REG - Bango PLC - Final Results
08/03/2022 07:00
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RNS Number : 9394D Bango PLC 08 March 2022
The information contained within this announcement is deemed to constitute
inside information as stipulated under the Market Abuse Regulations (EU)
No.596/2014. Upon the publication of this announcement, this inside
information is now considered to be in the public domain. The person
responsible for making this announcement on behalf of Bango is Paul Larbey,
Chief Executive Officer.
BANGO PLC
("Bango")
Final Results
Bango (AIM: BGO), the data-driven commerce company, today announces its Final
Results for the year ended 31 December 2021.
Summary
· Delivered revenue growth of 31.5%, ahead of expectations, demonstrating
continued high growth across the business;
· New platform deals won in 2021 with global telco leaders provides strong
momentum into 2022;
· Annual recurring revenue from subscription services grew as a proportion of
overall revenues;
· Bango Audience sales accelerate, driven by demand for purchase behavior
targeting by app developers;
· Bango achieves record employee engagement score and maintains carbon neutral
certification in 2021, expanding commitment to include scope 3 emissions.
FY2021 Financial Highlights
· Revenue grew to $20.7M, an increase of 31.5% (2020: $15.7M);
· End User Spend (EUS) increased to $4.1B, up 73.6% (2020: $2.4B), the seventh
year of continued strong growth;
· Adjusted EBITDA* grew to $6.2M (2020: $6.0M);
· Net profit from the core Bango business, excluding the share of net loss of
the NewDeep associate, was up 48.6% at $2.5M (2020: $1.7M);
· Cash** at 31 December 2021 increased to $9.7M (2020: $8.0M).
*Adjusted EBITDA is earnings before interest, tax, depreciation, amortization
and share based payment charge.
**Cash includes cash and cash held in short term investments
FY2021 Operational Highlights
· Telcos increasingly standardize on Bango as their single technology to bundle
third party offers, demonstrated by 2021 platform licensing wins including
Verizon;
· Range of bundled offers is quickly expanding outside of the core music and
video subscription services. Recent launches with M365 (productivity), Xbox
Game Pass (gaming), Norton (security) and Pray.com (wellbeing) highlight this
increasing market opportunity;
· The automation and dynamic management of product SKUs, marketing assets and
bundled offers enables Bango subscription bundling to achieve massive scale
across merchants and telcos;
· Bango Audiences now available to marketers on TikTok, the world's fastest
growing social media platform, enabling customers to target even more paying
users;
· Need for improved targeting techniques increases in the mobile gaming sector
and in new high growth sectors including NFT, crypto and financial trading
apps. Demand for Bango Audiences to find new paying users, shown by customer
wins including Upland.
Outlook
· Competition to win new paying customers in the fast-growing online commerce
market will drive growth in alternative payments, user acquisition through
bundled offers and better targeting of paying users from digital marketing
campaigns.
· Bango platform deals won and integrated during 2021 will drive revenue growth
in 2022 and beyond, as telco customers launch new third party offers.
· Continued expansion of subscription bundling beyond TV, movies, music &
gaming as more digital merchants target the benefits of bundled offers.
· Need to improve returns on digital advertising spend in a post-cookie world
will drive demand for Bango Audiences and open-up new sectors including
financial trading, lifestyle and retail.
Paul Larbey, Chief Executive Officer of Bango, commented:
"Once again, Bango delivered revenue growth ahead of expectations. The
transactional payments business continues to grow, as we added new telco
routes and mobile wallets and our merchant customers delivered new products
and services. Just as exciting is the accelerating adoption of the Bango
platform licensing solution by tier 1 telcos and utility providers for all of
their 3(rd) party bundling. In 2021 we have seen our platform licensed by
market leaders including BT and Verizon and the pipeline of opportunities is
impressive. The recurring revenue this business brings to Bango is incremental
and is expected to accelerate our growth in the coming years.
2021 saw the range of customers using Bango Audiences diversify from
predominantly mobile gaming app developers to financial trading,
cryptocurrency and metaverse trading apps. Our investment in sales &
marketing is growing awareness of Bango Audiences, as a powerful disruptor in
the market, attracting this wider range of customers.
With three powerful growth engines in the business working synergistically,
Bango is well positioned to continue taking market share and moving further
towards our goal of becoming the technology behind every payment choice.
A video presenting these results can be viewed
here: https://bangoinvestor.com/videos/ (https://bangoinvestor.com/videos/)
Bango will be delivering an analyst presentation via video conference at 10am
today, Tuesday 8 March 2022. Please email investors@bango.com
(mailto:investors@bango.com) for the dial in details.
Management is also delivering a presentation via Investor Meet Company
platform for investors on 11 March at 11.30am. Sign up here:
https://www.investormeetcompany.com/bango-plc/register-investor
(https://www.investormeetcompany.com/bango-plc/register-investor)
Contact Details:
Bango PLC FTI Consulting Liberum Capital
Tel. +44 1223 617387 Tel. +44 203 727 1000 Tel. +44 20 3100 2000
E. investors@bango.com
Paul Larbey, CEO Rob Mindell Cameron Duncan
Matt Garner, CFO Charlotte Stephen James Greenwood
Anil Malhotra, CMO Ed Phillips
Rebecca Jamieson, IR Will King
About Bango
The world's largest online merchants, including Amazon (NASDAQ: AMZN), Google
(NASDAQ: GOOG) and Microsoft (NASDAQ: MSFT), use Bango technology to acquire
more paying users.
Bango has developed unique purchase behavior technology that enables millions
more users to buy the products and services they want, using innovative
methods of payment including carrier billing, digital wallets and subscription
bundling. Bango harnesses this purchase activity into valuable marketing
segments, called Bango Audiences. Merchants use these audiences to target
their marketing at paying customers based on their purchase behavior. Better
targeting increases spend through the Bango payments business, in turn
generating more data insights, creating a powerful virtuous circle that drives
continuous growth. Everyone connected to the Bango Platform thrives as the
virtuous circle grows.
Bango, the technology behind every payment choice. For more information,
visit www.bangoinvestor.com (http://www.bangoinvestor.com/) and follow our
twitter account @bangoinvestor
Chair's Statement
I am delighted Bango has delivered on the priorities it outlined to
shareholders at the beginning of 2021. Bango has made substantial progress in
building a fast growing and profitable business. We have the people,
partnerships and technology needed to achieve our ambitions and increase Bango
revenue from tens of millions to hundreds of millions of dollars a year.
Our Board was strengthened at the end of 2021 after an extensive process to
find the right non-executive directors to support our growth. Lisa Gansky is
well connected with many high-tech businesses and has a challenger mindset
that helped her drive new, industry changing ideas into global businesses.
Marcus Weldon adds deep expertise in the telco and consumer mobile space
coupled with a strong background in bringing innovative and disruptive
technologies to market while President of Bell Labs. Marcus is already
providing immense value as Bango navigates the strategic strengths and
weaknesses of the largest communication businesses in the world. Telcos know
that they need to delight and retain customers and Bango is becoming a
powerful partner, in turn becoming a critical part of the content delivery
ecosystem.
As Bango grows it continues to engage with large global partners while also
acquiring a high volume of smaller customers that use Bango Audiences. This
requires broader financial capabilities, so I was therefore delighted to have
Matt Garner join Bango as CFO early in March 2021. Matt has the business
skills and experience Bango needs as a global business and provides insights
for shareholders into the Bango growth engine and its intrinsic profitability.
I encourage shareholders to continue to engage with Matt going forward.
Bango is increasingly interesting to business partners and investors that are
familiar with comparing metrics such as pricing, revenue, EBITDA and market
sizes in US dollars. The change to reporting in US dollars aids understanding
and signals the drive Bango has to cooperate with investors and partners
globally. In March 2022, Bango enabled US investors to buy its shares on the
OTCQX market, tapping into the significant and increasing interest in Bango
technology and its business ambitions in the USA.
It has been rewarding for me, as a Bango founder, to see the energy and
passion of the people driving Bango forward while living our THRIVE values. As
travel has resumed, people who had worked collaboratively for months remotely
were able to share ideas and innovation face-to-face. Several partnerships
that are in the early stages have already been deepened by the special energy
that is generated during these meetings. Staff retention on the back of an
excellent year for formal engagement scores has been rock solid, and we are
also making good progress with our diversity initiatives to ensure we are
recruiting widely and broadly to tap into top talent. The Bango collaboration
with Project Celena, announced in February 2022, has enabled Bango to engage
with talent from Atlanta Tech - a very motivating experience for all involved.
Bango staff have driven our progress in sustainability. They set the challenge
to gain audited Carbon Neutral status in 2020 and we have now pushed the
envelope further by expanding our carbon neutral targets to include supplier
scope 3 emissions. Efficiency is at the heart of Bango - think of the savings
in carbon generated by only showing ads to people who have a relevant purchase
history.
Digital Turbine joined the Bango circle as a strategic partner in December
2021, following NHN in April 2020 and TPAY in December 2020. A new phase of
app revenue growth is emerging alongside the App Stores. Developers are now
able to monetize apps directly to users quickly, securely and effectively
outside app stores, and then engage with consumers using the commercial models
and payment methods offered by the Bango platform. Exciting!
With the Bango payment platform firing on all cylinders, and the deployment of
Bango Audiences to enable revolutionary purchase behavior targeting, Bango
drives forward on its fast growth path to become the technology behind every
payment choice.
Ray Anderson
Executive Chair
CEO Statement
Introduction
In 2021, for the second year running, Bango exceeded market expectations
delivering higher than forecasted revenue growth. With the leverage in the
platform, this growth appears as profit which funds our Research &
Development and Sales & Marketing teams to capture the rapidly expanding
market opportunities for platform license deals and Audience (Marketplace)
sales.
The 74% growth in EUS represents both continuing strong growth in the payments
business and the expanding pool of data which we monetize through Bango
Audiences. This is the Bango virtuous circle strategy in action; the success
in app developer campaigns drives more payment volumes which adds to the pool
of data used to generate these insights and the cycle repeats.
Bango Payments
Bango connects the world's largest merchants to customers who purchase goods
using alternative payment methods including carrier billing (charged to a
phone bill), digital wallets and through bundled subscription packages.
Everyone connected to the Bango platform benefits from the unique data
insights acquired from all activity across platform, providing market-wide
insights that individual merchants and payment providers cannot capture on
their own.
This Bango open ecosystem approach enables partnerships to thrive,
accelerating the growth of everyone in the Bango circle. The TPAY partnership,
signed in December 2020 and announced in January 2021, provides unmatched
scale for Bango in two of the fastest growing regions, the Middle East and
Africa. As a result of this partnership, global merchants connected to the
Bango platform have launched multiple new routes in the region without
additional work. One connection between Bango and TPAY provides access to 76
operators and wallets in 24 countries.
Wallets have long played a central role in Bango's growth, and their adoption
in regions such as Latin America, Africa and South East Asia is accelerating.
The NTT Data partnership expanded the number of wallets available to Bango
connected merchants across Southeast Asia adding to the new direct connections
such as Kakao Pay in South Korea. We also partnered with carrier billing
integrator Infomedia to enable them to expand their merchant footprint into
carriers across the world.
Subscriptions once again saw strong growth with both Amazon and Microsoft Xbox
bringing new mobile operators into the Bango circle further increasing our
footprint. The launch of Prime Video Mobile Edition (PVME) in India, with
mobile operator Airtel, is the first example of a merchant creating new
subscription services tailored for specific markets, a trend we expect to
continue as more services move to a subscription model. Our partnership with
Microsoft expanded, adding M365 (formerly Microsoft Office) to the list of
services operators can now bundle with their mobile & broadband plans,
enabled through the Bango platform.
In 2020, we announced how the surge in streaming services had led to telecoms
providers moving to standardize on a common platform for bundling 3rd party
services with their own broadband, TV and mobile plans, resulting in a
multi-million-dollar global telco platform deal. In 2021, we signed an
additional 4 platform licensing customers. These early design wins with the
world's largest carriers such as Verizon and BT ideally position us to expand
our footprint, product and merchant connections. Platform licensing is a new,
and largely incremental, source of recurring revenue that grows as the number
of subscriptions increases.
Bango Audiences
Payment data from Bango connections and 3rd party data sources (such as credit
card processors) are combined using our unique Purchase Behavior Targeting
(PBT) technology to create Audiences of users, which allow app developers to
target their marketing campaigns at users who have actually paid for similar
products previously. Bango Audiences are much (2-9x) more effective than
relying on soft indicators such as "searched for" or "liked" provided by
platforms such as Google and Facebook respectively.
The demand for PBT could not have been clearer than in our 'Board to Death'
campaign (https://bango.com/board-to-death/) with 62% of CEOs believing their
marketing budgets are being wasted on driving soft metrics that have no
connection to business growth. Search ads in particular offer decreasing
relevance. Our 'worst ad' campaign (https://bango.com/worst-ad/) demonstrated
that around $60B of marketing spend is wasted every year on search targeting.
These high impact campaigns have extended app developer interest and awareness
in Bango Audiences while also solidly positioning Bango as an innovative
mar-tech leader resulting in nominations for multiple awards including a
prestigious "SAMMY" sales and marketing technology award.
The removal of the app id tracking (IDFA) by Apple in iOS14.5 created waves
across app developer marketing teams who, overnight, lost both a targeting
source and the ability to track campaign performance. Bango Audiences helped
app developers weather this storm by providing an even more performant
targeting data set based on purchase behavior.
The number of app developers we are engaged with continued to grow reaching
almost 10k at the end of 2021 - this is a doubling in the second half of the
year. These app developers are using more audiences in more campaigns driving
more than 50x growth in Bango Audience Days between Q4 2020 and Q4 2021.
The Bango Audiences pricing model changed in 2021 from a fixed fee to a
percentage of the total marketing campaign spend. This change means we grow
our revenue as the app developers spend increases rather than being linked
only to the number of Audiences being used.
In 2021 we added support of TikTok, allowing Bango Audiences to be used in
TikTok marketing campaigns. TikTok is growing quickly, attracting more
advertising spend. This partnership enables us to capture an increased share
of the app developers' marketing budgets.
While gaming remains a critical segment for Bango Audiences, we added large
customers across a number of other verticals including retail, trading
platforms, social casino and NFT (non-fungible token) trading.
All of these elements combined delivered strong growth in the Bango Audiences
business in 2021 that is continuing into 2022.
Outlook
In last year's annual report, I talked about the formula for payments growth:
More Users x More Routes x More Merchants x More Insights
This formula remains as true as ever and has resulted in a revenue CAGR of 47%
over the past 6 years yet, somehow, it seems less exciting now; it has become
"business as usual", we know it works and launching new routes and merchants
is just routine. The accelerated growth in future years will come from the
combination of Transactional Payments growth with the Platform Licensing and
Bango Audiences businesses. It is this combination that will drive our revenue
to grow from the tens of millions of dollars it is today to hundreds of
millions.
The opportunities across all three areas of the business continue to expand
with market changes providing a tailwind for our continued growth.
The end of the app stores' monopoly of in app payments is in sight with shifts
in regulatory changes in South Korea expected to extend across the world as
the various regulatory and legal challenges progress. Bango is well positioned
to capitalize on this shift for several reasons:
· We have done it before - the direct connection with hundreds of app developers
is exactly how we supported Blackberry's growth back in 2011.
· Many of the leading developers are already customers - from the streaming apps
that use the Bango platform to bundle services to the thousands of app
developers engaged in using Bango Audience's purchase behavior targeting,
Bango has strong relationships with the apps that will be the first to
breakout and engage directly with their customers.
· We have the right partners - our recently announced partnership with Digital
Turbine provides an accelerated entry into this market with a leader in
on-device app deployment and promotion.
While our focus remains on telcos, there is significant opportunity to extend
subscription bundling and the platform licensing business into new verticals -
a natural expansion of the single product bundling connections we have been
working on exists in sectors from retail to energy.
Purchase behavior targeting works beyond app developers. The opportunity to
tap into the $450B online search marketing and social media spend is exciting.
While our focus remains on growing in the app developer space, early results
from partnerships in the retail marketing sector are encouraging.
Bango has a strong balance sheet with no bank debt and a high margin platform
business that means top line growth drops straight to the bottom line. In
2021, and continuing in 2022, we will use this profit to reinvest and power
our future growth. The investment is largely in the form of people. We have a
highly engaged team, our 2021 employee engagement score being our highest ever
resulting in incredibly low employee churn and allowing all recruitment to
focus on growth rather than replacement. While we grow across the company the
main areas of investment are:
Research and Development (R&D)
· New data segmentation and machine learning techniques to generate increased
value from purchase behavior targeting.
· Addition of new marketing platforms for Bango Audiences.
· Enhanced provisioning and reporting for app developers using Bango Audiences.
· Expansion of the resale platform with advanced capabilities such as offer
management and asset management.
Sales & Marketing (S&M)
· Expansion of the payments sales team to win platform license deals
particularly in the North American market.
· Extending product marketing to broaden the awareness of the platform value
proposition across both telcos and new verticals.
· Expanding the Bango Audience sales team specifically in Asia.
· Increased marketing to improve awareness of purchase behavior targeting to
generate more leads.
Bango is an exciting and dynamic business. As you can see from my report the
opportunities ahead of us have never been greater. I realize there is a lot of
content here but if you take just one thing from this report it should be the
excitement that we have for the future of the business as we drive forward on
the journey to hundreds of millions of dollars of revenue and become the
technology behind every payment choice.
Paul Larbey
Chief Executive Officer
CFO Statement
Another year exceeding growth expectations saw Bango deliver a sales increase
of 31.5% and increased adjusted EBITDA* with strong investment to fuel the
future growth of the business.
Bango business model
Bango generated revenues from several streams this year covering payments
(transactional & data monetization through Bango Audiences' purchase
behavior targeting) and non-transactional payments (encompassing platform
licensing fees & integration and subscription bundling).
Change in Presentation Currency
Bango changed its presentation currency for the year ended 31 December 2021 to
US Dollars from Pounds Sterling given that an increasing proportion of revenue
comes from a global customer base including the fast-growing platform business
in the United States and in other countries with USD linked revenues. Bango
further believes that this change in presentation currency change will give
investors and other stakeholders, current and future, a clearer understanding
of Bango's performance over time.
End User Spend (EUS)
EUS, although less correlated than ever with our revenue due to the growth of
new revenue streams, continues to be an important Key Performance Indicator
for the business. The calculation encompasses the total value of transactions
processed by the Bango Platform (excluding taxes) together with a calculation
of the spend from non-payment transactions which gives the pool of data
available to Bango for data monetization. During the year, EUS grew by 73.6%
to $4.1B (2020: $2.4B) reflecting the increased insights available for
Purchase Behavior Targeting.
Revenue and Costs of Sale
Total revenue from continuing operations increased 31.5% to $20.70M (2020:
$15.74M). Bango currently breaks this down into transactional & data
monetization and non-transactional payments (encompassing platform &
technology, licensing of software and integration).
Bango earns revenue from payment transactions processed by the Bango Platform,
from platform and software licenses and from the data insights sold as Bango
Audiences in Marketplace. Revenue, such as integration fees, is recognized on
completion of contractual milestones and after consideration of the
requirements of IFRS 15 (Revenue from Contracts with Customers). Further
consideration was also given to the separation between the integration fees
and the following license fees, where it was judged, based on the contractual
agreements, individual orders and discussions between customers and Bango,
that these were two distinct revenue events.
Gross profit margins of 94.1% (2020: 97.2%) reflect the increased revenue from
the Bango Audiences business which has a higher cost of sales due to the
sharing of revenue back with the data provider and increased costs from
partnership connections.
Operating expenditure of continuing operations
As part of a planned strategy of re-investment to drive growth and strengthen
the Bango platform, Bango's administrative expenses increased to $18.9M,
(2020: $13.7M) as the business continued to invest in Research &
Development and Sales & Marketing in particular. The continued impact of
COVID-19 during the year maintained the reduced costs of travel that were seen
in the prior period. Employees started to return to the office in July 2021.
Bango's Adjusted EBITDA* for the year was $6.18M, (2020: $5.99M). This
reflects the on-going benefit from increased revenue with strong operational
gearing allowing Bango to increase its investment for future growth, but still
achieve a 29.8% Adjusted EBITDA* margin.
The share-based payment charge was $1.55M (2020: $1.06M) calculated using the
Black-Scholes model. The share-based payments relate to the Bango share option
program that enables all Bango employees to share in the growth in value of
Bango. The increase reflects an increase in employees generally and in those
receiving the benefit of the share option program. It is a vital recruitment
and retention tool in an increasingly competitive employment market.
Amortization and depreciation for 2021 was $4.09M (2020: $3.35M) including the
charges arising from the deployment of R&D projects capitalized in prior
years.
Financial results and earnings per share
The total profit after tax of $0.44M (2020: $5.93M) includes Bango's share of
net loss from the NewDeep associate of $2.08M (2020: loss £0.68M) and R&D
tax credits from Bango investment in driving forward its technology together
with the release of a deferred tax liability, together $1.92M (2020: $0.53M).
Excluding the NewDeep associate loss, the core Bango business generated a
profit after tax of $2.52M (2020: $1.63M) for the period.
Basic earnings per share from continuing and discontinued operations was 0.58
cents (2020: 8.09 cents) whilst diluted earnings per share from continuing and
discontinued operations was 0.57 cents (2020: 7.97 cents).
Considering only continuing operations the basic earnings per share was 0.58
cents (2020: 1.40 cents) and diluted earnings per share was 0.57 cents (2020:
1.37 cents).
Statement of financial position
Net assets at 31 December 2021 increased to $36.81M (31 December 2020:
$32.92M) driven by the continued investment in intangible assets that form the
core of the business and the associated R&D tax credit benefit from this.
Receivables and payables both increased as a result of timing issues pushing
revenues and costs towards the end of the year with receivables increasing
from some large sales that were converted in the last quarter and payables
reflecting the increased administration costs. A deferred tax liability of
$1.25M was also reversed in the year. The change in working capital also
benefitted from good cash generation.
Cash
Cash balance, including cash equivalents and cash held in short-term
investments, at 31 December 2021 increased by $1.69M to $9.65M (2020: $7.96M)
assisted by strong sales and proceeds of warrants and share options exercised.
At the end of the year, Bango entered into some short-term forward contracts
against a proportion of incoming currency to reduce volatility from foreign
exchange variations. The figure for cash represents solely Bango cash holdings
and does not contain cash in transit for Bango customers. There are no bank
borrowings.
Intangible assets
Intangible assets net book value of $18.65M (2020: $16.49M) include goodwill
as well as internally developed capitalized R&D. Bango also acquired
intangibles for the benefit of its Audiences business during the year which
will be amortized over 5 years. Intangible asset costs relating to capitalized
internal R&D increased to $23.55M from $18.66M in 2020, reflecting the
continued drive to innovate for future growth. The net value of internally
developed capitalized R&D also increased from $8.98M to $9.84M at the end
of 2021. Internally generated R&D is amortized over 5 to 7 years,
commencing upon deployment, with projects assessed in relation to their
individual cash generation ability.
Liabilities
Total borrowings at 31 December 2021 were $0.11M (2020: $0.20M) consisting of
Right of Use lease liabilities.
Going concern
The combination of growing cash, strong operating cash flow and revenue growth
supports the Directors view that Bango has sufficient funds available to meet
its foreseeable working capital requirements. These requirements support the
planned investments to grow marketing and sales, and to develop new
products.
The Directors have taken into account the wider macro-economic effects,
including foreign exchange and interest rate fluctuations, and have concluded
that the going concern basis remains appropriate.
Matt Garner
Chief Financial Officer
*Adjusted EBITDA is earnings before interest, tax, depreciation, amortization
and share based payment charge
The Annual Report, including full accounts, is available on our website,
https://bangoinvestor.com/reports-presentations/
(https://bangoinvestor.com/reports-presentations/) , and will be sent out to
shareholders shortly.
Audited results for the year ended 31 December 2021
Consolidated statement of comprehensive income
2021 2020
$ '000 $ '000
Continuing operations
Revenue 20,704 15,743
Cost of sales (1,231) (447)
Gross profit 19,473 15,296
Administrative expenses (18,928) (13,715)
Adjusted EBITDA 6,178 5,989
Share based payments (1,547) (1,055)
Depreciation (224) (434)
Amortization (3,862) (2,919)
Operating profit 545 1,581
Interest payable (10) (34)
Interest income 11 -
Share of net loss of associates accounted for using the equity method (2,081) (677)
(Loss) / profit before taxation from continuing operations (1,535) 870
Income tax 1,977 151
Profit from continuing operations 442 1,021
Profit from discontinued operations - 4,909
Profit for the financial year (attributable to equity holders of the company) 442 5,930
Other comprehensive Income
Items that may be reclassified to profit or loss
Foreign exchange on consolidation (214) 1,558
Foreign exchange realized on discontinued operations - 44
Profit and total comprehensive income for the financial year 228 7,532
Earnings per share attributable to the equity holders of the parent
Basic earnings per share
From continuing operations 0.58c 1.40c
From continuing and discontinued operations 0.58c 8.09c
Diluted earnings per share
From continuing operations 0.57c 1.37c
From continuing and discontinued operations 0.57c 7.97c
Consolidated statement of financial position as at 31 December 2021
31 Dec 2021 31 Dec 2020 1 Jan 2020
$ '000 $ '000 $ '000
ASSETS
Non-current assets
Property, plant and equipment 242 155 375
Right of use assets 83 179 1,235
Intangible assets 18,645 16,490 16,188
Investments accounted for using the equity method 5,630 7,771 -
24,600 24,595 17,798
Current assets
Trade and other receivables 7,099 4,367 3,434
Research and development tax credits 778 - 792
Short-term investments 945 - -
Cash and cash equivalents 8,706 7,958 3,565
17,528 12,325 7,791
Total assets 42,128 36,920 25,589
EQUITY
Capital and reserves attributable to equity holders of the parent company
Share capital 24,392 24,033 23,028
Share premium account 62,057 60,173 56,575
Merger reserve 2,886 2,886 2,886
Share based payment reserve 3,635 3,306 6,005
Foreign exchange reserve 2,109 2,323 721
Accumulated losses (58,265) (59,804) (69,714)
Total equity 36,814 32,917 19,501
LIABILITIES
Current liabilities
Trade and other payables 5,209 2,552 4,538
Lease liabilities 56 100 401
5,265 2,652 4,939
Non-current liabilities
Lease liabilities 49 102 992
Deferred tax liability - 1,249 157
49 1,351 1,149
Total liabilities 5,314 4,003 6,088
Total equity and liabilities 42,128 36,920 25,589
Consolidated cash flow statement for the year ended 31 December 2021
2021 2020
$ '000 $ '000
Net cash generated from operating activities 6,001 4,649
Cash flows used by investing activities
Purchases of property, plant and equipment (209) (109)
Expenditure on capitalized development costs and intangible assets (5,102) (2,478)
Acquisition of other intangibles (1,048) -
Short-term investments (945) -
Purchase of remaining shares in Audiens - (1,352)
Net cash expended on disposal of subsidiary - (462)
Interest received 11 -
Net cash used in investing activities (7,293) (4,401)
Cash flows generated from financing activities
Proceeds from issuance of ordinary shares 2,243 4,603
Interest payments (7) -
Interest payments on finance lease obligations (3) (34)
Capital repayments of finance lease obligations (97) (318)
Net cash generated from financing activities 2,136 4,251
Net increase in cash and cash equivalents 844 4,499
Cash and cash equivalents at beginning of year 7,958 3,565
Exchange differences on cash and cash equivalents (96) (106)
Cash and cash equivalents at end of year 8,706 7,958
Consolidated statement of changes in equity for the year ended 31 December
2021
Share capital Share premium account Merger reserve Share-based payment reserve Foreign exchange reserve Retained earnings Total
$ '000 $ '000 $ '000 $ '000 $ '000 $ '000 $ '000
Balance at 1 January 2021 24,033 60,173 2,886 3,306 2,323 (59,804) 32,917
Share based payments - - - 1,547 - - 1,547
Transfer for exercised options - - - (1,097) - 1,097 -
Exercise of share options and warrants 359 1,884 - - - - 2,243
Transactions with owners 359 1,884 - 450 - 1,097 3,790
Profit for the year - - - - - 442 442
Foreign exchange translation - - - (121) 121 - -
Foreign exchange on consolidation - - - - (335) - (335)
Total comprehensive income for the year - - - (121) (214) 442 107
Balance at 31 December 2021 24,392 62,057 2,886 3,635 2,109 (58,265) 36,814
Share capital Share premium account Merger reserve Share-based payment reserve Foreign exchange reserve Retained earnings Total
$ '000 $ '000 $ '000 $ '000 $ '000 $ '000 $ '000
Balance at 1 January 2020 23,028 56,575 2,886 6,005 721 (69,714) 19,501
Share based payments - - - 1,055 - - 1,055
Transfer for exercised options - - - (3,980) - 3,980 -
Issue of new shares 874 3,094 - - - - 3,968
Exercise of share options 131 504 - - - - 635
Transactions with owners 1,005 3,598 - (2,925) - 3,980 5,658
Profit for the year - - - - - 5,930 5,930
Foreign exchange realized on discontinued operations - - - - 44 - 44
Foreign exchange translation - - - 226 (226) - -
Foreign exchange on consolidation - - - - 1,784 - 1,784
Total comprehensive income for the year - - - 226 1,602 5,930 7,758
Balance at 31 December 2020 24,033 60,173 2,886 3,306 2,323 (59,804) 32,917
1 General information
In accordance with Section 435 of the Companies Act 2006, the Group confirms
that the financial information for the years ended 31 December 2021 and 2020
are derived from the Group's audited financial statements and that these are
not statutory accounts and, as such, do not contain all information required
to be disclosed in the financial statements prepared in accordance with
UK-adopted International Accounting Standards. The statutory accounts for the
year ended 31 December 2020 have been delivered to the Registrar of Companies.
The statutory accounts for the year ended 31 December 2021 have been audited
and approved but have not yet been filed.
The financial statements for the year ended 31 December 2021 (including the
comparatives for the year ended 31 December 2020) were approved by the Board
of Directors on 7 March 2022. The Group's audited financial statements for the
year ended 31 December 2021 received an unqualified audit opinion and the
auditor's report contained no statement under section 498(2) or 498(3) of the
Companies Act 2006.
2 Basis of preparation
The Group financial statements, which consolidate those of Bango PLC and all
of its subsidiaries, have been prepared under the historical cost convention
and under the basis of going concern.
Bango has prepared its Report and accounts for the year ended 31 December
2021, in accordance with UK-adopted International Accounting Standards
("IFRS"). The principal accounting policies adopted are consistent with those
disclosed in the financial statements for the year ended 31 December 2020.
The Group's presentation currency has changed in the year from Pound Sterling
('Sterling') to US Dollars ('USD'), this is on the basis that an increasing
proportion of the Group global customer transactions are in US Dollars or USD
linked currencies. We consider that this change will give investors and other
key stakeholders a clearer understanding of Bango PLC's performance over
time. Following this change in accounting policy the impact was applied
retrospectively and thus the comparatives in the consolidated financial
statements were restated in US Dollars, as required by IAS 8.
3 Revenue
(a) Revenue analysis
Revenue by product:
2021 2020
$ '000 $ '000
Payments - transactional & data monetization 15,684 12,056
Payments non-transactional (licensing of software, platform & technology), 5,020 3,687
and integration
20,704 15,743
Most income is currently recognized at a point in time rather than over time.
(b) Geographical analysis
Bango's revenue from external customers is divided into the following
geographical areas.
2021 2020
$ '000 $ '000
United Kingdom (country of domicile) 948 1,137
EU 2,213 479
USA and Canada 4,428 2,720
Rest of the World 13,115 11,407
20,704 15,743
All turnover is spread over many territories, of which $6.7M comes from two
partners in the Rest of the World and $2.6M comes from a partner in USA and
Canada. (2020: $1.8M from the partner in the USA and Canada, $6.9M from two
partners in the Rest of the World).
4 Earnings per share
(a) Basic
Basic earnings per share are calculated by dividing the profit attributable to
equity holders of Bango PLC by the weighted average number of ordinary shares
in issue during the year.
Basic earnings per share
2021 2020
$ '000 $ '000
Profit attributable to equity holders of Bango PLC:
From continuing operations 442 1,021
From discontinued operations - 4,909
Profit attributable to equity holders of Bango PLC 442 5,930
Weighted average number of ordinary shares in issue 75,640,815 73,347,201
From continuing operations 0.58c 1.40c
From discontinued operations - 6.69c
Basic earnings per share attributable to equity holders from continuing and 0.58c 8.09c
discontinued operations
Basic adjusted earnings per share
Adjusted earnings per share is a key financial information which discloses the
financial performance of the core business for which the directors have direct
control. Adjusted basic earnings per share is determined as the profit
attributable to equity holders of Bango PLC excluding the Bango share of the
net loss of associate for the period and discontinued operations divided by
the weighted average number of ordinary shares in issue during the year.
2021 2020
$ '000 $ '000
Profit attributable to equity holders of Bango PLC:
From continuing operations 442 1,021
Share of net loss of associates accounted for using the equity method 2,081 677
Profit attributable to equity holders of Bango PLC 2,523 1,698
Weighted average number of ordinary shares in issue 75,640,815 73,347,201
Basic earnings per share attributable to equity holders from continuing 3.34c 2.32c
operations
(b) Diluted
Diluted earnings per share is calculated by adjusting the weighted average
number of shares outstanding to assume conversion of all dilutive potential
ordinary share options.
Diluted earnings per share
2021 2020
$ '000 $ '000
Profit attributable to equity holders of Bango PLC 442 5,930
Weighted average number of ordinary shares in issue 75,640,815 73,347,201
Options 1,579,100 1,036,358
Weighted average number of ordinary shares in issue (including options) 77,219,915 74,383,559
From continuing operations 0.57c 1.37c
From discontinued operations - 6.60c
Diluted earnings per share attributable to equity holders from continuing and 0.57c 7.97c
discontinued operations
Diluted earnings per share is calculated by adjusting the weighted average
number of shares outstanding to assume conversion of all dilutive potential
ordinary share options.
Diluted adjusted earnings per share
Adjusted basic earnings per share is determined as the profit attributable to
equity holders of Bango PLC excluding the Bango share of the net loss of
associate for the period divided by the weighted average number of ordinary
shares in issue during the year.
2021 2020
$ '000 $ '000
Profit attributable to equity holders of Bango PLC 2,523 1,698
Weighted average number of ordinary shares in issue 75,640,815 73,347,201
Options 1,579,100 1,036,358
Weighted average number of ordinary shares in issue (including options) 77,219,915 74,383,559
Diluted earnings per share attributable to equity holders from continuing 3.27c 2.28c
operations
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