Welsh leisure operator, Denbighshire Leisure Ltd, is undertaking a management buyout from Denbighshire Council for £1.5 million, backed by private equity.

The deal is subject to some practical and regulatory matters, but is expected to save the Council £6.7 million over ten years, while also safeguarding leisure services.

Denbighshire Leisure Ltd has two functions, firstly running local leisure services and secondly acting as the administrator of the UK Leisure Framework of which Denbighshire Council is – and will remain – the contracting authority.

Although owed by the council, Denbighshire Leisure been a company in its own right since 2019, following the launch of the UK Leisure Framework – a procurement agreement designed to streamline and expedite the delivery of leisure projects for all and any public sector clients.

This has become a valuable income stream and helps offset the cost of leisure services for the council by reducing the subsidies needed.

DLL managing director, Jamie Groves, said the company will continue to invest and grow leisure services going forward: "There comes a point where we need to change the structure of the company. The council considered a proposal whereby we could bring some investment into the company. It's unique, the first of its kind and an option I'm sure many councils won't have.

"This is about protecting our services for our residents, protecting jobs for our staff, protecting all the things we've become happy with as residents and visitors, and giving the company the best possible chance to grow into the future. We are essentially investing and growing instead of cutting and shutting. The council has taken the bold step in supporting us. It's transformational."

Councillor Rhys Thomas, lead member for housing and communities for Denbighshire and a chair of DLL’s board of directors said, “There was a full and open debate in the Council Chamber on Wednesday (26 March) where all members were given an opportunity to air their views.

“Some members had legitimate concerns about the changes which were being discussed but by the end of the meeting most members agreed that the way forward was to approve the proposal. It was explained that not accepting the proposed changes could put at risk the excellent service delivered by DLL for the people of Denbighshire.

“We’d like to reassure residents that the arrangements are being made to secure the future of leisure services over the next 10 years in the county. We’d also like to reassure other parties, such as schools who share facilities with DLL, that we will ensure there are robust arrangements in place to safeguard these arrangements.”

Groves was appointed head of Denbighshire County Council's Leisure Services in 2009, at which point it was considered one of the worst leisure departments in Wales and was struggling to afford the basics. The turnaround of fortunes in the subsequent 15 years has been supported by the creation of the UK Leisure Framework.

Denbighshire Leisure also runs eight leisure centres, the SC2 Water Park in Rhyl, the 1891 Restaurant and Bar at Rhyl’s theatre, Rhyl Pavilion Theatre, Rhyl Town Hall, North Wales Bowls Centre, Nova in Prestatyn and Ruthin Craft Centre and its Cafe R.

About the Leisure Framework

The UK Leisure Framework was created accordance with EU Procurement Regulations by Denbighshire Leisure Limited.

After a tendering and evaluation process Alliance Leisure was appointed as development partner in January 2018, with the agreement renewed in 2022.

The framework is owned by Denbighshire Leisure Limited and has a management board comprising officers of Denbighshire Leisure Limited and Alliance Leisure to monitor and develop it.