2021-03-31-accounts

ANNUAL REPORT 2020/2021

Report of the Directors & Trustees including Unaudited Accounts for the Financial Year 1[st] April 2020 to 31[st] March 2021 for Staffordshire Narrow Gauge Railway Ltd trading as Amerton Railway

Contents Company Data 2 Governance & Management Arrangements 3 - 4 Review of the Year & Future Planning 5 - 7 Statement of Directors Responsibilities 8 Independent Examiner’s Report 9 Balance Sheet & Profit & Loss Account & 10 - 13 Notes

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Report of the Directors & Trustees for 2020/2021 Financial Year Company Data

Registered Office & Amerton Railway : Stowe-by-Chartley : Staffs : ST18 0LA Operating Base Contact Details www.amertonrailway.co.uk : [e-mail] 01889 271337 Company Registration Registered at Cardiff No. 2147443 Charity Registration Registered in England & Wales No. 1015635 VAT Registration 695 8007 96

Directors & Trustees PM Gully : Chairman & Director Operations SP Bell : Director Engineering PJ Calvert : Director Finance & Safety KJ Douglas : Director IT LE Hodgkinson : Company Secretary & Membership G Martin from 23/9/2020 J Strike : Gazette Editor

Financial Details

	Financial Details
Independent Examiner	K Hays : The Accountsmith : 10a The Fillybrooks : Stone ST15 0DJ
Banker	HSBC : 8 Market Square : Stafford : ST16 2JP
Banker	Stafford Railway Building Society (SRBS) : 4 Market Square : Stafford : ST16 2JH

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Governance & Management

Structure

The Company is limited by guarantee without share capital and was incorporated on 15/7/1987 and became a Registered Charity on 18/12/1992. Its operation is governed by Memorandum and Articles of Association. On winding up Members are required to contribute no more than £1.

Directors & Trustees

The Company is managed by a Board of Directors elected by the Membership which must comprise a minimum of 4 and maximum of 12 members who are Trustees of the Registered Charity. Board Members may be co-opted by the Board but must stand for election at the next AGM and Directors must stand for re-election every 3 years. Stafford Borough Council is entitled under the ‘Isabel Agreement’ to appoint 1 Member of the Board (but has not done so). The Chairman is elected by the Board from amongst the Trustees.

Organisational Structure

This is described in the Safety Management System (SMS) and the Operational Staff Group work under the direction of the Board Members with specific responsibilities for areas of service. All Staff are volunteers and operate unpaid except for Honoraria paid to Staff for operating weekday train services in school holidays. These payments were authorised by the Board to facilitate the operation of these services which make a significant revenue contribution.

Risk Management & Financial Control

The Board agrees an Annual Base Budget for each Financial Year that estimates Income & Expenditure, identifies Project Costs and Reserve Balances. The Board meets monthly to review performance against the Budget, analyse variances and limit future spending if income is significantly under planned or costs significantly over. Different arrangements have applied during 2020/21 due to Covid 19 but effective control has been maintained. Significant Projects will only be approved via a Project Plan in accordance with the SMS Project Management Procedure, to ensure accurate estimation and control of costs.

Charitable Objective

“To promote and further the education of the public in the history of the Narrow Gauge Railway and General Transport Heritage of the UK with special emphasis on the Staffordshire Area”. In planning and managing railway activities the Trustees have regard to how the activities meet the charitable objective.

Principal Activities

• The development and operation of Amerton Railway to provide the public with experience of travelling on a traditional narrow gauge railway and educate visitors about Staffordshire’s narrow gauge railway heritage.

• The preservation and restoration of narrow gauge locomotives and rolling stock with particular regard to those with Staffordshire connections particularly WG Bagnall locomotive Isabel, the Railway’s ‘flagship’ locomotive

• Co-operation with other narrow gauge railway operators and the Heritage Railway Association in general promotion of narrow gauge railways to the public

• The charity’s operating base is the Amerton Railway, a 17 acre site comprising land and buildings owned by the charity at Stowe-by-Chartley near Stafford. The Railway Main Line is 0.8 mile long with the Railway Works, Running & Carriage Sheds and locomotive yard at Amerton Station.

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• The Company owns :

• Steam Locomotive : W G Bagnall “Isabel” jointly owned with Stafford Borough Council. Steam Locomotive : W G Bagnall “No. 1” in un- restored condition

• Diesel Locomotives Baguley-Drewry “A10” Baguley “Golspie” and Hunslet “Gordon” A range of passenger & freight stock and engineering plant

• The charity has custody of

• Kerr Stuart Wren “Lorna Doone” on long term loan from Birmingham Science Museum

• Various privately owned locomotives and stock (Some owned by Trustees : See Notes to the Financial Statements) are located at the Railway. These are subject to Operating Agreements, with the Charity paying maintenance costs but no fees to the owners.

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Review of the 2020/2021 Year

Company Matters

Revision of Memorandum & Articles of Association 2020

The Board were advised that a revision in 2017 had not been properly implemented as it was undertaken by an Ordinary Resolution at AGM not a Special Resolution. All Company Members were sent a Special Resolution to accept revised Memorandum & Articles in November 2020 and 88% responded supporting the Resolution within the 28 day time limit. The new Memorandum & Articles were submitted to Companies House.

2019/20 Annual Report & AGM

The Board decided that it would not be safe or practicable to hold a ‘live’ AGM in the current Covid 19 situation and that a ‘Remote AGM’ would probably not engage many company members effectively. All Members received the Report by post and were invited to agree the Accounts, confirm Directors retiring by rotation and confirm a co-opted Director by Ordinary Resolution which gained 86% support.

Covid 19 Situation 2020 : Finances

The Railway Board suspended the 2020 service from 4[th] April in response to ‘Lockdown’ and later in response to restrictions on non-essential businesses . A ‘Covid 19 Lockdown Budget was agreed by the Board that estimated a minimum spend for 2020/21 of roughly £22 500 (Insurance/Mortage & Loans/Security/Utilities etc) and assumed no income.

The company started the year with Cash Balance of £52 000. Stafford Borough Council Small Business Grants of £19 670 were received during the year and generous donations were made by Members and others whilst only essential expenditure was approved. The Railway maintains a Minimum Reserve £25 000 to cover identified and potential risks and periodic review reports were provided to the Board.

Operations

The Railway was closed from April 2020 due to Covid 19 Restrictions but was able to operate a weekends only service from 2[nd] August to 1[st] November. A Santa Special Service was operated over 7 days in December. To meet Covid Secure requirements all services had coach compartments out of use to meet Social Distancing requirements with reduced capacity and revenue, particularly on Santa Specials. An increase in Steam Crews allowed additional steam services to be run, we had a one day visit from Barclay ‘Jack’ and Lorna Doone operated a ‘30742 Charters’ freight train photo charter.

Conservation : Restoration : Maintenance

The 4 railway based steam locomotives had steam tests and routine maintenance was carried out on locomotives and rolling stock.

Infrastructure

The Ticket Office had an external refurbishment and the Brook was dredged to remove silt. Limited progress was made on the Signal Box locking.

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Communication

The Railway information and discussion group [e-mail] was used for Board Communications and to keep in touch with the volunteer Staff Group during Lockdowns.

Planning for the Future

The Chairman’s 2019 AGM Planning for the Future Objectives were :

Reliability of Service/Reduce Cancellations

• Volunteer Recruitment Day has generated new operational staff trainees

• Training Manuals developed for a number of roles

• New Assessment Process developed and implemented

Significant progress was made against these Objectives

Improving Customer Experience/Promoting the Railway

• The New Chartley Halt and Picnic Area opened at Easter 2019 and saw increased use throughout Summer 2019 : Restoration of Timber trollies for display was completed

• Create Nature Walk from Chartley to Amerton : First Stage of Pond Dredging, improvement of drainage and filing of low areas of ground completed.

• Amerton Station improvements continued and Teddy Bear Days commenced on school; holiday weekdays

• 2020 Timetable was produced in November and given to all Santa Passengers and distributed at Stafford Model RailEx in February

• Isabel & Friends Days : To be delivered in 2020

• Signal Box Commissioning : Deferred to 2020 but worked commenced on locking in February. Lack of second hand components available to purchase has been an issue

• Coach 3 : Commissioning deferred to 2020 due to Land Drainage Works and Locomotive Engineering Priorities

Limited progress made on these objectives due to Covid 19 Restrictions : To be carried forward to 2021/22

Development Projects : 2021 to 2028 : All Subject to Covid 19 Impacts

2021 : Signalling Scheme : Develop, complete and commission : Completion Autumn 2021

2021 Onwards

Heritage Walk : Develop a walk from the Picnic area back to Amerton Station

• Display items in the Picnic Area : Venables Wagons/KS Diana ‘mock up’

• Restore and use ‘Harry Farmers’ Shop building

• Interpretation boards to explain items/exhibits along the walk

• Meets our charitable objective of educating the public

• May be possible to fund in house, but would also be an ideal candidate for HLF Sharing Heritage scheme

• Aim to open Spring 2022

Industrial Railway Development : New line Amerton Station to Stump Junction

• Install turnout into Amerton Station Loop winter 2021/22

• Groundworks and lay railway during 2022 running season

• Apply for planning permission for Stock Storage Building late 2021 and build as soon as practicable

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Golspie Restoration : Full restoration of well known ex Trentham Gardens locomotive

• Assessment & applications for funding

• Aim to secure funding by 2022 and complete in 2024

Amerton Station Development : Subject to successful HLF Funding bid

• Apply for funding after Golspie is completed in 2024, aim to complete by 2028

• Align Chartley building with platform improving station feel and provide covered waiting

• Build a Museum & Improved facilities including public toilets

• Built two story with upper level for volunteer facilities but could also be rented as conference facilities or educational visits

• Cosmetically restore Bagnall No.1 as an exhibit, as a pre-curser to full working restoration

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INDEPENDENT EXMAINER’S REPORT TO THE TRUSTEES FOR THE YEAR ENDED 31[ST] MARCH 2021

I report on the accounts of the company for the year ended 31[st] March 2021 which are set out on pages 10 to 14.

Respective responsibilities of Trustees and Examiner

The Trustees (who are also the directors of the company for the purposes of company law) are responsible for the preparation of the accounts. The trustees consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed.

Having satisfied myself that the charity is not subject to audit under company law and is eligible for independent examination, it is my responsibility to:

• examine the accounts under section 145 of the 2011 Act;

• follow the procedures laid down in the general Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act; and

• state whether particular matters have come to my attention.

Basis of Independent Examiner’s Report

My examination was carried out in accordance with the general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as Trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an Audit and consequently no opinion is given as to whether the accounts present a “true and fair view” and the report is limited to those matters set out in the statement below.

Independent Examiner’s Statement

In connection with my examination, no matter has come to my attention which gives me reasonable cause to believe that, in any material respect, the requirements:

• to keep accounting records in accordance with section 386 of the Companies Act 2006; and

• to prepare accounts which accord with the accounting records, comply with the accounting requirements of section 396 of the Companies Act 2006 and with the methods and principles of the Statement of Recommended Practice: Accounting and Reporting by Charities

have not been met or to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.

:

Karen Hays Independent Examiner 11/08/2021

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BALANCE SHEET 31/3/2021
Total Fixed Assets (7000) 2019/20 2020/21
308 149 298 427
Current Assets
Cash at Bank & In Hand (6100) : Unrestricted 52 222 62 535
Cash at Bank & In Hand (6100) : Restricted : Henschell Fund 30 801 30 885
Stock (6200) 2056 2199
Current Liabilities
Accounts Payable (1301) (-61) 0
VAT Liability (- 444) -267
HSBC Mortgage (8000) : Due in One Year 4788 5405
HSBC Mortgage (8000) : Due in more than One Year 38 399 32 376
Total Mortgage Liability (8000) 43 187 37 781
Members Loans (8100) : Due in One Year 4025 3950
Members Loans (8100) : Due in more than One Year 5950 1850
Total Members Loans Liability (8100) 9975 5800 N1
Total Current Liabilities 52 717 43 315
Net Current Assets 32 421 52 304
Total Assets less Current Liabilities 340 571 350 731
Total Net Assets 340 571 350 731
Funds
Profit 8333 10 160
Total Funds 340 571 350 731
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For the Financial Year 2020/21 the company was entitled to exemption under S477 of the Companies Act 2006 relating to small companies and no member has required the company to obtain an audit of its’ accounts in accordance with Section 476 of the Companies Act 2006. The Directors & Trustees consider than an audit is not required for this year under Section 144(2) of the Charities Act 2011 and that an Independent Examination is sufficient.

This Directors acknowledge their responsibility for complying with the Companies Act 2006 with respect to Accounting Records and Preparation of Accounts and the Accounts have been prepared in accordance with provisions applicable to companies subject to the small companies regime.

It was approved by the Board of Directors and signed on its behalf by:

Peter Calvert Finance Director & Trustee 11/08/2021

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Notes to Balance Sheet

Tangible Fixed Assets & Depreciation : The purchase or gift of Fixed Assets are capitalised and included in the balance sheet. Annual Depreciation rates write off assets over their estimated useful life.

• Freehold Land : Not Depreciated

• Buildings & Workshop : 10% Straight line

• Plant and Machinery etc : 6.75% Straight line

• Bagnall Isabel & Rolling Stock : 5% Straight line

• Civil Works & Permanent Way : 5% Straight line

N1 : Members Loans : A sum of £225 was written off in December 2020 on decease of the Member and his widow asking the Company to keep the outstanding balance sum

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PROFIT & LOSS ACCOUNT 31/03/2021
Income : Passenger Sales (1000) 2019/20 2020/21
General Ticket Sales (1100) 24 936 6947
Santa Specials 26 846 13 523
Goods Sales (1200) 3443 120
Subscriptions (1300) 1386 1429
Interest (1510) 95 96
Land Income (1600) 1046 696
Donations Grants etc (1800) : Donations 1097 2894
Council Covid 19 Grants 19 669
Grant from HNGRT for Signalling Works 2000
Land Covenants (Restricted) (1831) 60 60
Interest Henschell Fund (Restricted) (1920) 85 85
Misc Income 1211 232
Total Income 62 205 45 751
Cost of Goods Sold : Stock (6300) 2490 (-143)
Gross Profit 59 715 45 894
Expenses 2019/20
Operations & Maintenance (2000) 16 207 8233
Infrastructure & Engineering (3000) 3254 1707
Finance & Management (4000) 18 576 14 160
Mortgage Interest Payments (4800) 2716 2097
Total 40 752 26 197
Depreciation (5500) 10 391 9722
Reconciliation Discrepancies (6690) 240 (-185)
Restricted Funds : Henschell Fund (5000) 0 0
Total Expenses 51 382 35 734
Profit 8332 10 160
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Notes to Profit & Loss Account

Income Notes : General

• Income is shown net of VAT.

• Sale of Goods is shown under Income and costs shown in Cost of Goods Sold.

• Grant income is not recognised until any conditions for receipt have been complied with. Grants received for specific purposes set out by the grant provider are treated as Restricted Funds.

Expenses Notes

• The Profit figure is determined by Income less Expenditure but Capital Purchases are not included in the Expenditure figure

Capitalisation

• No Capital Works were undertaken : Total : £0

Expenses Notes : General

• Expenditure is accounted for on an Accruals basis and is classified under category headings.

• Operations & Maintenance : The costs of running the Railway and the purchase and maintenance & restoration of Rolling Stock

• Infrastructure & Engineering : Costs of Building, Permanent Way and Plant purchase and maintenance

• Finance & Management : The Costs of mortgage & loan repayments and the governance, promotion and utility costs of operating the Railway

Mortgage Interest : Land Covenants of £60 are insufficient to cover Mortgage Interest payments of £2097 so £2037 of General Funds have been applied to Mortgage Interest.

Taxation : No corporation tax liability arises in respect of the year since the Company has been accepted as a charity within section 467 Corporation and Income Taxes Act 2010. The exemptions afforded by section 466(2) are available as all income and gains are applied to charitable purposes.

Fund Accounting : Unrestricted Funds can be used in accordance with the charitable objectives at the discretion of the Directors/Trustees to further the objects of the charity. Restricted Funds can only be used for particular restricted purposes within the objects of the charity where restrictions are specified by the donor or when funds are raised for restricted purposes.

Stocks: Stock : Goods for Resale and fuel has been valued the lower of cost and net realisable value.

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General Notes

Accounting convention : The financial statements have been prepared under the historical cost convention and in accordance with the Financial Reporting Standards for Smaller Entities (effective April 2008), the Companies Act 2006 and the requirements of the Accounting and Reporting by Charities; Statement of Recommended Practice (SORP), issued in 2005.

Going concern : The Trustees believe that there are no material uncertainties that may cast significant doubt on the ability of the company to continue as a going concern and therefore the going concern basis remains appropriate in the preparation of the Financial Statements.

Donated Assets & Services : The company has the use of Rolling Stock owned by third parties which are not capitalised in the Balance Sheet and the benefit to the company has not been included in the Profit & Loss Account. Donated services are included in the Profit & Loss Account Intangible Income and an equivalent amount of expenditure.

Trustee Benefits

Payments for Services : Honoraria: Honoraria for operating weekday passenger services were not paid in this year.

Payments for Services : £180 was paid to KJ Douglas as a Website Hosting Fee to cover the costs of providing that service to the Railway at less than a commercial rate.

Restricted Fund

The Henschel Fund holds funds donated under the Charities Aid scheme to restore a Feldbahn locomotive owned by Trustees J Strike & SP Bell and 2 Members. The Railway will have a number of years use of the locomotive free of charge once restored. During the year Expenditure was £0 and Income was £85.00 (Account Interest)

Trustees Rolling Stock Provided to the Railway Free of Charge

Trustee	Locomotive
PM Gully	Hunslet ‘Wren’ Jennie is owned by a connected person and managed at the Railway by PM Gully
L E Hodgkinson	Baguley Diesel Locomotives : Dreadnought & Hesperus Ruston LBT Littleton Diesel Locomotive Fauld Wagon
J Strike	Motorail Diesel Locomotive : Ruston 48DM Diesel Locomotive Henschel “Feldbahn” Locomotive : Jung Diesel Locomotive : Eastriggs Riding Van
K J Douglas	Hibberd Diesel Locomotive
S P Bell	Deutz Diesel Locomotive Henschel“Feldbahn”Locomotive : Jung Diesel Locomotive
The stock owned by J Strike, K J Douglas and S P Bell are jointly owned with other Members of the Company.Stock shown in Itallics is not currently operational

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Members Loans

In 2012 the Company received Members Loans to contribute towards the purchase of the freehold land upon which the railway operates. These loans are interest free and repayable over 10 years with repayments commencing in January 2013. The balances outstanding at 31[st] March 2021 in respect of the Trustees are as follows:

Trustee & Connected Person Loans	2020 £	2021 £
L E & J Hodgkinson	2800	1400
J Strike	1000	500
Total	3800	1900

The Members Loan Balance of £225 for John Moore was written off following his passing away in November 2020 and his widow asking the Company to retain the outstanding sum.

SHARE CAPITAL

The company is Limited by Guarantee and does not have a share capital. The liability of the members is limited to £1 each. .

CONTROLLING PARTY

In the opinion of the Trustees as each Member has one vote there is no Controlling Party and the Company is managed by the Board of Directors as a collective body.

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