Newsletter June 2008

Click here to view the June Newsletter

Welcome to the June issue of the Gladstone Newsletter!

I recently attended the Sporta 2008 AGM in Leeds and had the opportunity to speak to a number of senior executives of the Sports and Leisure Trusts. I have been reflecting upon the rapidly changing market dynamics, as well as the key challenges and opportunities facing the more traditionally focused Trusts throughout the UK. As Lloyd Grossman would say, "Lets look at the evidence!".

I welcome and support the news that Sporta correctly recognised the existence of a paradigm shift taking place across the Trust's industry and are now refocusing their organisational capabilities to proactively reflect the changing landscape. We at Gladstone have also been very aware of a paradigm shift with regards to the impact of new Technology in response to the rapid structural changes taking place across the marketplace.

We have, as a result, committed significant development resources to rapidly expand the range of our solutions to reflect the ever changing needs of our customers now and in the future. As a sign of our commitment to these ongoing changes, I am proud to say that our current development team alone is now equal at least with the overall organisational size of the next largest competitor in our market. We believe this significant differential in the scale and scope of Gladstone provides real long term value to our customers and creates stability and quality of service unparalleled in our market.

For Sporta members, the inclusion of newer service provision opportunities within the broader cultural arena such as local libraries, art centres, museums and art galleries within the more traditional delivery mix of wet and dry leisure centres adds a totally new dimension to the current management challenges. The search for strategic solutions partners who have the range, scale and depth of relevant skills to support the dynamic and rapidly growing organisational needs of these Trusts will be a key board-level agenda item for many of the trusts.

The traditional operators' competitor landscape may well also change over the next few years, with increased competition coming from what might be considered unlikely sources such as Housing Associations Trusts, who have proved to be more than competent at managing complex and substantial strategic fixed assets and resources.

Apart from these emerging Sporta challenges, Gladstone, as the market leader within the Health and Leisure market, is acutely aware of the broader growing challenges with the life cycle of the market itself, and the ever-increasing pace of changes resulting from market consolidation.

These changes are ultimately driven by local authorities need to create real and tangible community benefits on a much broader basis, as well as linking-up major Government initiatives such as healthier lifestyles from sensible diets and getting the nation more active and fit. This is especially important for our children; and as a parent myself I fully support any Government initiative which gives our children a healthier future.

Continuing with this theme, I am delighted to announce that one of our more established customers, North West Leicestershire District Council, has been heavily focusing on delivering the Government's initiative of 2 hours of PE per week. As a result they have been short-listed for this years MJ Achievement Awards from Municipal Journal magazine with their innovative Club Activ8 programme. This pilot programme involves a number of local schools and leisure centres working together to incentivise school-age children to become active and more importantly stay more active.

Much to "digest, cogitate, and contemplate" (to quote Mr Lloyd Grossman again!). With your help and support we will deliver the right recipe!

Kind regards

Dr. Said Ziai
CEO
Gladstone plc

Click here to view the June Newsletter

2 June 2008