A company set up to run the Lake House in Waterloo has had a “positive start” despite a challenging environment, according to a council report.
The comments were made in a report about the council company Sefton Hospitality Operations Ltd released ahead of a meeting of Sefton’s cabinet next week.
The report sets out the business plan and strategy for the company, which was set up last year to run The Lake House at Crosby Lakeside Adventure Centre in Waterloo after the council failed to find a partner to help run the site.
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By setting up Sefton Hospitality Operations Ltd (SHOL), the council said it hoped the venue, which was costing the council £250k a year, would eventually become independent of subsidies and potentially generate income in the form of dividends.
Sefton Council said the company also hopes to become involved in other areas of hospitality, with a goal of bringing in much needed revenue to the council and providing employment opportunities for local residents.
The council loaned the company £500k for start up costs while the venue was undergoing a substantial £3.1m transformation with the help of Combined Authority funding.
There were delays to the centre’s opening however after “unacceptable delays” by the initial contract leading the council to appoint a new company to complete the scheme.
Once work was completed, the venue, which includes a restaurant, event and function space and 14 bedrooms opened in August and has been trading ever since.
According to the council report, SHOL is on track to make a £138k loss this year, which is “consistent” with initial expectations despite the unanticipated delays to the opening of the Lake House this summer.
The reports adds that the council expects the company to make a small profit in 2023/24 in the region of £2k with a much larger profit of £164k projected for the following year.
The financial position of the Lake House itself was not detailed in the report due to concerns over commercial sensitivity, but it did state that trading is “largely in line with expectations in all areas.”
The report said 46 new jobs had been created at the Lake House with many of the people working for the company new to hospitality and living close to the centre and a lower than average staff turnover.
The report concluded that the venue’s initial performance is in “alignment with the previous business plan” suggesting a “positive start” with “opportunity ahead despite a challenging external environment.”
Cllr Marion Atkinson, Sefton Council Cabinet Member for Regeneration and Skills, Cllr Marion Atkinson said she is “delighted” with the venue and progress so far.
Cllr Atkinson said: “The Council is delighted with the quality of The Lake House; not just in terms of the food, drink and accommodation on offer at this fantastic location, but also with the quality of customer experience being offered by a passionate and dedicated team.
“The pandemic hit the hospitality sector hard, with many businesses struggling to survive, and to retain their staff. So of course, I’m thrilled to see that our staff turnover is low, and that other businesses in the sector are adopting a similar strategy in terms of working conditions to ensure they are able to attract and retain new talent.
“This proves what we’ve been saying all along – that financial sustainability, a quality customer offer, excellent customer service, and first rate employment opportunities do not have to be mutually exclusive – we don’t believe that we need to have one at the expense of the other, and so far we’re being proved right.
“SHOL is going from strength to strength and has so much more to offer, both for its customers and the local community – demonstrated by the range of exciting events and opportunities in the pipeline for Christmas, and for 2023.”
Members of Sefton Council’s cabinet will meet next Thursday, December 1, to discuss the report.
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