THE number of people using a council’s leisure centres increased during its first year under a new operator, but it recorded a £42,000 loss.
Hereford-based Halo Leisure Services, which is a registered charity and social enterprise, became responsible for running Torfaen Borough Council’s leisure centres from April 2025.
A report produced by the firm and the council has shown participation and memberships increased during its first year of operation but the service ended the year £42,000 down on its agreed budget with a £10,000 deficit by which spending exceeded agreed funding.
The council provided £1.5 million as a “frontloaded” management fee during 2025/26, which was £400,000 more than originally agreed. As a result there was a “notable reduction” in the fee for 2026/27, to £955,954, with a “more gradual reduction” year on year as council payments reduce over the 10-year contract.
Hydro flumes and climbing wall
The adults and communities scrutiny committee was told Halo and the council have invested in facilities including reopening the hydro flumes in the pool at Pontypool Active Living Centre, reinstating the climbing wall at Cwmbran Stadium and an extension of its gym along with major plant replacement works that allowed Fairwater Leisure Centre to remain open.
Beth McPherson, the council’s head of communities and wellbeing, said “regular, robust financial information” is presented by Halo at quarterly meetings while potential future investment by the council is also considered with a plan to be drawn up.
She said the council didn’t expect Halo to be immediately self-sustaining when it took over from the former Torfaen Leisure Trust the authority previously established to run its centres.
“We don’t expect Halo to be fully profitable without subsidy by next year, that’s not what’s set out in the contract,” said Ms McPherson: “We are 12 months in so very early in expecting to see any shift towards a fully commercial model.”
On investment Ms McPherson said: “We know they are aging assets and looking at what opportunities are there to invest and what returns can be achieved through investment.
“It’s not just pumping in capital investment into buildings, we need to know it’s going to deliver a service that’s required and commercially viable.”
Halo chief executive Scott Rolfe
Halo chief executive Scott Rolfe said it had extended the gym at Cwmbran Stadium, despite not being part of its plan for the first year, to “counter” competition from another leisure provider in the town and it recognised the need to invest in facilities.
Visits to the leisure centres, and the Pontypool dry ski slope, increased by 31 per cent over the year, from 80,808 in the first quarter to 106,246 in January, February and March 2026 with a total of 386,274 visitors over the year.
Fitness membership increased by 972 members above the baseline figure in the contract and participation in the Swim Academy increased by 362 children above the baseline. The council said the figures show “strong evidence” more residents are using leisure facilities and participating in healthier lifestyles.
It wants to increase that figure further, with targets set for Halo, and the firm said it recognises it can do more to increase participation with under represented groups with plans including introducing inclusive swimming provision for children with Autism this year.
It has also introduced a lower cost membership scheme for families entitled to some benefits.
Mr Rolfe said it has 185 members through the scheme and said: “We can try to use price to get people fit and active.”
The report said there was only “limited evidence” on how Halo was working with communities in developing services and the council’s goal of providing a social value wasn’t evidenced, but Ms McPherson said she was “confident they wil be tracked” but that hadn’t been put in place during the first year.
System issues meant customer satisfaction scores couldn’t be recorded, which are being discussed with the council, while Halo has also introduced mystery shopper testing.
The committee said it was satisfied Halo is performing as expected in terms of the contract but wants data broken down by activity and centres, which Halo said it could provide