Final Results -2-

the idea of micro networks was fairly new and while we have been in development 
the awareness of the possibilities of these types of social tools has increased. 
 
The company's income has risen each month since introduction which is a positive 
signal. However, it is still early days and aside from building the subscription 
base we have learnt and are learning from our users. This in turn has led us to 
a better understanding of the market and the direction that SocialGO should take 
to maximise its appeal. 
 
Initially, in line with industry comparisons we focused on how many people had 
created a 'Free' network. However, although those numbers have continued to 
climb through the period, we also eschewed the 'advertising income' based model 
favoured by others to concentrate on Premium subscribing and the sale of Widgets 
(Apps), Themes, extra modules and bandwidth. We see the 'Free' offering as a 
marketing promotion, not an income producing product. In that sense it is not 
relevant to the success of the company nor do we allow many key features of the 
product in our Free version, preferring to guide the user towards our Premium 
services and usher away those who are unlikely to ever pay or upgrade.The 
commercial sense is obvious - too many Web 2.0 companies spend vast amounts of 
investors' money on servers, bandwidth and customer support, only to get a few 
crumbs of advertising income generated by a costly free customer base in a bid 
for the glory of big numbers of users of which only a small number produce any 
income. 
 
 
I can understand that as this area is so new, many of our shareholders might be 
curious about the market and try to make metric comparisons to other well known 
names in the industry. For example, people often ask what the difference is 
between SocialGO and Facebook or Twitter. There are many differences, but the 
easiest way to look at it is that SocialGO is in fact a platform and a SaaS 
(software as a service). To this end it is not in itself a social network, 
rather it is a tool that allows people to create their own social network, but 
it also does a range of other things, including acting as a web presence 
(instead of a normal website for example) and as a way for people to publish 
their blogs, run forums or even their own marketplace.  With the present 
features and those in the pipeline, this platform will grow more into a 
commercial tool than something to replicate Facebook and already these micro 
networks are beginning to be seen as valuable, particularly if they have a 
membership that is active in a certain niche area. 
 
I spent five years living in Silicon Valley building my video games company in 
the Nineties. I intend to spend more time there promoting SocialGO in the coming 
months. We have a small office ready to form a bridgehead to the American market 
which is not only our largest market (already in traffic terms) but also the 
most mature in the adoption of the idea of micro networking. We need to be among 
our Web 2.0 (or indeed 3.0) peers and we need access to those people who can 
help market the product as well as those companies that can help partner with us 
to spread its reach. 
 
 
Dominic Wheatley 
Chief Executive Officer 
2 September 2009 
 
 
 
 
The financial information in this preliminary announcement does not constitute 
the company's statutory accounts for the years ended 31 March 2009 or 31 March 
2008 but is derived from those accounts. The statutory accounts for the year 
ended 31 March 2008 have been delivered to the Registrar of Companies and those 
for the year ended 31 March 2009 will be delivered following the Company's 
annual general meeting. The auditors have reported on the financial statements 
for the year ended 31 March 2009; their report was unqualified, did not include 
references to any matters to which the auditors drew attention by way of 
emphasis without qualifying their report and did not contain statements under 
the Companies Act 1985, s 237(2) or (3). The audit report in respect of the year 
ended 31 March 2008 was also unqualified and did not contain statements under 
the Companies Act 1985, s 237(2) or (3) however, it did include a reference to 
material uncertainties over the company's ability to continue as a going concern 
to which the auditors drew attention by way of emphasis without qualifying their 
report. 
 
 
 
 
Consolidated income statement for the year ended 31 March 2009 
 
 
+--------------------------------------------+------------------+----------------+ 
|                                            | 31 March 2009    |  31 March 2008 | 
|                                            | GBP'000          |        GBP'000 | 
+--------------------------------------------+------------------+----------------+ 
|                                            |                  |                | 
+--------------------------------------------+------------------+----------------+ 
| Revenue                                    |               30 |            257 | 
+--------------------------------------------+------------------+----------------+ 
| Cost of sales                              |             (48) |           (94) | 
+--------------------------------------------+------------------+----------------+ 
|                                            |        _______   |        _______ | 
+--------------------------------------------+------------------+----------------+ 
| Gross (loss)/ profit                       |             (18) |            163 | 
+--------------------------------------------+------------------+----------------+ 
|                                            |                  |                | 
+--------------------------------------------+------------------+----------------+ 
| Research and development costs             |            (838) |          (350) | 
+--------------------------------------------+------------------+----------------+ 
| Administrative expenses - other            |            (840) |          (805) | 
+--------------------------------------------+------------------+----------------+ 
| Administrative expenses - exceptional      |                - |           (19) | 
+--------------------------------------------+------------------+----------------+ 
|                                            |                  |                | 
+--------------------------------------------+------------------+----------------+ 
| Total administrative expenses              |          (1,678) |        (1,174) | 
+--------------------------------------------+------------------+----------------+ 
|                                            |        _______   |      _______   | 
+--------------------------------------------+------------------+----------------+ 
| Loss from operations                       |          (1,696) |        (1,011) | 
+--------------------------------------------+------------------+----------------+ 
|                                            |                  |                | 
+--------------------------------------------+------------------+----------------+ 
| Finance income                             |               10 |             27 | 
+--------------------------------------------+------------------+----------------+ 
|                                            |        _______   |      _______   | 
+--------------------------------------------+------------------+----------------+ 
| Loss before and after tax for the year     |          (1,686) |          (984) | 
+--------------------------------------------+------------------+----------------+ 
|                                            | _______          |        _______ | 
+--------------------------------------------+------------------+----------------+ 
|                                            |                  |                | 
+--------------------------------------------+------------------+----------------+ 
| Loss per share                             |                  |                | 
+--------------------------------------------+------------------+----------------+ 
| Basic and diluted                          |           (1.8)p |     (2.5)p     | 
+--------------------------------------------+------------------+----------------+ 
|                                            | _______          | _______        | 
+--------------------------------------------+------------------+----------------+ 
 
 
 
 
Consolidated balance sheet at 31 March 2009 
 
 
+-------------------------------------------------------------+-------------+-------------+-------------+------------+ 
|                                                             | 31 March                  | 31 March                 | 
+-------------------------------------------------------------+---------------------------+--------------------------+ 
|                                                             | 2009                      | 2008                     | 
+-------------------------------------------------------------+---------------------------+--------------------------+ 
|                                                             | GBP'000                   | GBP'000                  | 
+-------------------------------------------------------------+---------------------------+--------------------------+ 
| Assets                                                      |             |             |             |            | 
+-------------------------------------------------------------+-------------+-------------+-------------+------------+ 
| Non-current assets                                          |             |             |             |            | 
+-------------------------------------------------------------+-------------+-------------+-------------+------------+ 
| Property, plant and equipment                               |             | 4           |             | 9          | 
+-------------------------------------------------------------+-------------+-------------+-------------+------------+