Final Results

 

TIDMBGT 
 
RNS Number : 4186Y 
Bright Things plc 
02 September 2009 
 

Bright Things plc 
("Bright Things" or the "Company") 
 
 
PRELIMINARY RESULTS for the year ended 31st March 2009 
 
 
Bright Things today announces today announces its full year results for the year 
ended 31 March 2009. 
 
 
Financial Highlights: 
 
 
  *  Revenues fell to GBP30,000 (2007: GBP257,000). The results reflecting the fact 
  that the historic business of developing iDVD games was beginning to wind down 
  and with the main focus being on the completion of development and launch of 
  SocialGO. The Company saw the first income from SocialGO following the February 
  2009 launch. 
  *  Gross Loss for the year was GBP18,000 (2007: GBP163,000 Profit) 
  *  Loss per share fell to 1.8p (2007: 2.5p) 
 
Operational Highlights: 
 
 
  *  Completed development and launched the first version of SocialGO in February 
  2009 
  *  Following the February 2009 launch of SocialGO, month on month revenues have 
  grown as we build our subscription income from premium customers. 
  *  There has been a continued investment in Research & Development costs into the 
  development and improvement of SocialGO. 
  *  Exhibited SocialGO at the BETT2009 show 
  *  Exhibited SocialGO at the Social Networking World Forum in March 2009 
  *  Completed an additional fundraising of GBP784,500 (before expenses) in October 
  2008, in which 62,760,000 new ordinary shares were allotted at a price of 1.25p. 
 
Placing 
 
 
The Company has raised GBP940,000 before expenses by way of a placing of 
75,200,000 new ordinary shares of 1 penny each ("Placing Shares") at a price of 
1.25 pence per share ("the Placing"). The Placing Shares will, when issued and 
fully paid, rank pari passu in all respects with the existing ordinary shares. 
The Placing is conditional upon admission of the Placing Shares to trading on 
AIM and application has been made for them to be admitted to trading on AIM with 
effect from 4 September 2009 ("Admission"). The proceeds of the Placing will be 
used to market SocialGO and for general working capital purposes. 
 
 
Dominic Wheatley, Chief Executive, and Ian Livingstone, Chairman, are both 
participating in the Placing and as a result their interests in the Company will 
increase to 69,005,102 ordinary shares (25.5 per cent.) and 11,998,880 ordinary 
shares (4.4 per cent.) respectively. The balance of the Placing Shares have been 
placed with institutional investors by the Company's broker, Astaire Securities 
Plc, and with SocialGO staff members. 
 
 
Following Admission, the Company will have 270,916,328 ordinary shares of 1 
penny each in issue. 
 
Annual Report and Accounts 
 
 
The Annual Report and Accounts will be despatched to Shareholders on Monday 
7 September and will be available on the Company's website: 
www.brightthings.com 
 
 
For further information please contact: 
 
 
Bright Things PLC0845 299 7289 
Dominic Wheatley, CEO 
Edward Levey, Finance Director 
 
 
Astaire Securities Plc      020 7448 4400 
William Vandyk 
 
 
 
 
Chairman's Statement 
 
 
The year has seen Bright Things focus on refining and preparing its innovative 
new product SocialGO, the social network maker, which was launched in February 
2009. 
 
 
SocialGO has been designed to provide secure, dedicated social networks for 
Groups and Organisations. Whilst "SocialGO" has similar features and functions 
to social network sites on the Internet such as Facebook, MySpace or Bebo it is 
distinct by virtue of it enabling Groups and Organisations to create and 
maintain their own social networks. 
 
 
SocialGO is designed to be highly customisable in both design and layout to suit 
the specific requirements of the user. The Directors consider there are numerous 
types of Groups and Organisations for whom SocialGO could become an 
indispensable tool, be it for schools, companies, local sports leagues or simply 
extended family networks. 
 
 
As I reported in the Interim Results, Group Revenues have declined significantly 
in the period to 31 March 2009 and this reflected the fact that the historic 
business of developing iDVD games was beginning to wind down organically as 
sales of the Tiger Woods golf DVD game slowed which was to be expected given 
that the game was released prior to Christmas 2007. 
 
 
The year had been devoted to the development of SocialGO. 
 
 
Whilst overall Revenues have declined significantly, the Company saw the first 
income from SocialGO following the February 2009 launch. Month on month revenues 
have grown since then as we build our subscription income from Premium 
customers. We expect to have further news on progress in the coming months. 
 
 
There has been a significant rise in Research & Development costs which has been 
invested into the development of SocialGO. I can report that other costs have 
been rigorously controlled and we will continue to work hard to ensure the 
Company keeps costs to a minimum. 
 
 
Progress 
 
 
The group has made progress in a number of areas 
  *  Completed an additional fundraising of GBP784,500 (before expenses) in October 
  2008, in which 62,760,000 new ordinary shares were allotted at a price of 1.25p. 
  *  Completed development and launched the first version of SocialGO in February 
  2009 
  *  Exhibited SocialGO at the BETT2009 show 
  *  Exhibited SocialGO at the Social Networking World Forum in March 2009 
  *  Continued to strictly monitor all costs in order to keep expenses to a minimum 
 
Results 
 
 
Revenue at GBP30,000 (2008 - GBP257,000) primarily consists of sales and 
royalties from iDVD games along with sales from SocialGO after the February 2009 
launch. Segmental analysis of revenue can be found in note 3 to the accounts. 
 
 
The loss before and after tax increased to GBP1,686,000 (2008 - GBP984,000), 
with cost of sales at GBP48,000 (2008 - GBP94,000) research & development costs 
at GBP838,000 (2008 - GBP350,000), other administrative expenses at GBP840,000 
(2008 - GBP824,000) and finance income of GBP10,000 (2008 - GBP27,000). Other 
administrative expenses include no charge for impairment of IP (2008 - 
GBP19,000) and a charge for share based payments of GBP50,000 (2008 - 
GBP92,000). Research and development costs include a charge for share based 
payments of GBP153,000. 
 
 
While administrative expenses are materially unchanged from last year, work on 
SocialGO has increased research and development costs. All expenditure continues 
to be closely monitored. 
 
 
The Group had cash deposits of GBP84,000 (2008 - GBP601,000) at the Balance 
Sheet date. 
 
 
Prospects 
 
 
Development work on improving the SocialGo product continues. 
 
 
Sales to date have been through the internet with a small amount of marketing 
and as I reported in the Interim Report it has become clear that The United 
States is our largest and most advanced potential customer base. The Company is 
planning to increase activity in that market towards the end of the year and 
also increase marketing expenditure. 
 
 
Whilst early revenues are encouraging, myself and the Board as a whole recognise 
that, as with any new product in a relatively new market, success is not 
guaranteed. In light of the inherent uncertainty surrounding our forecast 
revenues, subsequent to the financial year end, the company has raised, and 
continue to raise, what we believe to be sufficient funds to continue with our 
commercialisation of SocialGO for the foreseeable future and refer the reader to 
the basis of preparation of these financial statements contained within note 1. 
 
 
The Board remains excited about the prospects offered by SocialGO. The growth of 
similar types of products is encouraging and the Board considers the product to 
be well positioned to take a stake in this market. 
 
 
Placing 
 
 
We are pleased to announce that we have raised an additional GBP940,000, before 
expenses, by way of a placing of 75,200,000 new ordinary shares at a price of 
1.25p per share. These funds will be used to expand the marketing operations of 
the Company in order to promote SocialGO and accelerate its growth. Both Dominic 
Wheatley and I have participated in the placing and as a result our interests 
will increase to 25.5% and 4.4% of the company respectively. 
 
 
Post Balance Sheet Events 
 
 
On 30 September 2008 the Company announced the appointment of Charles Delamain 
as Chief Operating Officer and his work and enthusiasm until the year end was 
superb. It was therefore a great shock when the Company was informed that 
Charles had died in a road traffic accident on 6 April 2009. Our thoughts 
continue to be with his family. 
 
 
On 8 April 2009 the Company raised GBP750,500 from the issue of 60,040,000 new 
ordinary shares at 1.25p per share and, as described above, has today announced 
the placing of a further 75,200,000 new ordinary shares at 1.25p per share. 
 
 
We continue to explore all opportunities to utilise the Company's expertise and 
intellectual property. 
 
 
Overheads have remained constant and your Board will continue to carefully 
monitor the working capital requirements of the Company. 
 
 
Finally, I would like to thank all employees for their hard work and dedication 
during the year. 
 
 
Ian Livingstone 
Chairman 
2 September 2009 
 
 
 
 
Chief Executive's Report 
 
 
The year has been important in laying the foundations for the company's future 
growth. After several months of beta testing we took SocialGO.com live in 
February 2009. SocialGO is being used by network owners for numerous different 
types of communities and there is no limit to the sort of purpose or the number 
of purposes to which it can be put. We urge shareholders to visit our blog at 
www.socialgo.com/blog to witness the range of featured networks to get an idea 
of what users are doing with the product. 
 
I am very pleased with the development effort and I congratulate the team at 
GOWIT for the quality of SocialGO which is all and more than was envisaged when 
we started the project two years ago. In many ways the timing of introduction 
could be good too; whereas social networking was already understood back then,