Trading Update and Board Changes

RNS Number : 9936W

SocialGO plc

08 February 2012

 



8 February 2012

SocialGO Plc

 ("SocialGO" or the "Company")

Trading Update and Board Changes

SocialGO, the AIM-quoted software developer and provider of "Software as a Service" social media applications, has today released the following update on trading during its financial year ended 31 December 2011. The Company's preliminary results will be announced on 14 March 2012.

Version 2

The Company released Version 2 of SocialGO's proprietary software in October 2011. This represented a significant event in the continuing evolution of SocialGO's business model as the Company moves to a product that caters for a broader customer base who seek to leverage social networking tools in web-based applications. Version 2 is not an extension of Version 1 but a new product, with greater emphasis on connectivity with the major social networks Facebook and Twitter.

In the three months following the release of Version 2 the service has been trialled by thousands of visitors to our site who are seeking to create online communities.  The software has received positive comments from customers, particularly in relation to the stability and flexibility of the platform.  During that time a number of trials have been conducted by the Company on the product, focused on the adoption process, the addition of new features, and on varying theme options. The diligent testing of these features and processes has taken some time to execute, and as part of an on-going learning process is subject to continued revision and trials. Different price plans have also been trialled along with different versions of our 'Concierge' offering.

Sales and Marketing

Sales and marketing initiatives have focused on both online and offline channels.  The online initiatives have focused on search engine optimisation, evaluating pay-per-click options and alternative www.SocialGO.com layouts and informational content.  The offline initiatives are focused on discussions with various sales channel providers.

Revenue

We continue to receive revenue from existing Version 1 customers but are no longer selling that software. Revenue from Version 2 has been growing month on month, and we have recently introduced our regular 'Concierge' version of the product.  Sales of new subscriptions in January were double that of December and with the latest improvements to the on-boarding process we have recently seen a significant increase in customer trials which is very encouraging.

Business Development

Alongside the existing on-line focused sales and marketing efforts, the Company has continued to develop strategies to promote the platform.  One of these initiatives has resulted in a Memorandum of Understanding being entered into to form a joint venture with Muronia Ltd, a provider of online retail solutions to the music, entertainment and sports industries.  The joint venture will target high value clients seeking to directly exploit their commercial rights to their fan bases through their own dedicated social networks.  The first customer signed up under this agreement was leading British band Kasabian whose network, www.kasabianlive.com, was launched in December 2011.  Efforts are currently underway to continue to build on this success with initiatives in similar segments that will leverage the SocialGO product including promising discussions with a major US media group.

Alex Halliday, CEO, commented:

"With Version 2 out we are able to closely look at how people are using the software, where they are being successful, and critically how we can improve their performance. The motivation of our customers to create online communities with SocialGO is huge, with thousands turning up at www.SocialGO.com  daily, keen to grow an online presence for their community. 

This growing interest is an excellent opportunity for the company and with the software having proven itself as a stable and flexible platform we are now concentrating our efforts on giving our customers a vibrant and active community that is up and running in minutes and continues to grow and develop over time. We will shortly be introducing a revised customer journey which will feature a new setup process, new network structure and critically, dramatically improved Facebook integration which will help the sites launch, grow and sustain activity. In addition, the upcoming releases will add definition to how the SocialGO sites exist in parallel with Twitter, Facebook Groups and Facebook Pages. 

I'm very excited about what we have in development for the next release of features and updates for the SocialGO product. It's a direct response to the results of our past few months of experimentation. Leveraging the flexibility of our platform we are able to implement this new experience quickly and I am confident the results will lead to increased adoption and revenues."

Changes to the Board of Directors

We are pleased to announce that Lord William Astor (aged 60) has agreed to join the board of directors ("Board"). Lord Astor serves in the House of Lords and brings significant entrepreneurial experience in building and managing businesses. Among other interests he is a director of Networkers International Plc and Silvergate Media Ltd. We look forward to his input into the activities of the business.

As a result of his growing commitment to his external interests Mr Vikrant Bhargava has tendered his resignation from the Board. Mr. Bhargava will continue to take an active interest in the Company and his advice and support has and will be greatly appreciated by the Board.

Rule 17 and Schedule 2, paragraph (g) of the AIM Rules disclosures:

Lord Astor is currently, or has been in the past five years, a director of the following companies:

Current Directorships:	Previous Directorships:
Ancroft Tractors Ltd	Planet Acquisitions Ltd
Networkers International Plc	Prestbury Group Ltd
Cliveden Securities Ltd	OHA Direct Ltd
Old Berkshire Hunt Ltd
Silvergate Media Ltd
Vampire Squid Productions Ltd

There is no further information to be disclosed under Rule 17 and Schedule 2, paragraph (g) of the AIM Rules in respect of Lord Astor's appointment.

- Ends -

For further information, please contact:

SocialGO plc
Dominic Wheatley, Chairman Alex Halliday, CEO	Tel: [phone]
	www.socialgoplc.com

Canaccord Genuity Limited
Simon Bridges / Christopher Fincken	Tel: [phone] www.canaccordgenuity.com
First Columbus
Chris Crawford / Kelly Gardiner	Tel: [phone]
	www.first-columbus.com

Hill & Knowlton
Rebecca Ribbans / Mark Walsh	Tel: [phone] www.hillandknowlton.co.uk

About SocialGO

SocialGO Plc is a developer and provider of software and related services that allows customers to build their own online social presence, SocialGO™.  SocialGO's platform allows customers to quickly and easily create, manage and control their social media presence and provides the members of these websites with the ability to communicate and share with like minded people in a controlled and secure environment.  SocialGO derives its revenues from subscription premiums paid by website owners and from selling value added services which allows website owners to maximise the social media experience and the revenues that can derive from creating and managing a social media presence.  SocialGO is part of the burgeoning Silicon Roundabout in London, UK.

www.sgv2.com

 

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