INVESTMENT PITCH.

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Forsyth Trave
INVESTMENT PITCH

Forsyth Travel History
Founded by Julia and Tim Forsyth in 2015
Sells self-catering apartments at Storatet
Apart hotel in Floen
Tim is a Search Engine Optimisation Expert
Julia handle the position of Sales Manager
FORSYTH TRAVEL
FORSYTH
TRAVEL

Current Business Overview
12 Luxury Apartments
25 Standard Apartments
Weekly basis sales
Run operations 46 weeks a year

Current Financial Performance
Price 2014 2015 2016 2017
Luxury 1625 1950 2100 2225
Standard 575 625 590 575
2014 2015 2016 2017
0
500
1000
1500
2000
2500
Price of Luxury and Standard Apartment from
2014-2017
Luxury
Standard

Current Business Sales
Apartme
nt sold 2014 2015 2016 2017
Luxury 1625 1950 2100 2225
Standard 575 625 590 575
2014 2015 2016 2017
0
100
200
300
400
500
600
700
800
900
Number of Luxury and Standard
Apartment sold from 2014-2017
Luxury
Standards
Occupanc
y rates 2014 2015 2016 2017
Luxury 88.77% 94.20% 96.01% 100.00%
Standards 78.26% 76.52% 75.22% 73.91%

Future Target
Target: To sell 900 Standard
Apartments on a weekly basis during
2018

Planned Strategies
Keep Standard Apartment price constant to
2017
Increase sales price for Luxury apartments
by 7.5%
Focus on marketing to drive more demand
More focus on quality and extra services in
the standard apartment

Projected fixed cost Structure
Amount
Marketing £ 85,000.00
Office rent £ 14,000.00
Salaries (including NI, outsourced payroll, etc) £ 200,000.00
Depreciation £ 1,700.00
Travel and subsistence £ 15,000.00
Office sundry items £ 1,250.00
£ 316,950.00

Projected Variable cost
Luxury Apartment: GBP400
Standard Apartment: GBP 55

Projected Financial outcome for 2018
Occupancy rates:
Luxury: 100%, 552 Apartments
Standard: 78%, 900 Apartments

Break-Even Points for 2018
Luxury Standard
TFC £102,795 £214,155
Selling price £2,392 £575
Variable cost £400 £55
Contribution £1,992 £520
Break-Even Point
(Units) 52 412

Projected Profit for FY 2018
Amount
Total sales £ 1,837,884.00
Total variable cost £ 1,006,300.00
Contribution £ 831,584.00
Less: Total Fixed cost £ 316,950.00
Net profit for the year £ 514,634.00

Return on Capital employed
ROCE = Net profit/Total Capital Employed
*100
= 514,634/600,000
= 85.77%

Other Opportunities in Long-run
Rental Income from Café
Availability of basement space
 Business space which is currently provided
to guests

Bibliography
http://www.investinganswers.com/financial-
dictionary/technical-analysis/return-
investment-roi-1100
https://www.thebalance.com/how-to-
calculate-breakeven-point-393469