Underscar – the future is ours AGM December 2013 Ian Hedley – co-opted committee member

By June 2013 Committee had to act quickly on shortfalls Re-sales were stagnant – we need a vibrant market Underscar is 5* & needs promoting well No real prospect of developers helping willingly.

Owners questions 1.Should we have consulted owners first? 2.What about sellers – have we spoiled the market for re-sales? 3.Why let the developers off the hook?

The developer ‘problem’ Developers wanted ’out’ Were not paying their share when stock weeks un-let No marketing investment for sales and re-sales for at least 5 years. Developers kept stock Weeks receipts

Why buy the developer out? 74 stock weeks – BUT only 1 ½ sold in last 2 years Shortfall in secure management fee income Lettings not covering management fees Constitution didn’t help us act to pursue developers against past shortfalls or future liabilities

The harsh realities Between 2010 & £34K shortfall income from stock Week lets – looking worse for 2013 FML couldn’t continue covering the developers’ responsibilities Developers were taking sales returns but not contributing to maintenance fees More than 200 owners say they want to sell – developers had no marketing plan – we don’t want time share bucket shops involved!

Could we – should we? Developers’ good offer Better for Club to own Unsold Weeks Sales income now benefits Club owners Can now help sellers & increase ownerships Can promote Underscar properly But downstream liabilities – how big? Can we sell more stock? Can we get enough future rental income? Risk of someone unknown taking on the stock? Negotiations with Manor owners?

Our Business Objectives Sept unsold Weeks = £42K exposure in maintenance fee income – MUST REDUCE IT! BY in 2014:- Getting >60% of stock into committed ownership Ensuring >70% of remaining stock is let Renegotiating agency terms with FML to include active marketing & promotion of Underscar Encouraging lively re-sales market to bring in new committed owners Reviewing operating budget with FML

At worst we had taken on a commitment to cover any management fee shortfall ourselves until 2078 But at best we had secured our future as far as we could by ensuring the club profits from all future sales and lettings of the Unsold holiday Weeks

Achievements by 1 December 2013 Acquired 74 stock Weeks Sold 30 low season Weeks to Owners Covered about £16K pa Maintenance Fees (38% of exposure) Generated about £60K income Created marketing war-chest

Our Auction – results! We listed 47 low season Weeks and WE SOLD 26 (plus 4 half weeks) 30 stock Weeks sold means £42Kpa fee liability NOW DOWN TO £26K pa Can invest in future marketing From January 2014 a fresh start!

Bidding results - winners 57 owners bid, & 30 were successful 3 Weeks had > 12 competing bids 12 Weeks went to single bidders with their lowest offer – all but 3 well above reserve. 21 Low season Weeks had no bids Winning bids ranged from £901 to £6176

Top bids and Castlerigg comments 6 top bids were > £5K 7 top bids in range £3K to £5K Castlerigg Week 24 respondents recommended on average £9800 Castlerigg range £4,500 to £12,500 NB: Top bids submitted in the sealed tender weren’t used when that owner had made a lower winning bid

Modelling the longer term future? Ideally no more than 2% unsold Must maintain 5* standards Good marketing to get the re-sales vibrant Invest in targeted marketing and fund website redesign Who are our timeshare owners of the future? – how best to reach them?

Thanks for listening Any questions?