Agenda item

Members are invited to receive the presentation delivered by Fusion Lifestyle.

The Committee received a presentation rom Fusion Lifestyle regarding leisure centre and sports development. Members noted that for Fusion Lifestyle total income was down by 19% year on year. Total participation was down by 17% year on year. As for Golden Lane Sport & Fitness participation was down by 17% year on year whilst membership line was down by 6% year on year. This has happened due to the increased competition in the area from the City University and The Gym; this made it difficult to attract new members in a competitive market. Another reason was that sports hall floor affected participation for badminton schools and junior activities such as indoor tennis and gymnastics. This equates to a £12,000 reduction in income based on June to December year on year.

For Golden Lane sport & Fitness their actual income was £674,000 (down by 15%) whilst the reported figure was £649,000 (down by 19%). In terms of participation for Golden lane & Fitness the projected actual attendance was 98,595 compared to the reported figure of 79,933. However, Fusion are doing all they can to improve their performance, for example Fusion have installed 16 new spin bikes in February 2017, they have also launched an app in May 2016, developed the swimming school to reach capacity and also increasing group exercise programme.

Fusion has projected how their improvements in performance will affect the participation and income of Fusion leisure centres. In terms of income, they expect a 1% growth in income year on year, also a growth in membership by 1.5% year on year.  In terms of participation, they expect an increase of 1% in overall participation (80,522), also an increase in target group participation by 2% year on year (50,846)

Fusion have been engaged in  increasing sports development through community engagement by the availability of after school clubs which include 22 sessions across 9 local schools. They have also included a swim school which they have a target to grow by 10%. Fusion have organised a variety of events to increase sports development, there has been London Youth Games which they have achieved a Gold medal in swimming and top 5 finish in Tennis. Fusion also plans to introduce projects such as City Of London Mini Olympic Provision. A £225,000 bid has been submitted to deliver a football tournament (October 2017) and an Athletics competition (May 2018).

In order to ensure the project is sustainable Fusion has recommended transferring all members to direct debit members. Fusion have recommended this change as there would be a more realistic picture of active members and ease of members to cancel with illness or holiday periods. This would benefit Fusion in many ways such as better management and more realistic picture of active members.

In response to a question from a member relating to the introduction of a ‘young’ plan which has an appealing price plan aimed at those aged 25 years of and under, which could potentially entice users and increase participation, members were informed that this question would be taken into consideration and fed back to the committee. 

In response to a question from a member relating to customer engagement and whether Fusion Lifestyle had sought the views of its customers, members were informed that there is a stakeholder engagement plan in place which liaises with service users and seeks their views on services offered. The feedback received is reviewed and monitored on a regular basis.

In response to a question from a member as to how the services offered by Fusion Lifestyle compare with the costs of services provided by other leisure centres, members were informed that the costs of services are higher, as Fusion Lifestyle pays its staff the London living wage. In addition, operating the swimming pool is expensive due to other associated costs and having a lifeguard on site during the swimming pool opening hours.

In response to a question from a member as to why the repairs of the sports hall and the ladies cubicles took up to a period of six months before any action was taken, members were informed that this was partially due to liaising with the Insurance provider. A detailed overview can be provided. In relation to the repairs of the ladies cubicles, it was acknowledged that the repairs took longer than usual. However, members were informed that there is now a new general manager who ensures that repairs are completed in adequate time.

In response to a question from a member regarding the accounts, the allocation of costs and overheads, members were informed that the monthly reports of accounts is sent to the Corporation of London and includes detailed breakdown of all allocation of costs and overheads.

Resolved – that Members received the presentation.