Good Morning Ms. Pooja
Thank you for your inquiry.
Having been working and operating in Qatar for the last 3 years our management team has become attuned to the volatility of the market and have adjusted our plan and projections accordingly and as summarized per division below:
1. SCT Consulting and Contracting - as indicated in the balance sheet our monthly projects take into consideration that our consulting and contracting business is mainly in the Military and Security sectors and based on spending patterns these sectors are not as impacted by oil price and budgets as Government and Commercial sectors are. Additionally in our security sector work this is based on Emiri Decree and mandated as required to be implemented per MOI -SSD Law 9 requirements, this focus is why we see a very conservative 22.5% in 2018 and 20.5% in 2019 increase in sales. They are also based are based on the following pillars.
A. Current agreements and contracts in place (appx 4,000,000.00 in Accounts receivable to date in 2016 and 2 new contracts in negotiations with New Port Project
B. Current outstanding proposals that have been put on hold during and are still pending (approximately 120 million in works actually proposed on that have been put on hold and should come online in 2017)
C. Pipeline work that we were aware of and planned for but is not moving forward until the next fiscal year. (QAF Joint Operations Center, Qatar Emiri Naval Base NPP0058 and NPP 068)
2. Airada Spa - As indicated in our business plan and summarized in the Balance sheet and Cash flow these numbers take into consideration our location which is very high end and we provide authentic Thai Massage with a complete Thai staff with an exclusive agreement with the pearl that no other Thai based establishments will be allowed within the Pearl premises providing us with a captive market in the Pearl Region. Additionally we have informed the landlord that we will not begin remitting rents until we are fully operational and officially open which is scheduled for Dec-Jan time frame. This provides us with initial soft opening revenues without the operating cost to provide us with 1. the ability to adequately train our staff and work out operational kinks which plague many retail operations here with rushed openings. Finally the baseline for 2017 revenue projection is based on a conservative capture rate of 50% capacity for the Spa. Rather than provide inflated numbers we prefer the conservative approach and with a 50% capture rate and our Marketing and promotional incentives we believe the 15% growth in 2017 and 20% growth in 2018 is very attainable and more importantly a total of 70% capture is sustainable for our overall long term objectives.
3. White Ory Thai Restaurant – Nearly the same as above justification as we have again only projected a 50% capture rate in our calculation and projections. The White Ory Thai restaurant differentiates itself with its unique and authentic Thai cuisine with a modest price point that we have made through determining the market rates in Doha and the Pearl. We believe the Delivery market will be a large percentage and with the additional towers coming online in 2017 and 2018 more customers will be available for our offerings to capture.
We hope the above is self-explanatory and gain stress that our approach is both to growth is very conservative and organic as we are committed to doing long term business here in Qatar with possible new locations being considered.
If you have any questions or need further clarification of the above justification please feel free to contact me directly.