Agenda item

Members received the LeisureSK Ltd Finance and Operation Performance report for quarter 2, 2025/26.  The report stated that an increased surplus was expected as outlined and summarised in Appendix 1.

(10:55 Councillor Matt Bailey left the meeting and did not return)

The overall budget surplus was achieving a profit of £148,000 which was an achievement of £76,000 against the budget which was a positive position with surpluses being reinvested back into the business. Focus would continue to be on what was being spent and what income could be generated.  The Board was pleased with the direction that was being taken and the Business Plan which was the next item on the agenda was also showing a positive operational direction for the sites across the District.

Questions were asked about how the leisure centres could complete with other companies such as PureGym and were there any speculative figures for surpluses beyond 2026.

The Chairman of LeisureSK Ltd referred to where your “niche” in the market was.  If it was Pure Gym then the leisure centres probably couldn’t compete but leisure centres offered other programmes and also they had the use of large swimming pools which was how you differentiated yourself from other gym organisations. 

A further question was asked in respect of the reduction in membership at Stamford would this be permanent and it was stated that this was being monitored closely and if supply increased then market share would be affected.  Research was being undertaken to see what Stamford’s “niche” should be and work was on going in that regard. 

Although a profit was being forecast it was noted that memberships were down, swim schools were down, income was behind budget and also Pure Gym was causing market erosion. Maintenance demands were rising so how could the business be operating at a profit. The Assistant Director (Leisure, Culture and Place) responded that this was a new agency contract in its first year. The new arrangement negated the impact of irrecoverable VAT which had been an issue in the previous contract. That was why the accounts were showing a surplus for the year.

The Chairman stated that it was hard to quantify a profit when it was a wellbeing facility that was being provided for the general public. These type of facilities did not always seek to make money but provide facilities that helped the wellbeing of people to lead more fulfilling lives. However, value for money should always be sought wherever possible.

Further questions were asked about the backlog of work and it was stated that a much better way of working across the sites then had perhaps happened historically was in place with closer working with the Council. Reference was made to investing money in the sites which needed to be maintained and looked after and LeisureSK Ltd was looking at this and repairs were being carried out more. It was noted that the previous budget may not have been set at the right level and reference was made to the next item where the revenue repairs and maintenance budget had been increased to ensure sufficient funding was in place to undertake required maintenance. Closer working with the Council to address issues within the Centres was key.

A date for when the backlog would be completed was part of the bigger programme of investment in the overall sites.  The Chairman reminded the Committee about the £500,000 reserve that had been put in place and the Deputy Leader of the Council stated that significant progress needed to be carried out at the leisure centres within the next 12 months.

A comment was made that it may be helpful for future reports if a breakdown per centre was included with a few headlines to stop any confusion with regard to the figures before the Committee. The Assistant Director (Leisure, Culture and Place) stated that she would take the comments made and discuss this with the LeisureSK Board outside of the Committee.

The report was noted.