Agenda item

To receive a six month update report by the Head of Leisure and Health on the performance of One Leisure following the Cabinet meeting in March 2015.

RESOLVED:

That the update report and its contents be noted.

At the Cabinet meeting in March a report was presented on the performance of One Leisure.  At the request of the Cabinet a further report was presented to provide an update on the progress made to date (a copy of which is appended in the Minute Book).

The Cabinet were informed that the progress made was as follows:

•  The financial performance had significantly improved.  The 2014/15 final outturn for One Leisure had a deficit of £61k which was an improvement of £314k compared to the previous financial year;

•  One Leisure had been in profit for the final quarter of last year and once the expenses and income had been correctly profiled, remained in monthly profit to date;

•  The 2014/15 admissions showed an increase in attendance of 9% against the previous year and was currently showing a year to date improvement of 2%;

•  The outcome of the Phase I management restructure had been implemented and Phase II was currently in progress;

•  Following a review of financial performance and usage patterns at One Leisure Sawtry and a consultation exercise with current users, a rationalisation of opening times was being implemented;

•  The implementation of the new membership packages introduced in April, had shown a net growth in the membership base to July of 427 members compared to a net loss of 391 member for the same period in 2014;

•  The latest forecast suggested the Group was on target to reach the annual budget surplus of £343k (before capital charges of £165k).

Although the management restructuring was in its early stages, the lines for reporting and accountability had become clearer which assisted with each individual member of staff being able to understand how they contributed to the drive and deliverability of a customer focussed service.

The new membership packages introduced in April 2015 had resulted in Members now only paying for the services they used at a fairer and more competitive price.  Currently 5.5% of Members cancelled their membership each month which was better than the industry standard.  A key future focus was to retain Members beyond the average length of membership of 9 months.

The Cabinet recognised that the two smaller sites at Ramsey and Sawtry operated at a loss.  However, with the various changes to opening times, management structure and other proposals the annual deficit would reduce to an acceptable level.  The Cabinet were pleased to note that the value these two sites had to the local community had been recognised as they would remain operational albeit at a rationalised level.

In the absence of the Head of Leisure and Health, the Business Manager Operations, Paul France, explained that the staffing structure at Sawtry and Ramsey would be combined.  Relations between One Leisure Ramsey and the Abbey College in Ramsey had improved as there was an agreement to enable the College to use the facilities.  Discussions with Sawtry Academy had commenced regarding relations between One Leisure and the Academy Management Team, with a view to increasing the access for the Academy to use the facilities when they were not open to the public, specifically the swimming pool and sports hall.

Before the opening times of Sawtry had been rationalised, a comprehensive review of usage patterns was undertaken, along with a consultation process with users to ascertain current and future usage patterns. It was intended that customer focus groups would be introduced throughout all of the sites. 

The Cabinet commended the Executive Councillor and all Officers for the significant progress made as the improvements had been remarkable.  The Cabinet,

RESOLVED:

That the update report and its contents be noted.