Agenda item

The Committee considered the report presented by the Director – Customers and Managing Director – Active4Today, which presented the Active4Today Business Plan 2018/19 and updated Members on the Company’s latest quarterly performance.

Members were informed that Active4Today was continuing to report year on year growth across the majority of indicators.  Both Adult and children’s memberships were up 10% and 17% respectively across the Council’s three leisure centres and those two indicators were the best indication of the Company’s underlying financial performance.

The number of leisure centre visits from deprived postcodes had remained static year on year, but Members noted proposals within the Active4Today Business Plan to offer a free 7-day pass to households within those postcodes to the Council’s leisure centres. 

The proposed management fee for 2018/19 was £121,220, which was a slight increase on the current management fee.  Within the update report, Active4Today was forecasting an operating surplus at the end of the current financial year of £14,877, with a reserve position of around £400,000.  It was also reported that the Company had stated its desire to have a reserves position of £750,000, made up of around £350,000 to maintain and repair the leisure centres to required standards and £400,000 as contingency.  A prudent reserve position would enable the Company to withstand unforeseen risks without the need to seek financial support from the Council.  Members were also informed that through the contract with Active4Today, 50% of any surplus generated was due to be returned to the Council.  This could offset the cost of the forthcoming management fee or be allocated towards future developments, such as any developments arising from the review of leisure facilities in the west.  The report detailed the proposed price increases and the payment of next year’s management fee which was proposed to be paid in two stages, with 50% at the start of the year and 50% payable half-way through the financial year dependent on the financial performance of Active4Today at that time.

The cash sum paid to provide strategic management support to Southwell Leisure Centre Trust was detailed within the report.  The impact on the budget regarding the proposed management fee to Active4Toady for sports development and leisure centre services (£121,220) and support to Southwell Leisure Centre Trust (£95,850) had been built into the medium-term financial plan and was detailed within the report.

A Member raised concern regarding the recorded visits to the Leisure Centre which had been recorded as down which was not consistent with the increase in membership.  This issue had been raised at the previous meeting and was being investigated.  The Managing Director Active4Today confirmed that a change in software had taken place in September 2017.  Work would continue in this area and the same issue had been recorded at Southwell Leisure Centre.  If the internet/kiosk was down the gates were opened which meant that the data was not captured.  Membership and income had continued to increase.  Discussions were also taking place with the Southwell Leisure Centre Trustees to resolve this issue.

A Member suggested that a three year pricing strategy would be a key component as to whether Active4Today could meet its predicted targets and asked for that to be included in the Business Plan.

AGREED (unanimously) that:

(a)        a three year pricing strategy be included in the future Business Plan and the performance to date be noted;

(b)        the Active4Today Business Plan 2018/19 be approved;

(c)        50% of the Active4Today Management fee be paid at the start of 2018/19 and hold 50% in abeyance until half-way through the financial year pending the latest financial performance of the Company; and

(d)        50% of the management fee would be paid to Active4oday for the delivery of services to Southwell Leisure Centre Trust at the start of 2018/19 and hold 50% in abeyance pending the outcome of the funding agreement between the Company and the Trust.