G Live Annual Report Presentation meeting Wednesday 13 December 2017 - - PDF document

G Live Annual Report Presentation meeting Wednesday 13 December 2017 at 16:00 Present; From GBC: Cllr Michael Illman (MI) Cllr Nikki Nelson-Smith (NNS) Cllr Tony Phillips (TP) Cllr Pauline Searle (PS) Peter O’Connell (PO) Jonathan Sewell (JS) Charlotte Cox (CC) Kevin Hopkins (KH) From HQ Theatres; Tim Brinkman (TB) Alvin Hargreaves (AH) ITEM ACTION 1.0 Apologies for absence 1.1 Apologies for absence were received from Cllr Matthew Sarti and Cllr Nils Christiansen, GBC. Info 2.0 Presentation of the Annual Report by Tim Brinkman 2.1 TB began by presenting the key items from Year 6 of the contract (October 2016/September 2017). TB was pleased that the performances for the year was at its highest yet, 58% up on target and 64 more than last year. 420 performances took place in the year, 75 of which were rock and pop events. Attendances exceeded target for a third time in a row, with a total of 230,527 attendances in the main hall, which is a 42% growth on the Key Performance Indicator (KPI) that was set in 2011. Info 2.2 TB summarised the variety of events that G Live offers; young/family events, classical music events, rock, pop and musicals. TB went on to explain that G Live is not just a professional venue, it also caters for community groups that wish to use the venue and makes up a significant portion of the programme and has evolved as the building has matured. There were 166 main hall community events in the year, ranging from the Mayor’s ball and Community Heroes awards to use by various schools and for training. Info 2.3 Dark days at G Live (where the main hall is not in use) exceeded the target for the first time in year 6 at 64 dark days against a target of

• 80. This works out at a one day per week average. MI asked if any of

these days were consecutive. TB commented that it is very unlikely to have an entire week of dark days and that certain days (Monday, Tuesday and Wednesdays) are naturally harder to fill, particularly in certain periods of the year such as immediately after New Year or in the Summer. Sometimes, the venue main hall has to close so that essential maintenance works and annual inspections take place. This usually takes place in August. Info

2.4 The studio and glass room saw a variety of events and hirers, with a total of 1198 events, 195 of which were education based, 200 were business related and one third being family events. PS asked how HQT advertise the spaces available at G Live. TB confirmed that HQT target groups by using a number of tools such as going to business events/ events to promote spaces, using the tourism office and G Live’s website which shows the spaces available and its capacity. Info 2.5 TB then went on to comment on the hospitality provision at G Live. HQT is proud of its relationship with local businesses such as the Hogs Back Brewery. HQT’s chef has an extensive knowledge of local suppliers and products, which adds to the customer’s

• experience. Each month, a mystery shop is undertaken and HQT is

scored on a variety of indicators. TB accepts improvements can still be made in this area and will continue to build on what has already been put in place, such as the mobile application, which allows customers to pre-book snacks and drinks in advance of their visit. HQT have also focussed on broadening the hospitality by introducing a food and drink festival, expanding the annual beer festival while also improving the catering

• ffer at banquets, award evenings and private dining events.

Info 2.6 TB concluded the presentation by looking at the finances. The post- subsidy profit for the year was just over £230k, which means a £45,800k share (20%) is due to the Council. Info 2.7 TB welcomed any further questions. Info 3.0 Questions 3.1 Programming PO referred to page 18 of the Annual Report where main hall attendances and performances for year 6 had exceeded previous years and how this compares with the KPI targets. PO wondered what impact Hillsong has on these figures. Although Hillsong does contribute to these figures, TB believes other community events are a large factor. TB believes that when the KPI’s were set, the usage by community events was not envisaged. AH commented that there has been discussion between HQT and GBC

• ver softening the KPI’s as the mix is very different to what was
• riginally anticipated. JS added that HQT are very reliant on the

promotors and what is available at the time and so the promotors very much determine the programming for the venue. As part of the deal, some promotors also request HQT do not book a similar/ competing event or genre during a certain timeframe. TB was asked if there was any potential for the main hall programme to be increased again next year from 205. TB is certain that this figure can be built on and would be pleased to get to 220 to 225 for year 7. Info 3.2 PS asked how different acts and events compare in relation to how strong or buoyant they are. TB explained there are essentially two ways in which HQT and the promotor make an agreement; dependant on risk, the producer would either pay a rent for the venue and would then receive all the income from the ticket prices or they would agree with HQT a percentage share of the ticket price. An Info

example of a high risk act would be a new production or artist. TB explained that certain musicals will be trialled at the West End and then if it proves to be a success, it will then move to different entertainment venues over the next 2 years. It is more difficult to predict the success rating of certain acts such as some musical acts. Secondary income such as ticket fees, catering and hospitality is also key to the overall income and success of an event for the facility. 3.3 Finances The finances were then discussed. TB was asked what HQT’s biggest challenge was. MI referred to the attendances in years 2 and 3 which did not really differ despite there being a large difference in

• verall profit.

TB and AH provided a joint response to this. Certain events will inflate profits considerably, for example year 4 saw a 3 day commercial conference event that generated £80k. Year 2 and 3 was a period of mobilising the venue and this is reflective of the figures. HQT was asked whether they would expect profit to increase again in the 7th year. TB commented that it is always HQT’s intention to do so, particularly given that HQT receive an 80% post-subsidy profit

• share. TB explained that HQT have their own internal business

planning and discussions as to how HQT can build on previous

• years. NNS commented that it would be useful to see evidence of

HQT’s future planning with narrative against the figures so that the group can understand areas of improvement and large contributors to the current financial figures. TB confirmed that HQT look at a 6 monthly projection due to the nature of the business. It is very difficult to predict future trends and who/ what will be performing or available. NNS would like to see more narrative over certain events so that the group can understand possible trends, likely future events and those that are viewed as one

• ff events. NNS would like to see some sort of estimate as to when

G Live is likely to ‘level off’ as a building i.e. when costs (operating, wages, insurances etc.) increase and profit would therefore plateau as a result. AH explained that this is very difficult to predict on this type of business. TB 3.4 Maintenance PS asked whether the building was considered to be in a good state

• f repair at this stage of contract. TB commented that the building is

in a good state of repair overall, however inevitable maintenance and replacements are required to maintain this. HQT have an annual maintenance schedule to ensure plant and equipment is kept in good working order. The repairs, inspections and maintenance is undertaken by either HQT or service contractor. Any building latent defects would be organised by GBC with Willmott Dixon. Info 3.5 Sound levels TB was asked how HQT monitor the sound levels for each event following varied experiences at different venues and events. TB explained that the sound does vary according to the event, however there are guidelines that are required to be adhered to which HQT monitor. Info 3.6 Mystery shopper Info

TB explained that the group use the same mystery shopper company across all venues. The questions that are used try to capture the entire visit in that all areas and facilities are covered and narrative can also be added so that HQT can fully understand the experience in the correct context and make improvements where possible. The mystery shopper report for 12 August 2017 is included in Annexe 5

• f the Annual Report.

3.7 Catering TP referred to one of his visits to G Live in the past whereby there had been queues at the bar and it was difficult to get a drink before the show. TB explained that the capacity behind each bar is between 6 and 8 staff which takes into account the tills and actual space behind the bar to deliver the service efficiently. HQT will open the second bar if demand warrants it and the café would also be selling drinks. The introduction of the mobile application also assists in reducing the queue as it allows customer to pre-book their snacks and drinks in

• advance. TB added that the short intervals (10 or 20 minutes) mean

that you are bound to get an influx of customers at once and it would not be viable (for HQT or its staff) to be on shift for just the 20 minute period to serve drinks. It is also difficult to get the balance right between pouring drinks in advance and pouring on order as there is a danger the drinks could be too warm if the interval were to be delayed and then customer complaints would be received as a

• result. TB recognises that there is an optimum number of staff

required to deliver this service as best as possible and if there were to be in instance where a shift is short staffed, the quality of the service would be affected as a result. Info 3.8 Advertisement TB was asked whether the offering at G Live is fully understood and whether people are aware of the building now that it is in its seventh

• year. TB considers the venue to be mature now, however that is not

to say that awareness cannot be grown further. TB referred to Annexe 1 (Marketing Report) of the Annual Report where it details G Live’s social media followers and the ever growing ‘Friends of G Live’. Info 3.9 Hospitality The group recognised the affect hospitality has on the overall financial performance. TB accepts there is still room for improvement but is pleased that hospitality has strengthened. Info 3.10 The future; financial performance and contract extension

• ptions

The business can change very quickly and is very difficult to predict as discussed earlier. If a hirer such as Hillsong were to move away, the financial performance of the venue would be affected and it would be difficult to find an alternative hirer easily that would fit in to G Live’s programming. The figures would be affected but that would not reflect the overall quality of the offering that HQT provides. TB and AH were asked if there was any changes that HQT would like to make. As discussed earlier, HQT would again like to review and discuss the KPI’s. TB would also like to continue to be involved in the Connaught House development as it presents an opportunity to work together to make this part of the high street more attractive. Info

JS was asked about what happens towards the end of the contract period in respect of continued operation of the venue. He explained there were broadly two potential routes the existing contract could be extended, subject to certain legal parameters being met, or the

• peration of the venue could be exposed to the open market. HQT

have shown interest in a contract extension however the final decision on the most beneficial route is yet to be made. 3.11 Everyone was thanked for their attendance and the meeting closed. Info