Tees Active Business Plan 2012 - 2015 1
Company Mission
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Our mission is to raise the levels of physical activity within
the community whilst offering an attractive, safe, welcoming
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environment for people to achieve their own personal aims.
2
CO NTENTS INTRODUCTION
5
REVIEW OF 2008 – 11
6-7
STRATEGIC OBJECTIVES
8
Company Objectives
8
Vision
8
Mission
8
Local Authorities
22
Our Strategic Aims
8
Commercial Opportunities
22
10
Existing Facilities
22
Health Initiatives
23
Activ8 Health and Fitness
10
Education
23
Swimming
11
Ice Skating
11
Tees Barrage International White Water Centre (TBIWWC)
12
Health Initiatives
13
Indoor Bowling
13
Olympic Engagement Programme
13
OUR SERVICE
OUR FACILITIES AND ASSETS
14
OUR FINANCES
20
Stockton Council Contract Revenue Budgets
20
Northumberland Council Contract Revenue Budgets
20
Reserves Management
20
BUSINESS DEVELOPMENT
OUR PERFORMANCE
22
24
Finance
24
Visitor Numbers
24
Quality
25
Risk Management
25
APPENDICES
26-31
Appendix 1 - Five Year Asset and Equipment Plan
26
5 Year Asset and Equipment Plan
14
Energy Management
14
Appendix 2 - Environmental Policy Action Plan 2012 - 2015
27
TBIWWC Maintenance
14
Appendix 3 - Reserves Management Plan
28-29
Service Level Agreement
14
30-31
IT Infrastructure
15
Appendix 4 - TAL Business Performance Analysis
Activ8 Gym Renewal
15
Electricity Generation
15
MARKETING
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Websites
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Key Business Targets
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Market Research
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Events
17
Resources
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OUR STAFF
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Investors in People (IIP)
18
Apprenticeship Scheme
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Induction Process
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Review of HR Procedures
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Review of Training and Development Plan
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On-line Recruitment
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Staff Survey
19
Sickness Management
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3
COMPETE
EXPERIENCE
SOCIALISE
LEARN
PLAY ENJOY 4
I N TR O DU C T IO N Tees Active (TAL) is now an established, successful and respected ‘Leisure Trust’, a social enterprise formed in 2004 and entering the third phase of our evolution. Our first three years saw the company in its infancy, becoming established both as a trading entity and as a successful operator. Phase two up to 2011 saw the planning of the first three years come to fruition with major redevelopments at Splash, Thornaby Pavilion and Billingham Forum. £24 million was invested in the facilities of which Tees Active contributed £12 million. We also saw the acquisition of Tees Barrage international White Water Centre and its subsequent redevelopment plus the contract to run the Swan Centre for Leisure in Berwick. It has been a period of upheaval and repositioning whilst maintaining high service standards and increasing visitor numbers. 2012-15 represents our third phase, managing ambitious business plans in our completed and redeveloped facilities and looking to the future to ensure long term stability and a continued reduction in our financial support through the public purse. We aim to achieve this through growth and efficiency as we continue the positive development of the company whilst maintaining our focus on those community based activities and social targets that mark us out as an ethical social enterprise. We will continue to align our services to the big public policy initiatives around physical activity. Childhood obesity and encouraging healthy lifestyles continue to be major priorities and the legacy from the London 2012 Olympics and Paralympics will have a high profile during our third phase. It is important, therefore, that we continue to attract new users through imaginative programming, targeted schemes, high standards of customer service and attempting to break down those barriers to access that can prevent certain people benefiting from our services. This is an immensely exciting and challenging time for TAL. The board, staff and management are proud of the achievements to date but are now focused on the future with optimism and confidence.
Steven Chaytor Managing Director
Gordon Bates Chairman
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RE V I E W O F 2008 – 11 Tees Active has had many achievements over the last three years. Here are some of our best:
Produced a comprehensive energy m
anagement plan
aby Pavilion ntre at Thorn e c e c n a rm rfo dminton pe p £100k ba lo ve e d to d lan minton Eng ip with Bad h rs e n rt a p Formed
adlin
Tees Active he
Completion of the £1.5
ards
zette Sports Aw
e Evening Ga e sponsors of th
million refurbishment of
Thornaby Pavilion
ys per annum
Sickness levels reduced to under 5 da
Tees Active associate sp
onsors of the Stockton
Introduc
ed the h
ighly su
ccessful
Sporting
Start an
d Sporti
ng Re-S
tart prog
rammes
in conju
Fringe Festival
nction w
ith NHS
Tees 6
Completio
n of the £
2.5 millio
n extensio
ent of evelopm
lion red
£20 mil
n of Splas
h
mplete
rum co gham Fo
Billin
Sports Tees Active
a 2 year g n i w o l l fo
closure
lympians
its first O y produces
Academ
Annual turnover increased by 12% llence Achieved the Customer Service Exce
Standard
Acquisition of the Tees Barrage International White Water Centre in Berwick tre for Leisure en C an w S e to manage th land Council er b m u h rt o N contract with Won a ten year
£12 million is reinvested in facilities
% 2 4 y b e m o c in ncreased Activ8
I
£850k invested in faci lity improvements at Sw an Centre for Leisure 7
S TRATEG IC O BJ E C T IV E S There are a number of guiding principles that encompass what we do and how we do it. These can be traced back to the company objectives in our ‘rules of society’ and are brought to life in our ‘vision’ and ‘mission’ statements. There are seven key strategic objectives drawn from these principles that link directly to the seven strands of the business plan. In turn, these strands lead to very specific targets for the business over the period 2012-15. Fundamentally, these principles describe a company with community focus, a social conscience, an ethical approach and an emphasis on value for money and efficiency. In essence, our future business operation will be geared up to achieve greater value for money for our client authorities whilst achieving improved quality, increased participation, and controlled business growth. This requires a combination of innovation, ambition and a commercial approach allied to a set of values and clearly defined community focused aims.
1. Company Objectives TAL is an Industrial and Provident Society with exempt charitable status. We have a set of company rules known as the rules of society that contain a basic statement of our charitable aims: “The objectives of the Society shall be to provide for the general public recreation and leisure time occupation in the interests of social welfare, health and to advance the education of the public in leisure activities.”
2. Vision ‘To provide a high quality service of choice for our local communities.’
3. Mission ‘To raise levels of physical activity and to offer a safe, attractive, welcoming and encouraging environment for people to achieve their own personal aims.’
4. Our Strategic Aims We have seven key strategic aims that shape our service and our detailed business plans: • • • • • • •
To deliver a high quality, innovative, customer focused service. To maintain a high quality, sustainable stock of facilities. To ensure our service appeals to all aspects of our communities. To maintain a motivated, well-trained, focused and engaged workforce. To reduce the cost to our client authorities of operating the service. To expand our company reach. To achieve year on year increases in visitor numbers
These seven strategic aims will be addressed by the seven main strands of the business plan, namely: • • • • • • •
Our Service Our Facilities and Assets Marketing Our Staff Our Finances Business Development Our Performance
The following pages outline the key broad objectives in the seven business strands that will in turn inform the detailed planning for our different cost centres and individual work programmes. 8
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We aim to grow swimming numbers by an average of 2% per year over the next three years.
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OU R S ER V I CE The single most important measure of our service performance is the number of customer visits per year. Getting More People, More Active More Often in line with national aims through Sport England, is the primary aim of the company. Indeed the more recent Sport England objectives to Grow, Sustain and Excel mirror exactly our objectives to increase participation, encourage people to sustain their activity and help those talented performers to excel. The new Sport England aspirations for 2011-15 are also mirrored in our aims, namely: • • • • •
Year on year growth in participation for those over 14 – once per week An increase in the proportion of 14-25 yr olds playing sport once a week A reduction in drop off Growth in participation by people with a disability Enhanced talent pathways
However, TAL is not just about sport but physical activity in a broader sense, which is where we link to the health related objective of encouraging people to meet the target of 3 x 30 minutes of vigorous activity per week or 5 x 30 minutes of moderate activity. Whilst we are aware that we cannot achieve these targets alone, TAL plays a major role in making physical activity accessible, attractive and fun. In order to help achieve our goals we will be focusing on seven priorities for service development:
1. Activ8 Health and Fitness Activ8 is the TAL health and fitness brand which has grown and developed over the past years into a highly successful business strand that has survived and thrived despite increasing competition from the private sector. In 2011/12 it achieved over £1.45mill of income accounting for around 27% of all TAL earned income. The advent of low cost gyms throughout the UK has caused tremors in the health and fitness sector and forced many operators to review their strategies. Activ8 has always been pitched as a high quality, affordable lifestyle offer rather than simply a fitness business. We have taken the strategic decision to maintain this position, emphasising our quality, value for money and the depth of the offer, which is linked to other aspects of the TAL service. In light of the growing competition and the economic climate, our aim is to maintain our market share in the next three years across the Splash, Forum and Pavilion gyms. We will 10
launch a new marketing campaign to emphasise the benefits of Activ8 and a new, dedicated website to form a more personal and interactive relationship with our Activ8 members. The Swan Centre Activ8 is at an earlier stage of development and on a five year curve of business growth. We will adopt the same marketing approach in Berwick, however, based not on maintaining market share but increasing it in line with the five year plan.
2. Swimming Swimming remains the most accessible of activities and one of our top three income generators. In 2011/12 it achieved over £1.11 million of income accounting for around 21% of all TAL earned income. We aim to grow swimming numbers by an average of 2% per year over the next three years. This will be done through an aggressive promotional campaign and a review of our approach to the development of the swimming programme in order to keep it refreshed and maintain the public’s interest. We will continue to support the resident swimming clubs to ensure there are pathways for young swimmers to reach the competitive process. In addition we will work pro-actively with the ASA Northern Region on swimming development initiatives designed to increase participation.
3. Ice Skating The third of our ‘big three’ income generators is ice skating at the Billingham Forum Ice Arena. Following its two year closure before reopening in June 2011, the ice attracted (in 10 months) over £790, 000 of income accounting for around 15% of our total company income. It remains vitally important to the company performance but also offers an invaluable outlet for those wishing to get involved in physical activity but who are not attracted by the traditional sporting route. We will focus on ensuring we have the maximum possible time available for public skating whilst supporting competitive ice sports through the Billingham Stars, Comets and Wildcats ice hockey teams. However, there will be a particular promotional campaign on learn to skate, capitalising on the television boost given by ‘Dancing on Ice’ and the fact that we employ one of the ice professionals on that programme. Accordingly, we hope to raise visitor numbers by a further 5% from 2012/13 to 2014/15.
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We aim to establish TBIWWC as the northern centre of excellence for canoe slalom
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4. Tees Barrage International White Water Centre (TBIWWC) The International White Water Centre is the latest exciting addition to the TAL portfolio. Following its £5 million redevelopment, it will operate for its first full season from spring 2012. Delays to the programme of work have meant that TAL had to forego the summer 2011 season and as a consequence sustained significant financial losses on the facility. This was contained within the overall company performance but it is essential that 2012/13 is a successful year financially. There are difficult business targets to reach but there is reason for optimism that they can be achieved. Specifically there will be a promotional campaign on white water rafting experiences aimed at achieving annual income of approximately £300,000. Northshore Watersports, our retail outlet based at The Barrage now has a firm trading base both on site and over the internet. We are aiming for income of £225,000 in 2012/13 rising to £336,000 in 2014/15. These two elements comprise the bulk of income at the venue but we will also focus on the sporting purpose of the centre which is the development of water sports. We aim to establish TBIWWC as the northern centre of excellence for canoe slalom with specific targets for the sport linked to our sport England Community Use Agreement. We will also work with governing bodies to attract canoe slalom events up to international standard. In addition we will work with educational establishments and the local canoe/kayak clubs to develop a flat water kayak programme, again linking to targets in the Community Use Agreement signed on completion of the new canoe storage facilities. We will also work with individuals and institutions to develop the sailing and bell-boating programme from TBIWWC mindful of the financial pressures which are causing people to review their commitments in the short term. We also aim to make the venue a national centre of excellence for Rescue Training through our strategic business alliance with Rescue 3 UK. Despite the delays to full opening there is already evidence that many rescue services are planning to use the site from 2012. Direct marketing to these organisations will continue in order to maximise business. Finally, TAL will develop two business models for the venue, one which utilises the technology installed in the redevelopment, namely Archimedes screws, conveyor system and additional bear gate, and an alternative which operates as a purely gravity fed course. The alternative will be in place as a fall back position should utility charges and technical failures prevent the business operating to its full capacity.
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The separate TBIWWC Business Plan gives the details of future financial projections and business targets.
5. Health Initiatives TAL will continue to address directly the health agenda through our general promotion of physical activity and more specifically through funded and commissioned services. This will include our self funded GP Referral Scheme in Stockton Borough and the funded GP Referral Scheme in Berwick. The current adult weight management scheme (Lite 4 Life) and child focused Young Persons Active Health Scheme (YPAHS) are subject to funding review by NHS Tees. The increasing financial pressure and the demise of the PCT in 2013 could herald the closure of those schemes in the short term. However, as the public health agenda transfers to the local authority from 2013, TAL will position itself to offer public health related services to the new client authority. For that reason we cannot give any specific commitments in this area. However, we will also continue to strengthen our relationship with hospital services through hosting clinical services in leisure centres i.e. cardiac rehabilitation and physiotherapy.
6. Indoor Bowling TAL has three indoor bowling centres at Thornaby Pavilion, Billingham Forum and Swan Centre for Leisure. The Pavilion site continues to operate successfully, albeit with a backdrop of falling national participation in the sport. However, the Forum and Swan facilities are underused and The Swan has no established club or league structure. There has been consideration of alternative uses for the 4 lane rink at Berwick, which is effectively empty for the whole summer period. Because of the contractual situation with Northumberland Council there is little sense in making a large, long term financial investment in the site on a venture such as ten pin bowling, which needs a particular demographic to operate successfully. However, taking a different approach we plan to maximise the income potential of the hall and offer a new activity to the people of Berwick and its holiday visitors. From spring 2012 we will trial an indoor synthetic ice rink aimed at children and families from April to September. It is projected that this scheme could net the company and additional £30k after hire and operating costs. We will develop a programme using the expertise from our ice arena in Billingham aimed at casual skating, learn to skate and mini ice sports. There will be an evaluation in October 2012 to determine whether or not this becomes an annual fixture, a permanent fixture – potentially replacing bowls – or is not a viable option. In the meantime we will work with the bowlers in Berwick to maximise use of the bowls facility during the winter periods.
7. Olympic Engagement Programme The London Olympics will take place in July/August 2012. TAL has developed an engagement programme to capitalise on the ‘Olympic effect’. This is based on our ‘Corporate Olympics’, a series of water based events aimed at the business community, support for talented athletes through the Academy and the promotion of five Olympic sports in the five months leading up to The Games. The programme is a separate document and links sport development with business development.
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We will also continue to strengthen our relationship with hospital services
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OUR FACIL IT IE S AND A S S E T S This section deals with our approach to the management and development of our facilities plus the management of those assets and equipment that are crucial to the delivery of the service. The commitments are reflected in the 5 year reserves spending plan. There are seven key areas of work:
1. 5 Year Asset and Equipment Plan TAL has produced a spending plan for the next five years based on the projected lifespan of equipment and lease commitments for building and plant maintenance. The plan places a £400,000 burden on reserves over the next 5 years for Stockton facilities and £60,000 for Berwick over three years (linked to the potential 5 year contract break clause). The plan is included as Appendix 1
2. Energy Management TAL has a commitment to energy efficiency and reducing environmental impact through reductions in our carbon footprint. Accordingly, we have produced an environmental plan containing an analysis of our current performance and proposed actions linked to invest to save spending. Any such spending will be contained in our revenue streams rather than a call on reserves. The plan, which is designed to be a fluid working document, is attached as Appendix 2
3. TBIWWC Maintenance 2012/13 will represent the first full year of operation on the White Water Course. With the new course comes a significant and important maintenance responsibility related to some very specialist equipment. TAL will work with our current maintenance advisors at SBC and experts at Canal and River Trust (CART) to procure a comprehensive maintenance package incorporating daily preventative maintenance and cyclical planned maintenance programmes. The annual package for the whole venue should not exceed £50,000.
4. Service Level Agreement TAL currently pays for a service level agreement (SLA) with Stockton Council to give advice on maintenance issues and to organise certain elements of the maintenance programme. This enables TAL to draw upon a combination of skills and experience that would not necessarily be available to the company if we employed someone directly for the same financial outlay. However, we will review this arrangement in 2012 with a view to assessing value for money and testing alternative arrangements given the additional maintenance responsibilities that come with the White Water Course and the fact that there is a looser connection with SBC over Billingham Forum maintenance now that the redeveloped facility has become operational.
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TAL has a commitment to energy efficiency and reducing environmental impact through reductions in our carbon footprint
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TAL will produce a renewal programme for Activ8 aimed at ensuring we have the most up to date equipment to offer our customers 5. IT Infrastructure
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TAL will commit to a full review of our IT infrastructure in light of our current operation and the potential for business expansion – potentially through other local authorities. This work will include the telephone systems, voice and data system, the financial management system, management information reporting systems and any conclusions will be linked to the reserves spending plan and efficiencies in the revenue streams.
6. Activ8 Gym Renewal Activ8 is one of the 3 major income generators for TAL and as such it is vitally important that the service continues to evolve and is supported by the appropriate investment required to maintain and grow participation and membership. We normally work on a 5 year cycle of renewal, each of our 4 venues being in a slightly different phase of that cycle. The single most important aspect is the fitness equipment that is leased for each gym. The Thornaby Pavilion gym is most advanced in the cycle and will be due for renewal in 2013. TAL will produce a renewal programme for Activ8 aimed at ensuring we have the most up to date equipment to offer our customers. This will be contained through revenue streams and will have no direct impact on the reserves spending plan.
7. Electricity Generation One of the new features on the TBIWWC following redevelopment is the ability to generate electricity. This offers the potential for a self sufficient, ‘green’ operation but is dependant on the utility costs and the level of feed in tariff (FIT) offered by OFGEM. Use of the Archimedes screws in generation mode at off-peak times has the potential to generate significant amounts of electricity, which will translate to income via FITs to the national grid. TAL will be developing a generation programme in conjunction with the British Waterways staff who are responsible for the control of the equipment. The aim will be to ensure that only electricity equivalent to that generated will be used on the pumped element of the programme unless a pumped course activity is capable of covering its own costs and securing the appropriate financial return. The exact detail of the arrangement should be resolved before May 2012 in order to properly control utility costs at the venue.
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PROMOTIONAL PRINT
TV ADVERTISING
M A R K ET I NG Effective, imaginative and targeted marketing of TAL facilities and services is essential to the future success of the company. Accordingly, TAL has increased its commitment to marketing resources year on year as the company has grown. The period 2012/15 has challenging business targets for TAL and key to achieving those will be the effectiveness of our marketing resource. Our five priorities for marketing activity are:
It is only the financial success of the company that will allow us to continue to cross-subsidise those aspects of our work that are aimed at social targets. Therefore, it is imperative that we maximise commercial opportunities to fund other initiatives such as Option 3 pricing, GP referrals and our Sports Academy.
1. Websites
TAL will adopt a new, streamlined approach to market research, which we believe will also offer better benchmarking. The plan is to focus on three annual pieces of research, namely:
3. Market Research
The modern consumer is used to accessing information and services on-line. TAL has had a successful website since becoming a company in 2004. However, as the company develops, the consumer has become more • sophisticated and we have become more reliant on the web to communicate with customers, it is clear that aspects of our on-line presence have become dated. We will commit to a complete redesign and renewal of our web activity • to maximise business in key areas such as Activ8 and TBIWWC, to bring our images and communication up to date and to future proof the websites for further business expansion. •
2. Key Business Targets Our Commercial Manager, who heads the Marketing division, will ensure that marketing resources are aligned with the key priorities and income generating activities in order to optimise the effectiveness of the unit. Essentially this means that the following activities will receive the bulk of resources and will each have an individual marketing plan: • • • • • •
White Water Rafting Activ8 Health and Fitness Swimming Ice Skating NorthShore Watersports Children’s Parties
APSE (Association of Public Service Excellence) that will deliver qualitative, quantitative and demographic information that can also be benchmarked nationally. MORI, which is conducted on behalf of local authorities and comments on public services in general. In-house satisfaction and post code survey
In addition, we will conduct service specific surveys as and when it is felt necessary. All of this work will have the twofold benefit of informing our client authorities and helping us with the development and improvement of our business and services.
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Effective, imaginative and targeted marketing of TAL facilities and services is essential to the future success of the company.
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RADIO ADVERTISING “For the ultimate white knuckle ride, get yourself white water rafting...” METRO Radio Campaign March 2012
BILLBOARD ADVERTISING
“Activ8 - Quality, Choice, Value and Motivation...” TFM Radio Campaign January 2012
4. Events TAL has always maintained a very visible presence at local events in order to promote our activities whilst supporting those events and raising our profile in the communities we serve. We will continue to do this but will review the number and type of events we support to ensure we are being effective and efficient in our work. This is a time and resource consuming activity that must be challenged on a regular basis. The second strand of our link with events is sponsoring/supporting external activities. We currently headline sponsor the Evening Gazette Sports Awards, category sponsor the Northern Echo Local Heroes Awards and associate sponsor the Stockton Weekender Music Festival. We will continue to support external events that link directly with our business and offer invaluable profile such as the awards and we will be supportive of events that give us a favourable community or political profile. However, we must challenge each event on its merits given the need to direct our resources most effectively mindful of the need to generate efficiencies. The third strand of event support is through those mainly sporting events that take place in our facilities, usually through clubs or sports associated with TAL. This includes events in table tennis, wrestling, swimming, ice hockey and kayaking. We will produce an annual programme of supported events that also links to our support of the development of those individual sports.
5. Resources TAL currently allocates £150,000 per annum to marketing and promotional activity. In addition we fund a Commercial Manager, Marketing Officer, Marketing Assistant and Graphic Designer to the tune of approximately £120,000. Marketing spend, therefore, represents just over 3% of our turnover annually. This figure is at the bottom end of the advised range of 3-5% in the private sector but higher than most public sector organisations. However, new businesses can spend up to 20% in the early stages. Given that we are effectively launching a new business in TBIWWC in 2012, we need to be mindful of the need to direct more resources towards that project. In order to ensure our marketing is strong and effective in all areas outlined above we plan to invest further in our resources by bolstering our web capacity and employing a dedicated web management resource – either directly or indirectly. This will add approximately £20,000 to our marketing spend bringing our resource up to £300,000, approximately 3.4% of turnover, for 2012/13 and beyond. As acknowledged in point 2, we will ensure that the financial and human resources are allocated in line with our key priorities as defined by the percentage of our income derived from those priority areas.
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O UR S TA F F As a business that employs around 400 staff in a whole range of disciplines and ages, both full time and part time, TAL understands the need to have progressive employment practices. Our business success is in large part due to the interaction of staff with customers therefore it is vitally important that we have a well motivated, trained and engaged workforce. We will focus on eight key areas of work in relation to employment.
1. Investors in People (IIP) Investors in People (IIP) is the nationally recognised mark of good, effective engagement with staff. TAL has not previously sought this recognition, in line with our previous approach to ‘awards’. However, since we are now more likely to be tested against other operators or client expectations as we seek to expand, we believe IIP will be a useful mark to gain. However, although gaining the mark will not be an immediate priority, certain elements that are crucial to obtaining IIP will be. The most important of these will be a new staff appraisal scheme to be developed as a replacement for the Employee development interview (EDI) that we have used for the past seven years. This is an important link between the employee and the company business plan.
2. Apprenticeship Scheme TAL is committed to developing an apprentice scheme to introduce new people to our industry and specifically to our company. The scheme will have two main aims, firstly to introduce, train and develop young people in jobs important to our business such as health and fitness, lifeguarding, administration and reception, with a view to securing long term employment. Such individuals will have been developed by TAL so reducing future recruitment and training costs. However, the second reason for developing the scheme is that we, as a social enterprise, are keen to offer opportunities to local young people at a time when it is increasingly difficult to secure employment during a period of economic austerity. The scheme should have an initial net outlay of ÂŁ30,000 per annum from April 2012.
3. Induction Process There will be a review of the company induction procedures ranging from the site specific aspect to the broader introduction to the company. It is important that on beginning work with TAL new employees understand fully their roles and responsibilities but also the context of the company, what they can achieve and what are our expectations. This also links closely to the demands of IIP.
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4. Review of HR Procedures TAL has a whole suite of HR procedures that shape how we engage with staff on a range of issues from pay and conditions to disciplinary processes and absence management. There will be a thorough review of these procedures to ensure they are fit for the next phase of our company development, easily understood and applied and are compliant with all the most recent legal updates and guidance. It is envisaged that this will take a year to complete based on agreed priorities.
5. Review of Training and Development Plan TAL recently invested in the employment of a Workforce Development Manager. One of the main priorities of the WDO will be to conduct a review of our whole approach to training and development. This will include not just what we do but also how we manage and monitor the plans. This is a crucial strand of work linking directly to individual performance, appraisal systems, business planning and execution. Again, it is very much part of the process of eventually gaining IIP accreditation.
6. On-line Recruitment In line with our web developments and recognition of the increasing role of on-line applications we intend to fully develop the capacity to offer web based applications for TAL vacancies. Whilst we currently offer some information on line it is not yet a comprehensive offer. This will have the added benefit of reducing paperwork and allowing a more flexible approach for the applicant.
7. Staff Survey During 2012/13 TAL will conduct another staff survey to assess the views of our workforce regarding TAL as a company and the manner in which we relate to and communicate with our employees. Our previous comprehensive survey in 2009 showed very positive responses in comparison with local authority surveys. It is our aim to improve further on those ratings.
8. Sickness Management TAL has achieved an extremely high level of attendance over the seven years of our existence. Having inherited sickness absence levels above 17 days per person per annum, we have reduced this to a consistent figure of around 5 days. Whilst we hope to reduce this further, we recognise that with legitimate long term sickness absence counted into the figures it is unlikely to fall much further. For that reason our aim will be to maintain sickness absence between 4 and 5 days per person per annum. A review of our current absence management procedures will be included as part of the review of HR procedures mentioned in point 4.
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TAL has achieved an extremely high level of attendance over the seven years of our existence.
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OU R FINA NC E S The backdrop to the financial management of the company is one of national austerity with an emphasis on reductions in public expenditure. There is now every expectation that this will remain the case throughout the period of this business plan. Whilst TAL is not a public sector company, we are largely involved in delivering publicly subsidised services for our main clients. Those clients are having to make very significant savings, which inevitably impacts on service contracts they hold with external organisations. There are three areas of financial management that we will focus on during the next three years, namely:
1. Stockton Council Contract Revenue Budgets In recognition of the public sector pressures, TAL has already negotiated a £200,000 reduction in our annual management fee from Stockton Council from April 2012. The continuing downward pressure on public spending means that further reductions will be likely. Stockton Council has an aspiration in its medium term financial plan to reduce leisure contract spending by up to a further £200,000, accepting that this may mean service reductions or changes. We believe it is prudent to plan for a further £200,000 reduction from April 2013. Our approach will be to attempt to achieve this through business growth and efficiency but we must also present alternatives that require service reductions if necessary. We are committed to making prudential borrowing repayments of £720,000 per annum from April 2012. It is vitally important from the perspective of both TAL and SBC that the business can continue to fund these payments. Therefore, reductions in the TAL management fee cannot be allowed to undermine the fundamental strength of the business. Key to achieving our financial targets will be the performance of Billingham Forum and the TBIWWC. The Forum has now been reopened since June 2011 and shows every sign of meeting its business projections. However, the TBIWWC is not tested and cannot be allowed to fall short financially in 2012/13. For that reason, we will be preparing an alternative operating plan to be applied from spring/early summer 2012 if business projections appear to be falling short. This plan will be based on a significant reduction in our staffing overheads to match the reduced income. Effectively we will be operating a ‘smaller business’ than originally projected. This must be a plan that can be mobilised swiftly if needs be. Our original business plan showed an £80,000 loss in this year leading to future surpluses. It is imperative that £80,000 is the limit of our liability at the venue in 2012/13. Anything more would trigger the alternative plan.
2. Northumberland Council Contract Revenue Budgets The contract with Northumberland Council to manage the Swan Centre for Leisure is a ten year deal with potential break clauses from year 4 onwards. The management fee is set at a taper over the ten years with appropriate provisions for utilities costs and RPI on an annual basis. The projections for Swan are, therefore, set. The challenge is to ensure we are able to manage those planned reductions whilst still maintaining our overhead recovery and profit margin. This was based on £35,000 overheads and £20,000 profit from year one with appropriate inflation in subsequent years. The target for Swan is simply to manage the he bottom line to achieve these two recovery charges. One of the main issues to resolve for this facility is the establishment of the base year utilities costs beyond which TAL takes liability for additional consumption and NCC liability for changes in unit price. This is a matter of negotiation with NCC.
3. Reserves Management TAL has always planned to maintain a minimum £100,000 reserve. However, over the years we have built up a much higher reserve to deal with business interruption and planned investment. At March 31st 2011 our effective reserve was £719,000. Projections of the outturn for 2011/12 suggest a take from reserves of approx £300,000 because of the delayed opening of TBIWWC. It is likely, therefore, that the company reserve will fall to approximately £350,000 at March 31st 2012. The New plan includes projected spend from the 5 year Asset and Equipment plan and assumes a level of operational surplus from 2013/14 onwards. The Reserves Management Plan is included as Appendix 3. 20
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BUS IN ESS DE V E LO PME NT As stated in earlier sections of this plan, we aim to grow the TAL business in order to reduce the support of the public purse. However, it is clear that contracts within the public sector are likely to yield lower surpluses than in the past as commercial margins are squeezed and local authorities look for cheaper options. Achieving additional contracts or partnerships with neighbouring authorities is also very much subject to the strategic decisions of those organisations. Purely commercial ventures remain possible but again, with the financial backdrop, any new venture represents a higher risk now than 2/3 years ago. However, we will aim to position ourselves to capitalise on opportunities that may arise both publicly and commercially. The main strands of our activity will be:
1. Local Authorities We will continue a dialogue with neighbouring authorities in the Tees Valley to identify where joint working, cross boundary contracting or partnering can reduce overheads and increase income generating opportunities. This, of course, is entirely dependant on positive responses from those authorities so is essentially out of our direct control. There are still some authorities whose approach is to test the market in open competition. We must position ourselves to capitalise on any such opportunity within our self-imposed travel time boundary. We will review and re-draw our key company documents in preparation for bidding. This includes health and safety, quality management, energy management, ethical statement, marketing and other key documents.
2. Commercial Opportunities We are currently working with a local private developer on a potential Country Club scheme on the outskirts of Yarm, which could help fulfil some of the Stockton Council strategic objectives whilst offering a surplus generating business to add to the TAL portfolio. The golf course, swimming and fitness based facility is not, however, projected to be operational before 2014 at the earliest, so this represents a potential long term gain for the company. In the meantime, we continue to look for appropriate venues for stand alone fitness facilities based on the Activ8 model operated successfully at Belasis during the Forum close down. We will also pursue potential sites for child focused activities such as play barn facilities.
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3. Existing Facilities We will conduct a commercial review of our existing facilities to ensure we are making optimum use of our current portfolio. In many respects this is an ongoing process. However, we will examine where there may be clear opportunities that have not yet been fulfilled. For example, the TBIWWC has the potential to expand significantly its power boat offer once the facility has bedded in and we are certain which operating model we are using. In addition, the site has potential for an extended adventurous activities offer with land based experiences such as high ropes. We will also do a review of secondary spend throughout our venues in order to capitalise on our current customer footfall. Facilities such as the Swan Centre bowling hall have already been identified as under utilised and potential sites for alternative uses with a higher use and income yield.
4. Health initiatives As indicated in OUR SERVICE, health initiatives are a key strand of our activity. Whilst funding remains under threat, we are prepared for the repositioning of the public health responsibility with the local authorities from 2013. This still potentially represents an area of significant business development in future given our partnership with the local authorities and our successes in commissioned health initiatives. However, there is likely to be a hiatus in funding until the new health structures are in place.
5. Education As the landscape changes for education services there are potential opportunities with academies, free schools and colleges as they develop their facilities and their community links. This also plays to the Sport England aim of creating a strong focus on community based sport. TAL will position itself in order to develop joint initiatives where there are willing partners.
23
OUR P ERFOR MANC E The TAL performance will be measured in terms of finance, visitor numbers and quality. The financial performance is controlled on a monthly basis through our accounts and with direct, delegated responsibilities through identified cost centres. Our visitor numbers will be measured in total and in key categories through monthly performance data collected by our Information Management Officer and produced in report form. Quality will be monitored and maintained through a series of surveys and quality standards. In addition, we will set specific performance targets for the next three years aimed at increased participation and reduced contribution from public funds. Our actions on performance will be:
1. Finance We will review all central purchasing to achieve at least a non-inflationary outcome through contract renewal. Diligent procurement should allow us to maintain the current level of spend therefore giving greater budget certainty. In addition we will renew our utility contracts from April 2013 with market testing through our utility advisors to give budget certainty for one or two years depending on advice received. We will maintain a company reserve as outlined in Appendix 3 in order to meet our investment plans and to cover contingencies. The level of investment and reserve is a quick and easy method of viewing the company’s operational performance on an annual basis. New business plans for TBIWWC and Billingham Forum will be the benchmark of performance in those two key areas.
2. Visitor Numbers We will set targets for visitor numbers in our key target areas and the all important total visitor figures. This will focus on the main income generating activities, swimming, ice and fitness but will also pick out important social indicators such as Option 2/3, which count those people retired or on benefits, and junior visits. These figures will continue to be counted monthly but other information on the demographics of our users will be picked out through the annual APSE survey and in-house post code surveys. Particularly in areas linked to external funding, we will also produce user figures that reflect Sport England targets set in our community use agreements for TBIWWC and the funding agreement for Billingham Forum. In addition, there will be specific figures produced for our key targets linked to health funding.
“
We will set targets for visitor numbers in our key target areas and the all important total visitor figure.
�
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3. Quality TAL will adopt a new approach to the monitoring and accreditation of our quality of service. This will be focussed on 5 main elements: •
APSE surveys – conducted bi-annually, covering qualitative and quantitative data and benchmarked nationally.
•
CSES – the Customer Service Excellence Standard, formerly known and Charter Mark is an external verification of the service from a customer perspective. We currently hold this award as a company and will aim to maintain it over the next three years.
•
Quest – a quality standard for the leisure industry that focuses on procedures and consistency but also draws in customer and stakeholder issues. The standard is issued to facilities individually. We have not previously sought Quest accreditation but we will aim to achieve the basic standard for all facilities by 2013.
•
IIP – the Investors in People standard is focused on the development of the workforce and how it fits in with our business objectives. We will aim to achieve this standard by 2014.
•
Customer Satisfaction Surveys – conducted in-house bi-annually.
In addition to these main elements there will also be occasional surveys focussed on particular business/service areas as and when required. Key performance indicators reflecting the main priorities of the company and the financial performance over the previous seven years along with targets for the next three years are included in the Business Performance Analysis KPI table in Appendix 4.
4. Risk Management Much of this business plan is geared toward managing the financial risk presented by falling public spending and the consequent effect on our management fee. The second significant risk to the company, the TBIWWC performance, is also dealt with in this document with the provision of an alternative business plan for that venue. However, a more detailed approach to risk management within the company will be described in a Business Continuity Plan, which will be compiled by July 2012.
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A P PENDIX 1 - F IV E Y E A R A S S E T A N D E Q U I P M E N T P L AN Stockton
2012/13
2013/14
2014/15
2015/16
2016/17
£12,745 £39,548 £8,250
£38,500 £45,200 £8,250
£37,000 £85,000 £4,500
£17,000 £0 £12,100
£20,000 £57,657 £14,250
Total
£60,543
£91,950
£126,500
£29,100
£91,907
Berwick
2012/13
2013/14
2014/15
2015/16
2016/17
Minor refurbishment schemes
£12,000
£9,000
£10,500
£0
£0
Major equipment replacement
£13,800
£5,000
£9,700
£0
£0
Major plant servicing
£25,800
£14,000
£20,200
£0
£0
£86,343
£105,950
£146,700
£29,100
£91,907
Minor refurbishment schemes Major equipment replacement Major plant servicing
Total COMBINED TOTAL
£400,000
£60,000 £460,000
Detailed spending projections are available
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APPENDIX 2 - ENVIRONMENTAL POLICY ACTION PLAN 2012 - 2015 Action
Target Completion
Status
01
Monitor/Review Energy Champions’ ideas
02
Revised Policy to the board in June 2012
June-2012
03
Monitoring of current Salix funded projects
April 2015
04
Awareness article in future Inform newsletters including posters etc.
May 2012
Ongoing
05
Staff corporate induction sessions – ensure posters displayed.
2012
Ongoing
06
Switch it off stickers on electrical equipment, light switches, kettles etc.
May 2012
Completed May 2012
07
Quarterly meetings
Energy Certificates – these are legally required for all buildings with a footprint greater than 1000m3; The aim is to drive reductions in energy consumption which when achieved will result in better DEC scores
Ongoing
08
Purchasing review to examine the possible purchase of environmentally friendly alternatives e.g. Recycled photocopier/printer paper; toner cartridges/ink cartridges are recycled through supplier etc
09
Continue working with ENER-G Procurement Limited to procure most cost effective utilities April 2013 charges (two yearly contract currently in place)
Ongoing
10
Reduce the length of time lights are on through poster/sticker campaign encourage employees to turn off lights in unused areas.
Ongoing/Energy Champions
11
Annually January
Phase 1: Assess the use of motion sensors for controlling the lighting in areas such as Changing Rooms/Store cupboards etc.
June 2012
Phase 2: Cost up implementation scheme
September 2012
12
Engage with contractors to ensure that failed light units are replaced with low energy units.
Ongoing
13
Monitor swimming pool temperatures.
Ongoing
14
Look at alternative ways of holding meetings etc. Conference calls etc
July 2012
15
Energy Monitoring – Lighting – Photo Cell control (Carbon Trust recommended)
September 2012
16
Energy Monitoring- all utility bills compared to venue meter reads
17
Develop the current Environment policy using ISO14001 as the model
18
Adopt responsible printing attitude
19
Fuelstretcher technology – Optimisation for gas boilers. Projected savings 8-15% 8% guaranteed
20
Waste Management – implement recycling starting with paper, cardboard, plastic and cans in same bin
21
Water Usage Monitoring
22
Replacement lighting schemes utilising energy efficient technology lights such as AdapT5 tubes and Induction lights.
23
Reduction of TAL’s Carbon Footprint by introducing energy efficient alternatives/ technologies for lighting, heating and plant equipment
24
Tree planting to off set CO2. Create/add to a forest planting scheme.
25
Information cascading via Energy Champions
Ongoing Ongoing
September 2012 Ongoing/Energy Champions Monitor/Review October 2012
In development stage Ongoing
August 2012 Continuous Monitoring March 2013
Completed Ongoing/Energy Champions
March 2012
Not viable, no further action
26
Photo Voltaic renewables
27
Working with SBC’s Energy Team
Ongoing
28
Carbon Management Team meetings
Ongoing
29
Senior Management Team to be kept updated by Project Manager
30
Placement of Green Information Boards within venues.
31
Regular updating of Green Information Boards
6 monthly
32
Monitor renewable energy sources i.e. the CHP unit at Forum and Archimedes screws at TBIWWC
Ongoing
33
Water Hippos
August 12
June 2012
27
A P PENDIX 3 - R E S E R V E S M A N AG E M E N T P L A N 2011/2012 £
2011/2012 £
2012/2013 £
Carried Forward Reserves
719220
Billingham Forum Equipment Setup
136,313
Billingham Forum Sauna Equipment
4,899
12,816
Billingham Forum Play barn Equipment
14,050
14,050
Thornaby Pavilion Sports Hall Floor Replacement
38,285
5 Year Asset Replacement Plan
0
80,000
193547
106866
Total Reserves Management Plan Expenditure
2012/2013 £
287664
Balance Carried Forward
525673
180798
In year Surplus/ (loss)
-238,009
8,832
28
2013/2014 £
2013/2014 £
189630
2014/2015 £
2014/2015 £
184900
2015/2016 £ 194020
10,680
14,050
10,880
80,000
80,000
104730
90880
84900
94020
100,000
100,000
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A P PENDIX 4 - TA L BU SIN E S S P E R FO R M A N C E A N A LYSIS Stockton Contract
2004/5
2005/6
2006/7
2007/8
2008/9
Man. fee
2,376,741
2,476,089
2,352,892
2,397,964
2,429,641
Expenditure
4,486,354
5,510,251
5,713,316
5,718,224
6,110,464
Income Man. Fee contribution Buildings investment
2,225,483
2,579,570
2,771,148
3,208,217
3,698,155
53%
48%
41.2%
41.9%
39.8%
203,401
598,846
347,097
263,038
313,821
Visitors
1,433,687
1,496,133
1,530,002
1,564,967
1,589,178
460,939
466,109
492,990
506,528
511,616
Swims Option 3s
130,361
Activ8
97,069
113,267
112,085
131,379
170,748
Juniors
479,440
514,901
559,200
597,213
579,478
Ice
141,041
156,198
194,295
202,834
189,334
Utilities
156,966
176,133
182,235
182,431
270,798
366,093
646,707
433,093
444,978
1.46%
2.09%
2.56%
2.23%
3.76%
5,659
51,990
140,625
326,273
540,825
Berwick Contract
2010/11
2011/12
2012/13*
2013/14*
2014/15*
Man. fee
397,218
319,189
238,492
245,000
155,000
Expenditure
914,271
935,223
922,949
945,000
Income Man. Fee contribution Buildings investment
513,673
581,818
694,750
700,000
720,000
43.4%
34.13%
25.84%
25.9%
16.85%
36,577
37,910
37,500
38,000
35,000
Visitors
180,020
210,084
215,000
220,000
220,000
Swims
59,996
78,837
80,000
80,000
81,000
Option 2s
4,107
10,472
10,500
11,000
11,500
Activ8
31,568
45,511
48,000
48,500
49,000
Juniors
32,055
48,717
49,000
50,000
50,500
Utilities
151,198
182,255
185,000
190,000
190,000
3.3%
4.2%
2.5%
2.3%
2.1%
15,000
15,000
15,000
15,000
CPI Grant income
CPI Grant income * Predicted figures
15,000
920,000
30
2009/10
2010/11
2011/12
2012/13*
2013/14*
2014/15*
2,582,429
2,382,804
1,882,100
1,738,716
1,756,103
1,773,664
5,759,189
5,465,962
7,654,073
7,726,858
7,800,000
7,900,000
3,055,855
3,005,357
4,631,908
5,176,036
5,200,000
5,250,000
44.8%
43.6%
24.6%
22.5%
22.5%
22.5%
232,171
239,206
333,829
300,998
300,000
300,000
1,142,397
1,060,226
1,677,116
1,750,000
1,800,000
1,818,000
438,243
376,559
505,851
520,000
525,000
530,000
132,814
132,611
191,956
200,000
205,000
210,000
174,056
180,872
205,366
210,000
212,000
215,000
442,238
375,154
558,397
570,000
580,000
585,000
36,214
0
223,463
230,000
230,000
230,000
361,666
304,697
645,827
742,290
800,000
800,000
2.18%
3.3%
4.2%
2.5%
2.3%
2.1%
292,180
229,554
160,781
46,248
unknown
unknown
* Predicted figures. Note: All figures from 2011/12 exclude Pru borrowing payments and theatre subsidy.
31
TA L BOARD ME MBE R S & M A N AG E M E N T Board Members Business Sector/Leisure Consultant
Chair - Gordon Bates
Business Sector/Consultant
John Turner
Business Sector
Les Southerton
Stockton-on-Tees Borough Council
Ken Lupton
Stockton-on-Tees Borough Council
Jean O’Donnell
Stockton-on-Tees Borough Council
Ken Dixon
Sports Sector/Amateur Swimming Association
Vacant
Sports Sector/Tees Valley Sport
Jean Lordon
Local Resident
Dulcie Brown
Staff Representative
Paul Wilkinson
Education Sector/Secondary Head Teacher
Vacant
Business Sector
Vacant
Education Sector/University of Teesside
Mark Hawkings
Health Sector/North Tees PCT
Ingrid Abblett-Spence
Customer Representative
Helen Jenkins
Tees Active Managing Director
Steven Chaytor
Management Team Managing Director
Steven Chaytor
Director of Operations
Jeremy Platt
Director of Support Services
Karen Papple
Financial Controller
Veronica Muir
Billingham Forum
Roy Broadbent
Thornaby Pavilion
Dave Seller
Splash/Thornaby Pool
Emma Ibbertson
TBIWWC
Simon White
Swan Centre
Darren Humphrey
Health & Fitness
Gail McKenna
Swimming Development
Diane Wilson
Commercial Manager
Leon Jones
Project Manager
Dennis Smith
Sports Academy Manager
Allan McDermott
Human Resources
Dee Carty-Burland
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VENU E CONTAC T DE TAIL S Redheugh House (Head Office) Thornaby Place, Thornaby, Stockton-on-Tees, TS17 6SG TEL: 01642 528539 Fax: 01642 528541 E-mail: enquiries@teesactive.co.uk
Billingham Forum Town Centre, Billingham, Stockton-on-Tees, TS23 2LJ TEL: 01642 551381 Fax: 01642 531793 E-mail: BillinghamForum@teesactive.co.uk
Splash Church Road, Stockton-on-Tees, TS18 1TY TEL: 01642 660610 Fax: 01642 660616 E-mail: Splash@teesactive.co.uk
Swan Centre for Leisure Northumberland Road, Tweedmouth, Berwick-upon-Tweed, TD15 2AS TEL: 01289 330603 Fax: 01289 331955 E-mail: enquiries@swanleisurecentre.co.uk
Tees Barrage International White Water Centre (TBIWWC) Tees Barrage Way, Tees Barrage, Stockton on Tees, TS18 2QW TEL: 01642 678000 E-Mail: enquiries@tbiwwc.com
Thornaby Pavilion Town Centre, Thornaby, Stockton-on-Tees, TS17 9EW TEL: 01642 760971 Fax: 01642 760971 E-mail: ThornabyPavilion@teesactive.co.uk
Thornaby Pool Thornaby Road, Thornaby, Stockton-on-Tees, TS17 8AA TEL: 01642 616727 Fax: 01642 618055 E-mail: ThornabyPool@teesactive.co.uk
33
www.teesactive.co.uk These facilities are supported by Stockton-on-Tees Borough Council and are managed by Tees Active Ltd.
34