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Registered number: 11722403 (England & Wales)
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CONTENTS
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COMPANY INFORMATION
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DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The directors present their report and the financial statements for the year ended 31 December 2024.
The directors who served during the year were:
The directors are responsible for preparing the Directors' Report and the financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the company's financial statements and then apply them consistently;
∙make judgments and accounting estimates that are reasonable and prudent; and
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Directors liabilities
The company held third party indemnity insurance on behalf of the directors of the company during the current and prior year.
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DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
We draw your attention to Note 15 of the financial statements, which describes the events in relation to two new UK entities incorporated within the group post year end.
This report was approved by the board and signed on its behalf by:
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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF GREAT LAKES UK LIMITED FOR THE YEAR ENDED 31 DECEMBER 2024
We have audited the financial statements of Great Lakes UK Limited (the 'company') for the year ended 31 December 2024, which comprise the Profit and Loss Account, the Balance Sheet, the Statement of Changes in Equity, the Statement of Cash Flows, Analysis of Net Debt and the related Notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
We draw your attention to Note 6 of the financial statements, which describes the effects of the company’s planning applications and intentions to develop water park hotels in the United Kingdom. Our opinion is not modified in respect of this matter.
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF GREAT LAKES UK LIMITED (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Directors' Report has been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Directors' Report.
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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF GREAT LAKES UK LIMITED (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
As part of designing our audit, we determined materiality and assessed the risk of material misstatement in the financial statements, whether due to fraud or error, and then designed and performed audit procedures in response to those risks. In particular, we looked at where the directors made subjective judgements such as making assumptions on significant accounting estimates.
We tailored the scope of our audit to ensure that we performed sufficient work to be able to give an opinion on the financial statements as a whole. We used the outputs of a risk assessment, our understanding of the company's environment, internal controls and critical business processes, to consider qualitative factors in order to ensure that we obtained sufficient coverage across all financial statement line items.
Our audit procedures were designed to respond to those identified risks, including non-compliance with laws and regulations (irregularities) and fraud that are material to the financial statements. In identifying and assessing risks of material misstatement in respect of irregularties including non-compliance with laws and regulations, our audit procedures included but were not limited to:
∙At the planning stage of the audit, we obtained an understanding of the legal and regulatory framework applicable to the company, the industry in which the company operates, and the structure of the group;
∙Discussions were held with, and enquiries made of, management and those charged with governance with a view to identifying the laws and regulations that could be expected to have a material impact on the financial statements. During the engagement team briefing, the outcomes of these discussions and enquiries were shared with the team, and during the audit the engagement team remained alert to any indications of non-compliance;
∙We considered the risk of failing to comply with these legal and regulatory requirements, and also considered where and how fraud may occur within the company;
∙We discussed with management and those charged with governance the policies and procedures in place regarding compliance with laws and regulations; and
∙During the audit, we focused on areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience, and through discussions with management (as required by auditing standards), and from inspection of the company’s regulatory and legal correspondence.
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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF GREAT LAKES UK LIMITED (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024
Auditors' responsibilities for the audit of the financial statements (continued)
We also considered those other laws and regulations that have a direct impact on the preparation of financial statements,
such as the Companies Act 2006 and UK tax legislation.
Our procedures in relation to fraud included but were not limited to:
∙inquiries of management whether they have knowledge of any actual, suspected or alleged fraud;
∙gaining an understanding of the internal controls established to mitigate risk related to fraud;
∙ using analytical procedures to identify any unusual or unexpected relationships;
∙discussion amongst the engagement team regarding risk of fraud such as opportunities for fraudulent manipulation of financial statements; and
∙scrutiny review of unusual transactions and entries into sensitive nominal ledger accounts.
The primary responsibility for the prevention and detection of irregularities including fraud, rests with both those charged with governance and management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls. Our audit procedures are designed to detect material misstatement. We are not responsible for preventing non-compliance or fraud, and cannot be expected to detect non-compliance with all laws and regulations.
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with with auditing standards. For example, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.
Use of our report
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
for and on behalf of Lewis Golden LLP Chartered Accountants and Statutory Auditors
40 Queen Anne Street
London W1G 9EL
Date:
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PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2024
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BALANCE SHEET
AS AT 31 DECEMBER 2024
The notes on pages 13 to 17 form part of these financial statements.
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STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
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STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
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ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2024
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Great Lakes UK Limited is a private company limited by share capital, incorporated in England and Wales, registered number 11722403. The address of the registered office is Suite 1, 7th Floor, 50 Broadway, London, SW1H 0BL.
2.Accounting policies
The principal accounting policies applied in the preparation of the financial statements are set out below. These have been consistently applied to all periods presented unless stated otherwise.
The financial statements cover the individual company only.
Functional and presentation currency
Transactions and balances
Current and deferred tax is recognised in the Profit and Loss Account.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
At each balance sheet date, the directors consider whether there are any indications of impairment in respect of the asset under development. If any such condition exists, the entity estimates the recoverable amount of the asset. If the recoverable amount of an asset is less than the carrying amount, then an impairment loss is recognised in the Profit and Loss Account. If there is no indication of impairment, then it is not necessary to estimate the recoverable amount.
The carrying amount of tangible fixed assets is disclosed in Note 6.
The company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties and loans to related parties.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Profit and Loss Account.
Financial assets and liabilities are offset, with the net amounts presented in the Balance Sheet, when there is an 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.
The average monthly number of employees, including directors, during the year was 3 (2023 - 4).
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
The company has trading losses amounting to £958,554 (2023 - £916,791) available for carrying forward against future trading profits. The deferred tax asset not recognised at the year end was £239,639 (2023 - £229,286). The deferred tax asset has not been recognised due to the uncertainty over the timing of recoverability of the asset.
As at 31 December 2022, the company had acquired land, incurred preliminary costs and was intending to proceed with the development of a hotel complex after having obtained planning permission in May 2021. In August 2023, whilst exploring the best way possible to bring Great Wolf Lodge to the UK, including the potential of multiple resort locations, the company temporarily paused the development whilst it undertook a review process. As at 31 December 2024, and the date that these financial statements have been signed, the company still intends to proceed with this development in the future, however the exact time frame is unknown. As a result of this pause in the development, in the prior year the directors completed an impairment review to assess whether the amounts capitalised in relation to the development asset may require impairment. A cashflow forecast was produced which outlined the future expected net cashflows over a series of different terms ranging from two to five years. These forecasts detail anticipated construction costs to completion, yearly revenues based on expected occupancy rates and other relevant costs and adjustments, including the use of a discount factor whose rate has been determined by the company's ultimate parent. The company then applied sensitivity analysis to these forecasts and estimated that the net cashflows will be positive in each scenario. In the current year, the directors revisited the project budget calculation and cashflow forecasts, and reached the same conclusion as the prior year. Accordingly, the directors concluded that there was no impairment identified as at 31 December 2024, and therefore no provision has been recognised in these financial statements.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
6.Tangible fixed assets (continued)
Financial liabilities measured at amortised costs comprise trade creditors, amounts owed to group undertakings and accruals. The carrying amount at the balance sheet date is disclosed in Note 8 above.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Profit and Loss Account
As at 31 December 2024 the company had capital commitments of £nil (2023 - £624,321) in respect of the water park hotel developments, which are not provided for in these financial statements. As disclosed in Note 6 of these financial statements, in August 2023 the company paused the development. As a result the company has been re-negotiating terms with some suppliers and the amount of the commitment in connection with the development may be different to that disclosed as a capital commitment as at 31 December 2023. As at 31 December 2024, there were no capital commitments in connection with the paused development.
In the current and prior year, the immediate parent undertaking of the company was GWR Operating Partnership, L.P. The ultimate parent undertaking and ultimate controlling party is Blackstone, Inc. which is a company incorporated in the United States of America.
The smallest group in which the results of the company are consolidated is headed by The largest group in which the results of the company are consolidated is headed by
Post year end, two new UK entities were incorporated within the group, Great Lakes Derbyshire UK Limited and Great Lakes Hampshire UK Limited. The pre-planning costs capitalised in relation to the two new sites, as disclosed in Note 6, will be recharged to these two new entities after the balance sheet date.
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