The accounts on FY2014 do not constitute a comparable base for successive years. The contract with our seeding client was with our Founder Mr. Erol Emed and therefore did not show up on company accounts. The sales for the FY 2015 was accrued from fees from our second client on a pro-rata basis, and therefore is low.
The business climate was exceptionally well as there were significant and genuine interest towards business opportunities in the MENA region from Japanese clients. Our success rate in securing pipeline contracts was very promising.
Political developments in Turkey after June 2013, however, caused some concerned. Starting from Istanbul, there were anti-government protests in big cities during most of June. We were on the ground, able to assess the situation with high precision in contrast to what was being widely reported in the press. Streets returned to calm after July with occasional small scale events in September.
On the eve of March 2014 local elections the ruling AKP remained strong and looked in a good position to win majority vote. They successfully retained and in some areas extended their lead giving the Administration a comfortable upper hand in claiming legitimacy.
On global economics front FED tapering which started end of May 2013 dominated the agenda. Money outflow from emerging markets was a major concern. Turkey is particularly vulnerable to capital outflows due to its weak current account position and high needs of external financing. But the economy did well in calendar year 2013 growing 4%. The Turkish Lira, however, took a beating from domestic political unrest depreciating by 30% towards December 2013, only to recoup 10% later.
We concentrated our efforts to build a business model based on business consultancy, M&A consultancy, research content, and royalty business lines. In this respect we negotiated and converted our consultancy agreement to a royalty agreement with our seeding client, tied-up with a Japanese research house to produce emerging markets research content, and started a global search for a spin-off from a client business.