Bango plc
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Description
Bango’s key product is the Bango Payment Platform (BPP). This is a unique software architecture that allows mobile users to make one-click payments to app stores via their mobile phone bill. The suite is enhanced with the Bango Boost, Bango Dashboard and Bango Grid analytics applications and the Bango 24/7 and Bango Care monitoring and customer service products.
Our view
Bango offers an attractive combination of a growing market backdrop, strong operational momentum and a solid platform with good headroom for growth. This is all underpinned by a strong financial position.
Financial Summary
Year end: December (£m unless shown)
| 2015 | 2016 | 2017 | 2018 | 2019 | |
|---|---|---|---|---|---|
| EUS (Non-GAAP) | 44.7 | 132.3 | 271.4 | 540.0 | 1,404.0 |
| Revenue | 1.3 | 2.6 | 4.2 | 7.1 | 11.3 |
| Adj EBITDA | -3.1 | -2.4 | -1.6 | 1.0 | 4.3 |
| Fully adj PBT | -5.0 | -4.1 | -3.6 | -1.0 | 2.0 |
Profit & Loss
Year end: December (£m unless shown)
| 2015 | 2016 | 2017 | 2018 | 2019 | |
|---|---|---|---|---|---|
| EUS (Non-GAAP) | 44.7 | 132.3 | 271.4 | 540.0 | 1,404.0 |
| Revenue | 1.3 | 2.6 | 4.2 | 7.1 | 11.3 |
| Adj EBITDA | (3.1) | (2.4) | (1.6) | 1.0 | 4.3 |
| Reported PBT | (5.0) | (4.7) | (3.9) | (1.3) | 1.7 |
| Fully adj PBT | (5.0) | (4.1) | (3.6) | (1.0) | 2.0 |
| NOPAT | (2.6) | (2.9) | (2.0) | 0.5 | 3.6 |
| Reported EPS | (9.0) | (6.8) | (5.2) | (1.5) | 2.8 |
| Fully adj EPS | (9.5) | (6.3) | (5.5) | (1.5) | 2.8 |
| Dividend per share | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
Cash Flow & Balance Sheet
Year end: December (£m unless shown)
| 2015 | 2016 | 2017 | 2018 | 2019 | |
|---|---|---|---|---|---|
| Operating cash flow | (3.5) | (2.6) | (0.7) | (1.0) | 5.3 |
| Free Cash flow | (4.1) | (6.0) | (2.2) | (1.9) | 4.4 |
| FCF per share | (7.8) | (9.2) | (3.4) | (2.7) | 6.3 |
| Acquisitions | 0.0 | 0.0 | 0.0 | (1.3) | 0.0 |
| Disposals | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| Shares issued | 10.5 | 0.1 | 1.2 | 4.8 | 0.0 |
| Currency effects | (0.1) | (0.1) | 0.0 | 0.0 | 0.0 |
| Net cash flow | 5.9 | (6.2) | (0.8) | 1.6 | 4.4 |
| Cash & equivalents | 12.2 | 5.7 | 4.8 | 6.5 | 10.9 |
| Net (Debt)/Cash | 11.8 | 5.6 | 4.6 | 6.2 | 10.6 |
Nav & Returns
Year end: December (£m unless shown)
| 2015 | 2016 | 2017 | 2018 | 2019 | |
|---|---|---|---|---|---|
| Net asset value | 15.9 | 12.4 | 10.7 | 10.7 | 13.7 |
| NAV/share | 29.9 | 19.1 | 16.2 | 15.4 | 19.6 |
| Net Tangible Asset Value | 12.5 | 6.3 | 4.6 | 2.7 | 5.5 |
| NTAV/share | 19.3 | 9.7 | 7.1 | 3.9 | 7.8 |
| Average equity | 12.9 | 14.1 | 11.5 | 10.7 | 12.2 |
| Post-tax ROE (%) | (37.4%) | (31.2%) | (29.8%) | (9.6%) | 16.0% |
Metrics
Year end: December (£m unless shown)
| 2015 | 2016 | 2017 | 2018 | 2019 | |
|---|---|---|---|---|---|
| EUS growth | 77.5% | 196.1% | 105.1% | 99.0% | 160.0% |
| Revenue growth | (74.5%) | 101.8% | 58.2% | 70.4% | 59.1% |
| Adj EBITDA growth | (14.5%) | (22.9%) | (35.3%) | (160.8%) | 346.7% |
| Adj PBT growth | (7.2%) | (18.6%) | (12.0%) | (71.3%) | (289.2%) |
| Adj EPS growth | 10.8% | (33.0%) | (13.8%) | (72.9%) | (289.2%) |
| Dividend growth | N/A | N/A | N/A | N/A | N/A |
| Margin on EUS | 2.9% | 2.0% | 1.5% | 1.3% | 0.8% |