TIDMFADL
RNS Number : 5530V
Fadel Partners Inc.
06 April 2023
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN
PART, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES,
AUSTRALIA, CANADA, JAPAN, NEW ZEALAND OR THE REPUBLIC OF SOUTH
AFRICA OR ANY OTHER JURISDICTION WHERE SUCH RELEASE, PUBLICATION OR
DISTRIBUTION WOULD BE UNLAWFUL.
DEFINED TERMS ARE AS STATED IN THE COMPANY'S ADMISSION DOCUMENT
DATED 2 APRIL 2023 (THE "ADMISSION DOCUMENT").
6 April 2023
Fadel Partners, Inc.
('FADEL', the 'Company' and, together with its subsidiaries, the
'Group')
Admission to AIM and First Day of Dealings
Fadel Partners, Inc. (AIM: FADL), a leading brand compliance and
rights and royalty management software provider, is pleased to
announce the admission of its entire issued share capital to
trading on AIM, a market operated by the London Stock Exchange plc
("Admission").
Admission will take place, and dealings in the Company's
depositary interests over common shares of $0.001 ("Common Shares")
will commence, at 8.00 a.m. today under the ticker 'FADL'.
Founded in 2003 by Tarek Fadel (Chief Executive Officer) and
headquartered in New York (United States), FADEL has since grown to
a team of 116 full time employees, plus an additional pool of
c.50-60 contractors. FADEL is a leading developer of cloud-based
brand compliance and rights and royalty management software,
working with some of the world's leading licensors and licensee
across media, entertainment, publishing, consumer brands and
hi-tech/gaming companies.
FADEL has two solutions, being IPM Suite (rights and royalty
management for publishers and licensing) and Brand Vision (an
integrated platform for brand compliance & monitoring that
includes content services, digital rights management, AI-powered
content tracking, a brand monitor, and 100 million ready-to-license
images). The use of FADEL's products spans across marketers and
advertisers to accelerate campaign creation, eliminate content
misuse and maximise asset reuse; finance teams to generate and
precisely manage royalty calculations, statements and audit
reports; and licensing professionals to identify licensing
violations, optimise revenue and avoid over/under royalty
payments.
Key Highlights:
-- Based on the Placing Price of 144p, the market capitalisation
of the Company will be approximately GBP28.8 million
at Admission
-- In connection with Admission, gross proceeds of GBP8.0
million were raised by way of the Placing and the Fadel
Loan
-- finnCap Ltd is Nominated Adviser and Broker in relation
to the Placing and Admission
-- Following Admission, the Company will have 19,968,003
Common Shares in issue
-- The Company's ISIN is USU3033R1024 and its SEDOL is
BN6NDF9
Use of Proceeds:
The Directors believe that the Group's solutions are scalable
and help address some of the challenges companies face as a result
of digital transformation, growing amounts of content and IP and
complex licensing arrangements. Therefore, the Directors believe
that the Group is well positioned to capitalize on fundamental
market growth and pursue its growth strategy of selling into new
and existing geographies, growing existing industries, entering new
industries and evolving its products to meet customer needs.
The gross proceeds of the Placing of the New Shares and Fadel
Loan will be used by the Company to:
-- Invest in sales to proactively sell its solutions into
a growing market (US/European sales expansion through
direct sales, partnerships and distribution arrangements);
-- Investment into marketing (leads, ads and webinars);
-- Conduct R&D to continue to innovate and develop its products
to enhance its existing offering and address its customer
and potential customer needs;
-- Reinforce growth (support and services team to complement
the sales team effort); and
-- Provide general working capital, including the advisory
costs and other expenses of the Placing and Admission.
Tarek Fadel, Chief Executive Officer, commented :
"We are delighted to announce our admission to trading on
AIM.
"FADEL has already established itself as a leader in its field,
delivering solutions to companies across numerous sectors and
geographies. The successful completion of our IPO represents the
beginning of a new chapter and this investment will allow us to
expedite our growth strategy to scale alongside the rapidly
expanding digital content and IP market and to capitalise on the
significant opportunity available to us.
"We believe that AIM is a natural fit for FADEL as it has a
proven track record for helping technology companies achieve their
growth ambitions.
"I am delighted to welcome our new shareholders and would like
to thank them for their support. We look forward to working with
them in the years ahead as we build on our strong foundations and
push forward with our growth plans.
"We expect to announce our results for the 12 months ended 31
December 2022 in early June 2023 and look forward to seeing our
investors at that time."
Key Investment Case Highlights
-- Innovative, scalable technology offering with a strong
track record - FADEL's award-winning enterprise-ready
cloud software provides solutions for content and IP creators
(licensors) and content and IP users (licensees). Its
system is built on a highly scalable architecture. Its
customers have complex needs, with the IPM software helping,
inter alia, to manage and process complex contracts and
licensing requirements and Brand Vision helping marketers/licensees
to accelerate their digital strategy to allow them to
manage, inter alia, large volumes of content and associated
usage rights.
-- Blue chip and loyal customer base - The Group has a blue-chip
customer base, with customers such as Pearson, L'Oréal,
Hachette Livre and Marvel Entertainment. Its customers
include some of the largest licensors who drive significant
licensing revenue as well as three of the "big five" French
publishers. Through IPM Suite, FADEL's larger customers
have achieved significant ROI from cost efficiencies and
licensing revenue growth opportunities not available using
legacy solutions. As a result, the Group has reported
exceptionally low churn in customers using IPM Suite following
the implementation phase, to date.
-- Established sales and marketing strategy - The Group
has an established direct and indirect sales strategy.
The Group has salespersons in the US, UK and France. Indirect
sales are through the Group's established partnership
and reseller arrangements. In respect of marketing, FADEL
is considered as a thought-leader in its field - representatives
from the Company regularly attend leadership events and
are active research contributors and its employees sit
on relevant industry boards, such as the BISG. These marketing
efforts contribute to general market awareness of FADEL
and its solutions.
-- Strategically positioned to capture market growth - There
is fundamental growth in digital content and IP (across
industries, geographies and channels) and therefore a
growing requirement for solutions to manage this digital
content and IP. In the rights and royalty ecosystem (which
IPM Suite addresses), a significant proportion of companies
are still using more traditional spreadsheet-based methods
of managing licenses and royalty calculations, typically
using large teams and sometimes legacy royalty systems
that are no longer 'fit for purpose'. The digital brand
compliance marketplace (which Brand Vision addresses)
is still relatively nascent and highly fragmented, with
a vast number of large brands bringing their content creation
and digital agency function in-house. As companies implement
digital transformation strategies, the ROI on an enterprise
solution like FADEL is becoming more apparent.
-- Established low-cost but highly skilled offshore R&D
and delivery centre in Lebanon - The Group has operated
its own offshore R&D and delivery centre in Beirut, Lebanon
since 2006. In doing so, the Group benefits from the high
level of education in that country, including Engineering
and Business majors, the multi-lingual capabilities of
the employees and low cost and low attrition attained
by operating in Lebanon. This has proven to be a strategic
competitive differentiator for the Company allowing it
to expand its product and service offerings while maintaining
high customer satisfaction at low operating costs.
-- Highly experienced and well-connected Board - The FADEL
Board, both Executive and Non-Executive, is constituted
of prominent and experienced figures in the industry including
founder and CEO Tarek Fadel and CFO Vicary Gibbs. The
FADEL Board has collective experience in high growth software
environments, alongside strong industry relations. The
Directors believe that this will enable FADEL to pursue
its growth strategy and ensure strong origination for
new opportunities. Additionally, between them the Board
has public market experience of both AIM and other exchanges.
-- Strong financial record with scalable revenue model -
In the twelve-month period ended 31 December 2021, FADEL
generated revenue of $12.0 million (31 December 2020:
$7.8 million) of which 54 per cent. was recurring. Year-on-year
revenue growth was 53 per cent, with a two-year CAGR of
50 per cent. In the six-month period ended 30 June 2022,
FADEL generated revenue of $6.7 million, of which 62 per
cent. was recurring. At the core of the revenue model
is a SaaS platform generating subscription revenue. IPM
Suite, which sits as the foundation of the business, typically
has large contract values of which a significant amount
is related to services, whilst the service revenue is
non-recurring in nature, the integration complexity results
in defensive revenue. Brand Vision, which has grown out
of the acquisition of IDS in FY 21 has diversified our
product revenue. Going forward, the Company expects to
see a higher proportion of subscription revenue coming
from Brand Vision, where its products can be deployed
quickly with limited integration requirements and lower
implementation costs. The Directors believe that the Company
has a defensible revenue with significant upside potential.
-- Strong current trading - Revenue for the six month period
from 30 June 2022 was $6.5 million(1) , resulting in expected
revenue for FY 22 of $13.1 million(1) (unaudited management
information). This was a 10.1 per cent. year-on-year increase
(FY 21: $12.0 million), notwithstanding foreign exchange
headwinds the global economic environment. In respect
of recurring revenue, there was 34 per cent. year-on-year
growth (Subscription and support: $8.7 million, unaudited,
FY 21: $6.5 million) with a significant contribution from
subscription sales in Brand Vision, including a full financial
year's contribution from IDS.
-- A clear growth strategy - The Group intends to use the
proceeds to pursue its organic growth strategy to expand
its business and the breadth of its operations, hire additional
employees, expand into new markets, further invest in
research and development and sales and marketing, and
incur costs associated with general administration (including
expenses related to being a listed company).
For further information please contact:
Fadel Partners Inc.
Tarek Fadel, Chief Executive Officer Via Alma PR
Vicary Gibbs, Chief Financial Officer
finnCap Ltd (Nomad & Broker) Tel: +44 (0)20 7220
0500
Jonny-Franklin Adams
Emily Watts
Abigail Kelly
Milesh Hindocha
Alma PR Tel: +44(0)20 3405
0205
Josh Royston fadel@almapr.co.uk
Andy Bryant
Matthew Young
About FADEL Partners Inc.
FADEL is a leading developer of cloud based brand compliance and
rights and royalty management software, working with some of the
world's leading licensors and licensees across media,
entertainment, publishing, consumer brands and hi-tech/gaming
companies. The Group combines the power of rights management and
content compliance with sophisticated content services, AI-powered
visual search and image and video recognition.
FADEL has two solutions, being IPM Suite (rights and royalty
management for publishers and licensing) and Brand Vision (an
integrated platform for Brand Compliance & Monitoring that
includes Content Services, Digital Rights Management, AI-Powered
Content Tracking, a Brand Monitor, and 100 million Ready-to-License
Images).
The Group's main country of operation is the United States,
where it is headquartered in New York, with further operations in
the UK, Lebanon, France, Canada and India.
For more information please visit the Group's website at:
www.fadel.com .
This announcement is not for publication or distribution,
directly or indirectly, in or into the United States of America.
This announcement is not an offer of securities for sale into the
United States. The securities referred to herein have not been and
will not be registered under the U.S. Securities Act of 1933, as
amended, and may not be offered or sold in the United States,
except pursuant to an applicable exemption from registration. No
public offering of securities is being made in the United
States.
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END
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April 06, 2023 02:00 ET (06:00 GMT)
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