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FADEL Partners unveils LicenSee, streamlining royalty management for SMEs

08:50, 1st March 2024
Paul Hill
PMH Capital

One of the many advantages of cloud software is that it typically comes "straight out of the box". This reduces implementation times as it requires far less user training and/or customisation while simultaneously enabling clients to use the latest features (e.g. security). This is particularly important for small/mid sized businesses that often have limited resources.

Today, royalty software management and brand protection firm FADEL Partners (FADLFollow | FADL announced that it had launched its new 'LicenSee' application - a platform designed to enhance and automate the management of royalties for consumer product licensees in the SME market.

Indeed, not only should customers benefit from a material reduction in royalty overpayments (up to 20%), but also spend much less resource checking the figures (up to 68%), halving the total time required for royalty processing, and allowing traditional methods (e.g. spreadsheets or legacy in-house systems) to be curtailed, saving more time and money.

CEO Tarek Fadel commenting: "FADEL comes from a heritage of working with some of the world's largest licensing brands, helping them automate and manage billions of dollars' worth of annual royalties. Our leading enterprise solution IPM Suite manages roughly 28% of the global consumer products royalties already and our release of LicenSee is just a natural extension of the experience that we've developed in the consumer products licensing market."

"The cloud platform is aimed at servicing the thousands of small and mid-market licensees and re-enforces our commitment to leveraging our technology, expanding our market and substantially growing our mix of highly scalable, high margin cloud revenues."

In terms of numbers, house broker Cavendish has a 260p/share target price based on sales increasing to $17.6m (+21% LFL) and $22.2m (+26%) respectively over the next 2 years - equivalent to modest EV/sales multiples of 1.6x and 1.3x.

Elsewhere, the balance sheet closed in good shape too, ending Dec'23 with net cash of $3m ($7.3m June), which should be sufficient to fund the business until it becomes self-financing in early 2025 or sooner.

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