Since its establishment in 2011, Trilogy Active Ltd (formerly Northampton Leisure Trust) has delivered exemplary management of community sport and play services in Northampton and demonstrated outstanding commercial acumen.
Initially formed to deliver sport and leisure facilities and services for Northampton Borough Council (NBC), Trilogy was so successful in increasing turnover and managing cost that, within its first five years, it reduced its management fee from £1.2m to zero subsidy.
This financial independence was partly achieved as a result of the NBC prudential borrowing support which enabled Trilogy to purchase its first soft play facility, the income from which is cross-subsidising the council-owned facilities. In addition, Trilogy expanded its base within the town by taking on the operation of community facilities at Cripps and Duston.
The turning point
In 2021, NBC was subsumed within the new West Northamptonshire Council (WNC) and Trilogy became one of three operators of council owned leisure facilities.
As part of the upcoming realignment of WNC’s leisure management contracts, Trilogy was invited to tender for a larger contract covering all the former Northampton and Daventry councils’ services. However, following a thorough assessment of WNC’s financial expectations for this contract, it made the bold decision not to tender based on its view that these were unrealistic given the age and condition of the facilities.
Taking the bigger picture into account, Trilogy was seriously concerned that committing to deliver the requirements set out in the tender could jeopardise its stable financial position to the point of insolvency. Having seen this happen to other trusts, it is keen to avoid the same fate.
Balancing all the risks, Trilogy concluded that its future lies in continuing to operate the non-council owned facilities in Northampton with those it manages in commercial partnership with other local authorities – plus its own venues.
Responsible use of time
By deciding not to bid for the WNC contract, Trilogy Active gave itself a full 15 months to disaggregate from the council. Had it not done so and submitted an unsuccessful bid, it would have had a much shorter period (possibly just three months) to do so. This would have led to a period of crisis management where key decisions were influenced by the need to act with speed and contractual requirements would take precedence.
Focus on the future
While the upcoming loss of the three Northampton leisure centres from its portfolio will have significant impact, Trilogy’s financial position remains secure for the medium term, and it will continue to explore new opportunities to drive business and reinvest in physical activity and wellbeing initiatives.
Trilogy Active will, thus, continue to be a strong health and wellbeing trust, running several sites in Northampton including Cripps Recreation Centre and Duston Sports Centre, two school sports centres, the town’s parks bookings and a comprehensive outdoor community programme. It will also go on operating its ‘own brand’ Berzerk active play centres in Northampton, Derby, Birmingham and Atherstone, plus the management contract at Belper Leisure Centre in Derbyshire.
KKP’s view
Having worked extensively with Trilogy to both support its formation and on several projects since then, KKP is of the view that Trilogy has taken a brave and considered stance. This reflects and reinforces that fact its management team and board truly understand the challenges of operating within the public sector, but are not prepared to put the company at risk by seeking to maintain the contract which underpinned its original formation. Not all trusts are in a position to do this, but Trilogy is, because it has always been innovative and entrepreneurial and has expanded its offer beyond the primary contract. We’re keen to see where things go from here.
At the same time, we shall watch with interest to see whether West Northamptonshire Council can achieve its financial ambition to receive a net annual income from the operation of the three 40–50-year-old Northampton leisure centres.
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