The Advisory Shareholder Sub Committee was scheduled to meet to discuss the performance and finances of Liberty Leisure Limited, a local authority trading company¹ that manages leisure and cultural services in the borough. The committee was also expected to review and approve its work programme for the upcoming period.

Liberty Leisure Business Plan Performance Report

The Advisory Shareholder Sub Committee was asked to note the Liberty Leisure Business Plan Progress Report for Quarter 1 (Q1) 2025/26. The report summarised progress on key tasks and priorities for improvement in 2025/26, and provided data relating to Key Performance Indicators (KPIs).

The Liberty Leisure Limited Business Plan links to the council's corporate priority of Health, specifically the objective to promote active and healthy lifestyles in every area of Broxtowe.

The report included a table of performance indicators for 2024/25, with comparisons to previous years, and targets for the current year. Some of the key indicators included:

• Total attendance: The target for the year was 775,000, with a Q1 target of 194,375. The actual attendance for Q1 was 202,469.
• Operating expenditure: The Q1 target was £770K, with an actual spend of £645K.
• Total income (excluding Management Fee): The Q1 target was £688K, with an actual income of £648K.
• Total number of members (Fitness and Swim School): The target was 5,778, with an actual number of 5,492.

The report also detailed actions for 2024/25, including:

• Reviewing the possibility of minimising VAT liability by adopting the 'Agency Agreement' model for operating leisure services.
• Rationalising the support services provided to the company by Broxtowe Borough Council (BBC) to improve financial and operational efficiencies.
• Continuing exercise referral in the north of the borough at Greasley Sports and Community Centre.
• Planning, opening and operating the new Hickings Lane Pavilion, with Liberty Leisure Limited (LLL) to operate a financially sustainable facility from 2025/26.
• Supporting Broxtowe Borough Council in the development of a new leisure facility at the Bramcote Leisure Centre site.
• Growing fitness memberships, with a focus on Bramcote Leisure Centre and the potential opening of a gym facility at the Hickings Lane Pavilion.
• Expanding Exercise Referral opportunities, specifically targeting young people.
• Growing swimming income from Liberty Leisure Ltd Swim School, NCC School Swimming and the public swimming programme at Bramcote Leisure Centre (BLC).
• Implementing price changes to increase overall operational income.
• Implementing updated digital sales and bookings processes to improve the ease of bookings.
• Implementing new gym equipment at Hickings Lane and across the estate.
• Managing the reduction in the allocated management fee being made to the company by Broxtowe Borough Council, with a plan to deliver a balanced financial budget for 2025/26.

Liberty Leisure End of Year Accounts 2023/24

The Advisory Shareholder Sub Committee was scheduled to be updated on the end of year performance of Liberty Leisure. The annual operating budget for Liberty Leisure Limited is derived from the company's annually updated Business Plan.

The report detailed the management fee received from Broxtowe Borough Council, operating income and expenditures, corporation tax, and reserves.

The management fee received from Broxtowe Borough Council was £246,000 + VAT, which was £273,000 less than in 2023-24. The operating income for 2024-25 was £2,592k, a decrease of £764k (22.8%) compared to 2023-24, but £134k (5.4%) above target. The operating expenditure for 2024-25 was £2,811k, a decrease of £1,096k (28.1%) compared to 2023-24, and £111k (3.8%) below target.

The company's annual accounts showed an operating cash surplus for 2024-25 of £794. The company reserves as of 31 March 2024 were £442,033. The surplus of £794 was added to the reserve, leaving an updated reserve of £442,827 as of 31 March 2025.

The report also included the Report of the Directors and Unaudited Financial Statements for the Year Ended 31st March 2025, which contained detailed financial information about the company, including the Income Statement, Balance Sheet, Statement of Changes in Equity, and Notes to the Financial Statements.

Liberty Leisure Q1 Performance Report

The Advisory Shareholder Sub Committee was scheduled to be updated on the performance of Liberty Leisure Limited in Quarter 1 (Q1) 2025/26. Liberty Leisure Limited (LLL) produces quarterly performance reports that are submitted to the LLL Board as well as the Advisory Shareholder Sub Committee to showcase how the business is performing against its objectives.

The report included information on sales and attendances, including fitness memberships, swim school memberships, and overall membership totals. It also detailed actions to grow memberships, such as marketing activities, improving the digital journey, and growing exercise referral programmes.

The report also included financial information for 2025-26, including a summary of totals, a breakdown of income and expenditure, and a summary of the factors influencing income and expenditure for 2025-26.

Some of the key points from the report included:

• Fitness memberships were on track for the end of year target, with an expected increase for Bramcote and Chilwell.
• Swim School memberships were on track for the end of year target, with direct marketing planned to increase uptake.
• Overall, membership figures were slightly down from the end of year total.
• Attendance targets were achieved across swim, fitness and exercise referral.
• The company was currently forecasting to be at budget target for the year.

The report also summarised additional work and developments during Q1 2025-26, including the continued operation of Exercise Referral at Greasley Sport & Community Centre, work with the council and partners to deliver the Stapleford Pavilion project, and contributions towards developing plans for a new leisure centre at the Bramcote Site.

Work Programme

The Advisory Shareholder Sub-Committee was asked to consider its Work Programme and consider items for consideration at future meetings. The terms of reference are set out in the Council's Constitution, and it is good practice to include a work programme to help the Council manage the portfolios.