To receive a presentation from Jon Argent, Chief Executive of HALO Leisure Services Ltd.

The Committee received a presentation from Jon Argent, Chief Executive of HALO Leisure Services Ltd.

Mr Argent began his presentation by reminding the Committee that HALO had been established on 1st April 2002 as a registered charity with 25 year leases on its nine centres throughout the County.  At its nine centres HALO employed 380 full and part time staff and recorded 1.5 million visits and a turnover of £6m per annum.

Mr Argent explained that even though HALO was officially a charity it was still operated as a business with surpluses being returned to the community through improved facilities rather than paid as dividends to shareholders.

The Committee was informed that the Council provided HALO with 20% of its annual income, however, as this income was not subject to Retail Price Increases the Council’s input to HALO was in fact reducing over time.  This was significant as it meant that, in order to meet unavoidable cost increases, HALO was dependent on creating new income streams to increase revenue rather than relying on grants.  Mr Argent reported to the Committee that in 2005/06 HALO will again return an operating surplus.  This money would be reinvested into the business for future priorities as identified by the Vision Group made up of Councillors, and Council and HALO Officers.

The Committee heard how opinion surveys of HALO Staff had revealed that the vast majority of staff enjoyed their jobs, were motivated, and proud to work for HALO and prepared to recommend the company as an employer to their friends.  This fitted the company’s original ethos of becoming ‘an employer of choice’.

Mr Argent explained that HALOs facilities were externally inspected and revealed that Ross Pool had recently been received a score of 80% in a QUEST Inspection which was the equated to being the sixth highest score awarded in the Country. All Halo centres are within the top quartile of the assessment programme nationally.

The Committee heard about HALO’s future investment strategy and how it was essential that investment was made to drive revenue.  Examples were given of how it was planned that the gyms be extended at HALO centres in Ross, Leominster and Hereford.  Mr Argent asserted that this level of investment was required to increase current levels of revenue.  In addition to this HALO sought to improve the current facilities that it offered. Schemes such as changing room refurbishment and locker replacement were funded from reserves and in partnership with the Council, however, these schemes were not  commercial improvements.

In terms of asset management the Committee was informed that the Council was responsible for all structures and major plant replacements and that HALO was responsible for maintenance, emergency repairs and replacement of fixtures and fittings.  To meet its responsibilities HALO had implemented comprehensive maintenance programmes for each of its centres.  These programmes were delivered by qualified in-house teams and sub-contractors at a cost of £350,000 in 2005/06.  With regard to Halo’s responsibilities a 25-year repair and renewal programme had been established in 2003 with costs being budgeted for within each centre’s annual budget.  Each item of equipment HALO was responsible for was included on an inventory which included a budgeted replacement plan.

Mr Argent informed the Committee that a number of research methods were in place to monitor future client trends.  Customers could offer feedback to HALO through mediums such as comment cards, texts, emails and the main HALO website.  An opinion meter was also available on rotation through all centres which allowed customers to complete surveys on a stand alone machine at any time without HALO having to employ somebody to undertake the study for them.  In addition to this, non-user surveys were carried out in order to ascertain how it would be possible for HALO to grow its customer base.

With regard to Herefordshire’s demography and its growing elderly population Mr Argent informed Members that HALO would ensure that its programmes were developed to meet the needs of this group and that facilities were accessible to the widest practicable customer base.  HALO was also committed to delivering broad social agendas including health and well-being, social inclusion and community safety.  Partnership work with the Council and Primary Care Trust was a feature of HALO’s work in delivering appropriate services to the communities it served.

Finally Mr Argent explained that HALO was committed to fulfilling its potential and ensuring that it supported the communities that it was created to provide for.

The following are the principal points from the ensuing discussion:

·         Mr Argent was conscious of private developers entering the leisure market and emphasised the good research that was undertaken at HALO with regard to segmenting the broad market place.  He anticipated that HALO would lose some customers to the new development at Holmer Park, Hereford but believed that the number of customers who would leave would be limited due the high cost of membership at Holmer Park.  New Private Developments were another reason why HALO needed to continue updating facilities in order to retain its core customer base.

·         HALO made over £400,000 of tax based savings in the last financial year due to being a not for profit organisation and registered charity.

·         Mr Argent acknowledged that there had been some problems at Ross Sports Centre and highlighted the current partnership arrangements being implemented with local clubs and the Council in trying to build constructive relationships to address the current issues.

·         If the Council decided that a skate park was one of its priorities then HALO would be happy to discuss managing the facility.

·         The newly developed Leominster Swimming Pool was considered to be an extraordinary success. It was a well used facility used by many schools.  There were currently over 500 children enrolled on learn to swim programmes.

The Cabinet Member (Community Services) commented on the difficulties which had been reported at Ross Sports Centre and assured the Committee that action was being taken to resolve the problems.  He commented that even though HALO was a charity it was operated on business like principles.  He added that the Vision Group meetings between the Council and HALO were always frank and solution based and he praised HALO for the transparency which it offered the Council in its monitoring of the company.

The Chairman thanked Mr Argent for attending the meeting and stated that he would like the Members of the Committee to visit some of HALO’s facilities in the future.