Agenda item

To provide an update regarding the performance and budget position of LeisureSK Ltd covering the provisional outturn for 2024/25 and the year-to-date position for 2025/26.

The Director of LeisureSK Ltd presented the report.

A new 10-year contract had been agreed and in place which was operating under the agency model from the 1st April 2025.

Overall fitness memberships remained stable with a minor 0.6% reduction over the comparative 12-month period to the end of May.

Across the individual sites, Bourne increased its membership by 19 (1.4%), Grantham increased by 84 (6.1%), while Stamford decreased by 125 (15.6%), this is due to increased competition following a new gym opening nearby earlier this year.

There had been a reduction in numbers overall of 4.8% but the budget price increase in September 2024 had helped mitigate most of the financial impact.

Events had continued to be held regularly at Grantham Meres and generate income supporting the cashflow of the Company.

At a previous Committee meeting it was raised that the Company would be approaching the Council for a loan so that the gym can be refurbished at Grantham Meres, a business case was in the process of being drafted.

(It was proposed, seconded and AGREED to go into private session, to discuss the exempt appendices)

(The Committee returned into public session)

(Councillor Philip Knowles declared an interest in his capacity as a LeisureSK Ltd Board Member)

It was highlighted that Pure Gym provided some competition with Stamford Leisure Centre. It was queried whether any grounds of partnership agreement could be requested, for example Pure Gym does not have a swimming pool, whereas Stamford Leisure Centre does.

It was hoped that LeisureSK Ltd could explore why Bourne was having a lower uptake in memberships.

One Member questioned whether market research would take place when developing the business case for the gym equipment at Grantham Meres.

The Director of LeisureSK Ltd clarified a review was taking place for options around Stamford and what mitigations could be implemented in terms of competitors.

Following the recent investment in gym equipment at Bourne Leisure Centre, the membership figures had increased but were now levelling out. The Board were exploring options on how the membership rates could be further increased.

The business case for gym equipment at Grantham Meres would be brought back to the Committee to include details on the investment and expectations around modelling of membership price increase.

One Member noted that feedback from residents stated that facilities at Stamford Leisure Centre were not clean. Members felt the facilities in Stamford needed to be of a high standard if partnerships with competitors was to take place.

The Assistant Director of Culture and Leisure confirmed issues around cleanliness at Stamford Leisure Centre had been reported. The team had undertaken more spot checks on the facility and there had been improvements in levels of cleanliness. The changing rooms were outdated and required investment in the future.

Condition surveys were being completed on all Leisure Centres, with a focus on Category D items (end of life and health and safety).

It was outlined that competitors, such as Pure Gym offer a full package of cleanliness of facilities and changing rooms, high standard equipment and a well-maintained car park.

Members discussed gym equipment reaching the end of its life. It was queried whether spending money on refurbishing gym equipment would be the reason residents obtain a membership. It was further outlined that the cleanliness of centres could have a big impact on people obtaining a membership.

It was requested that a breakdown of what facilities members use when visiting the leisure centres be brought to the Committee in future.

One Member queried whether the Committee could review the KPI’s for  LeisureSK Ltd.

ACTION: For the Team Leader – Leisure, Parks and Open Spaces to provide the Committee with KPI’s for LeisureSK Ltd.

The Team Leader – Leisure, Parks and Open Spaces confirmed that a structural refurbishment of changing rooms would sit with the responsibility of the Council rather than LeisureSK Ltd.

To provide an update regarding the performance and budget position of LeisureSK Ltd covering the provisional outturn for 2024/25 and the year-to-date position for 2025/26.