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2025-03-31-accounts

The A1 Steam Locomotive Trust (A company limited by guarantee)

Trustees’ report

and

consolidated financial statements

Year ended 31 March 2025

Registered charity number 1022834 Registered company number 2636924

The A1 Steam Locomotive Trust (A company limited by guarantee) Year ended 31 March 2025

Contents
Report of the trustees for the year (including the strategic report) 1 - 6
Independent Auditor's Report 7 - 10
Consolidated statement of financial activities 11
Consolidated and charity balance sheets 12
Consolidated and charity Statement of Cashflows 13
Notes to the financial statements 14 - 28

The A1 Steam Locomotive Trust (A company limited by guarantee) Year ended 31 March 2025

Report of the trustees (including the Strategic Report) for the year

The trustees, who are also directors of the charity for the purposes of the Companies Act, present their annual report and the audited financial statements of the charitable company for the year ended 31 March 2025. The trustees have adopted the provisions of the Statements of Recommended Practice (SORP) ‘Accounting and Reporting by Charities’ in preparing the annual report and financial statements of the charity.

Reference and administrative details

Charity number: 1022834 Company number: 2636924 Registered Office: Darlington Locomotive Works, 9 Bonomi Way, Darlington, DL3 0PY Auditors: S&W Group Partners Limited, 17 Queens Lane, Newcastle Upon Tyne, NE1 1RN. Bankers: Yorkshire Bank plc, 46 High Street, Stockton on Tees, Cleveland, TS18 1SE Solicitors: DLA Piper UK LLP, Princes Exchange, Princes Square, Leeds LS1 4BY Directors and trustees:

The directors of the charitable company (the charity) are its trustees for the purpose of charity law and throughout this report are referred to collectively as the trustees.

The trustees who served during the year and since the year end were as follows:

Col. S Davies R J Courteney-Harris G P Langer B M McDonald (resigned 28 November 2025)

J C Walker

E A R Gibson W A Kyte

M B Welsh (appointed 15 January 2025)

G Bunker-James (appointed 14 January 2026)

Fair review of the business

Objectives and activities

The Company’s objects are: -

Registered number 2636924

1

The A1 Steam Locomotive Trust (A company limited by guarantee) Year ended 31 March 2025

Report of the trustees for the year – continued

The policies adopted to further the objectives of the company were and continue to be:

i) covenants and donations ii) sponsorship from British industry and commerce iii) assistance from local authorities and grant assistance bodies. iv) the seeking of funding from commercial lenders

It is believed that the charity’s assets will be available and adequate to meet charitable company’s objectives.

Public benefit

The charity’s aims and achievements are set out within this report. The activities set out in this report have been undertaken to further the Trust’s charitable purposes for the public benefit. The trustees have complied with the duty under Section 4 of the Charities Act 2011 to have due regard to public benefit guidance published by the Charities Commission and the trustees have paid due regard to this guidance in deciding what activities the Trust should undertake.

Achievements and performance

The Trust concluded this accounting period with Tornado ’s overhaul completed and as at the end of the period was about to commence mainline European Train Control System (ETCS) testing on the Cambrian line in early April 2025. This was a welcome step forward, having experienced delays for various reasons, as disclosed in prior years. Tornado successfully completed these tests and then made a welcome return to mainline operations in April 2025. At the time of writing (late 2025) Tornado has successfully returned to operational status. A series of mainline Railtours have been undertaken over the spring and summer of 2025, with more in the works for later 2025 and into 2026. Tornado remains the sole mainline certified steam locomotive to be so equipped and thus may enjoy a degree of monopoly as the network is progressively converted to ETCS operation. However, as was indicated in the previous accounts, the overhaul (and to an extent the impact of fitting ETCS) has disproportionately drawn on the resources of the Trust as unexpected engineering challenges had to be addressed. Consequently, the Trust’s Council of Trustees has had to focus heavily on the tight management of resources to ensure that the myriad of projects running in parallel with the overhaul received a fair and balanced allocation of funding as affordability allowed. This has also been a challenge, but the Trustees are confident in the future financial stability of the organization, although all are clear of the need to rebuild adequate reserves across the full breadth of activity. The continued support of our many supporters and donors is humbling and very generous- this is reflected in both the income figures within these accounts but also the income raised in the period subsequently both from supporters and commercial income.

In addition to Tornado’s return to operational status, the Trust has also made some notable achievements. The track work project to connect the Darlington Locomotive Works (DLW) to the mainline was in full operation at the balance sheet date, with a completion date to be achieved of September 2025 to coincide with the Stockton & Darlington 200[th] anniversary events. Thanks to the many generous donations of our supporters of around £350,000 along with a large volunteer effort, and considerable assistance from the Army, this project was met on time and under the initial budget of £450,000. The benefits of being able to bring Tornado ‘home’ by mainline connection generate a series of tangible and intangible benefits to the Trust. We thank everyone who has made this possible.

While the Trust’s focus during the 2024-25 accounting period had to be on returning Tornado to operational status, the Trust did take advantage of opportunities on the P2 Prince of Wales that presented themselves. The monobloc and tender are now in place at DLW, and the boiler is due to be delivered in October 2025. These steps undertaken during the challenging environment mean the Trust can now look to progress in 2025-26 on the P2 locomotive

The Trust also continued to pay down the Coronavirus Business Interruption Loan, with the final payment due in May 2026- this has been a considerable undertaking by the Trust, which secured the Trust at an uncertain time. Upon repayment, this will allow the Trust to commence the rebuilding of reserves.

2

Registered number 2636924

The A1 Steam Locomotive Trust (A company limited by guarantee) Year ended 31 March 2025

Report of the trustees for the year – continued

The next year will see a balanced portfolio of work from operating Tornado , and to assess the optimum mix of commercial models considering changing market and main line heritage operating conditions. Moreover, we recently played a major part in the Darlington-based celebrations to commemorate the bicentenary of the Stockton & Darlington Railway, taking full advantage of the largely complete track layout. This meant DLW was able to welcome icons of Steam such as Flying Scotsman, Sir Nigel Gresley and the replica of Locomotion No1 and train.

As ever, the Trustees continue to face a heavy workload, facing many challenges within the industry and wider economy, a heavy workload which belies the fact that the Trustees are all volunteers, motivated by altruism. However, supported by an energetic and highly appreciated body of dedicated staff, volunteers, we anticipate a positive and productive 2026.

Financial Review

A number of unplanned, unforeseen and relatively costly events have caused the Trust significant financial difficulties during the year:

Other matters which have affected our situation, worthy of note here, include:

3

Registered number 2636924

The A1 Steam Locomotive Trust (A company limited by guarantee) Year ended 31 March 2025

Report of the trustees for the year – continued

Plans for future periods

Following delivery of new cylinder block for Prince of Wales and the new boiler work will be able to commence on the major assembly of the P2. There has been an impact on fund raising due to Covid 19 and this, combined with the substantial delay in the delivery of the boiler as mentioned above, will delay completion of the new locomotive, which is not now expected until 2028.

Structure, governance and management

Governing documents

The A1 Steam Locomotive Trust is a non-profit making company, registration number 2636924 and is limited by guarantee. The charitable company’s governing documents are its Memorandum and Articles of Association originally dated 12[th] August 1991 and Bye-laws adopted on 3[rd] November 2001. The company is registered as a charity with the Charity Commission. Any person may become a member of the company upon approval of an application to this effect by the council of management of the company. There are currently 7 members of the company each of whom has agreed to contribute £1 in the event of the charity being wound up.

Appointment of trustees

As set out in the Articles of Association, the council of management may from time to time and at any time appoint any member of the company as a member of the council, either to fill a casual vacancy or by way of addition to the council, provided that the prescribed maximum be not thereby exceeded. Any member so appointed shall retain his office only until the next annual general meeting, but he shall then be eligible for re-election. At every annual general meeting onethird of the members of the council for the time being or, if their number is not three or a multiple of three, then the number nearest one-third, shall retire from office. Any member so retiring may offer himself for re-election.

Trustee induction and training

New trustees will have already familiarised themselves with proceedings at council meetings as it is the policy of the company to invite potential trustees to attend council meetings prior to their appointment. Whilst trustees are free to attend seminars and training courses the company has no mandatory policy that they do so. Copies of the memorandum and articles of association and bye-laws are available to all trustees.

Related parties

The charitable company has five associated companies one of which, Tornado Steam Traction Limited, operates the completed locomotive, Tornado Merchandising Limited deals with “Tornado” merchandise, The P2 Steam Locomotive Company Limited, its purpose being to build the new P2 class steam locomotive and Tender Construction Company Limited, which successfully completed the construction of the tender for the locomotive, but since repayment of the lease to William Cook Cast Products Limited, has been renamed The V4 Steam, Locomotive Company Limited, its purpose being to build the new V4 locomotive. The A1SLT Support Services Company Limited has the purpose of ensuring that costs of running the Trust that are not specific to any of the specific charity companies are recognised and re-allocated to the various entities in an equitable manner.

Organisation

The affairs of the charitable company are managed by the council of management which consists of a minimum of three members and a maximum of fifteen members who act as directors of the company for the purposes of company law and trustees for the purposes of charity law. There are currently seven members of the council. The council meets every two months and a telephone meeting is held when necessary. Each member of the council is responsible for a particular area of the company’s affairs and he reports to the council accordingly. A chairman is elected from the members of the council of management who assumes the overall responsibility for the day to day operations of the charitable company. No single trustee has the authority to bind the charitable company and it is policy that all material decisions require the approval of a majority of the council of management. All payments of charitable funds in excess of £500 require the approval of two trustees.

4

Registered number 2636924

The A1 Steam Locomotive Trust (A company limited by guarantee) Year ended 31 March 2025

Report of the trustees for the year – continued

Risk management

The board has assessed and continues to assess the major risks to which the charity is exposed, in particular those relating to the operation of a new steam locomotive on the modern railway and finances of the charity, and is satisfied that systems are in place to mitigate exposure to the major risks facing the charity. The operating licence for the locomotive is fundamental to the objectives of the charity and thus the risks involved are the subject of constant review by the trustees and advice from individuals familiar with the necessary procedures is regularly obtained.

Fundraising

Neither the Trust nor its subsidiaries employ or utilise any outside person or organisation to carry out fundraising on its behalf. The public are invited to donate to the charity by distribution of leaflets and advertisements in relevant railway journals or by accessing the Trusts website, but no individual or group is approached direct unless the Trust is invited to do so. No complaints have ever been received about its fundraising activities.

5

Registered number 2636924

The A1 Steam Locomotive Trust (A company limited by guarantee) Year ended 31 March 2025 Trustees. responsibilities in relation to the financial statements The tnjstees (wlm) are also directors of The A1 Steam Locomotive Trust for the purposes of company law) are reswjnsible for preparing the Trustees. Annual Report induding the Strategic Report) and the financial statements in accordance wlth applicable law and United Kingdom Accounting Standards (United Kingdom Generally AC￿pted Accounting Practice). Company law requires the trustees to prepare financial statements for each financial year. which give a true and falr view of the state of affairs of the charitable company and of the incoming resources and application of resources. incjuding the incotne and expenditure, ofthe charitable company for that period. In p￿parIng these financlal statements, th8 trustees are required to: select suitable accA)untiryJ policies and then apply them consistently: observe the methods and principles In the Charities SORP 2015 IFRS 102). make judgements and estimates that are reasonable and pnjdent., stale whelJEr applicable UK Accounting Standards have been fdlowed, subject to ary material departures disdosed and explained in the financial statements., prepare the financial statements on the going concem basls unless It Is Inappropriate to presume that lh8 tharitab18 mrnpany will continue in operatlon. The trustees are responsSble for keeping adequate accounting records that disclose with reasonable accuracy at any time Ihe financial position of the charitable company and enable them to ensure that the flnancial statements comply with the Companies Act 2006. They are also responsible for safeguardlng the assets of the charitable company and hence for takiThJ reasonable steps for the prevention and detectlon of fraud and other I￿egUlarl11e5. In so far as the trustees are aware: there is no relevant audit infomiatlon of which the charltsble 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 audlt Information and to establish that the audltor Is aware of that information. Auditors In acrA)rdance wlth the companys articl&s, a resolution for the reappointment of S & W Partners Audit Llmited as auditors of the company is to be prowsed at the forlhcoming Annual General Meeting. By order of the board M B Welsh Trustee Date 2 ¥13(Zo¥ Registered number 2636924

The A1 Steam Locomotive Trust (A company limited by guarantee) Year ended 31 March 2025

Independent auditors report to the members and trustees of The A1 Steam Locomotive Trust

Opinion

We have audited the financial statements of The A1 Steam Locomotive Trust (the ‘parent charitable company’) and its subsidiaries (the ‘group’) for the year ended 31 March 2025 which comprise the Group Statement of Financial Activities, the Group Summary Income and Expenditure Account, the Group and the Parent Charitable Company Balance Sheet, The Group and the Parent Charitable Company Cash Flow Statements, and notes to the financial statements, 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:

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 Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’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 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 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 trustees’ annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the Report of the Trustees. 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.

7

Registered number 2636924

The A1 Steam Locomotive Trust (A company limited by guarantee) Year ended 31 March 2025

Independent auditors report to the members and trustees of The A1 Steam Locomotive Trust (Continued)

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 our audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

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

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

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 6, 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 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.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed auditor under the Companies Act 2006 and under section 151 of the Charities Act 2011, and report in accordance with those Acts and relevant regulations made or having effect thereunder.

8

Registered number 2636924

The A1 Steam Locomotive Trust (A company limited by guarantee) Year ended 31 March 2025

Independent auditors report to the members and trustees of The A1 Steam Locomotive Trust (Continued)

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 auditor’s 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:

We obtained a general understanding of the group’s legal and regulatory framework through enquiry of management concerning their understanding of relevant laws and regulations, the entity’s policies and procedures regarding compliance, and how they identify, evaluate and account for litigation claims. We also drew on our existing understanding of the group’s industry and regulation.

We understand that the group complies with the framework through:

In the context of the audit, we considered those laws and regulations which determine the form and content of the financial statements, which are central to the group’s ability to conduct its business, and/or where there is a risk that failure to comply could result in material penalties. We identified the following laws and regulations as being of significance in the context of the group:

We performed the following specific procedures to gain evidence about compliance with the significant laws and regulations identified above:

The senior statutory auditor led a discussion with senior members of the engagement team regarding the susceptibility of the entity’s financial statements to material misstatement, including how fraud might occur. The areas identified in this discussion were:

These areas were communicated to the other members of the engagement team not present at the discussion.

The procedures we carried out to gain evidence in the above areas included:

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 auditor’s report.

9

Registered number 2636924

The A1 Steam Locomotive Trust (A o)mpany limited by guarantee) Year ended 31 March 2025 Use of our r8port This report is made solelyto Ihe charitsble company's membws. as a body. in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and to Ihe tharilable company's Iwstees. as a body. in accordance wilh Part 4 of th8 Charib'eslAccountsand R8portsl Regulati0ns2008.￿raudI1wOrk hasbeenundertaken solhatwe mighlstaleto tt)e charitsble companys membws and its Irustees those mattets we are required to state to them In an audilorf8 report and for no otherpurpose. To the full6stextent perm itted by law. wedo nol ac£8pt or assume responsibiltyb) any( other than th8 charitsble companyand Ihe tharitab18 ￿Mpany$ rnembers as a bodyand the charitsble compatys trustees as a body. forour audit work. for Ihis repor( orforthe opinions we have fomed. 27/31 Stsphen Easton FCA {Senlor Statutory Audltor) for and on bghalf of &%W Partners Umfted Chartered kcountsnts and Statutory Auditor 17 Qu&&ns Lane Newcaslle Upon Tyn8 NE1 1RN 10 Regislered number 2636924

The A1 Steam Locomotive Trust (A company limited by guarantee) Year ended 31 March 2025

Consolidated statement of financial activities (including summary income and expenditure account) for the year ended 31 March 2025

Note
Income:
Income from charitable activities:
Covenants
4
Donations and legacies
5
Income from other trading activities:
Commercial trading operations
6
Investment income
Total income
Expenditure:
Expenditure on charitable activities:
Charitable activities
9
Costs of raising funds:
Commercial trading operations
10
Total expenditure
Net income/expenditure before
transfers
Transfers
Net movement in funds
Reconciliation of funds
Funds brought forward at 1 April
2024
Funds carried forward at 31 March
2025
20		 Restricted
funds
£
465,162
700,330
30,477
1,666
1,197,635
572,846
219,274
792,120		 Unrestricted
funds
£
-
-
-
-
-
-
-
-
-
-
-
-
-		 Unrestricted
funds
£
-
-
-
-
-
-
-
-
-
-
-
-
-		 Unrestricted
funds
£
-
-
-
-
-
-
-
-
-
-
-
-
-		 Total 2025
£
465,162
700,330
30,477
1,666
1,197,635
572,846
219,274
792,120
405,515
-
405,515
7,289,504
7,695,019		 Total 2024
£
745,162
454,785
81,656
1,069
1,282,672
709,536
432,657
1,142,193
405,515 140,479
- -
405,515 140,479
7,289,504
7,695,019		 -
-		 7,149,025
7,289,504

The statement of financial activities includes all gains and losses recognised in the year. All funds are restricted income funds save that if funds were given with a request that they be applied to the purchase of a specific part of the locomotive or the support coach, such request has been honoured.

The incoming resources and resulting net movement in funds arise from continuing operations.

Registered number 2636924

11

The A1 Steam Locomotive Trust (A company limited by guarantee) Year ended 31 Marth 2025 Consolidated and Charity Balance Sheets as at 31 March 2025 Note Group 2025 Group 2024 Charfty 2025 Charty 2024 Restated Flxed assets Tangible assets Investments 14 15 7,526,506 7,416,376 4.714,602 305 4.620,905 305 7,526,506 7,416,376 4,714,907 4,621,210 Current assets Stock DebtOf5 Cash at bank and In hand 82.205 209,536 324,220 82,219 312,560 299,206 700 3,145,899 266,587 700 3.253,079 140,277 16 615,961 693.985 3,413,186 3.394,056 Credltors: amounts fallirwJ due within one year 1T (390.699) {598.420) (210,056) (266.837) Net curronl assets 225 261 3 203130 312721 Total a5s8ts loss current Ilabllftl88 7,751,768 7.511,941 7.918,037 7,748,429 Creditors: amounts due falling after one year 18 {56,749) {222,4371 (56,749) (222,437) Net assèts 7,695.019 7,289,504 7,861,288 7,525,992 The funds of tho charlty Restricted fvnds Revaluation reserve 20 20 7,686,431 8,588 7,280,918 8,588 7.852,700 8,588 7.517,404 8,588 7,695,019 7,289,504 7,861,288 7,525,992 The trustees have prepar&J the group accounts In aC￿rdan￿ with secticffi 398 of the Companies Act 2006 and section 138 of the Charities Act 2011. These accounts are prepared In acrA)rdance with the special provisions of Part 15 of the CcAnpanie5 Act relating to small companies and constitute the annual accounts required by tfE Companies Act 2006 and are for circulation to members of the company. The notes at pages 12 to 28 fomi part of these accounts. 2f131 Zoz These financial statements were approved by the board of tNstees on .............................. and were signed on its behalf by". M B Welsh Trustee 12 Registered number 2636924

The A1 Steam Locomotive Trust (A company limited by guarantee) Year ended 31 March 2025

Statement of Cash Flows and Consolidated Statement of Cash Flows as at 31 March 2025

Note
Net cash flow from operating activities:
Net cash provided by/ (used in) operating activities
22
Cash flow from investing activities
Interest received
Purchase of fixed assets
Proceeds from sale fixed assets
Net cash provided by/ (used in) investing activities
Cash Flow from financing activities
Income from new bank loans
Repayment of new loans
Change in cash and cash equivalents in the reporting
period
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
Cash and cash equivalents consist of:
Cash at bank and in hand		 Group
2025
£
553,867
484
(360,863)
-
(360,379)
-
(168,474)
(168,474)
25,014
299,206
324,220
324,220		 Group
2024
£
427,649
1,069
(745,357)
-
(744,288)
15,000
(148,029)
(133,029)
(449,668)
748,874
299,206
299,206		 Charity
2025
£
638,730
484
(344,430)
-
(343,946)
-
(168,474)
(168,474)
126,310
140,277
266,587
266,587		 Charity
2024
£
736,652
(486)
(683,835)
-
(684,321)
15,000
(147,592)
(132,592)
(80,261)
220,538
140,277
140,277

13

Registered number 2636924

The A1 Steam Locomotive Trust (A company limited by guarantee) Year ended 31 March 2025

Notes to the financial statements

(forming part of the financial statements)

1 Accounting policies

1.1 Basis of preparation

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued in October 2019, Charities SORP (FRS 102), the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Practice.

The A1 Steam Locomotive Trust meets the definition of a public benefit under FRS 102. The financial statements are prepared under the historical cost convention or transaction value unless otherwise stated in the relevant accounting policy note(s). The financial statements are prepared in Sterling which is the functional currency of the charity and rounded to the nearest £.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

1.2 Going Concern

The financial statements have been prepared on a going concern basis. The trustees have reviewed and considered relevant information, including the annual budget and future cash flows in making their assessment. Based on these assessments, given the measures that could be undertaken to mitigate the current adverse conditions, and the current resources available, the trustees have concluded that they can continue to adopt the going concern basis in preparing the annual report and accounts.

1.3 Group Financial Statements

The financial statements consolidate the results of the charity and its wholly owned subsidiary companies, Tornado Steam Traction Limited, Tornado Merchandising Limited, and The P2 Steam Locomotive Company Limited, The V4 Steam Locomotive Company Limited and The A1SLT Support Services Company Limited on a line by line basis. A separate Statement of Financial Activities for the charity itself is not presented because the charity has taken advantage of the exemptions afforded by section 408 of the Companies Act 2006.

1.4 Income recognition

All incoming resources are included in the Statement of Financial Activities (SoFA) when the charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably and it is probable that the income will be received.

Income from trading activities includes income earned from the hire of the A1 Locomotive and sale of merchandise. Income received in exchange for supplying services in order to raise funds and is recognised when entitlement has occurred. Income received for the supply of goods is recognised when the risk and rewards of ownership have been transferred.

Investment income includes interest which is recognised when receivable.

14

Registered number 2636924

The A1 Steam Locomotive Trust (A company limited by guarantee) Year ended 31 March 2025

Notes to the financial statements (continued)

1.5 Donated services and facilities

Donated services and facilities are recognised as income when the charity has control over the item, any conditions associated with the donated item have met, and the receipt of economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), the general volunteer time is not recognised.

Donated services and donated facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent benefit on the open market; a corresponding amount is then recognised in the expenditure for the period.

1.6 Fund accounting

Restricted funds are available to spend in activities that further any of the purposes of the charity. Designated funds are restricted funds for the charity which the trustees have decided at their discretion to set aside to use for a specific purpose. Restricted funds are donations which the donor has specified are to be solely used for particular areas of the Trust’s work or for specific projects.

1.7 Expenditure recognition

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. It is categorised under the following headings:

Expenditure on charitable activities includes direct and support costs incurred in the management of the charity’s activities

Other trading expenditure represents costs incurred in raising funds from the sale of goods and services those items not falling into the categories above.

Irrecoverable VAT is charged as an expense against the activity for which expenditure arose.

1.8 Support costs allocation

Support costs are those that assist the work of the charity but do not directly represent charitable activities and include office costs, governance costs, and administrative payroll costs. They are incurred directly in support of expenditure on the objects of the charity.

Fund-raising costs are those incurred in seeking voluntary contributions and do not include the costs of disseminating information in support of the charitable activities.

The analysis of these costs is included in note 11.

15

Registered number 2636924

The A1 Steam Locomotive Trust (A company limited by guarantee) Year ended 31 March 2025

Notes to the financial statements (continued)

1.9 Fixed assets and depreciation

Tangible fixed assets are stated at cost or deemed cost and subsequently measured at cost or valuation less accumulated depreciation and accumulated impairment losses. The A1 locomotive and its support coach is depreciated over a period of twenty years in equal annual instalments to its residual value of £1.5 million.

The P2 Steam locomotive is an asset in the course of construction and therefore no depreciation has been charged.

Otherwise depreciation is provided on cost in equal annual instalments over the estimated useful lives of the assets. The rates of depreciation are as follows:

Fixtures, fittings and equipment Computer equipment

25% per annum 3 years straight line

1.10 Investments

Investments are stated at market value according to the guidelines of the Statement of Recommended Practice: Accounting by Charities.

1.11 Stock of merchandise and locomotive spares

Stock of the above items are valued at the lower of cost or net realisable value.

1.12 Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

1.13 Cash at bank and in hand

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

1.14 Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement after allowing for any trade discounts due.

1.15 Taxation

The A1 Steam Locomotive Trust is a registered charity and is potentially exempt from tax on those categories of income covered by Section 505 of the Income and Corporation Taxes Act 1988, to the extent that this income is applied for charitable purposes.

16

Registered number 2636924

The A1 Steam Locomotive Trust (A company limited by guarantee) Year ended 31 March 2025

Notes to the financial statements (continued)

1.16 Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic

financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

1.17 Judgements and key sources of estimation uncertainty

In preparing these financial statements, the directors have made the following judgements:

Other key sources of estimation uncertainty:

2

Legal status

A1 Steam Locomotive Trust is a company limited by guarantee, registered in England and Wales (Company Number 2636924). There are currently 7 trustees who are members of the company each of whom has guaranteed to contribute an amount not exceeding £1 in the event of the company being wound up during the time they are members or within one year thereafter.

17

Registered number 2636924

The A1 Steam Locomotive Trust (A company limited by guarantee) Year ended 31 March 2025

Notes to the financial statements (continued)

3 Financial performance of the charity

Incoming resources
Less: Costs of generating funds
Net incoming resources available for charitable application
Charitable expenditure
Net incoming resources before exceptional items
Provision against loan to Tornado Steam Traction Limited
Provision against loan to The P2 Steam Locomotive Company Ltd
Net incoming resources after exceptional items
Total funds brought forward
Total funds carried forward
Represented by:
Restricted funds
Revaluation reserve
4
Income from charitable activities
Covenants
Income from covenants is attributable to restricted funds.
5
Income from donations
Donations
Gift Aid
Other Income		 2025
£
1,170,860
(11,968)
1,158,893
(573,682)
585,210
(151,012)
(98,901)
335,297
7,525,991
7,861,288
7,852,700
8,588
7,861,288
2025
£
465,162
465,162
2025
£
573,135
122,311
4,884
700,330		 2024
£
Restated
1,204,397
(11,247)
1,193,150
(731,839)
461,311
(38,376)
(63,489)
359,446
7,166,546
7,525,992
7,517,404
8,588
7,525,992
2024
£
745,162
745,162
2024
£
337,031
111,292
6,462
454,785

Income from donations is attributable to restricted funds.

The trust benefits from the support of volunteers within the running of the income generating activities and the administration of the charity. In accordance with FRS 102 and the Charities SORP (FRS 102), the economic contribution of general volunteers is not recognised in the financial statements.

18

Registered number 2636924

The A1 Steam Locomotive Trust (A company limited by guarantee) Year ended 31 March 2025

Notes to the financial statements (continued)

6 Income from trading activities

Sales of tour tickets
Merchandise sales
Other		 2025
£
8,625
14,229
7,623
30,477		 2024
£
59,002
10,796
11,858
81,656

The consolidated statement of financial activities includes the results of the charity’s wholly owned subsidiaries Tornado Steam Traction Limited and Tornado Merchandising Limited, which operate the locomotive and sell merchandise respectively, and the P2 Steam Locomotive Company.

The summary financial performance of the subsidiaries is shown below:

The P2
Steam
Locomotive
Company
Limited
Tornado
Steam
Traction
Limited
Tornado
Merchandising
Limited
The V4
Steam
Locomotive
Company
Limited
The A1SLT
Support
Services
Limited
£
£
£
£
£
Turnover
1,866
9,648
14,388
-
118,627
Cost
of
sales
and
administration costs
(100,767)
(122,380)
(11,990)
(594)
(68,177)
Interest receivable
~~-~~
-
-
-
-
Net Profit
(98,901)
(112,732)
2,398
(594)
50,450
The assets and liabilities of the subsidiaries were:
Fixed assets
2,811,543
361
-
-
-
Current assets
448,994
139,744
32,358
1,023
176,973
Current liabilities
(4,220,689)
(2,187,303)
(17,605)
(6,206)
(142,676)
(960,152)
(2,047,198)
14,753
(5,183)
34,297
Aggregate share capital
and reserves
(960,152)
(2,047,198)
14,753
(5,183)
34,297		 Total
2025
£
144,529
(303,908)
-
(159,379)
2,811,904
799,092
(6,574,479)
(2,963,483)
(2,963,483)		 Total
2024
£
222,096
(507,944)
-
(285,850)
2,821,415
540,653
(6,160,687)
(2,798,619)		 Total
2024
£
222,096
(507,944)
-
(285,850)
(2,798,619)

19

Registered number 2636924

The A1 Steam Locomotive Trust (A company limited by guarantee) Year ended 31 March 2025

Notes to the financial statements (continued)

7 Income from investments

All of the charitable company’s investment income arises from the interest on money held in interest bearing deposit accounts.

8 Analysis of income and surplus for the year

All income and the surplus for the year are derived from the charitable company’s principal activity.

2025
£
The surplus for the year is stated after charging:
Auditors remuneration
10,000
Accountancy and other services
2,500
Depreciation
165,540
Analysis of expenditure on charitable activities
2025
£
Charitable activities
530,511
Support costs
42,336
572,846		 2024
£
3,930
-
165,550
2024
£
673,660
35,876
709,536

9 Analysis of expenditure on charitable activities

10 Analysis of expenditure on trading activities

Trading activities
Support costs
Printing, postage, stationery and administration
Legal and professional
Consultancy fees
Telephone
Interest payable and similar charges
Sundry expenses
Governance costs		 2025
£
219,274
219,274
2025
£
4,167
25,684
4,212
-
1,040
3,733
3,500
42,336		 2024
£
432,657
432,657
2024
£
5,932
2,215
1,785
2,379
14,609
5,456
3,500
35,876

11 Support costs

20

Registered number 2636924

The A1 Steam Locomotive Trust (A company limited by guarantee) Year ended 31 March 2025

Notes to the financial statements (continued)

12 Governance costs

2025
£
Auditor’s remuneration
10,000
10,000
13
Analysis of staff costs
Group
2025
Group
2024


£
£

Wages
142,415
138,570
National Insurance
2,001
6,816
Pension
1,521
2,482
145,937
147,868
Group
2025
Group
2024


Number of staff
7
7
7
7		 Charity
2025


£

-
-
-		 2024
£
3,930

3,930

Charity
2024
£
-
-
-
-
Charity
2024
-
-








-
Charity
2025


-
-

21

Registered number 2636924

The A1 Steam Locomotive Trust (A company limited by guarantee) Year ended 31 March 2025

Notes to the financial statements (continued)

13 Analysis of staff costs (cont.)

Direct expenses incurred by trustees are reimbursed, if claimed. The reimbursement of Trustees expenses, which

mainly relate to travelling expenses in respect of performing the above special projects, was as follows:

Huw Parker
Benjamin McDonald
Richard Courteney-Harris
Col. Steve Davies
Elizabeth Gibson
Chris Walker
Paul Bruce
Total		 Group
2025
£
515
428
-
418
-
242
-
1,602		 Group
Charity
2024
2025
£
£
214
515
2,268
428
278
-
155
418
556
-
-
242
1,315
-
4,786
1,602		 Charity
2024
£
214
2,268
278
155
556
-
1,315
4,786

In addition to the expenses shown above, Paul Bruce, was remunerated as a contractor due to his skills as a railway consultant. During the year costs of £46,338 (2024: £71,400) were charged to the charity and reimbursed in full by a third party. Ben McDonald was also remunerated as a contractor due to his skills as a railway consultant. During the year costs of £23,588 (2024: £35,937) were charged to the charity and reimbursed in full by a third party. At the year end £3,110 was due to Ben McDonald.

Due to the increasing workload, the charity now has seven employees working in Darlington Locomotive Works, being the Office Manager, an Administrator and an Assistant Mechanical Engineer. All other work is performed on a voluntary basis with the exception of sub-contracted management and labour which is capitalised.

The number of employees who received total employee benefits (excluding employer pension costs) of more than £60,000 is as follows: none (2024 – none). The charity trustees were not paid or received any other benefits from employment in the year £nil (2024 – £nil).

The key management personnel of the charity comprise the trustees. The total employee benefits of the key management personnel of the charity are as disclosed above. Remuneration paid to related parties is disclosed in note 21.

22

Registered number 2636924

The A1 Steam Locomotive Trust (A company limited by guarantee) Year ended 31 March 2025

Notes to the financial statements (continued)

14 Tangible fixed assets

Group
A1
Locomotive
£
Cost or
valuation
At 1 April 2024
4,272,976
Additions
341,162
Disposals
(341,162)
At 31 March
2025
4,272,976
Depreciation
At 1 April 2024
573,884
Charge for year
138,649
Disposals
(255,968)
At 31 March
2025
456,565
Net book
value
At 31 March
2025
3,816,411
At 31 March
2024
3,699,092		 P2
Locomotive
£
2,794,977
16,433
-
2,811,410
-
-
-
-
2,811,410
2,794,977		 Mark 1
Coaches
Assets
under
construction
Fixtures,
fittings,
tools and
equipment
£
£
£
519,561
597,305
99,708
-
-
3,268
-
-
-
519,561
597,305
102,975
195,041
-
99,225
25,978
-
913
-
-
-
221,019
-
100,259
298,542
597,305
2,838
324,520
597,305
483		 Total
£
8,284,526
360,863
(341,162)
8,304,360
868,150
165.540
(255,968)
777,722
7,526,506
7,416,376

The P2 Steam locomotive is an asset in the course of construction and therefore no depreciation has been charged.

23

Registered number 2636924

The A1 Steam Locomotive Trust (A company limited by guarantee) Year ended 31 March 2025

Notes to the financial statements (continued)

Tangible fixed assets (continued)

Company
A1
Locomotive
£
Cost or valuation
At 1 April 2024
4,272,974
Additions
341,162
Disposals
(341,162)
At 31 March 2025
4,272,974
Depreciation
At 1 April 2024
573,896
Charge for year
138,649
Disposals
(255,969)
At 31 March 2025
456,661
Net book value
At 31 March 2025
3,560,429

At 31 March 2024
3,699,078
 Mark 1
Coaches
Fixtures, fittings,
tools and
equipment
Assets under
construction
Total
£
£
£
£
519,561
93,507
597,307
5,483,349
-
3,268
-
344,430
-
-
(341,162)

519,561
96,775
597,307
5,486,617
195,041
93,507
-
862,444
25,978
913
-
165,540
-
-
-
(255,969)
221,019
94,420
-
772,015
298,542
2,355
597,307
4,714,602
324,520
-
597,307
4,620,905

The locomotive was revalued in the year ended 31 March 1994, subsequent construction work is included at cost. Fixtures and fittings, tools and equipment are stated at cost with the exception of tools machinery and equipment, received by way of gift all of which are now written off.

The Trustees have carried out an impairment review to determine the net realisable value and the value in use of both the locomotive and coach. The value in use is considered to be greater than the net book value based upon the replacement cost of the asset.

Disposal of assets related to items replaced during the locomotive overhaul. The costs are estimated using the value of the items being replaced as per FRS102 section 17.27.

24

Registered number 2636924

The A1 Steam Locomotive Trust (A company limited by guarantee) Year ended 31 March 2025

Notes to the financial statements (continued)

15 Investments

Details of the subsidiaries of The A1 Steam Locomotive Trust are shown below:

Name Status Company Ordinary £1
Share		 Control
number
capital
The P2 Steam Locomotive Company Limited Trading 08549849 2 100%
Tornado Steam Traction Ltd Trading 04336467 100 99%
Tornado Merchandising Limited Trading 07357964 100 100%
The V4 Steam Locomotive Company Limited Trading 05417383 100 99%
The A1SLT Support Services Limited Trading 13244889 1 100%
21stCentury Steam Limited Dormant 11330729 1 100%
21stCentury Rolling Stock Limited Dormant 11331808 1 100%

16 Debtors

Trade debtors
Amount due from Tornado Steam Traction Limited
Amount due from Tornado Merchandising Limited
Amount due from The P2 Steam Locomotive Company
Amount due from The V4 Steam Locomotive Company
Other debtors
Prepayments		 Group
2025
£
22,483
-
-
-
-
172,053
15,000
209,536		 Group
2024
£
21,282
-
-
-
-
196,492
94,786
312,560		 Charity
2025
£
13,471
-
31,847
3,046,806
8,463
30,312
15,000
3,145,899		 Charity
2024
£
Restated
1,603
-
21,993
3,069,197
8,213
94,606
57,467
3,253,079

17 Creditors: amounts falling due within one year

Bank loan
Trade creditors
Amount due to P2 Steam Locomotive Company
Amount due to P2 Steam Locomotive – Construction Loan
Amount due to V4 Construction Company
Other creditors and accruals
Deferred income
Taxation and social security costs
 Group
2025
£
157,528
158,400
-
-
-
16,536
47,433
10,802
390,699		 Group
2024
£
160,314
254,978
-
-
-
51,026
119,279
12,823
598,420		 Charity
2025
£
134,778
71,539
-
-
591
3,148
-
-
210,056		 Charity
2024
£
137,564
118,079
-
-
591
10,603
-
-
266,837

25

Registered number 2636924

The A1 Steam Locomotive Trust (A company limited by guarantee) Year ended 31 March 2025

Notes to the financial statements (continued)

18 Creditors: amounts falling due after one year

Group Group Charity Charity
2025 2024 2025 2024
£ £ £ £
Bank loan 56,749 222,437 56,749 222,437

The aggregate amount for creditors due after one year for which security has been given amounted to £56,749 (2024: £214,277). Security is in the form of a fixed and floating charge of the assets of the charitable company.

19 Deferred income

Deferred income brought forward
Amounts released in the year
Amounts charged in the year		 Deferred
income
£
119,279
(71,846)
-
47,433

Deferred income relates to sales made for locomotive tours which fall after 31 March 2025.

20 Restricted funds

Group
At 31 March 2024
Income for the year
Expenditure for the year
At 31 March 2025
Charity – current year
At 31 March 2024
Income for the year
Expenditure for the year
Intra group loan provision
At 31 March 2025		 Revaluation
Reserve
£
8,588
-
-
8,588
8,588
-
-
-
8,588		 A1 No
60163
Tornado
£
3,730,155
877,317
(697,417)
3,910,055
3,861,001
850,542
(585,651)
(151,012)
3,974,880		 P2 No
2007
Prince of
Wales
£
3,549,761
320,318
(94,703)
3,775,376
3,656,403
320,318
-
(98,901)
3,877,820		 V4
Locomotive
£
1,000
-
-
1,000
-
-
-
-
-		 Total
£
7,289,504
1,197,635
(792,120)
7,695,019
7,525,992
1,170,860
(585,651)
(249,913)
7,861,288

26

Registered number 2636924

The A1 Steam Locomotive Trust (A company limited by guarantee) Year ended 31 March 2025

Notes to the financial statements (continued)

Restricted funds

estricted funds
Charity – prior year
At 31 March 2023
Prior year adjustment
Restated balance
Income for the year
Expenditure for the year
Intra group loan provision
At 31 March 2024		 Revaluation
Reserve
£
8,588
-
8.588
-
-
-
8,588		 A1 No
60163
Tornado
£
3,758,870
-
3,758,870
883,593
(743,086)
(38,376)
3,861,001		 P2 No
2007
Prince of
Wales
£
restated
4,196,851
(797,763)
3,399,088
320,804
-
(63,489)
3,656,403		 V4
Locomotive
£
-
-
-
-
-
-
-		 Total
£
restated
7,964,309
(797,763)
7,166,546
1,204,397
(743,086)
(101,865)
7,525,992

An error has been identified in the prior period accounts relating to a provision which should have been made against amounts recoverable from The P2 Steam Locomotive Company. A total provision of £861,252 should have been made being a provision of £797,763 at 31 March 2023 and an increase in the provision of £63,489 for the year ended 31 March 2024. As noted above, the prior year figures have been adjusted accordingly, with the impact being a reduction to 2024 net incoming resources of £63,489 and a decrease of £861,252 to debtors and funds at 31 December 2024.

In the opinion of the trustees’ sufficient resources are held in an appropriate form for each reserve to be applied in accordance with any restrictions imposed.

21 Related party transactions

Donations from trustees in the year were £345.

Trustees remuneration is disclosed in note 13.

27

Registered number 2636924

The A1 Steam Locomotive Trust (A company limited by guarantee) Year ended 31 March 2025

Notes to the financial statements (continued)

22 Reconciliation of consolidated net income/(expenditure) to net cash flow from operating activities

Net income for the year
Interest received
Depreciation of tangible fixed assets
Loss on sale of assets
Decrease/(increase) in debtors
(Decrease)/increase in creditors
Decrease/(increase) in stock
Net cash flow from operating activities
23
Analysis of changes in net debt
Group
Long term borrowings
Cash and cash equivalents
Net cash flow from operating activities
Charity
Long term borrowings
Cash and cash equivalents
Net cash flow from operating activities		 Group 2025
Group 2024
Charity
2025
£
£
£
405,515
140,479
335,297
(484)
(1,069)
(484)
165,540
165,540
165,540
85,195
196,213
85,195
103,022
(44,025)
107,178
(204,935)
(34,636)
(53,994)
14
5,147
(2)
553,867
427,649
638,730
1 April 2024
Cash flows
At
£
£
(382,751)
168,474
299,206
25,014
(83,545)
193,488
1 April 2024
Cash flows
At
£
£
(360,001)
168,474
140,277
126,310
(219,724)
294,784		 Group 2025
Group 2024
Charity
2025
£
£
£
405,515
140,479
335,297
(484)
(1,069)
(484)
165,540
165,540
165,540
85,195
196,213
85,195
103,022
(44,025)
107,178
(204,935)
(34,636)
(53,994)
14
5,147
(2)
553,867
427,649
638,730
1 April 2024
Cash flows
At
£
£
(382,751)
168,474
299,206
25,014
(83,545)
193,488
1 April 2024
Cash flows
At
£
£
(360,001)
168,474
140,277
126,310
(219,724)
294,784		 Charity
2024
£
407,185
486
165,540
170,280
(231)
(6,608)
-
736,652
31 March
2025
£
(214,277)
324,220
109,953
At 31 March
2025
£
(191,527)
266,587
75,060

28

Registered number 2636924