulating employee-compensated absences that are 
unused at the balance sheet date are recognized as a liability. 
 
Payments to defined contribution retirement benefit schemes are 
charged as an expense in the period to which they relate.   
 
3.11  Share-based payment transactions 
The Group issues equity settled share-based compensation to 
certain employees (including Directors). Equity settled share-
based payments are measured at fair value at the date of grant. 
The fair value determined at the grant date of the equity-settled 
share-based payment is expensed on a straight-line basis over the 
vesting period, together with a corresponding increase in equity, 
based upon the Group’s estimate of the shares that will eventually 
vest. These estimates are subsequently revised if there is any 
indication that the number of options expected to vest differs from 
previous estimates. Any cumulative adjustment prior to vesting is 
recognized in the current period. No adjustment is made to any 
expense recognized in prior periods. 
 
Fair value is measured by an external valuer using the Black-
Scholes option pricing model. The expected life used in the model 
has been adjusted, based on management’s best estimate, for the 
effects of non-transferability, exercise restrictions and behavioural 
considerations. 
 
Where the terms of an equity-settled transaction are modified, as 
a minimum an expense is recognized as if the terms had not been 
modified. In addition, an expense is recognized for any increase in 
the value of the transaction as a result of the modification, as 
measured by the date of modification. 
 
Where an equity-settled transaction is cancelled, it is treated as if 
it had vested on the due date of the cancellation, and any expense 
not yet recognized for the transaction is recognized immediately. 
However, if a new transaction is substituted for the cancelled 
transaction, and designated as a replacement transaction on the 
date that it is granted, the cancelled and new transactions are 
treated as if they were a modification of the original transaction, 
as described in the previous paragraph. 
 
Share-based payment transactions are shown separately in the 
Consolidated income statement.   
 
3.12  Operating loss 
The operating loss is stated before investment income and finance 
costs. 
 
3.13  Foreign currencies 
Monetary assets and liabilities in foreign currencies are translated 
into sterling at the rates of exchange prevailing at the balance 
sheet date. Transactions in foreign currencies are translated into 
sterling at the rate of exchange prevailing at the date of the 
transaction. Exchange gains and losses are included in the income 
statement for the period. 
   
Notes to the financial statements 25 
 
Notes to the financial statements 
 
3.14  Segment reporting 
A segment is a distinguishable component of the Group services or 
operating geography.  The primary segmentation is by type of 
service, with a secondary segmentation by geography.   
 
3.15  Financial instruments/liabilities 
Financial liabilities and equity instruments are classified 
according to the substance of the contractual arrangements 
entered into. An equity instrument is any contract that evidences a 
residual interest in the assets of the entity after deducting all of  
its financial liabilities. 
 
Where the contractual obligations of financial instruments 
(including share capital) are equivalent to a similar debt 
instrument, those financial instruments are classed as financial 
liabilities. Financial liabilities are presented as such in the 
balance sheet. Finance costs and gains or losses relating to 
financial liabilities are included in the income statement. Finance 
costs are calculated so as to produce a constant rate of return on 
the outstanding liability. 
 
Where the contractual terms of share capital do not have any 
terms meeting the definition of a financial liability then this is 
classed as an equity instrument. Dividends and distributions 
relating to equity instruments are debited direct to equity. 
 
3.16 Share capital and reserves 
 
Share Capital 
Ordinary shares are classified as equity. Equity instruments issued 
by the Company are recorded at the proceeds received, net of 
direct issue costs. 
 
Share premium 
Share premium represents the excess over nominal value of the 
fair value of consideration received for equity shares, net of 
expenses of the share issue. 
 
Merger reserve 
The merger reserve represents the difference between the parent 
company's cost of investment and a subsidiary’s share capital and 
share premium where a group reorganisation qualifies as a 
common control transaction. 
 
Other reserve 
The other reserve represents equity-settled share-based employee 
remuneration until such share options are exercised. 
 
3.17  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 amortized on a straight-
line basis over their useful economic lives. Where no internally-
generated intangible asset can be recognized, development 
expenditure is recognized as an expense in the period in which it 
is incurred. 
 
The cost of an internally generated intangible asset comprises all 
direct attributable costs necessary to create, produce and prepare 
the intangible asset to be capable of operating in the manner 
intended by management.  Directly attributable costs comprise 
employee salary and other employment costs incurred, on a time 
apportioned basis, on the project development.  These costs are 
recognized as intangible assets.  Until completion of the project, 
these assets are subject to impairment testing only.  Amortisation 
commences upon completion of the asset, and is shown with 
administrative expenses in the income statement.   
 
3.18  Significant accounting estimates and judgements 
 
Share options 
Share options are granted on a discretionary basis and vest evenly 
over a three year period.  The fair value of options granted is 
determined using the Black-Scholes valuation model, which 
requires a number of estimates and assumptions.  The significant 
inputs into the model are share price at grant date, exercise price, 
expected option life, expected volatility and the risk free rate.  
Volatility is measured as the standard deviation of expected share 
price returns based on a statistical analysis of competitors’ share 
prices. 
 
Trade receivables 
Trade receivables are stated net of a provision for bad and 
doubtful debts, based on the Group’s best estimate of the 
likelihood of recovery on a specific basis.   
 
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. The Group estimates what 
proportion of those outstanding share options are likely to be 
exercised and a related tax credit received in the future.  The 
asset recognized is also dependent on the year end share price. 
 
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. 
 
    
26 Notes to the financial statements 
 
Notes to the financial statements 
 
3.19  Standards and interpretations not yet applied by the Group
The following new Standards and Interpretations, which are 
yet to become mandatory, have not been applied in the 
Group's financial statements. 
 
• IAS 1 Presentation of Financial Statements (revised 
2007) - effective from 1 January 2009 
• IAS 23 Borrowing Costs (revised 2007) - effective from 
1 January 2009  
• IAS 27 Consolidated and Separate Financial Statements 
(revised 2008) - effective from 1 July 2009 
• IFRS 3 Business Combinations (revised 2008) - 
effective from 1 July 2009 
• IFRS 8 Operating Segments - effective from 1 January 
2009  
• Amendment to IAS 39 Financial Instruments: 
Presentation and IAS 1 Presentation of Financial 
Statement – Puttable Financial Instruments and 
Obligations Arising on Liquidation - effective from  
1 January 2009 
• Amendment to IFRS 2 Share-based Payment - Vesting 
Conditions and Cancellations - effective from 1 January 
2009 
• IFRIC 16 Hedges of a Net Investment in a Foreign 
Operation (effective 1 October 2008) 
• IFRIC 17 Distributions of Non-cash assets to Owners 
(effective 1 July 2009) 
• IFRIC 18 Transfers of Assets from Customers (effective 
prospectively for transfers on or after 1 July 2009).  
 
Based on the Group's current operations and accounting policies, 
management does not expect material impacts on the Group's 
financial statements when the standards and interpretations 
become effective, other than for IAS 1 the Statement of Changes 
in Equity will be required as well as a Statement of 
Comprehensive Income. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
Notes to the financial statements 27 
 
Notes to the financial statements 
 
4  Segment information 
The Group operates in three main business segments.  Management reporting is based principally on the type of service provided to 
customers.  Accordingly, the Group presents its primary segment analysis on this basis:  
 
a. Primary reporting format – business segments 
 
Year ended 31 March 2009 
 
 Content Content Services to Common Total 
 access provider mobile   
 fees fees Network   
   Operators   
 £ £ £ £ £ 
      
Segment revenue 15,912,581 1,694,595 - - 17,607,176 
    
Segment gross margin 1,015,842 1,643,576 - - 2,659,418 
      
Common costs - - - (3,256,390) (3,256,390) 
Share based payments - - - (62,496) (62,496) 
  - --- --- --- --- --- --- --- --- --- --- ---- 
Operating loss - - - - (659,468) 
   
Investment income - - - 13,426 13,426 
  - --- --- --- --- --- --- --- --- --- --- ---- 
Loss before taxation - - - - (646,042) 
  - --- --- --- --- --- --- --- --- --- --- ---- 
Taxation - - - - 168,545 
  - --- --- --- --- --- --- --- --- --- --- ---- 
Loss for the financial year - - - - (477,497) 
 = ======== ====== ====== == 
   
   
Segment assets 3,367,338 273,976 - 2,109,373 5,750,687 
      
Segment liabilities 4,257,947 92,350 - 454,389 4,804,686 
- --- --- --- --- --- --- --- --- --- --- --- - --- --- --- --- --- --- --- --- --- --- --- - --- --- --- --- --- --- --- --- --- --- --- - --- --- --- --- --- --- --- --- --- --- --- - --- --- --- --- --- --- --- --- --- --- --- 
Net assets (890,609) 181,626 - 1,654,984 946,001 
========= ====== ====== = = = ======== ====== ====== == = ======== ====== ====== == = ======== ====== ====== == = ======== ====== ====== == 
      
Capital expenditure         
Property , plant & equipment - - - 59,748 59,748 
Intangible assets - - - 352,471 352,471 
      
Depreciation & amortization - - - 122,810 122,810 
 
Content access fees are the amounts paid to Bango by end users for accessing chargeable content provided by content providers.  
Content provider fees are the amounts paid to Bango by content providers for package fees and other services.  Revenue from services to 
mobile network operators occur when Bango provides professional services to these organizations.   
 
Common costs include all costs associated with staff, property and office, marketing and depreciation. 
 
Common assets include property, plant and equipment, cash and overhead deposits and prepayments. 
 
Common liabilities include overhead creditors and tax liabilities.   
28 Notes to the financial statements 
 
Notes to the financial statements 
 
Year ended 31 March 2008 
 
 Content Content Services to Common Total 
 access provider Mobile   
 fees fees Network   
   Operators  
 £ £ £ £ £ 
      
Segment revenue 11,723,253 1,968,116 67,099 - 13,758,468 
   
Segment gross margin 1,016,203 1,721,382 27,830 - 2,765,415 
     
Common costs - - - (4,409,832) (4,409,832) 
Share based payments - - - (258,060) (258,060) 
    - --- --- --- --- --- --- --- --- --- --- ---- 
Operating loss - - - - (1,902,477) 
     
Investment income - - - 67,168 67,168 
    - --- --- --- --- --- --- --- --- --- --- ---- 
Loss before taxation - - - - (1,835,309) 
    - --- --- --- --- --- --- --- --- --- --- ---- 
Taxation - - - - - 
    - --- --- --- --- --- --- --- --- --- --- ---- 
Loss for the financial year - - - - (1,835,309) 
   = ======== ====== ====== == 
     
     
Segment assets 1,697,027 431,318 - 1,827,094 3,955,439 
 
Segment liabilities 2,361,962 - - 707,587 3,069,549 
- --- --- --- --- --- --- --- --- --- --- ---- - --- --- --- --- --- --- --- --- --- --- ---- - --- --- --- --- --- --- --- --- --- --- ---- - - -- --- --- --- --- --- --- --- --- --- ---- -- - --- --- --- --- --- --- --- --- --- --- ---- 
Net assets (664,935) 431,318 - 1,119,507 885,890 
========= ====== ====== == = ======== ====== ====== == = ======== ====== ====== == = ======== ====== ====== == = ====== == ====== ====== == 
      
Capital expenditure - - - 21,804 21,804 
 
Depreciation & amortization - - - 220,859 220,859 
      
 
Common costs include all costs associated with staff, property and office, marketing and depreciation. 
 
Common assets include property, plant and equipment, cash and overhead deposits and prepayments. 
 
Common liabilities include overhead creditors and tax liabilities.  
    
Notes to the financial statements 29 
 
Notes to the financial statements 
 
b. Secondary reporting format – geographical segments  
 
Year ended 31 March 2009 
 
 United 
Kingdom 
Rest of EU USA & 
Canada 
Rest of 
World 
Common Total 
       
Segment revenue 6,782,898 635,117 9,807,272 381,889 - 17,607,176 
 = ======== ====== ====== = ======== ====== ====== = ======== ====== ====== = ======== ====== ====== = = ======= ====== ====== = ======== ====== ====== 
       
Segment assets 874,374 128,156 2,609,320 38,937 2,099,900 5,750,687 
       
Segments liabilities 1,720,828 126,631 2,662,693 
 
84,119 210,415 4,804,686 
 - --- --- --- --- --- --- --- --- --- --- - - --- --- --- --- --- --- --- --- --- --- - -- --- --- --- --- --- --- --- --- --- -- - --- --- --- --- --- --- --- --- --- --- - - --- --- --- --- --- --- --- --- --- --- - - --- --- --- --- --- --- --- --- --- --- 
Net assets (846,454) 1,525 (53,373) (45,182) 1,889,485 946,001 
 = ======== ====== ====== == ======= ====== ====== = == ======= ====== ====== = = ======== ====== ====== = ======== ====== ====== == ====== ====== ====== == 
       
Capital expenditure       
Property, plant, equip. - - - - 59,748 59,748 
Intangible assets - - - - 352,471 352,471 
Depreciation & 
amortization 
- - - - 122,810 122,810 
 
 
Year ended 31 March 2008 
 
 United 
Kingdom 
Rest of EU USA & 
Canada 
Rest of 
World 
Common Total 
       
Segment revenue 10,680,360 1,254,900 1,441,360 381,848 - 13,758,468 
 = ======== ====== ====== == ======= ====== ====== = == ======= ====== ====== = = ======== ====== ====== = ======== ====== ====== == ====== ====== ====== == 
       
Segment assets 1,820,475 198,264 105,482 29,400 1,801,818 3,955,439 
       
Segments liabilities 2,165,605 218,451 258,578 66,561 360,354 3,069,549 
 - --- --- --- --- --- --- --- --- --- --- - - --- --- --- --- --- --- --- --- --- --- - -- --- --- --- --- --- --- --- --- --- -- - --- --- --- --- --- --- --- --- --- --- - - --- --- --- --- --- --- --- --- --- --- - - --- --- --- --- --- --- --- --- --- --- 
Net assets (345,130) (20,187) (153,096) (37,161) 1,441,464 885,890 
 = ======== ====== ====== == ======= ====== ====== = == ======= ====== ====== = = ======== ====== ====== = ======== ====== ====== == ====== ====== ====== == 
       
Capital expenditure - - - - 21,804 21,804 
       
Depreciation & 
amortization 
- - - - 220,859 220,859 
 
 
Segment revenue is based on the location of the customers and assets are based on the location of the assets. 
   
30 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 
 £ £ £ £ 
 
Year ended 31 March 2008 
Opening net book amount 136,660 34,035 335,755 506,450 
Additions 987 - 20,817 21,804 
Depreciation charge for the year (35,335) (9,482) (165,081) (209,898) 
 - --- --- --- --- --- --- --- --- --- --- ---- - --- --- --- --- --- --- --- --- --- --- ---- - --- --- --- --- --- --- --- --- --- --- ---- - --- --- --- --- --- --- --- --- --- --- ---- 
Closing net book amount 102,312 24,553 191,491 318,356 
 = ======== ====== ====== == = ======== ====== ====== == = ======== ====== ====== == = ======== ====== ====== == 
 
Year ended 31 March 2009 
Opening net book amount 102,312 24,553 191,491 318,356 
Additions - - 59,748 59,748 
Depreciation charge for the year (35,336) (9,196) (74,195) (118,727) 
 - --- --- --- --- --- --- --- --- --- --- ---- - --- --- --- --- --- --- --- --- --- --- ---- - --- --- --- --- --- --- --- --- --- --- ---- - --- --- --- --- --- --- --- --- --- --- ---- 
Closing net book amount 66,976 15,357 177,044 259,377 
 = ======== ====== ====== == = ======== ====== ====== == = ======== ====== ====== == = ======= = ====== ====== == 
 
At 31 March 2009 
Cost  176,679 71,859 734,430 982,968 
Accumulated depreciation (109,703) (56,502) (557,386) (723,591) 
- --- --- --- --- --- --- --- --- --- --- ---- - --- --- --- --- --- --- --- --- --- --- ---- - --- --- --- --- --- --- --- --- --- --- ---- - --- --- --- --- --- --- --- --- --- --- ---- 
Net book amount 66,976 15,357 177,044 259,377 
 = ======== ====== ====== == = ======== ====== ====== == = ======== ====== ====== == = ======= = ====== ====== == 
 
At 31 March 2008 
Cost  176,679 71,859 674,682 923,220 
Accumulated depreciation (74,367) (47,306) (483,191) (604,864) 
- --- --- --- --- --- --- --- --- --- --- ---- - --- --- --- --- --- --- --- --- --- --- ---- - --- --- --- --- --- --- --- --- --- --- ---- - --- --- --- --- --- --- --- --- --- --- ---- 
Net book amount 102,312 24,553 191,491 318,356 
 = ======== ====== ====== == = ======== ====== ====== == = ======== ====== ====== == = ===== === ====== ====== == 
   
Notes to the financial statements 31 
 
Notes to the financial statements 
 
5.2  Intangible assets 
 Domain names Internal 
Development 
Total 
 £ £ £ 
Year ended 31 March 2008 
Opening net book amount 15,311 - 15,311 
Amortization charge for the year (10,961) - (10,961) 
 - --- --- --- --- --- --- --- --- --- --- --- - --- --- --- --- --- --- --- --- --- --- --- - --- --- --- --- --- --- --- --- --- --- --- 
Closing net book amount 4,350 - 4,350 
 = ======== ====== ====== == = ======== ====== ====== == = ======== ====== ====== == 
Year ended 31 March 2009 
Opening net book amount 4,350 - 4,350 
Additions -  352,471   352,471  
Amortization charge for the year (4,083) - (4,083) 
 - --- --- --- --- --- --- --- --- --- --- --- - --- --- --- --- --- --- --- --- --- --- --- - --- --- --- --- --- --- --- --- --- --- --- 
Closing net book amount 267  352,471   352,738  
 = ======== ====== ====== == = ======== ====== ====== == = ======== ====== ====== == 
At 31 March 2009 
Cost  32,887 352,471 385,358 
Accumulated amortization (32,620) - (32,620) 
- --- --- --- --- --- --- --- --- --- --- --- - --- --- --- --- --- --- --- --- --- --- --- - --- --- --- --- --- --- --- --- --- --- --- 
Net book amount 267 352,471 352,738 
 = ======== ====== ====== == = ======== = ===== ====== == = ======== ====== ====== == 
    
At 31 March 2008    
Cost  32,887 - 32,887 
Accumulated amortization (28,537) - (28,537) 
- --- --- --- --- --- --- --- --- --- --- --- - --- --- --- --- --- --- --- --- --- --- --- - --- --- --- --- --- --- --- --- --- --- --- 
Net book amount 4,350 - 4,350 
 = ======== ====== ====== == = ======== ====== ====== == = ======= = ====== ====== == 
 
 6  Trade and other receivables 
 2009 2008 
 £ £ 
 
Trade receivables 1,360,835 1,131,535 
Other receivables 449,095 61,880 
Prepayments and accrued income 2,581,586 1,363,285 
 - --- --- --- --- --- --- --- --- --- --- ---- - - --- --- --- --- --- --- --- --- --- --- ---- - 
Total 4,391,516 2,556,700 
Impairment of trade and other receivables (79,227) (50,000) 
 - --- --- --- --- --- --- --- --- --- --- ---- -- - --- --- --- --- --- --- --- --- --- --- ---- -- 
 4,312,289 2,506,700 
 ========= ====== ====== == = = ======== ====== ====== == = 
 
At the 31 March 2009, some of the unimpaired trade receivables are past their due date.  The age of financial assets past due but not 
impaired is as follows:   
 2009 2008 
 £ £ 
 
Not more than one month  100,092 71,712 
One to two months 80,229 27,287 
Three to twelve months 63,302 79,495 
More than twelve months - 77,176 
 - --- --- --- --- --- --- --- --- --- --- ---- -- - --- --- --- --- --- --- --- --- --- --- ---- -- 
      243,623         255,670 
 ========= ====== ====== == = = ======== ====== ====== == = 
 
 
 
 
   
32 Notes to the financial statements 
 
Notes to the financial statements 
 
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.  However, the Group does not identify specific concentrations of credit risk with regards to trade and 
other receivables as the amounts recognized resemble a large number of receivables from various customers. 
The fair value of these short term financial assets is not individually determined as the carrying amount is a reasonable approximation of 
fair value.  There is no material difference between fair value and book value. 
A reconciliation of bad debt provisions is provided below: 
 2009 2008 
 £ £ 
 
Brought forward provision 50,000 40,410 
Debts written off in the year (81,517) (64,802) 
Increase in provision  110,744 74,392 
 - --- --- --- --- --- --- --- --- --- --- ---- -- - --- --- --- --- --- --- --- --- --- --- ---- -- 
Carry forward provision 79,227 50,000 
 ========= ====== ====== == = = ======== ====== ====== == = 
 
Trade receivables from content providers consist of numerous accounts with no significant individual balances.  Provision for impairment 
has been made where the debt is not considered likely to be recoverable, although successful recovery can take over twelve months 
where a debtor has agreed a payment plan with Bango. 
Trade receivables from payment providers include significant individual balances from two major US mobile networks, Sprint Spectrum 
LP (“Sprint”) and AT&T Mobility LLC (“AT&T”).    
7  Share capital 
 
Authorised share capital: 
 
 2009 2008 
 £ £ 
37,500,000 (2008: 37,500,000) ordinary shares of 20p each in Bango PLC 7,500,000 7,500,000 
 ========= ====== ====== = ======== ====== ====== == 
 
Allotted, called up and fully paid: 
 
Ordinary shares of 20p each in Bango PLC No  £ 
 
As at 1 April 2007 26,847,739 5,369,548 
   
Exercise of share options 68,670 13,734 
   
 - --- --- --- --- --- --- --- --- --- --- --- - --- --- --- --- --- --- --- --- --- --- --- 
As at 31 March 2008 26,916,409 5,383,282 
   
Issue of new shares 1,345,000 269,000 
Exercise of share options 107,148 21,430 
   
 - --- --- --- --- --- --- --- --- --- --- --- - --- --- --- --- --- --- --- --- --- --- --- 
As at 31 March 2009 28,368,557 5,673,712 
 ========= ====== ==== == == = ======== ====== ====== == 
 
 
 
 
 
 
 
 
 
 
   
 
Notes to the financial statements 33 
 
Notes to the financial statements 
 
Employee share options 
The Group issues share options to Directors and to employees under either an HM Revenue and Customs approved Enterprise 
Management Incentive (EMI) scheme or an unapproved scheme. Employees resident overseas are eligible to participate in the scheme 
but their options do not qualify as HM Revenue and Customs approved.  
 
The grant price for share options is equal to the average quoted market price of the Company shares on the date of grant. Options vest 
evenly over a period of one to three years following grant date. If share options remain unexercised after a period of ten years from the 
date of grant, the options expire. Share options are forfeited if the employee leaves the Group before the options vest. 
 
Movements in the number of share options outstanding and their related weighted average exercise prices are as follows: 
 
 Year ended 31 March 2009 Year ended 31 March 2008 
 Average Options Average Options 
 exercise price  exercise price  
 per share  per share  
 p No p No 
Outstanding at 1 April 2008 68 2,727,626 78 2,456,638 
Granted 48 375,435 31 555,540 
Lapsed 64 (93,839) 90 (215,882) 
Exercised 32 (107,148) 33 (68,670) 
Expired - - - - 
 - --- --- --- --- --- --- --- --- --- --- ---- - --- --- --- --- --- --- --- --- --- --- ---- - --- --- --- --- --- --- --- --- --- --- ---- - --- --- --- --- --- --- --- --- --- --- ---- 
Outstanding at 31 March 2009 67 2,902,074 68 2,727,626 
 = ======== ====== ====== == ========= ====== ====== == = ======== ====== ====== == = ======== ====== ====== == 
Exercisable at 31 March 2009 75 2,172,434 70 1,800,057 
 
 The weighted average share price at date of exercise of options exercised during the year was 32 pence (2008: 33 pence). 
 
 The fair value of options granted outstanding was determined using the Black-Scholes valuation model. Significant inputs into the model 
include a weighted average share price of 79 pence (2008: 84 pence) at the grant date, the exercise prices shown above, weighted 
average volatility of 71% (2008: 71%), dividend yield of nil, an expected option life of five years and an annual risk-free interest rate of 
4.50% (2008: 4.69%). 
  
 The volatility of the Group's share price on each date of grant was calculated as the average of volatilities of share prices of companies in 
the Peer Group on the corresponding dates. The volatility of share price of each company in the Peer Group was calculated as the 
average of standard deviations of daily continuously compounded returns on the Company's stock, calculated over 1, 2, 3, 4 and 5 years 
back from the date of grant. This method estimates volatility of the companies' share prices over a period commensurate with the 
option's expected life. Furthermore, this method is designed such that it gives proportionately more weight to recent historical returns, 
which are likely to reflect current volatility better due to the argument of volatility persistence.  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
34 Notes to the financial statements 
 
Notes to the financial statements 
 
At 31 March 2009, the Group had the following outstanding options and exercise prices: 
 
  2009 2008 
 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 13 50.00 60,000 25 
19 May 2010 50.00 40,000 14 50.00 40,000 26 
2 April 2012 31.00 40,000 36 31.00 66,000 48 
2 May 2012 31.00 15,000 37 31.00 25,000 49 
25 August 2012 31.00 40,000 41 31.00 52,000 53 
24 February 2013 31.00 45,000 47 31.00 66,000 59 
27 August 2013 29.00 35,000 53 29.00 52,000 65 
27 February 2014 29.00 346,500 59 29.00 361,500 71 
27 May 2014 31.00 40,000 62 31.00 40,000 74 
27 July 2014 29.00 40,000 64 29.00 40,000 76 
28 August 2014 50.00 46,000 65 50.00 58,668 77 
18 February 2015 50.00 106,000 71 50.00 114,000 83 
1 March 2015 50.00 230,000 71 50.00 230,000 83 
22 June 2015 50.00 24,500 75 50.00 24,500 87 
21 September 2015 202.00 190,000 68 202.00 194,250 90 
1 March 2016 177.50 151,835 83 177.50 159,335 95 
25 May 2016 140.00 210,000 86 140.00 210,000 98 
9 October 2016 106.50 111,897 90 106.50 119,466 102 
22 March 2017 50.00 76,250 96 50.00 76,250 108 
23 March 2017 50.50 195,075 96 50.50 205,715 108 
9 July 2017 47.00 4,000 99 47.00 12,000 111 
19 September  2017 41.00 201,395 102 41.00 216,400 114 
31 January 2018 23.00 287,472 106 23.00 304,542 118 
15 October 2018  53.50 149,370 114  
19 February 2019 44.00 216,780 119  
  - --- --- --- --- --- --- --- --- --- -- - --- --- --- --- --- --- --- --- --- --  
At 31 March  2,902,074 2,727,626  
  
 
========= ====== =====  = ======== ====== ======  
 
 8  Trade and other payables 
 2009 2008 
 £ £ 
 
Trade payables 4,501,921 2,577,273 
Social security and other taxes 77,159 194,600 
Accruals and deferred income 225,606 297,676 
 ------------------------------ - --- --- --- --- --- --- --- --- --- --- --- 
 4,804,686 3,069,549 
 = = = = = = = = = = = = = = = = = = = = = ========= ====== === === == 
 
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 35 
 
Notes to the financial statements 
 
 9  Commitments 
  
The Group leases an office under a non-cancellable operating lease for which the future aggregate minimum lease payments are as 
follows: 
 
 2009 2008 
 £ £ 
 
No later than 1 year 192,446 141,246 
Later than 1 but no later than 5 years 512,017 564,984 
More than 5 years - 88,279 
 ------------------------------- - --- --- --- --- --- --- --- --- --- --- --- 
 704,463 794,509 
 = = = = = = = = = = = = = = = = = = = = = ========= ====== ====== == 
 
The lease expires on 14 November 2013.  The last rent review was due on 18 November 2008.  
 
10  Expenses by nature 
 2009 2008 
 £ £ 
Employee benefit expense 2,183,945 2,940,194 
Depreciation 122,810 220,859 
Other expenses 15,959,889 12,499,892 
 - --- --- --- --- --- --- --- --- --- --- --- - --- --- --- --- --- --- --- --- --- --- --- 
 18,266,644 15,660,945 
 ========= ====== ====== == = ======== ====== ====== == 
Analysed as:   
Cost of sales 14,947,758 10,993,053 
Administrative expenses 3,256,390 4,409,832 
Share based payments 62,496 258,060 
 - --- --- --- --- --- --- --- --- --- --- --- - --- --- --- --- --- --- --- --- --- --- --- 
 18,266,644 15,660,945 
 ========= ====== ====== == = ======== ====== ====== == 
 
 11  Loss before taxation 
 
Loss before taxation is stated after charging: 
 
 2009 2008 
 £ £ 
Auditor's remuneration: 
Fees payable to the Company’s auditor for the audit of the financial statements  2,500 5,000 
Audit of the financial statements of the Company’s subsidiaries 27,500 27,750 
Other services relating to tax 3,600 3,500 
Other services - - 
 
Operating lease expenses: 
Land and buildings 156,381 141,246 
Plant and equipment 547 3,639 
 
Depreciation on property, plant and equipment 118,727 209,898 
Amortization of intangible assets  4,083 10,961 
Research and development costs 418,161 830,799 
 = ======== ====== ====== == = = ======== ====== ====== == = 
 
  
 
 
 
 
 
 
   
 
36 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: 
 2009 2008 
 No No 
 
Administrative staff 4 4 
Marketing staff 7 8 
Sales staff 4 11 
Technical staff 12 13 
Executive Directors 3 3 
Support staff 10 10 
 - --- --- --- --- --- --- --- --- --- --- --- - --- --- --- --- --- --- --- --- --- --- --- 
 40 49 
 = = = = = = = = = = = = = = = = = = = = = ========= ====== ====== == 
 
The aggregate payroll costs of the above were: 
 2009 2008 
 £ £ 
 
Wages and salaries 1,880,525 2,403,089 
Social security costs 183,650 237,042 
Other pension costs 57,274 42,003 
Share based remuneration 62,496 258,060 
 - --- --- --- --- --- --- --- --- --- --- ---- - --- --- --- --- --- --- --- --- --- --- ---- 
 2,183,945 2,940,194 
 ========= ====== ====== == = ======== ====== ====== == 
 
The Directors have identified six (2008: seven) key management personnel, including Directors. Compensation to key management is set 
out below: 
 2009 2008 
 £ £ 
Wages and salaries 348,995 435,126 
Social security costs 37,458 47,529 
Pension 16,951 28,160 
Share based compensation 45,673 91,446 
 - --- --- --- --- --- --- --- --- --- --- --- - --- --- --- --- --- --- --- --- --- --- --- 
 449,077 602,261 
 ========= ====== ====== = = = ======== ====== ====== == 
 
13 Directors 
Remuneration in respect of Directors was as follows: 
 2009 2008 
 £ £ 
 
Emoluments 254,775 314,258 
 ========= ====== ====== == = ======== ====== ====== == 
 
The highest paid director received total emoluments of £100,800 (2008: £100,500), pension contributions of £4,200 (2008 : £nil), 
and share based compensation of £nil (2008 : £nil). 
 
The number of directors who accrued benefits inder pension schemes was one (2008 : one). 
 
The total share based compensation for directors was £21,627 (2008 : £35,287) 
 
During the year no share options were exercised by the Directors, and pension contributions of £4,200 (2008: £3,430) were made on 
their behalf. 
 
 14  Investment income 
 2009 2008 
 £ £ 
Bank interest receivable 13,426 67,168 
 ========= ====== ====== == = ======== ====== ====== == 
   
  
Notes to the financial statements 37 
 
Notes to the financial statements 
 
15  Income tax expense 
 2009 2008 
 £ £ 
Current tax - - 
Deferred tax - - 
R&D tax credits received (168,545) - 
------------------------------- - --- --- --- --- --- --- --- --- --- --- --- 
 (168,545) - 
============== === == == == == == == 
 
Income tax expense for the year differs from the standard rate of taxation as follows: 
  
Loss on ordinary activities before taxation (646,042) (1,835,308) 
 ========= ====== ====== == = ======== ====== ====== == 
Loss on ordinary activities multiplied by standard rate of tax of 28% (2008: 30%) (180,891) (550,592) 
Effect of :   
Expenses not deductible for tax purposes (220,060) 83,569 
Differences between capital allowances and depreciation (1,046) 29,111 
Unutilised tax losses 412,287 420,743 
Other temporary differences (10,290) 17,169 
 R&D tax credits received (168,545) - 
------------------------------- - --- --- --- --- --- --- --- --- --- --- --- 
Total tax  (168,545) - 
 ========= ====== ====== == = ======== ====== ====== == 
 
At 31 March 2009 the unutilised tax losses carried forward amounted to £11.7 million (2008: £11.2 million). 
 
Unrecognized deferred tax assets: 
 2009 2008 
 £ £ 
 
Share option scheme 19,204 - 
Tax losses 3,286,103 3,165,095 
Other temporary differences  11,615 21,904 
Accelerated capital allowances 8,177 9,991 
------------------------------- - --- --- --- --- --- --- --- --- --- --- 
 3,325,099 3,196,990 
============== === == == == == == == 
 
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.  
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
38 Notes to the financial statements 
 
Notes to the financial statements 
 
16  Loss per share 
  
(a) Basic 
Basic loss per share are calculated by dividing the loss attributable to equity holders of the Company by the weighted average number of 
ordinary shares in issue during the year. 
 
 2009 2008 
 £ £ 
  
Loss attributable to equity holders of the Company (477,497) (1,835,308) 
------------------------------- - --- --- --- --- --- --- --- --- --- --- 
  
Weighted average number of ordinary shares in issue 27,794,361 26,906,358 
------------------------------- - --- --- --- --- --- --- --- --- --- --- 
Basic and diluted loss per share (1.72) (6.82) 
============== ============== 
 
 (b) Diluted 
Diluted loss per share is calculated by adjusting the weighted average number of shares outstanding to assume conversion of all dilutive 
potential ordinary shares.  
 
At 31 March 2009 options over 2,902,074 (2008: 2,727,626) ordinary shares were outstanding.  Given the loss for the year these 
options are considered to be anti-dilutive. Such options could potentially dilute basic loss per share in the future. 
 
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 
 2009 2008 
 £ £ 
 
Loss for the financial year (477,497) (1,835,309) 
Depreciation and amortization 122,810 220,859 
Taxation in income statement (168,545) - 
Investment income (13,426) (67,168) 
Share-based payment expense 62,496 258,060 
Increase in receivables (1,805,589) (83,434) 
Increase in payables  1,735,137 633,651 
 - --- --- --- --- --- --- --- --- --- --- --- - --- --- --- --- --- --- --- --- --- --- --- 
 (544,614) (873,341) 
Corporation tax rebate 168,545 - 
 - --- --- --- --- --- --- --- --- --- --- --- - --- --- --- --- --- --- --- --- --- --- --- 
Net cash used by operations (376,069) (873,341) 
 ==== ===== ====== ====== == = ======== ====== ====== == 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
Notes to the financial statements 39 
 
Notes to the financial statements 
 
18  Financial assets and liabilities 
 
Financial assets included in the balance sheet relate to the following IAS 39 categories:   
 
 2009 2008 
 £ £ 
 
Loans and receivables 4,705,070 3,328,440 
------------------------------- - --- --- --- --- --- --- --- --- --- --- 
Total financial assets 4,705,070 3,328,440 
============== === == == == == == == 
 
These financial assets are included in the balance sheet within the following headings: 
 
 2009 2008 
 £ £ 
Current assets 
Trade and other receivables 3,878,787 2,202,407 
Cash and cash equivalents 826,283 1,126,033 
Other financial assets - - 
------------------------------- - --- --- --- --- --- --- --- --- --- --- 
Total financial assets 4,705,070 3,328,440 
============== === == == == == == == 
 
Financial liabilities included in the balance sheet relate to the following IAS 39 categories: 
 
 2009 2008 
 £ £ 
 
Financial liabilities measured at amortized cost  4,501,921 2,577,273 
------------------------------- - --- --- --- --- --- --- --- --- --- --- 
Total financial assets 4,501,921 2,577,273 
============== === == == == == == == 
 
These financial liabilities are included in the balance sheet within the following headings: 
  
 2009 2008 
 £ £ 
Current liabilities 
Trade payables 4,501,921 2,577,273 
------------------------------- - --- --- --- --- --- --- --- --- --- --- 
Total financial liabilities 4,501,921 2,577,273 
============== === == == == == == == 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
40 Notes to the financial statements 
 
Notes to the financial statements 
 
19  Credit risk analysis 
The Group’s exposure to credit risk is limited to the carrying amount of financial assets recognized at the balance sheet date, as 
summarized in note 18. 
 
The Group continuously monitors defaults of customers and other counterparties, identified individually or by group, and incorporates 
this information into its credit risk controls.  Where available at reasonable cost, external credit ratings and/or reports on customers and 
other counterparties are obtained and used.  The Group’s policy is to deal only with creditworthy counterparties. 
 
The Group’s management considers that all the financial assets that are not impaired for each of the reporting dates under review are of 
good credit quality including those that are past due.  See note 6 for further information on financial assets that are past due. 
 
None of the Group’s financial assets are secured by collateral or other credit enhancements. 
 
In respect of trade and other receivables, the Group is not exposed to any significant credit risk exposure to any single counterparty or 
any group of counterparties having similar characteristics. 
 
The credit risk for liquid funds and other short-term financial assets is considered negligible, since the counterparties are reputable 
banks with high quality external credit ratings.     
 
20  Liquidity risk analysis 
The Group manages its liquidity needs by carefully monitoring cash outflows due in day-to-day business.  Liquidity needs are monitored 
in various time bands, on a day-to-day and week-to-week basis, as well as on a monthly basis.  Long-term liquidity needs are identified 
on a quarterly basis. 
 
At 31 March 2009 the Group has contractual maturities which are summarized in Note 9 Commitments. 
 
21  Market risk analysis 
 
21.1 Interest risk sensitivity  
The Group has no borrowings on which it is subject to interest rate risk. 
 
21.2 Foreign currency sensitivity 
Most of the Group’s transactions are carried out in Sterling.  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. 
 
 2009  2008 
  £ 
Nominal amounts US $ € US $ € 
Financial assets 3,693,165 93,826 187,415 165,355 
Financial liabilities 4,746,697 76,104 75,856 242,366 
 - --- --- --- --- --- --- --- -- - --- --- --- --- --- - - --- --- --- --- --- --- - - --- --- --- --- --- --- - 
Short term exposure (1,053,532) 17,722 111,559 (77,011) 
 - --- --- --- --- --- --- --- -- - --- --- --- --- --- - - --- --- --- --- --- --- - - --- --- --- --- --- --- - 
 
   
Report of the independent auditor to the members of Bango PLC 41 
 
Report of the independent auditor to 
the members of Bango PLC 
 
We have audited the parent company financial statements of 
Bango PLC for the year ended 31 March 2009 which comprise 
the balance sheet and notes 1 to 8.  These parent company 
financial statements have been prepared under the accounting 
policies set out therein.  
 
We have reported separately on the Group financial statements 
of Bango PLC for the year ended 31 March 2009. 
 
This report is made solely to the company’s members, as a 
body, in accordance with Section 235 of the Companies Act 
1985.  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 
The Directors’ responsibilities for preparing the Annual Report 
and parent company financial statements in accordance with 
United Kingdom law and Accounting Standards (United 
Kingdom Generally Accepted Accounting Practice) are set out 
in the Statement of Directors' responsibilities. 
 
Our responsibility is to audit the financial statements in 
accordance with relevant legal and regulatory requirements and 
International Standards on Auditing (UK and Ireland). 
 
We report to you our opinion as to whether the financial 
statements give a true and fair view and are properly prepared 
in accordance with the Companies Act 1985.  We also report to 
you whether in our opinion the information given in the 
Directors' report is consistent with the parent company 
financial statements.  The information given in the Directors’ 
report includes that specific information presented in the CEO’s 
statement and Chairman’s statement that is cross-referred from 
the business review section of the Directors’ report. 
 
In addition we report to you if, in our opinion, the company has 
not kept proper accounting records, if we have not received all 
the information and explanations we require for our audit, or if 
information specified by law regarding Directors' remuneration 
and other transactions is not disclosed. 
 
We read other information contained in the Annual Report, and 
consider whether it is consistent with the audited parent 
company financial statements.  This other information 
comprises only the Chairman's statement, the CEO's statement, 
the Directors' report, the Corporate governance statement and 
the Remuneration Committee report.  We consider the 
implications for our report if we become aware of any apparent 
misstatements or material inconsistencies with the parent 
company financial statements.  Our responsibilities do not 
extend to any other information. 
 
 
 
 
 
Basis of audit opinion 
We conducted our audit in accordance with International 
Standards on Auditing (UK and Ireland) issued by the Auditing 
Practices Board.  An audit includes examination, on a test 
basis, of evidence relevant to the amounts and disclosures in 
the parent company financial statements.  It also includes an 
assessment of the significant estimates and judgements made 
by the Directors in the preparation of the parent company 
financial statements, and of whether the accounting policies 
are appropriate to the Company's circumstances, consistently 
applied and adequately disclosed. 
 
We planned and performed our audit so as to obtain all the 
information and explanations which we considered necessary in 
order to provide us with sufficient evidence to give reasonable 
assurance that the parent company financial statements are 
free from material misstatement, whether caused by fraud or 
other irregularity or error.  In forming our opinion we also 
evaluated the overall adequacy of the presentation of 
information in the parent company financial statements. 
 
Opinion 
In our opinion: 
 
• The parent company financial statements give a true and 
fair view, in accordance with United Kingdom Generally 
Accepted Accounting Practice, of the state of the 
company's affairs as at 31 March 2009; 
 
• The parent company financial statements have been 
properly prepared in accordance with the Companies Act 
1985; and 
 
• The information given in the Directors' report is consistent 
with the financial statements. 
 
 
 
 
 
 
Grant Thornton UK LLP 
Registered Auditor 
Chartered Accountants 
 
Cambridge 
18 August 2009   
42 Company balance sheet 
 
Company balance sheet 
 
2009 2008 
Note £  £ 
 
Fixed assets 
Investment in subsidiary 4 5,120,677 5,058,181 
  - --- --- --- --- --- --- --- --- --- --- ---- - --- --- --- --- --- --- --- --- --- --- ---- 
    
 
Current assets 
Debtors due within one year 5 1,012 2,158 
Debtors due after one year 5 6,835,734 6,490,578 
Cash at bank  - - 
 - --- --- --- --- --- --- --- --- --- --- ---- - --- --- --- --- --- --- --- --- --- --- ---- 
 6,836,746 6,492,736 
Creditors falling due within one year                                                                             6   42,904 51,699 
- --- --- --- --- --- --- --- --- --- --- ---- - --- --- --- --- --- --- --- --- --- --- ---- 
Net current assets                                                                                6,793,842 6,441,037 
  = ======== ====== ====== == = ======== ====== ====== == 
 
Total assets less current liabilities 11,914,519 11,499,218 
 ========= ====== ====== == = ======== ====== ====== == 
 
Capital and reserves 
Share capital  7 5,673,712 5,383,282 
Share premium account 8 5,504,749 5,320,067 
Other reserve 8 916,391 853,895 
Retained earnings 8 (180,333) (58,026) 
 
  - --- --- --- --- --- --- --- --- --- --- ---- - --- --- --- --- --- --- --- --- --- --- ---- 
Shareholders’ funds  11,914,519 11,499,218 
  = ======== ====== ====== == = ======== ====== = ===== == 
 
 
 
These financial statements were approved by the Directors on 14 August 2009 and are signed on their behalf by: 
 
 
Mr R Anderson Mr P Saxton 
Director Director  
Notes to the financial statements 43 
 
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 1985. They have 
been prepared under the historical cost convention and in 
accordance with applicable United Kingdom accounting 
standards and law. 
 
The principal accounting policies are summarized below. They 
have all been applied consistently throughout the year. 
 
Investments 
Fixed asset investments are shown at cost less provision for 
impairment. 
 
Share based payments 
The Company issues equity settled share-based compensation 
to certain employees (including Directors). Equity settled share-
based payments are measured at fair value at the date of grant. 
The fair value determined at the grant date of the equity-settled 
share-based payment is credited to reserves on a straight-line 
basis over the vesting period, together with a corresponding 
increase in the book value of the Company’s investment in 
subsidiaries, based upon the Company’s estimate of the shares 
that will eventually vest. These estimates are subsequently 
revised if there is any indication that the number of options 
expected to vest differs from previous estimates. Any 
cumulative adjustment prior to vesting is recognized in the 
current period. No adjustment is made to any expense 
recognized in prior periods. 
 
Fair value is measured by an external valuer using the Black-
Scholes option pricing model. The expected life used in the 
model has been adjusted, based on management’s best 
estimate, for the effects of non-transferability, exercise 
restrictions and behavioural considerations. 
 
Where the terms of an equity-settled transaction are modified, 
as a minimum an expense is recognized as if the terms had not 
been modified. In addition, an expense is recognized for any 
increase in the value of the transaction as a result of the 
modification, as measured by the date of modification. 
 
Where an equity-settled transaction is cancelled, it is treated as 
if it had vested on the due date of the cancellation, and any 
expense not yet recognized for the transaction is recognized 
immediately. However, if a new transaction is substituted for 
the cancelled transaction, and designated as a replacement 
transaction on the date that it is granted, the cancelled and 
new transactions are treated as if they were a modification of 
the original transaction, as described in the previous paragraph. 
 
 
Related party transactions 
In accordance with Financial Reporting Standard Number 8: 
Related Party Disclosures, the company is exempt from 
disclosing transactions with 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 230(1) of the Companies Act 1985 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 2009 of £122,307 (2008: £62,295) is 
included in the Group loss for the financial year. 
 
The auditor’s remuneration for audit and non-audit services to 
the Company was borne entirely by Bango.net Limited, a wholly 
owned subsidiary. 
 
3  Directors and employees 
Details of Directors’ interests in the shares and options of the 
Company are provided in the Directors’ report on page 14. 
 
There are no employees employed directly by the Company. 
 
Details of Directors’ remuneration are disclosed on page 36 of 
the Group accounts. 
 
   
44 Notes to the financial statements 
 
Notes to the financial statements 
 
4  Investments 
 £ 
Cost 
Shares in subsidiary undertakings at 1 April 2008  5,058,181 
Share based payments 62,496 
 - --- --- --- --- --- --- --- --- --- --- ---- 
Shares in subsidiary undertakings at 31 March 2009 5,120,677 
 ========= ====== ====== == 
 
Net book amount 
At 31 March 2009 5,120,677 
  
 
========= ====== ====== == 
At 31 March 2008 5,058,181 
 ========= ====== ====== == 
 
Details of subsidiary undertakings at 31 March 2009 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% Sales office for Bango.net 
Limited services in Germany, 
Austria and Switzerland 
     
Bango Inc Delaware, USA Common 100% Sales office for Bango.net 
Limited services in USA 
     
 
5  Debtors 
 2009 2008 
 £ £
 
Amounts due from Group undertakings 6,835,734 6,490,578
Other debtors 1,012 2,158
 ------------------------------ - --- --- --- --- --- --- --- --- --- --- ----
 6,836,746 6,492,736
 ========= ====== ====== == = ======== ====== ====== == =
 
6  Creditors 
 2009 2008
 £ £
 
Trade creditors 15,381 18,892 
Accruals and deferred income 10,137 15,421 
Amounts owed to group undertakings 17,386 17,386 
 ------------------------------- - --- --- --- --- --- --- --- --- --- ---
 42,904 51,699
 ========= ====== ====== == = ======== ====== ====== == =
 
 
 
 
 
 
 
 
 
 
   
Notes to the financial statements 45 
 
Notes to the financial statements 
 
7  Share capital 
 
Authorised share capital: 
 
 2009 2008 
 No £ No £ 
     
Ordinary shares of 20 pence each  37,500,000 7,500,000 37,500,000 7,500,000 
 = ======== ====== ====== = = ======== ====== ====== = = ======== ====== ====== = ======== ====== ==== 
 
Allotted, called up and fully paid: 
 
Ordinary shares of 20p each in Bango PLC No  £ 
 
As at 1 April 2007 26,847,739 5,369,548 
   
Exercise of share options 68,670 13,734 
   
 - --- --- --- --- --- --- --- --- --- --- --- - --- --- --- --- --- --- --- --- --- --- --- 
As at 31 March 2008 26,916,409 5,383,282 
   
Issue of new shares 1,345,000 269,000 
Exercise of share options 107,148  21,430 
   
 - --- --- --- --- --- --- --- --- --- --- ---- - --- --- --- --- --- --- --- --- --- --- ---- 
As at 31 March 2009 28,368,557 5,673,712 
 ========= ====== ====== == = ======== ====== ====== == 
 
8  Reserves 
  Share Other Retained 
  premium reserve reserves 
  account £ £ 
  £ 
 
At 1 April 2008  5,320,067 853,895 (58,026) 
   
Issue of new shares  171,575   
Exercise of share options  13,107 - - 
Share based payments  - 62,496 - 
Loss for the year  - - (122,307) 
  - --- --- --- --- --- --- --- --- --- --- ---- --- - - --- --- --- --- --- --- --- --- --- --- -- - --- --- --- --- --- --- --- --- --- --- - 
At 31 March 2009  5,504,749 916,391 (180,333) 
  = ====== == ====== ====== == === = ======== ====== ====== = = ======== ====== ======