ANNUAL REPORT 2022/2023
Report of the Directors & Trustees including Unaudited Accounts for the Financial Year 1[st] April 2022 to 31[st] March 2023 for Staffordshire Narrow Gauge Railway Ltd trading as Amerton Railway
Contents Company Data 2 Governance & Management Arrangements 3 Review of the Year & Future Planning 4 - 5 Statement of Directors Responsibilities 6 Independent Examiner’s Report 6 Balance Sheet & Profit & Loss Account & 7-10 Notes
Page 1 of 10
Report of the Directors & Trustees for 2022/2023 Financial Year
| **Company Data ** | |||
|---|---|---|---|
| Registered Office & Operating Base |
Amerton Railway : Stowe-by-Chartley : Staffs : ST18 0LA | ||
| Contact Details | www.amertonrailway.co.uk : enquiries@amertonrailway.couk 01889271337 |
||
| Company Registration | Registered at Cardiff No. 2147443 | ||
| Charity Registration | Registered in England & Wales No. 1015635 | ||
| VAT Registration | 695 8007 96 | ||
| Directors & Trustees 2022/23 | |||
| PMGully:Chairman&DirectorOperations | |||
| SP Bell : Director Engineering | |||
| PJ Calvert: Director Finance & Safety | |||
| KJDouglas: Director IT | |||
| LE Hodgkinson :Company Secretary &Membership | |||
| GMartin : Roster Manager | |||
| J Strike:GazetteEditor | |||
| T Eivers: Director Events:From 16/1/2023 | |||
| Independent Examiner | |||
| K Hays: TheAccountsmith : 10aTheFillybrooks:Stone ST15 0DJ |
Page 2 of 10
Governance & Management
Structure
The Company is limited by guarantee without share capital and is a Registered Charity with operation governed by Memorandum and Articles of Association. The Company is managed by a Board of Directors elected by the Membership in accordance with the Articles of Association. Stafford Borough Council is entitled under the ‘Isabel Agreement’ to appoint 1 Member of the Board (but has not done so). The company Organisational Structure is described in the Safety Management System (SMS) and the Operational Staff Group (all unpaid volunteers) work under the direction of the Board Members with specific responsibilities for areas of service.
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.
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
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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.
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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
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Co-operation with other narrow gauge railway operators and the Heritage Railway Association in general promotion of narrow gauge railways to the public
Principal Assets
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The Company 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. The Company owns :
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Steam Locomotive : W G Bagnall “Isabel” jointly owned with Stafford Borough Council.
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Steam Locomotive : W G Bagnall “No. 1” in un- restored condition
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Diesel Locomotives Baguley-Drewry “A10” Baguley “Golspie” and Hunslet “Gordon”
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A range of passenger & freight stock and engineering plant The Company has custody of
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Kerr Stuart Wren “Lorna Doone” on long term loan from Birmingham Science Museum Various privately owned locomotives and stock are based at the Railway and Operating Agreements provide that the Company paying maintenance costs in return for free use.
Page 3 of 10
Review of the 2022/2023 Year
Operations/Finances
The Railway was operated from April to the end of October with a target of average takings/day of £300 (excluding Galas & Santas) and achieved £260 after removing Covid 19 flat rate £2/person pricing. General Ticket Revenue fell to £16,000 from £21,000 in 2021/22
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Steam and Everything Goes Galas (EGG) ran successfully
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Classic Car Show and EGG Sunday was cancelled due to Queen Elizabeth II funeral the following day and a minimal show run on the Saturday
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Santa Specials were run successfully selling compartments and revenue increased from to £24 800 from £23 900 in 2021.
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Increased training focus led to increased availability of Footplate Crew & Guards
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Increased costs of coal and oil had some impact on costs but not a hugely significant one
Conservation : Restoration : Maintenance
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4 railway based steam locomotives had steam tests and routine maintenance was carried out on locomotives and rolling stock.
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Work was undertaken to get privately owned Baguley Dreadnought back into service
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Work started on Baguley Golspie with a £10K budget and new tyres cut, fitted and profiled by contractors spending £7700
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Smokeless briquette fuels were trialled due to declining supplies of welsh steam coal but with a considerable price increase
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Discussions were opened to purchase Brake Van 6 from Chasewater Railway rather than renew the Loan Agreement.
Infrastructure
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Signal Interlocking Project was completed supported by a £2000 grant from Hampshire Narrow Gauge Railway Trust from 2019
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Signal Box was commissioned in May 2022 and was jointly awarded the Hendy & Pendle Volunteer Award in the National Railway Heritage Awards in December 2022 with a cash bursary of £1000
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Nature Walk Project was largely completed supported by £5K Business Development Grant from Stafford BC from January 2022 (2021/22 Financial Year).
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Museum Enhancement Project was partly completed with support from a £1000 Donation from a member.
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Improvements were made to the site electrical systems
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Tree and hedging works were undertaken to ensure safety and clearance for trains running close to boundaries
People
The Railway information and discussion group sngr@groups.io was used for Board Communications and to keep in touch with the volunteer Staff Group. Ian Rae a long standing member and previous Finance & Operations Director sadly passed away in August 2022
Page 4 of 10
Chairman’s Planning for the Future Projects 2022 to 2028 These are a continuation of the 2019 Objectives delayed due to Covid 19 :
2021
Signal Box Commissioning : Completed May 2022.
2022
Heritage Walk Project : Largely completed by March 2023 after commenced in late 2021 with fencing alterations.
Chartley Building Museum Project Phase 1 : Partly completed by March 2023
Golspie Restoration : Full restoration of well known ex Trentham Gardens locomotive Deferred to 2022-24. £10 000 allocated in 2022/23 and production and fitting of new tyres completed by March 2023 at £7700.
Development of Events : The railway established an Events Group led by a newly appointed Director with the objective of increasing and improving events to generate revenue in 2023/24
2023 Onwards
Chartley Building Museum Project Phase 2 : A HLF (Heritage Lottery Fund) Bid for £10K will be developed to complete the Interpretation and Interactive elements of the Museum and improve the access area from the platform
Permanent Way Works : An external survey by Alan Keef Ltd identified a series of work that need to be considered in 2023/24
Industrial Railway Development : New line Amerton Station to Stump Junction Deferred to 2023-25
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Install turnout into Amerton Station Loop 2022-23 : Now 2023/24
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Groundworks and lay railway during 2023-4 running season : Now 2024/25
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Apply for planning permission and funding for Stock Storage Building late 2023 and build as soon as practicable
Page 5 of 10
INDEPENDENT EXMAINER’S REPORT TO THE TRUSTEES FOR THE YEAR ENDED 31[ST] MARCH 2023
I report on the accounts of the company for the year ended 31[st] March 2023 which are set out on pages 7 to 10.
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:
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examine the accounts under section 145 of the 2011 Act;
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follow the procedures laid down in the general Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act; and
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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:
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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
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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 18/05/2023
Page 6 of 10
| BALANCE SHEET31/3/2023 | ||
|---|---|---|
| Total Fixed Assets (7000) | 2021/22 | 2022/23 |
| 289 327 | 280 904 | |
| Current Assets | ||
| CashatBank&In Hand (6100):Unrestricted | 61 293 | 47 159 |
| CashatBank&In Hand (6100):Restricted : Henschell Fund | 30 916 | 31022 |
| Stock(6200) | 4495 | 6308 |
| Current Assets Total | 96 704 | 84 489 |
| Current Liabilities | ||
| AccountsPayable (1301) | 113 | 0 |
| VAT Liability | -2709 | -2274 |
| HSBCMortgage (8000): DueinOneYear | 5448 | 5374 |
| HSBCMortgage (8000):Due in more than One Year | 26 885 | 21496 |
| Total Mortgage Liability (8000) | 32333 | 26 870 |
| MembersLoans (8100): DueinOneYear | 2050 | 0 |
| MembersLoans (8100):Due in more than One Year | 0 | 0 |
| Total Members Loans Liability (8100) | 2050 | 0 |
| **Total Current Liabilities ** | 31 787 | 24596 |
| kk | ||
| Net CurrentAssets | 64917 | 59 893 |
| Total Assetsless CurrentLiabilities | 354 244 | 340797 |
| Total Net Assets | 354 244 | 340 797 |
| Funds | ||
| Profit/Loss | 3643 | -13 447 |
| Total Funds | 354 244 | 340 797 |
For the Financial Year 2020/22 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 18/05/2023
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.
Page 7 of 10
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Freehold Land : Not Depreciated
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Buildings & Workshop : 10% Straight line
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Plant and Machinery etc : 6.75% Straight line
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Bagnall Isabel & Rolling Stock : 5% Straight line
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Civil Works & Permanent Way : 5% Straight line
| PROFIT& LOSS ACCOUNT31/03/2023 | ||
|---|---|---|
| Income : Passenger Sales (1000) | 2021/22 | 2022/23 |
| General Ticket Sales (1100) | 20 921 | 22839 |
| Santa Specials | 23 876 | 24809 |
| Goods Sales (1200) | 2274 | 3475 |
| Subscriptions (1300) | 1713 | 1622 |
| Interest (1510) | 40 | 155 |
| LandIncome (1600) | 271 | 391 |
| Donations Grants etc (1800): Donations | 2502 | 3546 |
| CouncilCovid19 Grants | 16 200 | 0 |
| Land Covenants (Restricted) (1831) | 60 | 60 |
| InterestHenschell Fund (Restricted) (1920) | 31 | 106 |
| MiscIncome | 357 | 1117 |
| Total Income | 68 245 | 58 120 |
| Cost ofGoods Sold:Stock(6300) | -2296 | -1813 |
| Gross Profit | 70 541 | 59 933 |
| Expenses | ||
| Operations &Maintenance (2000) | 23 065 | 26258 |
| Infrastructure &Engineering (3000) | 13 670 | 14546 |
| Finance &Management (4000) | 19 030 | 22 126 |
| MortgageInterestPayments (4800) | 1884 | 2140 |
| Total | 57 649 | 65 070 |
| Depreciation(5500) | 9100 | 8423 |
| Reconciliation Discrepancies (6690) | 149 | -113 |
| RestrictedFunds: Henschell Fund (5000) | 0 | 0 |
| Total Expenses | 66 898 | 73 380 |
| Profit/Loss | 3643 | -13 447 |
Notes to Profit & Loss Account
Income Notes : General
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Income is shown net of VAT.
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Sale of Goods is shown under Income and costs shown in Cost of Goods Sold.
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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
Page 8 of 10
Capitalisation
No capitalisation undertaken
Expenses Notes : General
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Expenditure is accounted for on an Accruals basis and is classified under category headings.
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Operations & Maintenance : The costs of running the Railway and the purchase and maintenance & restoration of Rolling Stock
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Infrastructure & Engineering : Costs of Building, Permanent Way and Plant purchase and maintenance
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Finance & Management : The Costs of mortgage & loan repayments and the governance, promotion and utility costs of operating the Railway
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.
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 Payments
Payments for Services : £564 (up from £180 in 2021/22) 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. Increased cost reflects steep increase in data storage charges during the current year. In 2023/24 alternative cheaper provision is being acquired.
Restricted Fund Page 9 of 10
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 £106.00 (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
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 final 6 Loans were paid off in December 2022.
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.