Edinburgh Leisure's numbers in good shape

Published on Sunday 10 August 2008 22:05

STRONG demand for health and fitness facilities, as well as coaching for children, has boosted full-year turnover at Edinburgh Leisure to £15.6 million from £14.3m the previous year.

But rising utility costs, plus a hike in wage bills as a result of increased inflation will add 1m to the organisation's costs this year, chief executive Keith Jackson has revealed.

The Edinburgh Leisure trust, which took over the running of the city's sports facilities ten years ago, has seen its income rise by an average of 15 per cent a year since its launch – despite a static sports and fitness market UK-wide.

The number of customer visits to Edinburgh Leisure's facilities rose to 4.13 million last year from 3.96 million a year earlier.

Jackson told The Scotsman: "We are going to have to find a way to cover that extra burden from utilities and rising staffing costs.

"You can hold staff wages back for so long, but when costs and goods in the shops are rising, to have a happy work force, you have to put salaries up accordingly. You can't hold it back indefinitely."

In 2007, income at Edinburgh Leisure, which has more than 750 staff across the capital, rose by just 10 per cent, compared with the 15 per cent ten-year average, but Jackson said he was pleased with the performance in the current market.

He said: "Growth has slowed down, but it is still growing, which is a great achievement. The important thing is to get as many people as possible through the door."

Jackson added that passing some price increases on to the customer would be inevitable.

He said: "We will look at our services and see where we can increase prices without having the result that people just cannot afford to use the facilities."

As well as gyms, swimming pools and tennis courts, the trust runs large complexes such as Meadowbank Stadium.

The organisation is 70 per cent funded by its own turnover, and receives just 30 per cent of funding from the city council.

Edinburgh Leisure finds its fastest growing market is health and fitness, as people look for a quick way to fit exercise into their busy lives – while more time-consuming sports such as golf are on the decline.

Jackson said health and fitness income had risen by about 15 per cent over the past year, but added that golf had declined by about 5 per cent over the period.

He said: "It is a time issue. People are increasingly working longer hours and just do not have time to play 18 or even nine holes of golf."

Sports coaching for youngsters is also a growth market, boosted by parents keen to get their children involved in sport, – growing by about 20 per cent over the past year to bring in more than 1m for the organisation – while what is known in the trade as the "grey market" of sports for over-60s is also on the rise, up by 11.9 per cent.

Edinburgh Leisure closed its final salary pension scheme on 31 March this year. "That is a massive move for us in terms of managing our future costs," said Jackson.