How the YMCA at Romford turned from an ugly duckling into something of a swan has earned it a place in the finals of the Overcoming Business Adversity category of the Essex Business Awards.

The transformation at the YMCA’s Rush Green Road Hostel and sports centre took place between 2002 and 2004. Before action was taken to reverse a downhill slide, staff suffered from low morale and worrying losses. The complex was not paying its way and each year the group had to eat into its investment reserves to stay afloat.

The change to good fortune and a brand new image was led by a new Chief Executive Dave Ball who came on board in 2003. His housing management expertise was a key factor in the transformation. Also important to the change was the role of Paul Morton-Kemp who, as Director of Client Services, handled much of the day-to-day implementation of the turnaround. He and the Chief Executive’s call for a restructuring of the whole business, particularly the finances, struck a chord with the management and, within a year, an £80,000 deficit was turned into a £66,000 surplus.

External consultants were brought in to create a proactive rather than a reactive strategy. The morale of the 75 strong staff is now higher than ever. The hostel provides 147 bed spaces and there is also provision to help semi-dependent young people with ‘move-on flats’. The complex has been completely refurbished and dining facilities, which are a major revenue earner, are working to capacity. Before the changes outsiders would hire its sports facilities but eat elsewhere.

The capital expenditure of around £200,000 has quickly begun to yield results in increased cash flow. Income in 2003 was £2.3m. It rose to £3.2m in 2004. The number of direct debit holders who use the gym and fitness facilities has risen from 180 to 900 since the improvements were initiated.