Agenda item

To receive a six month update report by the Head of Leisure and Health on the performance for One Leisure.

Considered and noted the progress of One Leisure over the last six months.

By way of a report from the Head of Leisure and Health (a copy of which is appended in the Minute Book) the Cabinet received a six month update report on the progress of One Leisure, following the Cabinet meeting in September 2015. 

The progress made included:

•  The Group was on target to achieve annual sales of £6.85m (Budget £6.97m) with an operating surplus of £350K (Budget £343k).  This represented a turn-round of £420k in comparison to 2014/15.

•  Management had controlled monthly trading with each month still remaining in profit, with the exception of October where several significant maintenance issues were resolved.  Due to busier periods, expenditure had risen in accordance with increases in revenue;

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

•   Phase II of the management restructure was complete and all sites now had a new structure in place and operated effectively;

•  Following the review of One Leisure Sawtry a new operating model with reduced times and staffing resources had been implemented successfully which had reduced the operating deficit by circa £50k in this financial year with further savings expected. This review had also renewed a productive partnership with the on-site college as part of a strategy to re-engage with the local community;

•  One Leisure Ramsey was now trading at near breakeven levels with strong performances from One Leisure St Neots and One Leisure St Ives; and

•  Following the delivery of a new membership model in June, pre-paid memberships had increased by over 300 members, which when coupled with a pricing restructure had increased revenue in Impressions memberships by £155k.

In response to questions it was explained to the Cabinet that the issues regarding tenure of One Leisure Huntingdon had been resolved and a full Business Case had now been submitted to the Finance Governance Board to request release of agreed funding in 2016 for the extension of Impressions.  Regarding the Members that cancelled their membership each month, it was confirmed that they were invited to provide feedback as to the reasons for cancelling their membership.

Whilst discussing memberships the Cabinet agreed to extend the Armed Forces Discounted membership to include Active Reservists.  It was noted to the Cabinet that take up of the Armed Forces Discounted membership was low mainly due to the facilities that were accessible at RAF Wyton.

The Cabinet commended the Executive Councillor for Commercial Activities and all of the One Leisure Team for the significant financial achievements.  Previously income and expenditure had converged.  However, this financial year income was tracking above expenditure.  The Cabinet also expressed its appreciation for the retention of the smaller Leisure Centres throughout the district.

Having considered the comments of the Overview and Scrutiny Panel (Communities and Customers) the Cabinet,

RESOLVED

that it considered and noted the progress of One Leisure over the last six months.

At the conclusion of the above item, at 9.11pm, Councillor J Gray left the meeting.