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2024-12-31-accounts

Welshpool & Llanfalr Light Railway Preservation Co. Ltd. Annual Report and Accounts 2024 Contents Notice of Annual General Meeting . Page 3 Report of the Board of Trustees . Page 4 Independent Financial Examiner's report . Page 19 Consolidated statement of financial activities... Page 2 1 Consolidated and charity balance sheets . Page 22 Consolidated cash flow statement . Page 23 Notes to the accounts . Page 24 Minutes of the Annual General Meeting held on 18 May 2024 . Page 38

Administratlve detalls Registered office The Station Llanfair Caereinion Welshpool Powys SY21 OSF Phone 01938 810441 Web www.wllr.org.uk Accountants Cadwallader & Co LLP Chartered Accountants Eagle House 25 Sevem Street Welshpool Powys SY2 17AD Auditor W R Partners Hafren House 10 St. Giles Business Park Newtown Powys SY16 3AJ Solicitors Lanyon Bowdler LLP 4 St Martin's Street Hereford HR2 7RE Offie¢r$ and managers Company Secretary Michael Reilly General Manager James Brett Operations and Kevin Heywood Infrastructure Manager (until September) Engineering Manager James Mander

NOTICE OF ANNUAL GENERAL MEETING The Annual Generaj Meeting of the Company will be held at the station, Llanfair Caereinion, on Saturday 17 May 2025 at 3.30 p.m. for the purpose of transacting the following business: _ Ordlnary Resolutions To receive and adopt the audited consolidated financial statements and the report of the trustees for the year ended 31 December 2024. To elect directors. The Articles of Association stipulate that one-third of directors shall retire annually. Steve Clews, Peter Green, David Jones and Bob Mason retire by rotation. There are four vacancies. Details of those offering themselves for election are given in a separate leafiet sent to members. To elect a president. The Earl of Powis has indicated his willingness to be re-elected. To elect vice presidents. Alan Higgins, Tony Thomdike, Sir Philip Williams snd Michael Whitehouse have confirmed their wiLIingness to be re-elected. Immediately after the end of the meeting, a members, forum will be held. Any member entitled to attend, but not able to be present at the Annual Gener8J Meeting, may appoint a proxy to attend and vote on a poll in his or her stead and that proxy need not be a member of the company. A form of proxy will be sent to 811 members eligible to vote and should be deposited at the Registered Office at least forty-eight hours before the meeting. Associate members may attend but not vote at the Annual General Meeting. Only persons producing their current membership cards or duly appointed proxies will be admitted to the Meetings. By order of the Board Michael Reilly, Company Secretary

REPORT OF THE BOARD OF TRUSTEES Our mission The company is a registered charity whose charitable purpose is: to advance the education of the public in the history and development of railway locomotion by the preseruation of railway locomotives and/or rolltng stock and/or historic railway lines. The trustees who served during 2024 were.. Number of trustees, meetings attended Actual /Possible Steve Clews Chairman Iain McLean Vice Ch(2irniC7n Helen Ashby Simon Bowden Andrew Charman John Forman Peter Green David Jones Bob Mason Ryk Parkinson Anne-marie Wright possible ottendance 5 Tneetings due to covering essentt.al operational requirements The trustees cover the following skill areas.. staff, appeals, mechanical and civil engineering, finance, health and safety, education, heritage, product marketing, business management and legal. Professional advice is sought as appropriate. This report sets out the trustees, account of the COTnpany's work in 2024. It Tneets the requirements for charity accounting prescribed by the Charities SORP. It also meets the Directors, Report requirements prescribed in company law.

status of the Charity The Welshpool & Llanfair Light Railway Preservation Company was incorporated as a company limited by guarantee in 1960 and obtained charitable status in 1990. The charity has no share capital and the liability of each member, in the event of winding up, is limited to £1. The governing documents are the Memorandum and Articles of Association of the company. Anyone may become a member by paying the annual subscription. The company has a wholly owned subsidiary, W&L Sales Ltd, which is not a charity and has its own board and accounts. Its profits are gift aided to the preservation company. The charity can have up to twelve trustees. Members of the board of trustees are directors of the company for Companies Act purposes. The articles prescribe that the trustees are elected by the members. As a courtesy to loc￿ government, which has been supportive of the company throughout its history, customarily local councils have been invited to nominate a trustee, whose appointment is subject to approval by members in the usual way. Governance and management The trustees are required by law to prepare financial statements, which give a true and fair view of the affairs of the charity and the group at the end of the financial year and of the financial activities, total recognised gains or losses and cash flows of the group for the year. The trustees are of the opinion that in preparing the financial statements on the following pages appropriate accounting policies have been consistently applied, supported by reasonable and prudent estimates and judgments, and all applicable accounting standards have been followed. They are also satisfied that the group has adequate resources to meet its operational needs for the foreseeable future and accordingly they continue to adopt the going concern basis in preparing the Financial statements. The trustees, who are also directors of Welshpool & Llanfair Light Railway Preservation Co. Ltd for the purposes of company law, are responsible for preparing the trustees, Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company law requires the trustees to prepare financial statements for each financial year. Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements the trustees are required to..

select suitable accounting policies and then apply them consistently. observe the methods and principles in the Charities SORP 20 19 IFRS make judgements and estimates that are reasonable and prudent. state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements. prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation. The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. In so far as the trustees are aware: there is no relevant audit information of which the charitable company's auditor is unaware" and the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information. The board meets regularly during the year and subgroups of board members meet from time to time as business requires. The general manager is appointed by the trustees to carry out the policies laid down by the board and to manage the day-to-day operations of the charity. To facilitate effective operations, the general manager has been given authority, within terms of delegation approved by the trustees, for operational matters, including the employment of other staff. The trustees have agreed a written schedule of matters reserved to the board, copies of which may be obtained from the company secretary. The board sets the general manager's remuneration in the light of annual objectives and perfomiance appraisal. On appointment, trustees are provided with the Charity Commission's current guidance for new trustees. Trustees are allocated specific responsibilities according to their individual skills. Induction to the charity's operations is not considered necessary as trustees are usually drawn from the ranks of working members. They are encouraged, however, to identify their own training needs. Trustees are provided with updates and relevant information from regulatory bodies, including the Charity Commission, Office of Rail and Road (ORRI, Rail Accident Investigation Branch and the Heritage Railway Association.

Risk management The company has a formal risk management process, identifying in detail the risks to which it is exposed. The board of trustees keep six registers of risks to the business. These cover risks at a company level relating to commercial, external, finance, governance, operations, and personnel matters, both short- and long-term. A trustee takes the lead responsibility for the process and a representative from the board or management takes ownership of each register. Emerging and changed risks are identified and documented at each board meeting. An annual review of all six registers was held in the first quarter of 2024. The railway management reviews and manages operational risk through a documented risk assessment and mitigation process. The process is managed by the safety officer with heads of department providing departmental input. Health and safety The safety and welfare of visitors, staff and volunteers takes precedence over all other activities. During 2024 the company had three reportable incidents. Two were signals passed at danger (SPADI. The third was derailment of the Wickham Trolley during the August gala event, which resulted in injuries to three people. The RAIB was informed and accepted that we would investigate internally. Relevant departments were briefed on the recommendations from the investigation, which will also form part of the annual safety audit action plan. There were several minor operational incidents, near misses, and injuries which were recorded and investigated using our internal processes, with reporting to the Safety Management Team at each meeting, relevant safety improvements instigated, and notices and briefings issued to staff. Incident numbers and details of higher-level incidents were reported to trustees at board meetings. In response to the external safety audit conducted in January 2024, an action plan, led by the general manager, has led to further improvements to document control, competence management, risk assessments and other measures. The Safety Management Team continued to meet regularly during the year. Updating of the Operating Rule Book and Emergency Response Plans continued with a target of implementation for the 2025 running season. Staff continue to work with the Heritage Railway Association, our regulator the ORR, other railways, and industry to share changes and best practice. Staff attended a variety of safety related training courses throughout the year including Working at Height, Ladder Safety, Lifting, and Food Hygiene. Seven members of staff attended an externally provided course to qualify as track patrollers, and four staff gained qualifications in the operation of excavators and other plant.

Objectives The principal objective of the company continues to be to advance the education of the public in the history and development of railway locomotion. This encompasses the following three subsidiary objectives: the preservation and operation of the eight-mile narrow gauge light railway between Welshpool and Llanfair Caereinion. the generation of funds to finance the acquisition and restoration of flxed assets and for the operation of the railway, including the necessary maintenance, renewals and replacements. the continued encouragement of an active membership to provide the necessary volunteer manpower and to preserve or acquire the appropriate skills. Publlc benefit The board has had regard to the Charity Commission's guidance on public benefit. Of the charitable purposes set out in the Charities Act 20 1 I, the railway principally contributes to b) the odvancement of education. .. and ]} the advancement of the arts, culture, heritage, or science. .. The public benefits of the charity are: the preservation of one of the first British railways built under the auspices of the Light Railways Act 1896. the conservation of its heritage assets and equipment for public enjoyment; the education of the public in the history of railway locomotion. the preservation and passing down of craft skills. In carrying out these benefits to the public, the charity seeks to minimise harm to the environment. Any member of the public may: travel on the public scheduled services. view the stations and buildings without payment whenever the railway is open. view how the railway and its operations feature in the landscape at any time. All members of the company are eligible to train for any volunteer job on the line, including skilled and safety-critical jobs, subject only to health and safety assessments. Company members enjoy concessionary travel on the railway, but all other private benefits of membership are incidental to the aims and objectives of the charity.

Achlevements and performance The company built upon recent experience to continue to rebuild passenger numbers and revenue, with a consolidation of special events and experiences. Trains operated on 177 days, 8 more than in 2023. We continued to encourage online booking to help in managing capacity and improving the visitor experience, with Llanfair boarding being promoted for catering and first class services. Several new ticket categories were introduced to better reflect our offering to single adult family units and those with additional access needs. The continued challenging economic climate saw passenger numbers down by 1,000 conpared to 2023, and similarly down on the budget plan, primarily due to a shortfall in expected Santa Special event footfall and poor weather. Revenue similarly fell short of budget, but income per passenger increased more than the average ticket price due to the nudge towards higher quality or added experiences, such as on-train picnic hampers. Our afternoon tea train delivery was brought back in-house and sold out on most dates. Premium experiences continue to help fill trains at quieter times and increase our income per visitor. Alongside afternoon tea and evening fish chips specials, more dates were added for the gin & whislfjT tasting train in partnership with a local distillery. Despite operating more days, the railway ran fewer trains than in 2023, with more mid-week and low season days having two rather than three timetabled round trips, helping improve efficiency, offset the rise in operating costs and providing a shorter and more attractive duty for most staff. The year saw an improved three day beer and cider festival event hosted at Raven Square station, a new Teddy Bears, Picnic family event, and two externally delivered character events, Bluey and Paw Patrol, alongside returning favourites, including the Easter 'Carrot Express, and Build-in- Bricks activities, which helped drive traffic to our Llanfair Connections Museum during May half-term. All these events helped bring in additional income and new customers. All departments at the railway contributed to these successes, often adapting to operational changes at short notice. Timetables for the year were planned around predicted available staff levels, and a good number of new staff started with us and qualified in a range of roles. Despite this, short notice cover during the peak season remained a challenge. Track, infrastructure and buildings At the start of the year a mainline point and track in the platform road at Cyfronydd were replaced. The old 1902 rail was taken up and a new ballast bed with new drainage, plastic sleepers and S30 rail laid. The point work and track were ready for operation at Easter and the lever frame was fully installed by mid-summer. New ballast walls just east of Golfa summit should prevent the loss of ballast at the side of the embankment and help

stabilise the track. The retaining wall at Sign Hut Curve was extended, again to retain ballast. Other locations also received attention. Spot sleepering was used to replace more than 70 life expired sleepers. A broken rail west of Banwy Bridge was replaced and numerous other maintenance jobs carried out. Over 12 days of flailing took place, cutting back all undergrowth and trees within reach. On completion, and atter training several successors, Dave Tractor Dave, Davies retired. He is to be thanked for faithfully flailing for many years. Thanks to externally provided track inspection training, we now have six qualified track patrollers so that Colin Bull, who has carried the burden for some time, can at long last retire. He does so with our gratefuI thanks. A failed culvert caused a sinkhole to appear under the track and stor damage included a major landslip in a cutting on Golfa Bank. Increasingly severe weather patterns mean that we need to be vigilant about the state of our infrastructure. As part of this, a survey was carried out on our river frontage, fortunately revealing nothing requiring urgent attention. We similarly continue to monitor the condition of the Banwy Bridge. Proposals for the repair and future use of the former Colinette building are being developed following receipt of a substantial grant. Routine maintenance of our other buildings, often unnoticed but essential, is carried out by the midweek gang. A Lot of their effort this year has been expended around Raven Square station. More volunteers are needed both here and for the track gang, to maintain these vital functions of our railway. Steam locomotives In 2024 the steam locomotive fleet accumulated a total of 6588 miles, of which No. l The Earl completed 5387 miles, No. 10 Sir Drefaldwyn 561 miles and ZB2 Zillertal (our No. 211, on-hire from the Zillertalbahn, 640 miles. Including for test and running-in purposes, No. I was in steam on 151 days, No. 10 on 21 days and No. 21 on 20 days. ZB2 was taken out of service in early July due to firebox stay failures which were deemed beyond economic repair for an on-hire locomotive. The loco was returned to the Zillertalbahn on 27th November. No. 10 returned to traffic at the gala following completion of its finish painting and lining. Locomotive No. 8 Dougal was despatched to the Sittingbourne & Kemsley Light Railway in ApriI, where in exchange for their assistance with repairing the boiler, the loco will enjoy a period on loan. During the year we used up the last of our supply of Welsh steam coal from Ffos y Fran and ran most of the year on Polish steam coal. With the cost ol Polish coal being more attractive than recent deliveries of either Welsh or bio-fuels, our average round trip fuel cost in 2024 was lower than in both 2022 and 2023. 10

Rolling stock The carriage fleet accumulated a mileage of 27774 in passenger service, plus 413 miles on engineering trains due to the withdrawal of the mess coach. Work continued throughout the year on refurbishing and modifications to ex-RNAD wagon No. 41 to prepare it for mounting a custom-built welfare unit for use as a new mess coach. An order was placed with Alan Keef Ltd for two new rail wagons to replace our ex-RNAD wagons Nos. 35 and 38 which had been withdrawn in 2023 due to excessive corrosion. The new wagons will incorporate our spare Butterley-built (ex-Bowaterl wagon bogies suitably overhauled and will be vacuum-fitted. Diesel locomotives The failure of ZB2 in early July plus the delay in getting No. 10 back into service resulted in Diema locomotive No. 17 accumulating a significant passenger train mileage when two train sets were operating. Overall, it clocked-up 1726 miles in the year, including use on engineering trains. No. 7 Chattenden was in use throughout the year principally on engineering trains although it did see limited passenger use at the gala. Alishan Forest Railway diesel locomotive DL-34 (W&L No. 22) arrived back at Llanfair in early April after having a vacuum brake system fitted over the winter. Grondana couplings were fitted upon its return, and it was ceremonially launched into service in May in the presence of representatives of the Alishan Forest Railway. Subsequent test running indicated that the performance of the second-hand exhauster built into the vacuum system was sub-optimal and this has been stripped for examination. Educatlon and heritage The railway meets its formal charitable purpose by preserving the heritage and providing learning opportunities for all visitors. Educational experiences include a varied timetable of heritage train rides, special events and activities showcasing the story of the W&LLR from 1903 to the present and its connections with the wider world of 2ft 6in gauge r￿lwayS. Llanfair Connections and the Cloverlands Model Car Museum were open to the public on 92 days and welcomed 4,021 visitors, a 73.5 % increase over 2023. The opening of both facilities continued to be restricted by the lack of volunteer stewards and our aim for the future continues to be to open daily when trains are running. New displays incorporating artefacts found in store on the railway included an original cylinder from The Earl that had been replaced during the 1999- 2000 overhauls. A line phone from the original single telephone line along the length of the railway, which continued in use for the first ten years of 11

preservation, and an insulator from the line, recovered from a surviving telegraph pole between Heniarth and Llanfair Caereinion, formed the basis of a small display about communications. From May to October, there was a temporary exhibition about the Alishan Forest Railway. A major re-arrangement of the Cloverlands Model Car Museum continued throughout the year, together with the development of a permanent display about the history of Formula I, enhanced by significant new acquisitions. Welshpool display shed was opened regularly on operating days allowing visitors to view No. 6 Monarcl4 No. 12 Joan, and other out of service locomotives, alongside our heritage rolling stock. Envlronment We have put in place new arrangements for handling waste to comply with new regulations. We are recycling wherever possible, even to the point of collecting and re-cycling 'sawdust" arising from the drilling of plastic sleepers to take track r]xings. Ash dieback continues to make its presence felt with growing numbers of lineside trees showing signs of the disease. It is likely that in due course we will need to fell the affected trees and develop a plan to replant. Severe storms saw the railway suffer fallen trees, not previously identified as being at risk, both within our estate and from adjoining property. Weather was also a cause of our first landslip for many years, near Hanged Mans Tree on Golfa Bank. Here, a section of cutting slope became saturated and material slumped onto the line, thankfully without damage to the track bed itself, or disrupting services. Fundralslng The railway continued to benefit from generous donors and legacies, with a spectacular fLnish, a large grant being secured in principle in December. Income during the year was £107, 181 from donations including Gift Aid reclaimable, £58,819 from legacies, and £12,2 19 in grants. The appeal for the overhaul of locomotive No.7, and for improvements to our carriage fleet for premium services, met its target and closed during the year. The overhaul of No.7 will proceed as soon as Taiwanese diesel DL-34 is ready for regular traffic after modifications and crew training. In December we launched an appeal for £150,000 to fund the heavy overhaul of locomotive No. 2 (GWR 8231 The Countess. The 0￿1ClaI launch was on 30 December, to coincide with the New Year knThistle-up' to herald Rail 200, which will run throughout 2025 on the bicentenary ofthe opening of the Stockton & Darlington Railway. Various incentives were offered including one for those able to donate the symbolic sum of £823. By the launch day, the appeal was already at over a third of its target sum, thanks to an extraordinary gift from a generous supporter. 12

At the same time, the railway received news of approval in principle of a large grant application made for essential repairs to the structure of the industrial units that house Llanfair Connections, our linked car museum Cloverlands, and storage facilities. We applied in April, under Community Ownership Fund, but progress stopped when the general election was called. Then in November the new government announced that it would complete the round that was in progress when the election was called before closing the scheme. The grant was subject to contract negotiations which started after the year end. It must be spent by mid-December 2025 at Latest. W&L Sales Catering sales increased I l % {£18,000) on 2023 but the tearoom remained loss-making. Portion control was improved, but increased staffing levels resulted in a 25 % increase in staff costs. From November, opening days were reduced to concentrate on busier days, WLth a range of products that we can serve profitably. Our in-house catering team took over afternoon tea train catering. Feedback on this and our other on-train catering offerings was very good. Thanks are due to both paid and volunteer staff who make these experiences such a success. Shop sales were 3 % lower, attributable to fewer 'blockbuster' new books and our visitors watching their pennies in tougher financial times. Thanks to better gross margins, however, the shop's contribution to revenue was £1,000 higher. The service given by our enthusiastic and dedicated volunteers to our visitors is much appreciated, as demonstrated by the many cheerful passengers chatting to staff. Membershlp and volunteers The railway is fortunate in having the consistent support of its members, many of them of 25 years plus standing. We welcomed 322 new members in 2024 (2023 3761, another good year. Total membership at year end was 2,133, a net increase of 29. Dick Johnson stood down as one of the membership team at the end of 2024. Dick's association with the railway goes back over sixty years, to the very beginning of its preservation. He has served the railway capably in many roles and we thank him for his care and thoughtfulness in looking after members. Trustees and management are grappling with the challenge of recruiting sufficient volunteers to ensure the sustainability of the current operating model. The number of volunteers remained largely stable and more local people are getting involved, but the age profile is high. Over the next year we hope to have a volunteer team member on duty every operating day to try to encourage more volunteers. 13

Staff In 2024 the company employed seven full time and one part time staff. Around 220 part time volunteers contributed about 14 full-time equivalent staff and there were some seasonal staff in the tea-room. Development of a comprehensive Staff Guide was transformed into a Code of Conduct and a suite of HR policies. These were posted on HOPS - the company's document management system. A dedicated safeguarding team was set up with David Plume being appointed as safeguarding officer and Anne-marie Wright as safeguarding trustee. Staff worked to ensure that salety regimes were maintained, marketing and adminlstration conducted, and rostering managed. Recruitment and training of sufficient staff to support activities across all areas of the organisation remains a constant priority, however. Catherine Smith joined us as part-time community engagement officer in May with a remit for increasing our volunteer recruitment and engagement with the local community, alongside working with the existing volunteer liaison and safeguarding team to review our offering for existing volunteers. Kevin Heywood left in September and his role as operations and infrastructure manager has been restructured. Duty managers have taken on operational oversight and the new post of infrastructure and buildings manager has been created. This was advertised in late 2024 and filled in early 2025. Sarah Perry retired in December 2024 and her role of marketing and administration assistant has been converted into a full-time position and was to be advertised in early 2025. Ruth Davies was due to complete her level 3 apprenticeship in business administration with us at the end of January 2025. We thank her for her hard work over the past three years. The trustees are most grateful to all the staff, full-time, seasonal and volunteer, for their forbearance, patience, and hard work during another difficult year. Marketing We continued with a range of marketing activities to attract different audiences. Our traditional print leaflets were distributed throughout mid and north Wales and Shropshire, with additional inclusion in bedroom browser, packs at accommodation providers. Press releases and adverts in local and enthusiast print publications were placed at core times throughout the year. Banners, posters and new roadside signage helped highlight the railway's events and tearoom to local and passing traffic and we continue to take part in a range of joint marketing and discount card schemes as part of the 'Great Little Trains of Wales,. 14

We ran sever8J targeted online advertising campaigns on a range of social media platforms to highlight our events and catering experiences to a broader family audience. The website was reviewed to improve browsing speeds, navigation and integration, especially on mobile and tablet devices. We were represented at a variety of shows and events, including the British Tourism and Travel Show, Association of 16mm. Narrow Gauge Modellers Show, Shrewsbury Flower Show and, for the first time, Oswestry and Berriew shows. Targeted advertising helped group bookings to return to pre-2019 levels. We continued to collect and analyse visitor feedback to identify areas of improvement, with all tickets booked online being sent a feedback form. A Visit Wales 'secret shopper, visit saw us retain our Visitor Attraction Quality Assurance Standard, with an improved score, and we were awarded a Trip Advisor Traveller's Choice Award, lor the fourth year in a row. We were pleased to win Best Third Sector, organisation in the Mid Wales Tourism Awards 2024-5 Financial review Results and financial position 2024 was a good year financially. The dip in traffic income of £1 1,000 was due to quieter than usual Santa trains but coal costs were also £1 1,000 lower. Despite straitened times, Gift Aid was £23,000 12023 £29,000). Learning from 2023 experience meant that spending on special events was £8,000 lower, while still delivering a varied programme for our different audiences. Part of this saving was reallocated to marketing, particularly social media. We also reprinted the Discovery booklets at our own expense, the initial batch being grant-funded, since these are so popular with younger visitors. We spent funds to make our IT hardware more resilient and to make sure we benefit from HOPS as a way to make better use of volunteer time. Progress in returning catering to profitability was slower than expected and losses, mainly on prepared food, were £28,000. This is being addressed for 2025. Total income (consolidated statement of financial activities) was £980,000. As well as traffic, retail and catering income, this included £12,000 of grants supporting our community engagement officer, £7,000 in donations to the appeal for the overhaul of No. 7 and £66,000 to start the No. 2 appeal. We received £59,000 more from the bequests of Charles Fisher, Roy Laverick and Roger Pattie, and further auction proceeds from the balance of Peter Hempson's model collection. The railway is most grateful to the many supporters who have remembered us Èn their wills. Generous interest rates (50/0) on our deposits with CCLA also helped generate £58,000 in investment income. 15

Note 3 shows the railway's operation and preservation costs. In addition to the main capital projects capitalised separately, major project expenditure relates to building inspections in preparation for capital projects and the civil engineering winter trackwork. The external track costs in 2024 were modest, as the larger spend items will come in February 2025 with the work at Golfa. Administrative costs {Note 6) detail the expenditure on operating the railway, on W&L Sales, trading activities and on membership and governance costs. Staff costs in railway operation reflect the addition of the community engagement officer. W&L Sales includes our catering manager and the casual staff engaged for the tearoom and mobile catering unit, when open. Electricity usage is under investigation as it has increased across the Llanfair site, notably in the workshop and catering, and 2024 contract prices did not reduce as much as we had hoped. The CCLA investments (Notes 7 and 131 delivered £8,000 in dividends and a valuation gain of £12,00012023 £18,000 gain). £30,000 has been added to cover the board's updated estimate of the buffer needed against unforeseen adverse events. The 2020/202 1 pandemic showed the benefit of such a reserve. Our consolidated statement of financial activities follows the format required of all charities. Note 25 summarises the income and costs for our different activities in a management accounts format. This shows both day- to-day income and costs by activity, including those donations and grants given to cover specific operating expenses. Long-term donations are shown separately below, along with how they are spent, sometimes in a different period from when they were received. Donations and legacies received in 2024 contributed £166,000 that can be applied to the priorities within the business plan and as the match funding usually required for grants. Capital expenditure in 2024 was £89,000. In heritage r￿ed assets this was work on No. 8 and the lining of No. 10. In other r￿ed assets, it was work on creating new offices in the industrial units, DL-34 modifications, the mess coach and ex-RNAD van 2 13, the new air compressor and catering equipment. £2 12,000 of spend for 2025 has already been committed. Restricted funds The charity has accepted donations and legacies for restricted funds only when the aims of the fund fit within its overall objectives. Existing restricted funds for No.2, No.7, No. 8, other diesels and viaduct protection are planned to be used in the coming years. The 2020 Appeal, Connections displays and carriage improvements are awaiting approval of suitable projects. Funds for the restoration of locomotives No. 14, No. 6 Monarch, the Wickham trolIey and heritage wagons are for longer term projects. 16

Designated funds Designated funds include £2 12,000 contractually committed for future capital expenditure and a fund earmarked for fitting out and displays as our interpretation centre plans evolve. Reserves polley At the year end, the charity faces four months with little income but with expenditure running higher than normal. This is when major work is undertaken on civil and mechanical engineering, refurbishments, capital items, and when W&L Sales restocks the shops and tearoom. Reserves, in the form of freely available funds, are therefore needed to cover this period and the start of the operating season until an adequate cash flow builds up from takings, usually in June. The trustees consider six months, unrestricted fund expenditure, plus any approved capital expenditure not already received in the form of a restricted fund, as an appropriate level of seasonal reserve. This is calculated to be £1,070,000. The trustees have also decided to retain long-term investments, not only to provide bridging finance for restoration, capital projects or purchases until any relevant appeal generates the required money, but also to provide a margin for contingencies. This figure is calculated in line with Charity Cornmission guidelines bearing in mind the railway's risk management, the overall condition of the infrastructure and the level of insurance cover we purchase. The trustees consider £310,000 to be an appropriate additional reserve. Adding these two figures, reserves of £1,380,000 were required at 31st December 2024. whilst actual investments, cash and working capital available stood at £1,490,000. Investment policy The charity's Memorandum of Association gives the trustees discretion in the investment of funds. The trustees consider that investments in CCLA Investment Management's funds, designed specifically for charities, offer appropriate investment vehicles. The short-term reserves are invested in a deposit fund, which has consistently provided a better return than a commercial bank or building society. Longer-term funds are invested in the investment fund, which is an ethical fund. The investment managers remain positive on the medium- and long-term prospects for equities with their investments spread across regions and sectors to help manage risk. THE FUTURE 2024 continued in presenting the company with the challenge of attracting sufficient volunteers and in consequence a further reduced timetable was instigated. This resulted in a further increase in income from a reduced 17

number of trains. This operating model has therefore been carried over largely unchanged into 2025. The current business plan was published in May 2023 and is serving us well. It will be updated in 2026. The major strategies that had been agreed have been re-examined through an external advisor. In December we were awarded a substantial grant to refurbish the Colinette building to secure it for future use. An external safety audit will be completed early in 2025, and the Safety Management Team will add impetus to addressing the audit recommendations. The commercial challenges of 2024 will continue throughout 2025 but should be mitigated by our progression to the 'new normal, operating environment. Planning for 2025 has concentrated on ensuring that reduced resources can cope with the timetable. our high end offering and events have been further prioritised to increase spend per visitor. The range of events which have been trialled over the past few years has been reviewed to focus on those which offer the best return and attract our core visitors. We will consolidate the range of offerings that were available in 2024, including in on-train catering, as we move to bring catering back into profit. The lessons learned from the last four years and considerable visitor and volunteer feedback will be built on in 2025 as we push towards increased operational income and contributions to the charity. During 2025 we will continue to build on networking and lobbying through connections with HRA, GLTW and expansion of our liaison railways and organisations. The efforts to preserve, and even improve, the appearance of the railway to ensure it remains attractive to visitors will continue. The condition of buildings and significant infrastructure and their maintenance will be 2025 priorities. There will be an increased focus on volunteer recruitment and retention as this has now become critical to the future of the company. This will involve a more targeted initiative to campaign to fill volunteer posts and ensure an efficient training process. The charity remains extremely grateful for legacies and donations received over past years. Where an indication of possible use for such finances has been given, consideration will be given to accede to those wishes. It must be stressed however, that unrestricted legacies and donations give the railway consi rably more flexibility of purpose in these difficult financial times. Steve Clews Chairnian 22 March 2025 18

Independent Financial Examiner's report to the Trustees of Welshpool & Llanfair Light Railway Preservation Co. Ltd. I report to the charity Trustees on my examination of the accounts of the Charitable Company for the year ended 31 December 2024. Responsibilitles and basis of report As the Trustees of the Charitable Company (and its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 I'the 2006 Act'l. Having satisfied rnyself that the accounts of the Charitable Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the Charitable Company's accounts carried out under section 145 of the Charities Act 20 11 ('the 20 1 l Act,). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145151(bl of the 2011 Act. Independent examiner's statement Since the Charitable Company's gross income exceeded £230,000 your examiner must be a member of a body listed in section 14D of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of ICAEW, which is one of the listed bodies. I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe: accounting records were not kept in respect of the Charitable Company as required by section 386 of the 2006 Act. or the accounts do not accord with those records. or the accounts do not comply with the accounting requirernents of section 396 of the 2006 Act other than any requireTnent that the accounts give a 'true and fair, view which is not a matter considered as part of an independent examination" or the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities 19

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached. This report is made solely to the Charitable Company's Trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. My work has been undertaken so that I might state to the Charitable Company's Trustees those matters l arn required to state to them in an Independent examiner's report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the Charitable Company and the Charitable Company's Trustees as a body, for my work or for this report. Signed: Dated.. John Fletcher BA IHons} FCA WR Partners Belmont House Shrewsbury Business Park Shrewsbury Shropshire SY2 6LG 20

CoDsolidated statement of financial activities for the year ended 3 1 December 2024 (incorporating the income and expenditure account) UnrestrlctÈd funds Restricted funds TotaI 2024 Total 2023 Income from.. Note Voluntary income Donation5, legacies, and grants 123.603 78.102 201,705 204.887 ChGritable activities Railway operdtion and preSen￿tIOn 434,302 434,302 445,680 Membership subscriptions 26,787 26.787 23.367 Other trading activities Comrnercial trading operdtions 258,899 258,899 242,544 Investment income 47.831 10.504 58,33S 51,810 Total income 891,422 88,606 980.028 968,288 Expenditure on: Charitable activsties Railway operation and preservation worlung Railway operation and preservation projects Membership and governance expenses 582.122 2.252 584,374 564.662 227,085 2.606 229,691 233,023 20,998 20,998 22,375 Other tmdin9 QCtivEties Commercial trdding operations 260,645 260,645 256,448 Total expenditure 1.090,850 4,858 1,095,70 1,076,508 Net gain/[loss) on investments 13 12,000 12,000 18.000 Net income/(expenditure) for the year Gr05S transfers between ￿ndS [187.428) 83,748 (103,680] [90,220) 20 Net movement In funds forthe year (187.428) 63,748 [103,680) [90,220) ReconciliGtIDn offvnds.. Total funds brought forward 2.846,798 252.61S 3,099,41 3,189,633 Total funds carried forward 2,659,370 336.363 Z.995,73 3,099,413 The above results ure ull derivedfrom continuing accivities. Allgains and losses recognised in the pertod are included obove. The surplus/(deficitJfor theyeurfor Cornp(EniesActpurposes comprises the net iThcomefor theyear including theg(Ein on the rev(Tluation of the investments and omotlnts to o loss of£(103.68QJ,f2023 £90,22010ssJ. 21

Consolidated and charlty balance sheets as at 31 December 2024 Group Charlty 2024 Company Registration No.00646238 2023 2024 2023 Fixed assets Note Heritage fixed assets li 80Z,949 874,253 802.949 874,253 Other tangible fixed assers 12 647,007 672,497 647,007 672,497 Investments 13 316,000 274,000 346,000 304,000 1.765.956 IA20,750 1,795,956 1,850,750 Current assets Stocks 14 112,400 ioi,ioo 7.S(MJ 73,000 Debtors 15 104.587 107,680 120,950 132,145 COIF deposit account 920218 1,033,8H 920,218 1,033,844. Bank accounts and cash balances 16 207,50Z 177.122 201,689 164,661 1344,707 1.419.746 1.330,357 1,403,650 Creditors: amaunts falling due within one year Trade creditors 44.451 49.884 44,451 49084 Other creditors including tax and sacial security 17 3,251 4,696 3,251 4.696 Accruals and deferred income 18 31,892 53,642 31,892 53,642 79.594 108,222 79,594 108,222 Net current assets L265,113 1,311,524 1,250,763 1,29.1,428 Creditors: amounrs talling due after more than one year 18 35,336 32061 35,336 32B61 Total net assets 2,995.733 3,099,413 3,011383 3,113,317 The fvnds ofthe charlty.. Unrestricred Funds 2,39L798 Z,793,363 2,407,448 2,807,267 Designated Fund.$ 267,572 S3,435 267,5T2 53,433 Total unrestricted Funds 19 2.659,370 2,846,798 2,675,020 2,860,7U2 Restricted income fut]ds 20 336,363 252,615 336.363 252,61) Total funding provided 2.995,733 3,099,413 3,011,383 3,113,317 The entity was entitled to exemption from audit under section 477 of the Companies Act 2006. The Tnernbers liave JiDt required ihe entily to obtain an audit fDr the year in question in accoi-dance with sectlDn 476 of the Companies Act 2006. No audit is required in accordance with section 144 of the Chariiies Acr 2011. The trustee5 acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting. The trustee5 acknowledge their responsibilities for complying with the requiretnents of the Act with respect to account2ng record5 and preparation ol financial statements. The financial statements have been prepared in accordance with the provision5 applicable to entities subjeci to rhe small companies regime, The financial statement ere approved and authorised for issue by the trustees on 22 March Z025 and signed on their behalf. Steve C s (Chairman of the Trustees) lain McLean (Vice Chairman) 22

Consolidated cash flow statement for the year ended 3 1 December 2024 Z024 2023 Note Net cash provided by/(used in) operating activities 23 27,683 Cash flows from investing activities: Dividends from investments 23 7,799 7,783 Acquisition of heritage and other tangible fixed assets (88,728) (184,400) 12 Disposal of tangible fixed assets (Acquisition) / divestmeni of investment assets 13 (30,000) Net cash provided by / (used in) Anvesting actlvttles (110,929) Cash flow from financing activlties: Finanang activities in year Net cash provlded by/(used in) financing activities Change In cash and cash equivalents in the year 22 (83,246] Cash and cash equivalents ar beginning of year 22 1.210.966 Cash and cash equivalents at end of year 23 1,127.720 23

Notes to the accounts 3 1 December 2024 l. Accountlng pollcles Welshpool & Llanfair Light Railway Preservation Co Ltd is a limited company domiciled and incorporated in England and Wales. The re￿stered office is at The Station, Llanfair Caereinion, Welshpool, Powys, SY2 1 OSF. The cornpany is registered as a charity (Number 10003781 with the Charity Commission. It is limited by guarantee and controlled equally by all its members. The company meets the definition of a public benefit entity under FRSI 02. la) Basts of preparation These financial statements have been prepared in accordance with the Statement of Recommended Practice ISORPI of the Charity Commission (revised 2015), Financial Reporting Standard IFRSI 102 and the Companies Act 2006, under the historical cost convention, modified to include financial instruments at fair value where appropriate. Investments are included at market value. The company's functional currency is GBP sterling. After reviewing the company's forecasts. the trustees have a reasonable expectation that the company has adequate resources to continue operating for the foreseeable future and there are no material uncertainties about the charitable group's ability to continue as a going concern. The company therefore continues to adopt the going concern basis in preparing these financial statements. Ib) Judgements In applylng accountlng pollcles and key sources of estlmatlon uncertainty EstiTnates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The cornpany makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. In the opinion of the trustees there are no estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year. (cl Group financial statements These financial statements consolidate the results of the charity and its wholly-owned subsidiary, W&L Sales Ltd (registered in England and Wales:030372351, on a line by line basis. A separate Statement of Financial Activities ISOFAI for the charity itself is not presented because it has taken advantage of the exemptions afforded by section 408 of the Companies Act 2006. The charity has also availed itself of paragraph 411) of Schedule I of the Companies Act 2006 and adapted the Companies Act formats to reflect the special nature of the charity's activities. Id) Ineome (i) Charitable actiuihes Income from railway fares is included in income in the period in which the relevant journey takes place. Subscriptions are brought into income in equal monthly instalments for each length of membership. Life membership income is spread over twenty years. (li) Other trading activities Income from the commercial trading operations of W&L Sales Limited is included in income in the period in which the sale is made. lili) Donations, legactes, and grants These are included in income when the charity is legally entitled to the incorne and the amount can be quantified with reasonable accuracy. 24

(iu} Intangible incon The group is heavily dependent on members who give their titne to assist in the activities and running of the charity and in staffing the trading outlets of W&L Sales Ltd. No monetary value is placed on this time in these financial statements. nor is any value attributed to individual gifts in kind valued at less than £ 1,000. lel Expenditure All expenditure is included on an accruals basis and is recognised when there is a legal or constructive obligation to pay for the goods or service. Rental payments are charged to income on a straight-line basis over the period to which they relate. (i) Repairs and maintenance Expenditure is written off in the period in which it is incurred. A major repair or refurbishment, which gives rise to a significant and continuing economic benefit to the charity by extending the useful life of the asset, is capitalised. (li) Overhead allocation Administration and management costs comprise those overhead expenses which, whilst mainly related to the charitable activities, are not wholly so attributable. The proportion relating to the organisational management of the charity and its compliance with constitutional and statutory requirements is shown separately as Governance. {iii} Pen￿on costs Retirement benefits for certain employees are funded by defined contributions from the group. Payments are made to approved pension providers. The group's contributions are treated as expended in the period in which they become payable. lfj Tanglble fixed assets and depreelatlon The railway's f￿ed assets are categorised into Heritage and Other. Heritage r￿ed assets are land, buildings, pennanent way, locomotives and rolling stock which are of historical significance in the preservation of the railway or otherwise integral to the broader objective of educating the public in the history and development of railway locomotion. Other r￿ed assets are integral to the operation of the railway, but of lesser historical significance and in some form replaceable. Acquisitions are made by purchase or donation and assets are included at cost, or estimated cost if donated. Major restoration work to assets that have been out of use for some time is also capitalised at cost. Maintenance costs to keep assets in full working order are charged to the income and expenditure account when incurred. Subject to the trustees, approval, the company may dispose of f￿ed assets" though in the case of heritage r￿ed assets this will only happen in very exceptional circumstances. The company's policy and programme of maintenance is summarised in the trustees, report and the company's website has details of its collection of locomotives and rolling stock and the history of the line. No depreciation is charged in respect of freehold land. Other assets are depreciated, so as to write their cost down to estimated residual value. Depreciation is nornially charged in equal annual instalments over their anticipated useful lives, as follows.. Pennanent way20/. Site works4 % Buildings2D/. 3°/0 Locomotives and rolling stock50/. Plant and equipmentlo % - 20 % Ig) Investments Fixed asset investment8 are stated at market value at the balance sheet date. The statement of financial activities (SOFA) includes the net gains and losses arising on revaluations and disposals throughout the period. 25

Ihl Stocks These are stated at the lower of cost or net realisable value, due allowance being made for obsolete and slow-rnoving items. Donated items are included at estimated cost. 111 Cash and cash equlvalents Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-terni liquid investments with original maturities of three months or less, and bank overdrafts. Any bank overdrafts are shown within borrowings in current liabilities. (Jl Flnanelal assets and Ilabllltles The company has elected to apply the provisions of Section I l Fasic Financial Instruments, and Section 12 '0ther Financial Instruments Issues, of FRS 102 to all of its financial instrurnents. Trade debtors, trade creditors and amounts due from the subsidiary company are recognised initially at transaction price. These obligations are intended to be settled within one year and are therefore not discounted using the effective interest method. Transaction cost represents their fair value. {kl Equity instrnments There were no equity instruments issued in the year. (11 Fund accounting Funds held by the charity are either.. Unrestricted fvnds - these are funds which can be used in accordance with the charitable objects at the discretion of the trustees" Designated fvnds - these are unrestricted lunds that have been set aside by the trustees for particular purposes. or Restricted fvnds - these funds, which arise from grants or donations made for a specific purpose, can only be used for that particular purpose within the objects of the charity. Restrictions arise when stipulated by the donor or grantor or where funds are raised for a specified purpose. The balances of the funds represent the unspent balances. Im) Contingent Income The charity sometimes benefits from legacies with payment received over several years. When further receipt is uncertain, amounts rnay be shown as contingent income. 2. Donations, legacles, and grants Unrestrlcted Restrlcted 2024 2023 Gift aided donations 17,317 74,848 92.165 79,496 Other donations 11,762 3,254 15,016 10,200 Legacies Gift Aid on Fares 58,819 58.819 78,729 23,486 23,486 28,615 Grants- Powys Council Grant5- Welsh Govt 7,328 12,219 12,219 519 Total 2024 123,603 78,102 201,705 204.887 Thtal 2023 118,564 86,3Z3 204.887 26

  1. Railway operation and preservation 2024 2023 Turnover Note Fares 427,087 Keyse Cottage receipts 3,843 3,824 Solar panels and EV charging income 1.605 4,4ZO Sale of surplus Tnaterials and parking 1.767 1,805 Other operating income 7,215 Income from railway operdtion and preservation 434.302 Working expenses Fuel 51,468 62.736 Repairs and maintenance.. Mechanical engineering 45,080 51.606 Civil engineering 43,783 42,675 Costs for special trnins & events 37,734 45,655 Loco hire fees 11,346 15.169 Keyse Cottage running expenses 2,219 2.035 Administration and management costs 392.744 344,786 Total working expenses of railway operation and preservation 584.374 Mafror project expenditure Mechanical engineering 8.500 Civil engineering 44,169 22,639 Depreciation 1112 18S.522 201,884 [Gain)Iloss on disposal Total major project Spend on railw3y operdtion and preservation 229,691 Net cost of Tailway operation and preservation 379.763 27

  2. Subsldiary's trading activlties 2024 2023 Note Income- Shops 68.800 71,042 Income- Catering 190,099 171,502 Income- Consultancy Total trading income 2S8,899 Less.. ShDPS Cost ofsales 35,812 38,784 Gross margin shops 47.9% Le5s.' Catering cost of sales 90,944 98,160 Less.. Catering staff costs 109,859 87,617 Net margin after staff - catering [5.6)% Less.. Admini5tr3tion and management costs 24,030 31,887 Total trading expenditure 260,645 Net (loss)/profit For the year (1,746] Subsidiary's balance sheet at year-end 2024 2023 Current assers -other 30.713 40,561 Curreni (liabiliues) other Current assets / [liabilities} with parent company inter-company balance [16,363) 124.465) Net assets 14,350 16,096 W&L Sales Limited is o 100% ownedkubsidiary, with £30,000 share copitol.

  3. Membership and governance expenses Note 2024 2023 The Llanfair Railwaylournal 11,904 IZ,982 Membership expenses 4,93S 5,659 Governance costs 4.159 3.734 20,998 22,375 28

  4. Adminlstratlon and management costs Railway operniion & presemtion Commercial adlng W&L Sales Ltd Membership and governance Trtal 2024 Total 2023 Establishment Rent. raies. water and insurance 40.385 40,385 t¥I,804 Electricity and heating 39,807 39.807 25,320 Equipment rental and maintenance 7,7S3 7.753 5.340 Cleaning and hygiene 5upplie5 13,562 13.S6Z 13,634 Rent charged to trading 120,030} 20.030 81,477 20.030 101,507 86.098 Selling Advertising and publicity 32.648 32,648 26,283 Administratlve Stsff costs (Note 9) 199,8Z8 109,859 309,687 287.130 Trdvelling 1,879 1.879 1.422 External iraining 4,647 4,647 3.130 Telephone and radio 4,599 4,599 4.671 P05tage, stationery, and IT costs 20,699 20,699 6.872 Independent audit/ examination fees 1.500 1,500 1.500 Accountancy fees 19.345 19,345 19,265 General expenses 8,835 7,594 16.429 13.130 Admin recharge to trading [4,000) 4,000 255,832 113.8S9 9,094 378,785 337,120 Financial Bank charges and booking processing costs 22,787 22,787 24.182 2024 Total 392,744 133,889 9.094 535,727 473,683 2023 344,786 119,504 9.393 473,683 29

  5. Investment income 20Z4 2023 CCLA Charity Investment Funds.. Investment fund shares 7,799 7.783 CCLA Deposit Fund 50,174 44,027 Interest Interest on tsx 362 58,33S 51.810 Of which.. restricted 10,504 7,404 unrestr1c￿d 47,831 44,406

  6. Taxatlon No liability arises to corporation tax for the financial period by reason of the company's charitable status and the donation by ￿ft aid of its net profits by the subsidiary. There is no deferred taxation to be recognised.

  7. Informatlon regarding trustees/directors and employees 2024 2023 ((rJ Stofftosts during Èhe p8riod were.. Wages and salaries 284,017 261,791 Social security costs 14,136 14,411 Other pension costs 11,534 10,928 309,687 287,130 No member Df staff received emoluments in excess of £60,000 [2023.. NII). Key managetRent received emoluments of £47,500 {2023 £48,710). Tn addition to its Paid staff, the charity benefits from the substantial efforts ol over 220 working volunteer5. [bJ A veroge number ofpersons employed Number2024 Number 2023 Charity [lull time equivalent) Subsidiary Ifull time equi￿lent) li io The group etnployed 2612023 23) difterent employees during the year. [cJ Trustees As a charity, the cornpany is precluded Irom providing any emoluments for its tru5teesldirectors and the Articles of Association of the subsidiary contain a similar provision. Trustees received £217 as reitnbursetnent of travel expenses [2023.. ENil). 30

  8. Related party transactlons There were no related party transactions in the year. Of the trustees, Steve Clews is a director of Oswestry and Borderlands Tourism Ltd, Shropshire Union Canal Society, the Heritage Railway Association and the Heritage Rail Charitable Trust. Robert Robinson is town clerk to Llanfair Town Council. Helen Ashby is chair of the Friends of Sierra Leone National Railway Museum. Andrew Charman is chair of Cloverlands Museum and editor of Narrow Gauge World. These trustees have recused themselves from any discussions or decisions on topics that may have given rise to a conflict of interest. Trnstees, as well as being volunteers, are also among the many financial donors to the railway. I l. Heritage r￿ed assets: group and charlty Freehold land, slts works, buildings. and pernixnent way Locomotlves and rolling stock Other plantand equipment Total Cost At 31 December 2023 596,266 1.501,979 12,507 2.110,752 Additions 4.284 4.284 CDisposals) At 31 December 2024 596.266 1,506.263 12,507 2.IIS,036 Depreciation At 31 December 2023 439,463 784.529 12,507 1,236,499 Charges for the period 13,661 61,927 75,588 [DisposalsJ At 31 December 20Z4 453,124 846,456 12.507 1,312.087 Net book amount 31 December 2024 143,142 659,807 NIL 802,949 3 1 December 2023 156,803 717,450 NIL 874,253 There was nc capital expenditure contracted for at the period end (2023.. Nil). Five-year summary of heritage fixed asset transactions: Year Year Purchases Major Items 2020 190,183 No. Iosir Drgfaldwyn No. l The Earl 2021 144,619 No. 10 Sir Drefaldwyn No. l The Earl 2022 77,342 No. 105ir Dre[aldwyn Sierra Leone orrioge 1066 2023 101,878 Bowater wogons 610 631 Sierro Leone corriuge 1066 Mo. 10 Sir Drefaldwyn Dougol 2024 4,284 31

  9. Other tangible fixed assets: group and charlty Freehold land, slte work5, bulldlngs & permanent way Locornotlves & rolling stock Other plant & equipment Cost At 31 December 2023 878,624 501,960 411,644 Addition5 4.710 59,968 19,766 (Disposals) 182.6391 {2,167) At 31 December 2024 883,334 479,289 429,Z43 Depreciation At 31 December 2023 501,993 352,683 265.055 Charge for the period 13,194 46,873 49,867 IDisposalsl (82,6391 12,1671 At 31 December 2024 515,187 316,917 312.755 Net book amount 31 December 2024 368,147 16Z,372 116.488 31 December 20Z3 376.631 149,277 146.589 There was £2 12.000 of capital expenditure contracted for at the period end [2023.. £24.000).

  10. Investments COIF charlty ￿ndS Group Charity 2024 Number Z024 2023 IIivEStment Fund 5hare5 At I lanuary 14,119 Z74,000 256,000 274.000 atrnarkeivalve Purchases 1,499 30,000 30,000 Gain/[lossl on investment 12,000 18,000 12.000 At 31 Decernber al ￿Arket￿81￿¢ 15,618 316,000 274,000 316,000 Shares in subsldlary At 31 December atcost 30.000 30.000 316,000 274,000 346,000 Historic c05t ar31 Dorember 177,000 147,000 Z07,000 The investment Iri the subsidiary represents the whole of rhe issued share capital, comprising ordinary shares, ofW&L Sales Ltd (company number 030372351. W&L Sale5 Ltd carries OTI the commercial trading activities of the group through shops and refreshment taeilities at station5 and away from the line and donates its entire ner profit w the parent company by Gift Aid. The total OF its capital and reserves is £14,350 (2023.. £16,096}. Further details on W&L Sales Ltd are shown in Note 4. 32

  11. Stocks Group Charity Z024 2023 2024 Stores 87,500 73.000 87,500 Goods for resale 24,900 28.100 112,400 ioi.ioo 87,500

  12. Debtors Group Charity 2024 2023 2024 Trade debtors 19,785 17,440 19.785 Prepaytnents and accrued income 32,300 42,725 32,300 VAT 11,298 12,726 11,298 Gift Aid recoverable 41,204 34,789 41,204 Amounr due from subsidiary company 16,363 104,587 107,680 IZO,950
  13. Bank overdraft The group has overdrdlt facilities of £Nil (2023- £Nil).
  14. Other creditors Includlng tax and soelal securlty Group Charity 2024 2024 2023 PAYE 3,251 4,696 3,251 3,251 4.696 3.251

  15. ACc￿￿lS and deferred Income Gmup Charity 2024 2023 2024 Subscription5 in advance 55428 50,603 SS428 Les5.' falling due after more than one year (35,336) [32,861J (35.366) Z0092 17.742 20092 Accruals and deferred income 11.800 35,900 11.800 31.892 53,642 31,892 33

  16. Unrestricted funds Balances 31 Dec 2023 Income IExpenditsre) Tran5fers/ revaluation Balances 31Dec 2024 F￿e reserves 1,246,613 889,285 (994,OS6) (200,000) 941,842 Reserves Used byNetFixed A55ets 1,546,750 (96,794) 1.449,956 Totolgeneralfynds 2,793,363 889.385 (1,090,850) {200,000) 2,391,798 Designotedfunds-future cGpitol pmjects Museurr]Jlnterpretation Cenrre 53,435 2,137 55,572 Capital coTnrnitrnent5 212,000 212,000 Total designated funds 53,435 Z.137 212,000 Z67,572 Total unrestricred funds 2,846,798 891.42Z (1,090,850) 12,000 2.6S9,370 M17ny donations and legacierfund the purchG5e offixed assets, which are then deprecEated overfutureyeors. At 31 December2024, £1,223,721 [2023.. EI,250,151J ofgenerolfvnds represents reserves that WEII match tuture depreciatton of ¢he ossets bDusht with those donotion5 Gnd lesaci£%.

  17. Restrlcted funds Balances 31 Dec 2023 Income (Expendlturel Transfer frotnlliol uftresrricied fund5 Balances 31De¢ 2024 Restoraiion of No,6 Monarch 7,289 292 7,581 Restoration Of No.14 29,333 1.303 30,636 Resioraiion of No. 8 Dougal 2,442 878 12,6061 714 Restoration of No. 2 The Counte55 65,858 65,858 Zillertal carriages maintenance 2,252 (2.252) Carriage improvement fund 38,210 4.221 42.431 Heritage wagon lund 4,269 171 4,440 Overhaul OF No. 7 Chottgnde 88,324 10.809 99.133 Diesel maintenance 5,838 233 6,071 Wickham Trolley 547 547 Viaduct and bridges protection 23.435 937 24,372 Connection5 di5play5 1,308 1,308 2020 appeal 51,223 2.049 53.272 252.615 88.606 14,858) 34 336,363

2 1. Analysts of group net assets by fund Unrestrlcted funds Restritted Total funds 31 Dec2024 Tangible heritage and other fixed assets 1,449,956 1,449,956 Investments 272,796 43,204 316,000 Net current assets 971,954 293.159 1,265,113 Long term liabilities [35,3361 (35,336) 2.659.370 336.363 2,995,733 22. Analysls of changes in net funds At 31 Dec 2023 Cash flows At 31 Dec 2024 Bank and cash balances 177,122 30,380 Z07,502 COIF Deposit account 1,033,844 C113,626) 920,218 1,210,966 (83.246) 1,127.720 23. Net eashllow from operatlng actlvltles 2024 2023 Net income/lexpenditure] per Statemenr oFFinancial Activities (103.680) [90,220) Adjust For non-ca5h items.. Depreciation 185,522 201,884 Net [gain)/loss on investments (12,000) [18.000] Adjust lor working capital changes.. (Increase)/decrease in stocks (11.300) 3.000 (Increase)/decrease in debtors 3.093 71,793 (Decrease)lincrease in creditors [26.153) 41,009 Adjust for dividend5 received.. (shown Separately in Cashflow) [7,799) (7,783] 27,683 201,683 35

  1. Statement of financial aetlvities: Prioryear comparisons by fund type Unrestricted funds Restrltted funds Total 2023 Income from: Voluntary income Legacies and donations 118,564 86,323 204.887 Charitable octivities Railway operation and preserv3tion 445,680 445.680 Membership subscriptions 23.367 23.367 Qther Iroding octsviÈies Commercial trading operations Z42.544 242,544 Investment income 44.406 7,404 51,810 Total income 874,561 93,727 968,288 Expenditure on. Raisin9fvnds Choritllble uctivEties Railway operation and preservation- working 563,062 1,600 564.662 Railway operation and preservation- projects 200,298 32,72S 233,023 Membership and governance expenses 22.375 22.375 Other tradins octivities Commercial trading operation5 256.448 256,448 Total expenditure 1,042,183 34,325 1,076,508 Net gain/(loss) on investtnents 18,000 18,000 Net income/(expendlture) for the year [149,622) 59,402 [90,220) 36

  2. Managenient accounts summary financials by activlty Railway operation and preservation W&L Sales .Retail & catering Appeals & Investment income Membershs pand governance ZOZ4 2023 Income from daily operating 2rtivities 434.302 258.899 58,335 26.787 778,323 763,401 Gift Aid on tares 23,486 23,486 28.615 Donations- earniarked to running cost itetRs 3.750 Grants for running costs.. local engaEemertl /audtence research 12.2 19 12,219 7.847 Daily operating [costs) [584,3741 (260,645) 120,9981 (866,017] [843,48S] Net income.. Daily operations [114,367) [1,746) 58,335 5.789 (51,989) (39,8721 Long terni income Donations, Legacies, Grdnts (excluding items above to ¢ovÈr daily opeTating ¢ostsl 166,000 166,000 164.675 ILDSS)IGains on investments 12,000 12,000 18,000 Long term projert expendlfyre Major proleet lspendl 144,169) (44.169) [31.139) (Depreciation) (185,522) (185.522) [201.8841 Net IDcomel (expenditure) by activlty [344,058] 11.746] 236,335 5.789 [103,680) (90,220) 37