Bango PLC (AIM:BGO, OTCQX:BGOPF) chief financial officer, Matt Wilson, talked with Proactive about the company’s strategic progress, including a newly secured £15 million revolving credit facility from NatWest. This new facility replaces a previous £3 million overdraft and is aimed at enhancing financial flexibility and strengthening Bango’s capital structure.
Wilson said 2024 was a “transformational year” for the company, with double-digit revenue growth across both transactional payments and its digital vending machine. Annual recurring revenue from the digital vending machine increased by 59% to £14 million, supported by the addition of nine new partners and strong customer expansion. Net revenue retention stood at 125%.
On profitability, Wilson highlighted a 139% increase in adjusted EBITDA and a £7 million reduction in core administrative expenses, marking a significant improvement in operational efficiency.
He noted that Bango has also secured an enhanced loan facility with strategic shareholder NHN, further reinforcing the balance sheet.
Looking ahead, Wilson pointed to strategic investments in subscription bundling and digital vending as key drivers of a strong sales pipeline. He also emphasised that efficiency initiatives and reduced capital expenditure will help the business enter FY26 on a stronger footing, with expectations for meaningful cash generation.
Proactive: Maybe talk to us a little bit about what attracted you to join the company.
Matt Wilson: Sure. So, yeah, I recently joined Bango at the beginning of the year. What attracted me in the first place really was Bango’s ability to solve what I'd call a functional problem for all parties within its ecosystem. Be that the reseller channels we work with — for example, the telcos — they’re looking to reduce customer churn. The content providers are looking to effectively lower their cost of customer acquisition. And then the underlying customers are trying to manage all their subscription content in one place.
So when you have a win-win-win dynamic like that, I think it makes for quite an investable proposition. Our digital vending machine is a unique product in a fast-growing market with strong tailwinds. I think Bango is well-positioned to lead, so it's currently a very exciting phase for us as a business as we continue on our growth journey.
Proactive: I know you got right to work when you joined the company because you had to get the full-year 2024 numbers out. Talk to me a little bit about what you saw in the financial highlights there.
Matt Wilson: Sure. I think 2024 marked quite a transformational year for Bango. We delivered double-digit revenue growth across both our transactional payments business and the digital vending machine. Our annual recurring revenue grew 59% to £14 million within the digital vending machine.
We added nine new partners to the platform and saw growth in our existing customer base. Our net revenue retention continues to track above 100%-125% for the period. We were disciplined in cost management, reducing core administrative expenses, which are unaffected by depreciation, amortisation, exceptionals, and R&D capitalisation, by £7 million. That’s a really good result.
Putting all that together, we saw a 139% improvement in adjusted EBITDA, which is a strong result and something we can be proud of. After the year-end, we also took further steps to materially strengthen the balance sheet.
Proactive: That’s key — obviously sales and recurring revenue are important, but having strength in the balance sheet is as well. I know you raised some financing recently. Take me through a bit about that and why it's important.
Matt Wilson: Sure. We've secured two new facilities: one is an enhanced loan facility with our strategic shareholder NHN, and the other is a new £15 million revolving credit facility with NatWest. That replaces our existing £3 million overdraft. So, we’ve moved to a much larger, committed facility, which gives us more security in our capital structure.
Both financings bolster the balance sheet and give the business flexibility and the financial firepower to pursue future initiatives. It also shows the confidence that stakeholders have in Bango and our strategic plan.
Proactive: Let’s talk about the strategic plan. What’s the outlook for the company this year?
Matt Wilson: Strategic investment in the digital vending machine and growth in subscription bundling are driving a strong sales pipeline. We see plenty of opportunity there, which is exciting. As well as revenue growth, we’re focused on profitability. A series of efficiency initiatives launched this year will support both gross margin improvements and cost reductions.
Combined with a reduction in CapEx spend, the business will enter fiscal year 2026 on a stronger footing. We believe we’ll be well positioned to deliver meaningful cash generation in that year. As I said on our call Friday, we look to the future with a lot of confidence and are ready for the challenges and opportunities ahead.
Proactive: Exciting times ahead for sure. Matt, thanks so much. Great to catch up with you and congratulations again on the new role. We'll talk to you again soon.