Lake Finco II Limited
Financial Statements
For the year ended 31 July 2023
Pages for Filing with Registrar
Company Registration No. 11097679 (England and Wales)
Lake Finco II Limited
Contents
Page
Balance sheet
1
Notes to the financial statements
2 - 6
Lake Finco II Limited
Balance Sheet
As at 31 July 2023
Page 1
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
4
1,435,183
1,435,183
Current assets
Debtors
5
87,369,180
88,173,590
Creditors: amounts falling due within one year
6
(87,661,349)
(86,221,119)
Net current (liabilities)/assets
(292,169)
1,952,471
Total assets less current liabilities
1,143,014
3,387,654
Creditors: amounts falling due after more than one year
7
(24,875,644)
(26,234,900)
Net liabilities
(23,732,630)
(22,847,246)
Capital and reserves
Called up share capital
8
100
100
Profit and loss reserves
(23,732,730)
(22,847,346)
Total equity
(23,732,630)
(22,847,246)
The director of the company has elected not to include a copy of the profit and loss account within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the director and authorised for issue on 21 October 2024 and are signed on its behalf by:
V Kisilevsky
Director
Company Registration No. 11097679
Lake Finco II Limited
Notes to the Financial Statements
For the year ended 31 July 2023
Page 2
1
Accounting policies
Company information
Lake Finco II Limited is a private company limited by shares incorporated in England and Wales. The registered office is Buchanan House, 30 Holborn, London, EC1N 2HS.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclose is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
The financial statements have been prepared on a going concern basis which the Directors believe to be appropriate for the following reason. At the year end, the company had net liabilities of £2true3,732,630. The company is reliant on the support of other group companies as a result of the way that the group is financed and a letter of support has been signed by Global University Systems Holding B.V which has agreed to continue to provide financial and other support to the company for the at least 12 months from the date that these accounts have been signed to enable it to continue to trade.
As a result, having assessed the response of the directors of Global University Systems Holding B.V., in light of its support and on the basis of their assessment of the company's financial position and Global University Systems Holding B.V. financial position, the Directors have a reasonable expectation that the company will be able to continue in operational existence for the foreseeable future and continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Interest income is recognised when it is probable that the economic benefits will flow to the company and the amount of revenue can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and the effective interest rate applicable
1.4
Fixed asset investments
Minority equity investments in other group entities are recognised at cost less impairment.
1.5
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
Lake Finco II Limited
Notes to the Financial Statements (Continued)
For the year ended 31 July 2023
1
Accounting policies
(Continued)
Page 3
1.6
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
1.7
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.8
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
Lake Finco II Limited
Notes to the Financial Statements (Continued)
For the year ended 31 July 2023
Page 4
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
The key judgement applied by the Director is in respect of the potential impairment of intercompany
receivables and investments in group entities. In making their assessment the Director consider the net asset position and cash flows of the entities in question, as well as considering the circumstances of the environment in which the respective entities operate and the availability of any credit enhancements including guarantees from other group companies. The Director considered that no impairment was required during the period.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
1
2
4
Fixed asset investments
2023
2022
£
£
Shares in group undertakings and participating interests
1,435,183
1,435,183
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Amounts owed by group undertakings
87,369,180
88,173,590
Lake Finco II Limited
Notes to the Financial Statements (Continued)
For the year ended 31 July 2023
Page 5
6
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
6,974
2,574
Amounts owed to group undertakings
8,404,495
8,403,016
Corporation tax
1,500
Other creditors
79,249,880
77,814,029
87,661,349
86,221,119
7
Creditors: amounts falling due after more than one year
2023
2022
£
£
Other creditors
24,875,644
26,234,900
8
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
of £1 each
100
100
100
100
9
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
Senior Statutory Auditor:
Shivani Kothari
Statutory Auditor:
Moore Kingston Smith
10
Related party transactions
The company has taken advantage of the exemption allowed in FRS 102 and has not disclosed details of related party transactions with 100% owned entities within the group.
11
Events after the reporting date
The directors are of the opinion that there were no significant adjusting or non-adjusting events occurring after the reporting date.
Lake Finco II Limited
Notes to the Financial Statements (Continued)
For the year ended 31 July 2023
Page 6
12
Parent company
The immediate parent undertaking is Interactive Pro Limited, a company incorporated in England & Wales. The ultimate controlling party is The Heritage Trust, registered in Guernsey.The smallest and largest group into which the entity is consolidated is Global University Systems
Holding B.V., a company registered in The Netherlands. The registered office is Passeerdersgracht 23,1016 XG, Amsterdam, the Netherlands.