Agenda item

To receive an annual report providing an update on the contracts for the Health and Leisure centres and Dibden Golf Course.

The Panel received two presentations providing an annual update on the contracts for the Health and Leisure Centres (Freedom Leisure) and Dibden Golf Course (Mytime Active).  The presentations had been published with the agenda for the meeting.

Freedom Leisure

Representatives from Freedom Leisure, Chris Deadman - Head of Operations and Peter Cheeseman – Area Manager for the New Forest attended the meeting and addressed the Panel, the following was noted:

·        Freedom Leisure was in its second year of partnership with the District Council;

·        Strategic objectives and purpose; this included increasing participation levels and supporting “Active Communities”;

·        Fitness memberships for 2022/23 had increased with over 6,000 members;

·        The learn to swim memberships had increased from under 3,000 in July 2021 to 4,800, which was very positive news.  This was the highest level of swimming lessons the New Forest leisure centres had ever seen;

·        Capital projects had been completed in Applemore, Ringwood and Totton.  The total capital expenditure was close to £3m in the first two years of the contract;

·        The Healthy communities work was outlined.  This targeted hard to reach groups and people were referred through the GP referral scheme.  There had been 12,500 referrals.  Classes included Chair Yoga, Health Circuits, etc.  Freedom Leisure was currently working with 400 people from over 30 GP surgeries in the New Forest;

·        The impact of utility costs, this was £800k more than had been budgeted for.  Freedom Leisure had worked to reduce usage of year on year units by 1.1m units for gas and 185k units for electricity which was positive and therefore reducing the impact to some extent;

·        Financial performance.   A loss of £1.5 m was noted over two financial years.  A significant impact for this loss was due to the increase in the cost of utilities, which had not been forecast.  Another factor was the delay to capital projects in terms of start and finish times and therefore there had been a loss in budgeted income from these projects; and

·        The key objectives for 2023/24 were noted.  There was confidence that there would be a more positive direction of travel for future years.  Gym refurbishments were planned for Totton, Applemore and New Milton leisure centres for completion by the end of the calendar year.

In response to a member question about the £1.5m deficit, it was clarified that the loss was to Freedom Leisure and that it would sit on the audited accounts.

A member of the Panel asked how Freedom Leisure could make improvements.  It was noted that there had been a delay to the timing of the capital projects due to procurement matters, which had affected revenue, and therefore lessons had been learnt for future projects.

The work of Healthy Communities was recognised and a member questioned whether Freedom Leisure could work outside of the District Council area in order to generate more income.  It was recognised that Freedom Leisure had been contracted by the District Council and there was a responsibility to residents in the District, however further work could be done with the GP surgeries to increase participation levels which could bring people outside of the District Council area, to one of the leisure centres to access the services provided.

Mytime Active

Jason Stanton, Chris Executive and Scott Bartlett, Area Manager attended the meeting and addressed the Panel.  The following was noted:

·        Mytime Active thanked the District Council for the support which had been provided;

·        Corporate Plan objectives; to increase employee engagement; to improve the wellbeing of their communities; and to deliver a sustainable EBITDA;

·        The performance and income was outlined.  Membership and food and beverage income for the financial year 2022/23 had been below budget.   The membership had decreased due to covid.  It was explained that there had been a change to the timing of the renewal process to September which had not generated the same level of membership take up.  The membership renewal period had now moved back to March, which was a better time of year.  A more favourable position for green fees & societies and the driving range was acknowledged.

·        Utility costs had exceeded the budget;

·        The financial position at the end of the financial year 2022/23 was £105k in deficit;

·        Roundage and membership levels were highlighted;

·        Completed work for 22/23, this included Led lighting upgrade to the driving range, the installation of winter mats to the golf course, redecoration of the clubhouse and replacement of hand dryers; and

·        SWAT analysis goals