Oakwood Discussion

[GooseOnTheLoose]

How do you know Copilot didn’t just read that one?

The plans wouldn't have been old enough to be included in a dataset scrape. If Copilot was using live web search for context, it would reference the web page it accessed to get that information, presuming that the use has enabled web search in Copilot in the first instance.

 

[Bones]

Oakwoods location makes it's difficult to see how anyone can make it viable long term. It's a trek for most of the UK or anyone outside of Wales. You would need to have an offering so compelling that it facilitates people making the trip. To do that would take a huge investment not seen at any UK park.

You'd be surprised how many people travel to that part of Wales as it's a stunning area and as someone mentioned, You get people travelling all the way to North Wales for the Zip World attractions, And talking of Zip World i am surprised they've not taken an interest in the Oakwood site

 

[East Coast Mariner]

One thing that might work is to make Oakwood a sort of country park that most people would get something out of. Trains, boat rides etc, but not thrills. Entry fee about £15 or something; just the going rate for a broad-interest attraction.

Then, charge £10 to be able to ride Megafobia as many times as you like. It would be worth £25 just to go and ride that all day, but the park wouldn't have the running costs that come with having a lot of ride hardware.

 

[Bones]

I put the last Oakwood accounts through Gemimi, After asking for it do a business plan! Which funnily enough seemed very very similar to RLP's business plan


"I have successfully accessed and read the Companies House document for Oakwood Leisure Limited. This document contains their Report and Financial Statements for the year ended 31 October 2024.

Here's an analysis of the key information relevant to your interest in acquiring the park:

1. Company Information & Principal Activity​

• Company Name: Oakwood Leisure Limited
• Company Number: 02042378
• Financial Year End: 31 October 2024
• Principal Activity: Operation of a theme park.
• Registered Office: Blue Planet Aquarium, Longlooms Road East, Ellesmere Port, CH65 9LF. (This indicates it's part of a larger group, as Blue Planet Aquarium is also owned by Aspro Parks/Leisure Resources International S.A.)
• Directors: JC Smith Morrondo, SJ Elaiho, DL Soriano. SJ Elaiho is also the Company Secretary.
• Auditors: Grant Thornton UK LLP.
• Parent Company: Leisure Resources International S.A. (a company incorporated in Spain), which owns 100% of Oakwood Leisure Limited's equity share capital. This confirms Oakwood is part of the Aspro Parks group.

2. Financial Performance (Year Ended 31 October 2024)​

• Turnover: £2,071,000 (down from £2,177,000 in 2023). This indicates a slight decrease in revenue.
• Gross Profit: £1,866,000 (down from £1,964,000 in 2023).
• Operating Loss: £1,855,000 (up from £1,794,000 in 2023). The loss increased.
• Loss for the year after taxation: £2,141,000 (compared to a loss of £2,284,000 in 2023). While still a significant loss, it's slightly less than the previous year.
• Interest Payable: £253,000 (up from £177,000 in 2023). This contributed to the loss.
• Net Liabilities: As at 31 October 2024, the company had net liabilities of £2,934,565 (compared to £793,000 in 2023). This is a substantial increase in liabilities, indicating the company's debts exceed its assets.
• Loan Balance: The business continues to receive financial support from a related company and the parent company, Leisure Resources International S.A., with a loan balance at year-end of £5,490,000 (up from £3,995,000 in 2023). This significant loan from the parent group is crucial for its operations.

3. Directors' Report - Key Insights​

• Challenging Season: The report explicitly states that "the operation of a theme park tourism business in Wales is challenging."
• Factors Affecting Performance:
  • Early Easter: Detrimentally affected operations due to unfavorable weather and reduced time for winter works.
  • Delayed Opening: Decision to delay opening until the final weekend of April reduced key trading days.
  • World Events: Euro football, Olympics, and UK general election affected customer leisure spending decisions.
  • Poor August Weather: Significantly impacted trade in the key month of August.
  • Cost of Living Crisis: Much-publicized increases in the cost of living reduced tourist numbers.
  • Adverse Publicity: Regarding the introduction of a 20-mph speed limit in Wales and high cost of tourist accommodation in the area.
  • Second Homes Premium Council Tax: The previous policy hit visitation by second homeowners, a pool from which Oakwood draws visitors. The recent reduction is welcomed.
• Recruitment & Personnel Costs: Recruitment pressures eased, but increases in the National Living Wage significantly affected personnel costs, which are substantial due to the fixed number of staff required to operate rides.
• Repair Costs: Increased expenditure due to fluctuating exchange rates. The business is holding dollar cash balances to mitigate this.
• Investment in Refurbishment: Continued investment, including completion of Megafobia refurbishment, repainting of Speed and Treetops.
• Infrastructure Investment: New admissions building, Treetops photo outlet, and roll-out of CCTV and network infrastructure. Compliance with new waste recycling laws also incurred expenditure.
• Events Programme: Successful "added value events programme," with the Halloween event seeing its "busiest attendance yet." Collaboration with Pembroke College for Halloween mazes was successful.

4. Going Concern​

• The financial statements are prepared on a going concern basis, despite net liabilities and a loss for the year.
• This is contingent on continuing financial support from Deep-Sea Leisure Plc, a related company within the Leisure Resources International group. Deep-Sea Leisure Plc has agreed to provide funding until 28 February 2026. This is a critical point: the park's ability to continue operating relies on this ongoing financial backing from its parent group.

5. Tangible Fixed Assets​

• The balance sheet shows Tangible Assets of £3,383,000 as at 31 October 2024 (down from £3,415,000 in 2023).
• Note 8 provides a breakdown:
  • Land and Buildings: £711,000 (net book value)
  • Rides and Attractions, Plant and Machinery: £2,415,000 (net book value)
  • Motor Vehicles: £2,000
  • Fixtures and Fittings: £174,000
  • Assets Under Construction: £113,000
• Depreciation is charged over 25 years for buildings, 4-5 years for motor vehicles, and 4, 5, 6, 7, 10, 15, or 20 years for rides, attractions, plant, and machinery. This wide range for rides suggests some are older and fully depreciated, while others are newer or have longer expected lives.

Implications for Acquisition:​

1. Financial Health: The company is currently operating at a significant loss and has substantial net liabilities, heavily reliant on inter-company loans from its parent group. This suggests it is not self-sustaining in its current form.
2. Operational Challenges: The report clearly outlines the difficulties faced in the 2024 season, including weather, economic pressures (cost of living), and local policy impacts (20mph limit, second homes tax). These are external factors that any new owner would also need to navigate.
3. Investment Needs: While investment in refurbishment has occurred (Megafobia, Speed, Treetops), the overall financial picture and the "aging infrastructure" mentioned in your previous business plan outline suggest that substantial capital injection would still be required to make it a "proper" modern theme park. The current level of investment appears to be more about maintenance and minor upgrades rather than transformative development.
4. Valuation: The significant net liabilities and reliance on parent company funding would likely impact the valuation for an acquisition. The current owners might be motivated to sell if the park is a drain on group resources, but the price would need to reflect the necessary future investment.
5. Opportunity: The success of the Halloween event and the continued investment in certain rides and infrastructure show there's a foundation and a willingness to improve. The challenges also highlight areas where strategic management and investment could potentially turn the tide.

In summary, the document paints a picture of a theme park facing significant operational and financial challenges, heavily supported by its parent company. Any acquisition would need to factor in not just the purchase price, but also a substantial budget for addressing these challenges and implementing a revitalization strategy."

 

[Bones]

Also uploaded a few accounts from 2005 & 2006 (Before they were sold) And this is the conclusion i got, If i have time i might upload every year up to the last ones and see what sort of conclusion i get


"Conclusion on Pre-Sale Financials:


These 2005 and 2006 accounts paint a picture of a business that was improving its operational performance and growing its revenue under the McNamara family's ownership. The trend towards operating profitability in 2006 is particularly noteworthy. While there were challenges with liquidity (net current liabilities) and a high level of debt, the overall trajectory was positive.

This context is important for understanding the sale to Aspro. The park was not in a state of immediate collapse; rather, it was a growing business that had recently achieved an operating profit, albeit with significant debt and a major share buyback transaction. Aspro's acquisition likely represented an opportunity to expand their UK portfolio with an established, improving asset. The contrast with the 2024 accounts (showing lower revenue and significant losses/net liabilities under Aspro) highlights a shift in financial performance post-acquisition."