Fadel Partners Inc on Thursday said it swung to a loss in 2022 but that demand for its services was rising and it was confident in its investment strategy, customer base and prospects for the future.

Fadel Partners is a New York-based media rights and royalty management software developer. It completed its initial public offering in April this year.

The company said it swung to a $2.7 million pretax loss in 2022, compared with its $1.6 million profit the year before.

It also reported an adjusted earnings before interest, tax, depreciation and amortisation loss of $609,000, swinging from a $359,000 profit in 2021. It said this was due to increased expenditure relating to planned investments for growth.

However, Fadel Partners’ revenue for the period was up by 10% to $13.2 million from $12.0 million. Recurring revenue increased by 34% to $8.7 million from $6.5 million. It said this reflected the first full-year contribution of £1.1 million from Image Data Systems Ltd, which the company acquired in 2021.

‘2022 was a milestone year for Fadel, in which we delivered strong revenue growth and successfully added a number of marquee clients to our business, as we transition to the next phase of our growth journey,’ commented Chief Executive Officer Tarek Fadel.

‘The successes in the year have further consolidated our position as a leader in the digital content and intellectual property market and provide a strong platform to take advantage of the significant market opportunity available to us.’

Fadel’s cash balance at December 31 was $1.2 million, down from $2.0 million the prior year. It consumed $2.1 million of cash in operating activities in 2022, having generated $3.4 million in 2021.

Chief Financial Officer Vicary Gibbs noted that Fadel had completed its IPO ‘despite unprecedented market headwinds,’ adding that ‘2022 has been a year of consolidation and preparation for our growth trajectory ahead.’

Chair Ken West proclaimed his optimism for the year ahead, saying that trading in 2023 so far has been in line with expectations, with increasing demand for Fadel’s products and services.

He added: ‘Backed by an exceptional customer base and a favourable market environment, I hold a strong belief that this positive momentum will endure as we forge ahead with the execution of our growth strategy in the upcoming year.’

Shares in Fadel Partners were untraded at 147.00 pence on Thursday afternoon in London.

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