## **Welshpool & Llanfair Light Railway Preservation Co. Ltd.** 

## **Annual Report and Accounts 2025** 

## **Contents** 

Notice of Annual General Meeting … _Page_ 3 

Report of the Board of Trustees … _Page_ 4 

Independent Auditor’s report … _Page_ 19 

Consolidated statement of financial activities… _Page_ 23 

Consolidated and charity balance sheets … _Page_ 24 

Consolidated cash flow statement … _Page_ 25 

Notes to the accounts … _Page_ 26 

Minutes of the Annual General Meeting held on 17 May 2025 … _Page_ 42 

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## **Administrative details** 

Registered office The Station Llanfair Caereinion Welshpool Powys SY21 0SF Phone 01938 810441 Web www.wllr.org.uk Accountants Cadwallader & Co LLP Chartered Accountants Eagle House 25 Severn Street Welshpool Powys SY21 7AD 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 

## **Officers and managers** 

Company Secretary Michael Reilly General Manager James Brett Operations and Ken Hughes Infrastructure Manager Engineering Manager James Mander 

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## **NOTICE OF ANNUAL GENERAL MEETING** 

The Annual General Meeting of the Company will be held at the station, Llanfair Caereinion, on Saturday 09 May 2026 at 2.30 p.m. for the purpose of transacting the following business: - 

## **Ordinary Resolutions** 

1. To receive and adopt the consolidated financial statements and the report of the trustees for the year ended 31 December 2025. 

2. To elect directors. The Articles of Association stipulate that one-third of directors shall retire annually. John Forman, Ryk Parkinson, Robert Robinson and Anne Wright retire by rotation. There are four vacancies. Details of those offering themselves for election are given in a separate leaflet sent to members. 

3. To elect a president. Lord Hague has confirmed his willingness to be elected. 

4. To elect vice presidents. Alan Higgins, Tony Thorndike, Sir Philip Williams and Michael Whitehouse have confirmed their willingness 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 General Meeting, may appoint a proxy to attend and vote on a poll in his or her stead. A proxy need not be a member of the company. A form of proxy will be sent to all 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 

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## **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 preservation of railway locomotives and/or rolling stock and/or historic railway lines._ 

The trustees who served during 2025 were: 

||_Number of trustees’ meetings attended_|
|---|---|
||_Actual /Possible_|
|Anne-Marie Wright_Chairman_*|6          6|
|Helen Ashby|6          6|
|Simon Bowden|6          6|
|Andrew Charman|5          6|
|Steve Clews_Vice_ _Chairman_|6          6|
|John Forman|6          6|
|Helen Gauntlett (_from 17 May)_|2          3|
|Peter Green (_until 17 May_)|2          3|
|David Jones (_until 17 May_)|3          3|
|Iain McLean_Vice Chairman_|5          6|
|Bob Mason|6          6|
|Ryk Parkinson|6          6|
|Robert Robinson|6          6|
|Daisy Shennan (_from 17 May)_|3          3|



* _Anne-Marie Wright was elected chairman by trustees following the annual general meeting on 18 May. Steve Clews and Iain McLean were elected vice-chairmen at the same time._ 

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 company’s work in 2025. It meets the requirements for charity accounting prescribed by the Charity Commission. It also meets the Directors’ Report requirements prescribed in company law._ 

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## **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 local 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: 

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- select suitable accounting policies and then apply them consistently; 

- observe the methods and principles in the Charities SORP 2019 (FRS 102); 

- 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 performance 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 (ORR), Rail Accident Investigation Branch and the Heritage Railway Association. 

In accordance with the company’s Articles, one-third of trustees, being those who have been longest in office since being elected, must retire each year. They are then eligible to stand for re-election if they wish. The board is mindful of 

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the Charity Governance code, however, which recommends a maximum tenure of nine years to ensure board renewal, diversity, and effectiveness. While this is only a recommendation, not a requirement, the board has agreed to adopt progressively such a limit on tenure. As a first step, from 2026 no trustee who has served continuously for more than twelve years will be eligible to stand for re-election. 

## **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.  Emergent and changed risks are identified, discussed, and documented at each board meeting. An annual review of all six registers was held during the first quarter of 2025 when it was agreed that environmental risks, due to climate change and the burning of fossil fuels, should be specifically identified and incorporated into the appropriate risk registers. 

The railway management reviews and manages operational risk through a documented risk assessment and mitigation process. The process is managed by the officer responsible for safety with heads of department providing departmental input. These risk assessments continued to be reviewed and updated during 2025 and are key elements in the safety audits. 

## **Health and safety** 

The safety and welfare of visitors, staff and volunteers take precedence over all other activities. During 2025 the railway had one reportable incident involving a signal passed at danger (SPAD). There were a number of 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 and relevant safety improvements instigated, and notices and briefings issued to staff. Incident numbers and details of higher-level incidents were reported to trustees at each board meeting. 

During the year, in response to the external safety audit conducted in February 2025 an action plan, led by the general manager, has seen further improvements to document control, competence management, risk assessments and other progressive measures with the increasing use of the HOPS management system for documentation and competency records storage. 

As part of its general inspections of the management of derailment risks, the Office of Rail and Road (ORR) visited the railway and made two formal actions, relating to the management of structures. These are now being addressed as 

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part of our continuous improvement cycle. Additional advice was provided on a further nine matters for the railway to consider. This inspection helped validate much of the improvement works on our Safety Management Systems over the past few years. 

Preparatory works were initiated alongside discussions with the ORR towards the installation of an automatic barrier level crossing at Dolarddyn Road. A general review of the railway’s level crossings was undertaken and new risk assessments for 17 crossings were produced. 

Updates of the Operating Rule Book and Emergency Response Plans were published and rolled out to staff at the start of the season. 

Staff continue to work with the Heritage Railway Association, our regulator the ORR, other railways, and industry to share changes and best practice and staff attended a variety of safety related training courses throughout the year. The railway continues to invest in new equipment to provide a safe and efficient working environment. 

## **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 fixed 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. 

## **Public 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 2011, the railway principally contributes to _b) the advancement of education…_ and _f) 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; 

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- 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. 

## **Achievements and performance** 

The railway built upon the experience of the past four years to continue rebuilding passenger numbers and revenue, with a consolidation of special events programme and experiences. Trains operated on 174 days, 3 days fewer than in 2024 due to the later timing of the Easter holidays. We continued to encourage online booking to help us in managing capacity and improving the visitor experience, with Llanfair boarding being promoted for catering and first-class services. We continue to promote Gift Aid on fares where possible which allows us to reclaim additional income as a donation. 

The continued challenging economic climate for the tourism sector saw passenger numbers 1,800 down compared to 2024 and 2,400 short of budget, partially due to a shortfall in expected Santa Special event custom during December, and hot weather during the middle of the year which required substitution of diesel power for 14% of advertised steam services due to lineside fire risks. Income per passenger remained strong, however, and grew more than the average ticket price. 

18 afternoon tea trains were delivered by our catering team and most sold out. Premium experiences continued to help fill trains at traditional quieter times and increase our income per visitor. Alongside afternoon tea and evening Fish & Chips specials, more dates were added for the Gin & Whisky tasting train in partnership with a local distillery and a new wine tasting train was launched in partnership with Tanners Wines of Welshpool. Fewer trains were run than in 2024, with more mid-week and low season days having two rather than three timetabled round trips, helping improve efficiency, offset the rise in costs and offering a shorter, more attractive duty for most staff. 

The year saw a consolidated two-day beer and cider festival at Raven Square station and the return of popular family events, which all helped drive traffic to Llanfair Connections. New events launched included Dinosaurs Weekend 

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and Halloween half-term activities. We ran several ‘kids-travel-free’ offers throughout the year, aimed at engaging with families in the local area. All these events helped bring in additional income and new audiences who would not otherwise visit a traditional heritage experience. 

All departments contributed to these successes, often adapting to operational changes at short notice. Timetables for the year were planned around predicted available staff levels, and several new staff started and qualified in a range of roles. Despite this, short notice cover during the peak season remained a challenge and we had to cope with a prolonged period of very hot and dry weather in July and August which saw additional measures put in place due to lineside fire risks. 

Behind the scenes, our staff worked to ensure that safety regimes were maintained, marketing and administration conducted, and rostering managed. Recruitment and training of sufficient staff to support activities across all areas of the organisation remains a priority. 

## **Track, infrastructure and buildings** 

Phase one of the biggest building project undertaken on the railway for many years was completed this year. The external cladding and insulation of the building housing ‘Llanfair Connections’ and the Cloverlands model car museum were replaced and an attractive new glass entrance constructed. This was funded by a Community Ownership Fund grant, the second largest ever awarded to the railway. 

Our infrastructure remains in good shape but, like other railways, we need be aware of the effects of climate change. This means keeping a close eye on culverts and waterways. 

On the track, following a landslip at Hanged Man’s Tree the previous winter, we constructed a gabion wall to provide extra stability. The project took 11 days, 30 gabion baskets and nearly 150 tonnes of stone, which had to be brought to site from Raven Square station and placed in the gabions. At one stage there were three excavators working on site supporting members of the track gang and others who helped with the project. 

We started the year replacing sleepers just west of the Kink and have continued with general maintenance ever since. Some of our timber sleepers have nearly reached the end of their lives and will shortly need replacing. We plan to carry out a detailed inspection of the whole line to determine where we need to start a rolling programme of relay work using composite sleepers. It is anticipated that this will take 10 years. 

## **Steam Locomotives** 

In 2025 the steam locomotive fleet accumulated a total of 5582 miles of which No. 1 _The Earl_ completed 3010 miles and No. 10 _Sir Drefaldwyn_ 2572 miles. Including for test purposes, No. 1 was in steam on 99 days and No. 10 on 76. 

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This was the first year that No. 10 made a significant contribution following its recent overhaul, although it was out of service in May and June for remedial work to its ashpan; an awkward job without lifting the boiler. 

Work on the overhaul of locomotive No. 8 _Dougal_ continued at the Sittingbourne & Kemsley Light Railway. Visiting locomotive Manning Wardle No. 1877 (previously known as _Chevallier_ ) ran a total of 314 miles which included several trips at the gala. 

We ran through the year entirely on Polish coal which was obtained at the same price as in 2024. 

## **Rolling Stock** 

The carriage fleet accumulated a mileage of 26806 in passenger service during 2025, plus 291 miles on engineering trains due to withdrawal of the mess coach.  MÁV carriage 430 returned to service in time for the Santa services having been equipped with a pair of ex-SLR Gibbins patent spring frame bogies, overhauled and suitably modified.  It is also being used to trial the use of composite brake blocks for the first time on the W&L. 

Carriage B43, purchased from the Zillertalbahn, was delivered to Welshpool on 7[th] November.  It awaits work on couplers, brakes and doorways to make it suitable for operation here. 

Carriage B20, which last ran in 2020 and has subsequently been used as a booking office adjacent to the tearoom, was judged to be beyond economic repair and will be disposed of. 

## **Diesel Locomotives** 

Locomotive No. 7 _Chattenden_ completed 592 miles on passenger services, while No. 17 similarly completed 1344 miles.  This relatively high mileage was principally due to the non-availability of steam locos at certain times, although some services were diagrammed for diesel operation in order to offer crew training opportunities, and some substitutions made due to fire risk. Fortunately, the average cost of diesel fuel over the year was less than in 2024. 

## **Education and heritage** 

The railway meets its formal charitable purpose by preserving the heritage and providing learning opportunities for all visitors. Our formal and informal 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 railways. 

Llanfair Connections and the Cloverlands Model Car Museum were open to the public on 109 days throughout the operating season and welcomed 4,544 visitors, an 11.5% increase over 2024. The opening of both facilities continued 

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to be restricted by the lack of volunteer stewards. Our continued aspiration is to be open daily when trains are running. 

The most significant acquisition in 2025 was a high-quality detailed 7mm scale model of the railway, built and donated by Ralph Seymour. In addition, the railway continued to partner with Cloverlands Model Car Museum, which acquired a significant collection of Bugatti models on long-term loan from the family of former Cloverlands trustee Max Tomlinson. 

Major improvements to the facilities started immediately after Gala in September, thanks to a grant from the Community Ownership Fund (COF), which will increase the size of our education space, providing a striking new entrance, new displays and more community facilities. 

Throughout the year we have continued to enhance the oral history collections, with new interviews and transcriptions completed, ensuring that the memories and expertise of early volunteers is captured for posterity. 

From March to September, a temporary exhibition celebrating the 200[th] anniversary of railways was displayed in Llanfair Connections. 

Family events during the year included the Easter Bunny Weekend, Build in Bricks, Teddy Bears’ Picnic, Dinosaur Day, Halloween Spooktacular and the Santa Specials, which were enhanced with children’s activities, trails and quizzes.  The Santa Specials included a special Schools Day which attracted approximately 300 children to the railway. 

## **Environment** 

Our Environment Policy requires us, among other things, to: 

- comply with all relevant environmental regulatory requirements; 

- continually improve and monitor environmental performance; 

- continually improve and reduce environmental impacts; 

- incorporate environmental factors into business decisions, and 

- ensure staff awareness and training. 

Specific examples include the work of the Fence 2 Fence team in cutting back undergrowth, helping both to encourage healthy growth and reduce the fire risk. Following the closure of Ffos-y-Fran coal mine, we have had to source our coal from elsewhere. The alternative supplies are inferior in quality and generate considerably more smoke pollution. This was mitigated by an increase in the number of diesel hauled trains, both in the timetable and through short notice substitutions. We changed our system for waste disposal at our stations, allowing better recycling of the materials collected. 

We continue to seek out other opportunities for environmental improvement. 

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## **Fundraising** 

Donations, grants and legacies during the year totalled over £0.5 million. The year was dominated by managing the Community Ownership Fund (COF) grant. The building restoration part-funded by this grant was completed on time and on budget. The main sources of voluntary income were legacies, donations (mostly from members) and Gift Aid, including Gift Aid claimed on fares. 

## **W&L Sales** 

Thank you to the staff in catering who adjusted to revised opening hours and a refreshed range, and to volunteers in the shops who delivered good sales and healthy gross margins in a difficult economic environment. 

While sales were 17% lower, the bottom line was back into profit. The £34,000 contributed to the parent railway provided a substantial contribution to the cost of running our trains. 

## **Membership and volunteers** 

The railway is fortunate in having the consistent support of its members, many of them of 25 years plus standing. We welcomed 339 new members in 2025 (2024 322), another good year. Total membership at year end was 2,159, a net increase of 26. 71 of our new members are young members. 

With the important objective of continuing to encourage new members to become active volunteers, we reviewed how we offer and run our long-standing annual New Members’ Day. Volunteer numbers held steady during the year but recruiting new volunteers continues to be a challenge and many of our volunteers are now over 70.  Training has continued well in all departments and information systems improved so that volunteers are kept up to date. 

During the year a recognition system was introduced under which volunteers will receive a badge and certificate after 5 years of service.  Awards for special service have also been introduced, with nominations to be made annually by working volunteers. 

## **Staff** 

In 2025 the company employed six full-time and two part-time staff; plus there are around 220 part time volunteer staff contributing about 14 full-time equivalent staff, and a number of seasonal staff in the tearoom. The number of volunteers remained largely stable during 2025 with staff retiring from some roles and new recruits in many areas. Trustees and management are actively engaging with the challenge of recruiting sufficient volunteers to ensure the sustainability of the current operating model in the long-term. 

Development of a comprehensive staff guide continued with an update to the Code of Conduct and a suite of reviewed HR Policies including social media 

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and whistleblowing policies. These were posted on HOPS – the company’s document management system. 

A dedicated safeguarding team continues with David Plume as safeguarding officer and Helen Gauntlett taking over the role of safeguarding trustee from Anne-Marie Wright. 

Ruth Davies finished her three-year contract with us as events apprentice at the end of February 2025. We thank Ruth for all her work across many aspects of the railway including events, social media, administration and permanent way over the past few years. 

The railway welcomed two new full-time members of staff to the team. Kenneth Hughes joined us in February in the new role of Infrastructure and Buildings Manager. Following the retirement of Sarah Perry at the end of 2024, Alina Turrell joined us as Marketing and Administration Officer in April 2025. 

The Trustees are most grateful to the paid full-time and seasonal and volunteer staff for their forbearance, patience, and hard work during another challenging year for the heritage rail sector. 

## **Marketing** 

The Company continued with a range of marketing activities to attract different audiences to the railway. Our traditional print leaflets were distributed throughout mid Wales, 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 and posters along with new roadside signs helped highlight the railway’s events and tearoom to local and passing traffic. 

We ran several targeted online advertising campaigns on a range of social media platforms, particularly aimed to highlight our events and catering experiences to a broader family audience, alongside print media specifically towards the group travel market, which saw a healthy increase in bookings and is now back to pre-2019 levels. 

The railway was represented at a variety of shows and events including the Camping and Caravan Show, 16mm Association show, and stands at local shows in Shrewsbury, Oswestry and Berriew. These events allowed engagement with a range of audiences both as potential visitors, volunteers or members. 

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’ for the fifth year in a row, alongside meeting the standards for membership of the ‘Kids in Museums’ manifesto. 

We continue to take part in a range of joint marketing and discount card schemes as part of the ‘Great Little Trains of Wales’. 

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## **Financial review** 

## **Results and financial position** 

2025 saw railway operation income (Note 3) 8% lower than 2024 as visitor numbers were down due to both lower tourism locally and having to cancel trains on dry days if a diesel was not available. Traffic improved in the autumn and Santa trains were popular, particularly with local schools. With more diesel trains run, coal costs were £6,000 lower. With No. 10 _Sir Drefaldwyn_ fully back in traffic we did not have the £11,000 hire fee for _Zillertal_ . In administration costs (Note 6), IT expenditure was lower after the focus on HOPS and IT resilience in 2024. 

W&L Sales (Note 4) successfully returned its catering activities to profitability. Staff costs were reduced, notably by not opening on non-train days when passing trade is too low to justify it. This has helped reduce food waste, as has reviewing the range of items we offer, with less, lower margin, prepared food. The improved cost control delivered £34,000 profit (plus £26,000 in fees to the preservation company) compared to the £2,000 loss in 2024. Gross margins in both the shops and catering were at a healthy level. Our shops also benefit from the very welcome volunteer effort, which means that their gross profit goes fully to support the railway without incurring any staff costs. 

Membership income at £30,000 is sufficient to cover the £29,000 of related costs (Note 5) which comprise The Llanfair Railway Journal, volunteer support and governance including the audit fee. As our income in 2025 was over £1 million, our accounts must be audited. From 2026 the limit rises to £1.5 million, so we may again only require an independent financial examination. 

Our management accounts summary (Note 25) shows our income and expenditure from each area of daily operations, using a more insightful format than the consolidated statement of financial activities permits; but still totalling the same £195,529 ‘net movement in funds’ for the year. This shows the importance of the contributions from W&L Sales, investment income and net membership surplus to the overall financial health of the company. The gap this year was a bearable £18,000 but the board’s objective is to break even. This is important so that the legacies, donations and capital grants we receive can be fully used to advance the step-change larger projects which enhance and preserve the railway for future generations. 

In 2025, the railway benefitted from £126,000 in donations, including £96,000 for the major overhaul of No. 2 _The Countess_ . Legacies totalling £97,000 came from our much-missed supporters David Barker and John Hurdley, with a further final payment from Roy Laverick’s estate. The record £300,000 from the government’s Community Ownership Fund allowed the reroofing, recladding and refitting of our industrial units to proceed quickly. These buildings have already proved invaluable since they were acquired and we can now make more permanent installations in them to provide office space, storage, workshops, display areas and a convivial meeting space. 

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Fixed assets (Notes 11 and 12) have increased by a net £343,000. In addition to work on No. 2 _The Countess_ in heritage assets, we have delivered the major industrial unit refurbishment (£358,000 so far), the _Glaswagen_ carriage from Austria and refurbished MÁV bogies. In addition, the carriage alarm system, metalworking fluid management, fire alarm improvements and CCTV have been key safety and security improvements while the new counter for Welshpool shop has made staff life easier and gives visitors a better welcome. 

The CCLA investments (Notes 7 and 13) delivered £39,000 in interest and dividends. While the valuation loss of £14,000 (4%) is disappointing, it comes after gains of 4% in 2024 and 6% in 2023. This fund is a long-term investment that provides protection against ‘rainy days’ and so its performance needs to be judged on a long-term basis. 

## **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 _The Countess_ , No. 7 _Chattenden_ , No. 8 _Dougal,_ other diesels, the Wickham trolley, viaduct protection and Llanfair Connections displays are planned to be used in the coming years. The 2020 Appeal and donations for carriage improvements are awaiting approval of suitable projects. Funds for the restoration of locomotives No. 14, No. 6 _Monarch_ and heritage wagons are for longer term projects. 

## **Designated funds** 

Designated funds include £104,000 contractually committed for future capital expenditure, costs to complete rolling stock work already in progress, funds earmarked for displays as our interpretation centre plans evolve and further work on our Llanfair site. 

## **Reserves policy** 

At the year end, the charity faces four months with little income but with expenditure running higher than normal, major work in civil and mechanical engineering and the need to restock both 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 currently planned capital expenditure not already received in the form of a restricted fund, as an appropriate level of seasonal reserve. This is calculated to be £1,080,000. 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 

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for contingencies. This figure is calculated in line with Charity Commission 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 £1,390,000 were required at 31st December 2025; whilst actual investments, cash and working capital available stood at £1,410,000. 

## **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** 

2025 carried on from 2024 in presenting the preservation company with the challenge of attracting sufficient volunteers to maintain the railway and operate the train service. In consequence the timetable saw more dates of two round trips operated rather than three, to make best use of available resources. The use of marketing and online booking encouraged passengers onto these train times and increased our average passenger occupancy per departure. This operating model will be carried over into 2026. 

The current business plan was published in May 2023 and appears to be serving us well. The plan will be updated in 2026. The major strategies that had been signed off have been re-examined through an external advisor. In December 2024 the railway was awarded a substantial grant via the Community Ownership Fund to reroof and improve the space within the three former ‘Colinette’ industrial buildings at Llanfair Station. A complete recladding was completed between September and December 2025, with the internal works to improve office, display, community and engineering space planned for completion during the first half of 2026. 

An external safety audit was completed in November 2025, and the safety management team will add impetus to addressing the audit recommendations along with monitoring our continuous improvement processes. A project has been initiated to install an automatic barrier level crossing at Dolarddyn Road. 

The commercial challenges of 2025 will likely continue throughout 2026 as we face the ongoing economic impact on households’ disposable incomes. We will continue to review and adapt our offering to provide a varied range of 

17 



experiences and respond to market trends. Planning for the 2026 season 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 has been reviewed to focus on those which offer the best return on expenditure and attract our core visitors, including outsourcing the operation of three of the family ‘character’ events to an external company. We will continue to consolidate the range of offerings that were undertaken in 2025, including the selection of on-train catering, as we move to ensure catering activities bring in an overall profit. The lessons learned from the last five years, and considerable visitor and volunteer feedback will be built on as we push towards increased operational income and contributions to the charity. 

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 to progress in 2026 and beyond. The condition of building and significant infrastructure maintenance remains a priority, in particular to improve the resilience of the permanent way against more frequent and prolonged periods of extreme weather. 

There will be a continued 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 fill specific 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 considerably more flexibility of purpose in these difficult financial times. 

## **Anne-Marie Wright** 

Chairman 21 March 2026 

18 



## **Independent Auditor’s report to the Trustees of Welshpool & Llanfair Light Railway Preservation Co. Ltd.** 

## **Opinion** 

We have audited the financial statements of Welshpool & Llanfair Light Railway Preservation Co. Ltd (the 'parent charitable company') and its subsidiary (the 'group') for the year ended 31 December 2025 which comprise the Consolidated Statement of Financial Activities, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Cash Flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). 

In our opinion the financial statements: 

- give a true and fair view of the state of the Group's and of the parent charitable company's affairs as at 31 December 2025 and of the Group's incoming resources and application of resources, including its income and expenditure for the year then ended; 

- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and 

- have been prepared in accordance with the requirements of the Companies Act 2006. 

## **Basis for opinion** 

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. 

## **Conclusions relating to going concern** 

In auditing the financial statements, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's or the parent charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for 

19 



issue. Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report. 

## **Other information** 

The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The Trustees are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. 

We have nothing to report in this regard. 

## **Opinion on other matters prescribed by the Companies Act 2006** 

In our opinion, based on the work undertaken in the course of the audit: 

- the information given in the Trustees' Report, including the Strategic Report for the financial year for which the financial statements are prepared, is consistent with the financial statements. 

- the Trustees' Report and the Strategic Report have been prepared in accordance with applicable legal requirements. 

## **Matters on which we are required to report by exception** 

In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' Report including the Strategic Report. 

We have nothing to report in respect of the following matters in relation to which Companies Act 2006 requires us to report to you if, in our opinion: 

- the parent charitable company has not kept adequate and sufficient accounting records, or returns adequate for our audit have not been received from branches not visited by us; or 

- the parent charitable company financial statements are not in agreement with the accounting records and returns; or 

- certain disclosures of Trustees' remuneration specified by law are not made; or 

- we have not received all the information and explanations we require for our audit. 

20 



## **Responsibilities of trustees** 

As explained more fully in the Trustees' Responsibilities Statement, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. 

In preparing the financial statements, the Trustees are responsible for assessing the Group's and the parent charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the Group or the parent charitable company or to cease operations, or have no realistic alternative but to do so. 

## **Auditors' responsibilities for the audit of the financial statements** 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. 

Irregularities, including fraud, are instances of non compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: 

The audit team obtained an understanding of the legal and regulatory frameworks that are applicable to the Group and determined that the most significant are those that relate to the reporting framework (FRS 102 and the Companies Act 2006), the relevant tax compliance regulations, employment law, Health and Safety Regulations and the EU General Data Protection Regulation (GDPR). 

We understood how the Group is complying with these frameworks by making enquiries of management and those responsible for legal and compliance procedures. We reviewed board minutes to identify any recorded instances of irregularity or non-compliance that might have a material impact on the financial statements. 

We assessed the susceptibility of the Group's financial statements to material misstatement, including how fraud might occur by meeting with key management to understand where they are considered there was susceptibility to fraud. Based on our understanding our procedures involved 

21 



enquiries of management and those charged with governance, manual journal testing, cashbook reviews for large and unusual items and the challenge of significant estimates used in preparing financial statements. 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non compliance.  The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report. 

## **Use of our report** 

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its members, as a body, for our audit work, for this report, or for the opinions we have formed. 

## **John Fletcher BA FCA (Senior Statutory Auditor)** 

for and on behalf of WR Partners Chartered Accountants Statutory Auditors Belmont House Shrewsbury Shropshire SY2 6LG 

9 April 2026 

22 



## **Consolidated statement of financial activities** for the year ended 31 December 2025 

(incorporating the income and expenditure account) 

|||**Unrestricted**|**Restricted**|**Total**|Total|
|---|---|---|---|---|---|
|||**funds**|**funds**|**2025**|2024|
|Income from:|**Note**|**£**|**£**|**£**|£|
|_Voluntary income_||||||
|Donations, legacies, and grants|**_2_**|440,818|108,612|**549,430**|201,705|
|_Charitable activities_||||||
|Railway operation and preservation|**_3_**|398,808|-|**398,808**|434,302|
|Membership subscriptions||29,714|-|**29,714**|26,787|
|_Other trading activities_||||||
|Commercial trading operations|**_4_**|215,546|-|**215,546**|258,899|
|_Investment income_|**_7_**|27,258|12,177|**39,435**|58,335|
|**Total income**||1,112,144|120,789|**1,232,933**|980,028|
|Expenditure on:||||||
|_Charitable activities_||||||
|Railway operation and preservation|**_3_**|565,359||**565,359**|584,374|
|– working||||||
|Railway operation and preservation|**_3_**|208,597|38,989|**247,586**|229,691|
|– projects||||||
|Membership and governance<br>expenses|**_5_**|28,905|**-**|**28,905**|20,998|
|_Other trading activities_||||||
|Commercial trading operations|**_4_**|181,554|-|**181,554**|260,645|
|**Total expenditure**||984,415|38,989|**1,023,404**|1,095,708|
|Net gain/(loss) on investments|**_13_**|(14,000)|_-_|**(14,000)**|12,000|
|**Net income/(expenditure)**||113,729|81,800|**195,529**|(103,680)|
|**for the year**||||||
|Gross transfers between funds|**_20_**|-|-|**-**|-|
|**Net movement in funds for the**||113,729|81,800|**195,529**|(103,680)|
|**year**||||||
|_Reconciliation of funds:_||||||
|Total funds brought forward||2,659,370|336,363|**2,995,733**|3,099,413|
|**Total funds carried**||2,773,099|418,163|**3,191,262**|2,995,733|
|**forward**||||||



_The above results are all derived from continuing activities. All gains and losses recognised in the period are included above. The surplus/(deficit) for the year for Companies Act purposes comprises the net income for the year including the gain on the revaluation of the investments and amounts to £195,529 (2024 £103,680 loss)._ 

23 



## **Consolidated and charity balance sheets** 

as at 31 December 2025 

|as at 31 December 2025||||||
|---|---|---|---|---|---|
|||**Group**||**Charity**||
|**Company Registration**||**2025**|2024|**2025**|2024|
|**No.00646238**||||||
|**Fixed assets**|**Note**|**£**|**£**|**£**|**£**|
|Heritage fixed assets|**_11_**|**753,879**|802,949|**753,879**|802,949|
|Other tangible fixed assets|**_12_**|**1,038,833**|647,007|**1,038,833**|647,007|
|Investments|**_13_**|**302,000**|316,000|**332,000**|346,000|
|||**2,094,712**|1,765,956|**2,124,712**|1,795,956|
|**Current assets**||||||
|Stocks|**_14_**|**255,500**|112,400|**235,000**|87,500|
|Debtors|**_15_**|**169,294**|104,587|**169,294**|120,950|
|COIF deposit account||**555,254**|920,218|**555,254**|920,218|
|Bank accounts and cash|**_16_**|**311,437**|207,502|**303,706**|201,689|
|balances||||||
|||**1,291,485**|1,344,707|**1,263,254**|1,330,357|
|**Creditors:**amounts falling due|within one year|||||
|Trade creditors||**116,751**|44,451|**116,751**|44,451|
|Other creditors including tax and|**_17_**|**5,380**|3,251|**25,491**|3,251|
|social security||||||
|Accruals and deferred income|**_18_**|**39,058**|31,892|**39,058**|31,892|
|||**161,189**|79,594|**181,300**|79,594|
|**Net current assets**||**1,130,296**|1,265,113|**1,081,954**|1,250,763|
|**Creditors:**amounts falling|**_18_**|**33,746**|35,336|**33,746**|35,336|
|due after more than one year||||||
|**Total net assets**||**3,191,262**|2,995,733|**3,172,920**|3,011,383|
|**The funds of the charity:**||||||
|Unrestricted funds||**2,372,099**|2,391,798|**2,353,757**|2,407,448|
|Designated funds||**401,000**|267,572|**401,000**|267,572|
|Total unrestricted funds|**_19_**|**2,773,099**|2,659,370|**2,754,757**|2,675,020|
|Restricted income funds|**_20_**|**418,163**|336,363|**418,163**|336,363|
|**Total funding provided**||**3,191,262**|2,995,733|**3,172,920**|3,011,383|



The entity was entitled to exemption from audit under section 477 of the Companies Act 2006. The members have not required the entity to obtain an audit for the year in question in accordance with section 476 of the Companies Act 2006. However, an audit is required in accordance with section 144 of the Charities Act 2011. The trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements. 

The trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting.  The trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements. 

The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime. 

The financial statements were approved and authorised for issue by the trustees on 21 March 2026 and signed on their behalf. 

**Anne-Marie Wright** (Chair of the Trustees) **Steve Clews** (Vice Chairman) 

24 



## **Consolidated cash flow statement** 

for the year ended 31 December 2025 

||||**2025**||2024|
|---|---|---|---|---|---|
||**Not**|**£**|<br>**£**|**£**|**£**|
||**e**|||||
|**Net cash provided by/(used**|**_23_**||**282,156**||27,683|
|**in) operating activities**||||||
|**Cash flows from investing activities:**||||||
|Dividends from investments|**_23_**||**8,860**|7,799||
|Acquisition of heritage and other|**_11_**|**(552,045)**||(88,728)||
|tangible fixed assets|**_12_**|||||
|Disposal of tangible fixed assets|||**-**||-|
|(Acquisition) / divestment of investment|**_13_**||**-**|(30,000)||
|assets||||||
|**Net cash provided by / (used**|||**(543,185)**||(110,929)|
|**in) investing activities**||||||
|**Cash flow from financing activities:**||||||
|Financing activities in year|||_-_||**-**|
|**Net cash provided by/(used**|||**-**||-|
|**in) financing activities**||||||
|**Change in cash and cash**|**_22_**||**(261,029)**||(83,246)|
|**equivalents in the year**||||||
|Cash and cash equivalents at beginning|**_22_**||1,127,720||1210,966|
|of year||||||
|**Cash and cash equivalents at**|**_22_**||**866,691**||1127,720|
|**end of year**||||||



25 



## **Notes to the accounts** 

## 31 December 2025 

## **1. Accounting policies** 

Welshpool & Llanfair Light Railway Preservation Co Ltd is a limited company domiciled and incorporated in England and Wales. The registered office is at The Station, Llanfair Caereinion, Welshpool, Powys, SY21 0SF. The company is registered as a charity (Number 1000378) 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 FRS102. 

## **(a) Basis of preparation** 

These financial statements have been prepared in accordance with the Statement of Recommended Practice (SORP) of the Charity Commission (revised 2015), Financial Reporting Standard (FRS) 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. 

## **(b) Judgements in applying accounting policies and key sources of estimation uncertainty** 

Estimates 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 company 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. 

## **(c) 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:03037235), on a line by line basis. 

A separate Statement of Financial Activities (SOFA) 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 4(1) of Schedule 1 of the Companies Act 2006 and adapted the Companies Act formats to reflect the special nature of the charity's activities. 

## **(d) Income** 

## _(i) Charitable activities_ 

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. 

## _(ii) 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. 

## _(iii) Donations, legacies, and grants_ 

These are included in income when the charity is legally entitled to the income and the amount can be quantified with reasonable accuracy. 

26 



## _(iv) Intangible income_ 

The group is heavily dependent on members who give their time 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. 

## **(e) 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. 

## _(ii) 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) Pension 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. 

## **(f) Tangible fixed assets and depreciation** 

The railway’s fixed assets are categorised into Heritage and Other. 

Heritage fixed assets are land, buildings, permanent 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 fixed 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 fixed assets; though in the case of heritage fixed 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 normally charged in equal annual instalments over their anticipated useful lives, as follows: 

Permanent way 2% 

Site works 4% 

Buildings 2% - 3% 

Locomotives and rolling stock 5% 

Plant and equipment 10% - 20% 

27 



## **(g) Investments** 

Fixed asset investments 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. 

## **(h) Stocks** 

These are stated at the lower of cost or net realisable value, due allowance being made for obsolete and slow-moving items. Donated items are included at estimated cost. 

## **(i) Cash and cash equivalents** 

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Any bank overdrafts are shown within borrowings in current liabilities. 

## **(j) Financial assets and liabilities** 

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments. 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. 

## **(k) Equity instruments** 

There were no equity instruments issued in the year. 

## **(l) Fund accounting** 

Funds held by the charity are either: 

_Unrestricted funds_ – these are funds which can be used in accordance with the charitable objects at the discretion of the trustees; 

_Designated funds_ – these are unrestricted funds that have been set aside by the trustees for particular purposes; or 

_Restricted funds_ – 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. 

## **(m) Contingent income** 

The charity sometimes benefits from legacies with payment received over several years. When further receipt is uncertain, amounts may be shown as contingent income. 

28 



## **2. Donations, legacies, and grants** 

|**Unrestricted**<br>**Restricted**<br>**2025**<br>2024|**Unrestricted**<br>**Restricted**<br>**2025**<br>2024|**Unrestricted**<br>**Restricted**<br>**2025**<br>2024|**Unrestricted**<br>**Restricted**<br>**2025**<br>2024|**Unrestricted**<br>**Restricted**<br>**2025**<br>2024|**Unrestricted**<br>**Restricted**<br>**2025**<br>2024|
|---|---|---|---|---|---|
|**£**<br>**£**<br>**£**<br>**£**||||||
|Gift aided donations<br>9,626<br>89,221<br>**98,847**<br>92,165||||||
|Other donations<br>7,831<br>19,391<br>**27,222**<br>15,016||||||
|Legacies<br>97,085<br>-<br>**97,085**<br>58,819||||||
|Gift Aid on fares<br>24,513<br>-<br>**24,513**<br>23,486||||||
|Grants – Community<br>Ownership Fund<br>300,000<br>-<br>**300,000**<br>-||||||
|Grants – Other<br>1,763<br>-<br>**1,763**<br>12,219||||||
|||||||
|||||||
|Total 2025<br>440,818<br>108,612<br>**549,430**<br>201,705||||||
|Total 2024<br>123,603<br>78,102<br>201,705||||||



29 



## **3. Railway operation and preservation** 

||||**2025**||2024||
|---|---|---|---|---|---|---|
|**Turnover**|**Note**|**£**||**£**|£|£|
|Fares||||**386,217**||427,087|
|Keyse Cottage receipts||**5,379**|||3,843||
|Solar panels and EV||**3,432**|||1,605||
|charging income|||||||
|Sale of surplus materials and||**3,780**|||1,767||
|parking|||||||
|Other operating income||||**12,591**||7,215|
|Income from railway operation||||**398,808**||434,302|
|and preservation|||||||
|**Working expenses**|||||||
|Fuel||**45,161**|||51,468||
|Repairs and maintenance:|||||||
|Mechanical engineering||**52,083**|||45,080||
|Civil engineering||**30,152**|||43,783||
|Costs for special trains & events||**34,657**|||37,734||
|Loco hire fees||**-**|||11,346||
|Keyse Cottage running expenses||**3,080**|||2,219||
|Administration and|**_6_**|**400,226**|||392,744||
|management costs|||||||
|Total working expenses of railway operation<br>and preservation||||**565,359**||584,374|
|**Major project expenditure**|||||||
|Mechanical engineering||**-**|||-||
|Civil engineering||**38,297**|||44,169||
|Depreciation|**_11_**|**209,289**|||185,522||
||**_12_**||||||
|(Gain)/loss on disposal||**-**|||-||
|Total major project spend on railway<br>and preservation|operation|||**247,586**||229,691|
|**Net cost of railway operation and**<br>**preservation**||||**414,137**||379,763|



30 



## **4. Subsidiary's trading activities** 

|**Note**<br>Income – Shops<br>Income – Catering<br>Income – Consultancy<br>Total trading income<br>Less: Shops cost of sales<br>Gross margin - shops<br>Less: Catering cost of sales<br>Less: Catering staff costs<br>**_Note 6_**<br>Net margin after staff -<br>catering<br>Less: Other administration and<br>management costs<br>**_Note 6_**<br>Total trading expenditure|**2025**<br>**£**<br>**£**<br>**58,070**<br>**157,476**<br>**-**|2024<br>£<br>£<br>68,800<br>190,099<br>-<br>258,899<br>35,812<br>_47.9%_<br>90,944<br>109,859<br>_(5.6)%_<br>24,030<br>260,645|
|---|---|---|
||**215,546**<br>**29,701**<br>_48.9%_<br>**65,456**<br>**60,842**<br>_19.8%_<br>**25,555**<br>**181,554**||
|Net (loss)/profit for the year<br>**33,992**<br>**Subsidiary’s balance sheet at year-end**<br>**2025**<br>Current assets -other<br>**28,231**<br>Current (liabilities) – other<br>**-**<br>Current assets / (liabilities) – inter-company<br>balance with parent company<br>**20,111**||(1,746)<br>2024<br>30,713<br>-<br>(16,363)|
|**Net assets**<br>**48,342**<br>_W&L Sales Limited is a 100% owned subsidiary, with £30,000 share capital._||14,350<br>|



## **5. Membership and governance expenses** 

|||**£**|£|
|---|---|---|---|
||**_Note_**|**2025**|2024|
|The Llanfair Railway Journal||**13,396**|11,904|
|Administration and management|**_6_**|**15,509**|9,094|
|costs||||
|||**28,905**|20,998|



31 



## **6. Administration and management costs** 

||**Railway**|**Commercial**|**Membership**|**Total 2025**|Total 2024|
|---|---|---|---|---|---|
||**operation &**|**trading W&L**|**and**|||
||**preservation**|**Sales Ltd**|**governance**|||
||**£**|**£**|**£**|**£**|**£**|
|**Establishment**||||||
|Rent, rates, water and|47,738|-|-|**47,738**|40,385|
|insurance||||||
|Electricity and heating|43,923|-|-|**43,923**|39,807|
|Equipment rental and|4,394|-|-|**4,394**|7,753|
|maintenance||||||
|Cleaning and hygiene|13,019|-|-|**13,019**|13,562|
|supplies||||||
|Rent charged to trading|(21,555)|21,555|-|**-**|-|
||87,519|21,555|-|**109,074**|101,507|
|**Selling**||||||
|Advertising and publicity|30,539|-|-|**30,539**|32,648|
|**Administrative**||||||
|Staff costs**_(Note 9)_**|204,232|60,842|-|**265,074**|309,687|
|Travelling|4,035|-|-|**4,035**|1,879|
|External training|7,274|-|-|**7,274**|4,647|
|Telephone and radio|7,555|-|-|**7,555**|4,599|
|Postage, stationery, and|8,171|-|-|**8,171**|20,699|
|IT costs||||||
|Independent audit/|-|-|7,500|**7,500**|1,500|
|examination fees||||||
|Accountancy fees|20,091|-|-|**20,091**|19,345|
|General expenses|12,655|-|8,009|**20,664**|16,429|
|Admin recharge to trading|(4,000)|4,000||**-**|-|
||260,013|64,842|15,509|**340,364**|378,785|
|**Financial**||||||
|Bank charges and booking|22,155|-|-|**22,155**|22,787|
|processing costs||||||
|**2025 Total**|**400,226**|**86,397**|**15,509**|**502,132**|535,727|
|2024|392,744|133,889|9,094|535,727||



32 



## **7. Investment income** 

|**7. Investment income**|||
|---|---|---|
||**2025**|2024|
||**£**|£|
|CCLA Charity Investment Funds:|||
|– Investment fund dividends|**8,860**|7,799|
|CCLA Deposit Fund – Interest|**30,575**|50,174|
|Interest on tax|**-**|362|
||**39,435**|58,335|
|Of which: restricted|**12,177**|10,504|
|unrestricted|**27,258**|47,831|



## **8. Taxation** 

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

## **9. Information regarding trustees/directors and employees** 

||**2025**|2024||
|---|---|---|---|
||**£**|£||
|_(a) Staff costs during the period_||||
|_were:_||||
|Wages and salaries|**238,153**||284,017|
|Social security costs|**16,011**||14,136|
|Other pension costs|**10,910**||11,534|
||**265,074**||309,687|



No member of staff received emoluments in excess of £60,000 (2024: Nil). Key management received emoluments of £48,600 (2024 £47,500). In addition to its paid staff, the charity benefits from the substantial efforts of over 220 working volunteers. 

|_(b) Average number of persons_|||
|---|---|---|
|_employed_|**Number 2025**|Number 2024|
|Charity (full time equivalent)|**6**|6|
|Subsidiary (full time equivalent)|**3**|5|
||**9**|11|



The group employed 11 (2024 26) different employees during the year. 

_(c) Trustees_ 

As a charity, the company is precluded from providing any emoluments for its trustees/directors and the Articles of Association of the subsidiary contain a similar provision. Trustees received £1,993 as reimbursement of travel expenses (2024: £217). 

33 



## **10. Related party transactions** 

The railway spent £5,690 with Confidence2Care, a company run by relatives of the chairman, for FirstAid support at events. There were no other related party transactions in the year. James Brett, General Manager, is a director of Great Little Trains of Wales Ltd. Of the trustees, Steve Clews is a director of Oswestry and Borderlands Tourism Ltd, Shropshire Union Canal Society, Montgomery Waterways Restoration Trust, 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. During the year the trustees donated £6,683 in total to the Charity (2024: £3,348). 

## **11. Heritage fixed assets: group and charity** 

|**Cost**<br>At 31 December 2024<br>Additions<br>(Disposals)|**Freehold land,**<br>**site works,**<br>**buildings, and**<br>**permanent**<br>**way**<br>**Locomotives**<br>**and rolling**<br>**stock**<br>**Other**<br>**plant and**<br>**equipment**<br>**Total**<br>**£**<br>**£**<br>**£**<br>**£**|
|---|---|
||596,266<br>1,506,263<br>12,507<br>2,115,036<br>-<br>31,989<br>-<br>31,989<br>-<br>-<br>-<br>-|
|At 31 December 2025<br>**Depreciation**<br>At 31 December 2024<br>Charges for the<br>period<br>(Disposals)|596,266<br>1,538,252<br>12,507<br>2,147,025|
||453,124<br>846,456<br>12,507<br>1,312,087<br>13,661<br>67,398<br>-<br>81,059<br>-<br>-<br>-<br>-|
|At 31 December 2025<br>**Net book**<br>**amount**<br>**31 December 2025**<br>31 December 2024|466,785<br>913,854<br>12,507<br>1,393,146<br>**129,481**<br>**624,398**<br>**NIL**<br>**753,879**<br>143,142<br>659,807<br>NIL<br>802,949|



There was £7000 of capital expenditure contracted for at the period end (2024: Nil). 

## **Five-year summary of heritage fixed asset transactions :** 

|**Year**|**Purchases**|**Major items**|
|---|---|---|
||**£**||
|2021|144,619|No. 10_Sir Drefaldwyn_|
|||No. 1_The Earl_|
|2022|77,342|_No. 10 Sir Drefaldwyn_|
|||_Sierra Leone carriage_|
|||_1066_|
|2023|101,878|_Bowater wagons 610 and 631_|
|||_Sierra Leone carriage_|
|||_1066_|
|2024|4,284|_No. 10 Sir Drefaldwyn_|
|||_No. 8 Dougal_|
|2025|31,989|_No. 2 The Countess_|



34 



## **12. Other tangible fixed assets: group and charity** 

|**12. Other tangible fixed assets: group and charity**|**12. Other tangible fixed assets: group and charity**|
|---|---|
|**Freehold land, site works,**<br>**buildings & permanent way**<br>**Locomotives**<br>**& rolling stock**<br>**Other plant &**<br>**equipment**<br>**Total**<br>**Cost**<br>**£**<br>**£**<br>**£**<br>**£**<br>At 31 December 2024<br>883,334<br>479,289<br>429,243<br>1,791,866<br>Additions<br>393,644<br>104,449<br>21,963<br>520,056<br>(Disposals)<br>-<br>-<br>(15,239)<br>(15,239)||
||883,334<br>479,289<br>429,243<br>1,791,866<br>393,644<br>104,449<br>21,963<br>520,056<br>-<br>-<br>(15,239)<br>(15,239)|
|At 31 December 2025<br>**Depreciation**<br>At 31 December 2024<br>Charge for the period<br>(Disposals)|**1,276,978**<br>**583,738**<br>**435,967**<br>**2,296,683**|
||515,187<br>316,917<br>312,755<br>1,144,859<br>29,198<br>39,872<br>59,160<br>128,230<br>-<br>-<br>(15,239)<br>(15,239)|
|At 31 December 2025<br>**Net book amount**<br>**31 December 2025**<br>31 December 2024|**544,385**<br>**356,789**<br>**356,676**<br>**1,257,850**<br> <br>**732,593**<br>**226,949**<br>**79,291**<br>**1,038,833**<br>368,147<br>162,372<br>116,488<br>647,007|



There was £97,000 of capital expenditure contracted for at the period end (2024: £212,000). 

## **13. Investments** 

|**13. Investments**|||||||
|---|---|---|---|---|---|---|
|**COIF charity funds**|||**Group**||**Charity**||
||**Number**|**2025**||2024|**2025**|2024|
|**Investment Fund shares**||**£**||£|**£**|£|
|At 1 January|15,618|**316,000**||274,000|**316,000**|274,000|
|at market value|||||||
|Purchases|-|-||30,000|**-**|30,000|
|Gain/(loss) on investment||**(14,000)**||12,000|**(14,000)**|12,000|
|from change in value|||||||
|At 31 December|15,618|**302,000**||316,000|**302,000**|316,000|
|at market value|||||||
|**Shares in subsidiary**|||||||
|At 31 Decemberat cost|30,000||||**30,000**|30,000|
|||**302,000**||316,000|**332,000**|346,000|
|Historic cost|||||||
|at 31 December||**177,000**||177,000|**207,000**|207,000|



The investment in the subsidiary represents the whole of the issued share capital, comprising ordinary shares, of W&L Sales Ltd (company number 03037235). W&L Sales Ltd carries on the commercial trading activities of the group through shops and refreshment facilities at stations and away from the line and donates its entire net profit to the parent company by Gift Aid. The total of its capital and reserves is £48,342 (2024: £14,350). Further details on W&L Sales Ltd are shown in Note 4. 

35 



## **14. Stocks** 

|**14. Stocks**|||||
|---|---|---|---|---|
||**Group**|||**Charity**|
||**2025**|2024|**2025**|2024|
||**£**|£|**£**|£|
|Stores|**235,000**|87,500|**235,000**|<br>87,500|
|Goods for resale|**20,500**|24,900|**-**|<br>-|
||**255,500**|112,400|**235,000**|<br>87,500|



## **15. Debtors** 

||**Group**|**Group**|**Charity**|**Charity**|
|---|---|---|---|---|
||**2025**|2024|**2025**|2024|
||**£**|£|**£**|£|
|Trade debtors|**19,533**|19,785|**19,533**|19,785|
|Prepayments and|**61,166**|32,300|**61,166**|32,300|
|accrued income|||||
|VAT|**46,692**|11,298|**46,692**|11,298|
|Gift Aid recoverable|**41,903**|41,204|**41,903**|41,204|
|Amount due from|**-**|-|**-**|16,363|
|subsidiary company|||||
||**169,294**|104,587|**169,294**|120,950|



## **16. Bank overdraft** 

The group has overdraft facilities of £Nil (2024 - £Nil). 

## **17. Other creditors including tax and social security** 

||**Group**||**Charity**||
|---|---|---|---|---|
||**2025**|2024|**2025**|2024|
||**£**|£|**£**|£|
|PAYE|**5,380**|3,251|**5,380**|3,251|
|Amount due to subsidiary|||**20,111**|-|
|company|||||
||**5,380**|3,251|**25,491**|3,251|



36 



## **18. Accruals and deferred income** 

||**Group**|**Group**|**Charity**||
|---|---|---|---|---|
||**2025**|2024|**2025**|2024|
||**£**|£|**£**|£|
|Subscriptions in|**56,804**|55,428|**56,804**|55,428|
|advance|||||
|Less: falling due after|**(33,746)**|(35,336)|**(33,746)**|(35,336)|
|more than one year|||||
||**23,058**|20,092|**23,058**|20,092|
|Accruals and deferred|**16,000**|11,800|**16,000**|11,800|
|income|||||
||**39,058**|31,892|**39,058**|31,892|



## **19. Unrestricted funds** 

||Balances|**Income**|**(Expenditure)**|**Transfers/**|**Balances**|
|---|---|---|---|---|---|
||31 Dec|||**revaluation**|**31 Dec**|
||2024||||**2025**|
||**£**|**£**|**£**|**£**|**£**|
|_Free Reserves_|941,842|**767,960**|**(984,415)**|**(146,000)**|**579,387**|
|_Reserves used by Net_|1,449,956|**342,756**|**-**||**1,792,712**|
|_Fixed Assets_||||||
|_General funds_|2,391,798|**1,110,716**|**(984,415)**|**(146,000)**|**2,372,099**|
|_137_||||||
|Museum/Interpretation|55,572|1,428|-|-|57,000|
|Centre||||||
|Capital projects|212,000|-|-|132,000|344,000|
|planned||||||
|Designated funds|267,572|**1,428**|**-**|**132,000**|**401,000**|
|Total unrestricted funds|2,659,370|**1,112,144**|**(984,415)**|**(14,000)**|**2,773,099**|



_Many donations and legacies fund the purchase of fixed assets, which are then depreciated over future years. At 31 December 2025, £1,539,611 (2024: £1,223,721) of general funds represents reserves that will match future depreciation of the assets bought with those donations and legacies. Other fixed assets were purchased using internal resources._ 

37 



## **20. Restricted funds** 

||Balances|**Income**|**(Expenditure)**|**Transfer**|**Balances**|
|---|---|---|---|---|---|
||31 Dec|||from/(to)|**31 Dec**|
||2024|||unrestricted|**2025**|
|||||funds||
||£|**£**|**£**|**£**|**£**|
|Restoration of|7,581|227|-|-|**7,808**|
|No.6_Monarch_||||||
|Restoration of No.14|30,636|919|-|-|**31,555**|
|Restoration of  No. 8|714|884|(87)|-|**1,511**|
|_Dougal_||||||
|Restoration of No. 2_The_|65,858|100,211|(31,902)|-|**134,167**|
|_Countess_||||||
|Carriage improvement|42,431|10,590|(7,000)|-|**46,021**|
|fund||||||
|Heritage wagon fund|4,440|2,193|-|_-_|**6,633**|
|Overhaul of  No. 7|99,133|3,199|-||**102,332**|
|_Chattenden_||||||
|Diesel maintenance|6,071|182|-|-|**6,253**|
|Wickham Trolley|547|16|-|-|**563**|
|Viaduct and bridges|24,372|731|-|-|**25,103**|
|protection||||||
|Connections displays|1,308|39|-|-|**1,347**|
|2020 appeal|53,272|1,598|-|-|**54,870**|
||336,363|120,789|(38,989)|-|**418,163**|



## **21. Analysis of group net assets by fund** 

||**Unrestricted**|**Restricted**|**Total**|
|---|---|---|---|
||**funds**|**funds**|**31 Dec 2025**|
||**£**|**£**|**£**|
|Tangible heritage and other fixed|1,792,712|-|**1,792,712**|
|assets||||
|Investments|256,004|45,996|**302,000**|
|Net current assets|758,129|372,167|**1,130,296**|
|Long term liabilities|(33,746)|-|**(33,746)**|
||2,773,099|418,163|**3,191,262**|



38 



## **22. Analysis of changes in net funds** 

||At|Cash flows|**At**|
|---|---|---|---|
||31 Dec||**31 Dec**|
||2024||**2025**|
||**£**|**£**|**£**|
|Bank and cash balances|207,502|103,935|**311,437**|
|COIF Deposit account|920,218|(364,964)|**555,254**|
||1,127,720|**(261,029)**|**866,691**|



## **23. Net cashflow from operating activities** 

||**2025**|2024|
|---|---|---|
||**£**|**£**|
|Net income/(expenditure) per|**195,529**|(103,680)|
|Statement of Financial Activities|||
|Adjust for non-cash items:|||
|Depreciation|**209,289**|185,522|
|Net (gain)/loss on investments|**14,000**|(12,000)|
|Adjust for working capital changes:|||
|(Increase)/decrease in stocks|**(143,100)**|(11,300)|
|(Increase)/decrease in debtors|**(64,707)**|3,093|
|(Decrease)/increase in creditors||(26,153)|
||**80,005**||
|Adjust for dividends received:|**(8,860)**|(7,799)|
|(shown separately in Cashflow)|||
||**282,156**|27,683|



39 



## **24. Statement of financial activities:** 

Prior year comparisons by fund type 

||Unrestricted|Restricted|Total 2024|
|---|---|---|---|
||funds|funds||
||£|£|£|
|**Income from:**||||
|_Voluntary income_||||
|Legacies and donations|123,603|78,102|201,705|
|_Charitable activities_||||
|Railway operation and preservation|434,302|-|434,302|
|Membership subscriptions|26,787|-|26,787|
|_Other trading activities_||||
|Commercial trading operations|258,899|-|258,899|
|_Investment income_|47,831|10,504|58,335|
|**Total income**|891,422|88,606|980,028|
|**Expenditure on:**||||
|_Raising funds_|-|-|-|
|_Charitable activities_||||
|Railway operation and preservation –|582,122|2,252|584,374|
|working||||
|Railway operation and preservation –|227,085|2,606|229,691|
|projects||||
|Membership and governance expenses|20,998|-|20,998|
|_Other trading activities_||||
|Commercial trading operations|260,645|-|260,645|
|**Total expenditure**|1,090,850|4,858|1,095,708|
|Net gain/(loss) on investments|12,000|_-_|12,000|
|**Net income/(expenditure) for the**|(187,428)|83,748|(103,680)|
|**year**||||



40 



## **25. Management accounts summary financials by activity** 

||**Railway**|**W&L**|**Appeals &**|**Membership**|**2025**|2024|
|---|---|---|---|---|---|---|
||**operation**|**Sales**|**investment**|**and**|||
||**and**|**-Retail &**|**income**|**governance**|||
||**preservatio**|**catering**|||||
||**n**||||||
||**£**|**£**|**£**|**£**|**£**|**£**|
|Income from daily|398,808|215,546|39,435|29,714|**683,503**|778,323|
|operating activities|||||||
|Gift Aid on fares|24,513|-|-|-|**24,513**|23,486|
|Donations –|-|-|-|-|**-**|-|
|earmarked to running|||||||
|cost items|||||||
|Grants  - for running|50,000|-|-|-|**50,000**|12,219|
|costs: local|||||||
|engagement|||||||
|/audience research|||||||
|Daily operating (costs)|(565,359)|(181,554)|-|(28,905)|**(775,818)**|(866,017)|
|**Net income: Daily**|(92,038)|33,992|39,435|809|**(17,802)**|(51,989)|
|**operations**|||||||
|**_Long term income_**|||||||
|Donations, Legacies, Grants|(excluding||474,917||**474,917**|166,000|
|items above to cover daily operating costs)|||||||
|(Loss)/Gains on investments|||(14,000)||**(14,000)**|12,000|
|**_Long term project expenditure_**|||||||
|Major project (spend)|(38,297)|-||-|**(38,297)**|(44,169)|
|(Depreciation)|(209,289)|-||-|**(209,289)**|(185,522)|
|**Net income/**|(339,624)|33,992|500,352|809|**195,529**|(103,680)|
|**(expenditure) by**|||||||
|**activity on**|||||||
|**Consolidated**|||||||
|**Statement of Financial**|||||||
|**Activities**|||||||



41 



## **WELSHPOOL & LLANFAIR LIGHT RAILWAY PRESERVATION CO LTD** 

**Sixty sixth Annual General Meeting held at 3.30pm on Saturday 17 May 2025 at the Station, Llanfair Caereinion, Powys** 

## **Present:** 

Alan Higgins (Vice President)            Tony Thorndike (Vice President) 

Steve Clews (Chairman)                   Iain McLean (Vice Chairman) Helen Ashby                                    Bob Mason Simon Bowden                                Ryk Parkinson Andrew Charman                            Robert Robinson John Forman                                  Anne-Marie Wright Peter Green                                     James Brett (General Manager) 

Michael Reilly (Company Secretary) 

and 47 other members, including 14 by video-link. 

Alan Higgins chaired the meeting 

## **Apologies for Absence** 

Apologies were received from the Earl of Powis (President), Sir Philip Williams (Vice President), Michael Whitehouse (Vice President), David Jones, Brian Cattell, Geoff, Simon and Dave Gauntlett, Graham Hall, Dick Johnson, Mervyn Pritchard, Richard Thomas and Tom and Patricia White. 

## **1.  Minutes of the Annual General Meeting on 18 May 2024** 

The minutes of the previous AGM were agreed as a true record. Steve Davidson asked that in future consistent terminology be used throughout the report, rather than referring to trustees and directors interchangeably. He also asked the meaning of SORP. Bob Mason explained this stood for Statement of Recommended Practice. 

## **2.  Consolidated Financial Statements and Report of the Trustees for the year ended 31 December 2024** 

Steve Clews highlighted the main points of the annual report. 

2024 had continued to present the challenge of attracting sufficient volunteers, which resulted in only a small increase in number of operating days. We built upon the experience of the previous three years to continue to rebuild revenue with a consolidation of special events programme and experiences. Trains operated on 177 days; an increase of 8 days compared to 2023, but with a reduction in number of trains operated giving a further increase in efficiency.  Passenger numbers were 4% down on 2023 and budget mostly due to reduced numbers on Santa trains. Traffic income was also 4% down on 2023, a reduction of £16,000 and £41,000 below budget. 

We had a successful year of special events culminating in a successful Gala, albeit marred by two incidents, one a serious derailment. The tearoom offerings were reduced somewhat from 2023 as unfortunately, tea room losses continued to offset the excellent shop profits. The use of the mobile catering unit was not a success. W & L Sales ended the year with a small loss. No. 699.01 ‘Sir Drefaldwyn’ entered full time traffic after receiving its final 

42 



painting alongside No.1. ZB2 failed with boiler stay issues at mid-year and was returned to Austria in October. DL-34 on loan from the Alishan Forestry Railway was ceremonially launched in May. 

Operations and Infrastructure Manager Kevin Heywood left in September and Administrative Assistant Sarah Perry retired from the company at the end of the year. He then paid thanks to all who had contributed behind the scenes to the successful running of the railway in 2024, in whatever capacity. 

Alan Higgins then invited Bob Mason to outline the main features of the Consolidated Financial Statements. He said that the two headlines from them were that income in 2024 had been slightly down on budget due to poor ‘Santa Special’ figures and the drastic action that had been taken to bring catering costs down. There was an overall deficit in 2024 of £52,000, largely due to further losses on catering, but this had been more than offset by interest income on our investments held with the CCLA. He then briefed members on significant capital expenditure that would be required in the coming months, including for new rails, sleepers and railflats. 

In subsequent questions Philip Crook and Paul Atkins queried the treatment of W&L Sales losses, arguing that these should not have been included in the preservation company’s accounts. Bob Mason explained that the accounts were consolidated in line with Charity Commission recommended practice. Following complaints that some figures were missing from the published accounts, both he and the company secretary undertook to post the correct version on the website. After Bob Mason had replied to further questions on points of detail, Alan Higgins moved to adopt the report. This was proposed by Tony Thorndike, seconded by Richard Wiltshire and carried with no objections. 

## **3.  Election of Trustees** 

Steve Clews, Peter Green, David Jones and Bob Mason were retiring from the board by rotation. Peter Green was not standing for re-election. There were four other candidates standing: Helen Gauntlett, Jack Gregory, Rowan Joachim and Daisy Shennan, making a total of seven candidates for four places. In the subsequent ballot, Steve Clews, Helen Gauntlett, Bob Mason and Daisy Shennan received the most votes and as all four received more votes in favour than against they were duly elected to the board. 

## **4.  Election of President** 

Alan Higgins proposed that the Earl of Powis be elected President, which was seconded by Richard Green and passed unanimously. 

## **5.  Election of Vice Presidents** 

_Alan Higgins passed the chair to Steve Clews_ 

The following nominations were made: Alan Higgins, Tony Thorndike, Sir Philip Williams and Michael Whitehouse. With the consent of the meeting, the nominations were put collectively and agreed unanimously, Aaron Jones proposing and Eileen Niblock seconding. 

## _Alan Higgins resumed the chair_ 

With the agreement of the chairman, Richard Green then asked if the board was aware of the Charity Commission’s governance code, which called for a rigorous assessment to be made to justify trustees remaining on the board for more than nine years, and for an explanation to be given in the annual report where this was the case. The company secretary confirmed that the board was aware and made regular efforts to bring in new trustees. But it was not easy. This was the first year since he had been company secretary that we had had a contested election. He apologised for failing to include an explanatory note in the annual report and undertook to do so in future. 

Steve Davidson then stood to give thanks to David Jones for his long service on the board, noting that his departure from it would break the long link we had had with local authorities. He proposed that the chairman of the company write to Mr Jones to thank him for his service. Steve Clews agreed to do so. There being no further business, Alan Higgins 

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thanked all those responsible for organising the meeting and all who attended or joined by video-link. 

The meeting closed at 5.10pm. 

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