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2023-12-31-accounts

REGISTERED COMPANY NUMBER: 02970246 (England and Wales) REGISTERED CHARITY NUMBER: 1042090

Report of the Trustees and

Unaudited Financial Statements

for the Year Ended 31 December 2023

for

The Princess Royal Class Locomotive Trust

The Princess Royal Class Locomotive Trust

Contents of the Financial Statements for the Year Ended 31 December 2023

Page
Report of the Trustees 1 to 4
Independent Examiner's Report 5 to 6
Statement of Financial Activities 7
Statement of Financial Position 8 to 9
Notes to the Financial Statements 10 to 17
Detailed Statement of Financial Activities 18

The Princess Royal Class Locomotive Trust

Report of the Trustees for the Year Ended 31 December 2023

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 December 2023. The trustees have adopted the provisions of 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) (effective 1 January 2019).

Opening Comments

2023 has been a year with recovery still being made from the Pandemic. Changes have taken place at Director level and this has enabled a change of emphasis to various elements of the Trust's activities.

The Directors intend the Trust to remain financially stable and without recourse to any financial borrowing during the coming year as work proceeds on the restoration of DUCHESS OF SUTHERLAND and 80098 to running condition.

OBJECTIVES AND ACTIVITIES

Objectives and aims

The objectives of the trust are:-

The restoration, preservation, operation and display of its steam locomotives;

The restoration, preservation, display and where appropriate, the operation of its rolling stock;

The operation of the 'West Shed Experience' Museum, which aims to exhibit the full history of the trust's LMS Pacific Class, British Railway's 2-6-4T and narrow gauge locomotives and its exceptional collection of historic rolling stock and artefacts.

Public benefit

By working towards the objectives above and carrying out the charitable activities below the charity is providing the public with the benefit of having access to historic locomotives and the history surrounding them.

Page 1

The Princess Royal Class Locomotive

Trust

Report of the Trustees for the Year Ended 31 December 2023

ACHIEVEMENT AND PERFORMANCE Charitable activities Locomotives

6233 DUCHESS OF SUTHERLAND locomotive succumbed to a number of mechanical problems and unfortunately did not run further tours in 2023.

BR 4MT Standard tank locomotive 80098 the stripping down of the locomotive continues in preparation of a complete overhaul.

BR 4MT Standard tank locomotive 80080 continues to be hired out to the Ecclesbourne Valley Railway on a long term basis and provides a useful income.

Rolling Stock

Special Saloon 45000

Restoration work by volunteers is by and large complete there are some small items that need attention..

L M S No 1 Dynamometer Car 45050

This vehicle is now on permanent static display in the museum with various forms of supporting interpretation and is used during guided tours and school visits.

Inspection Saloon 6320

On loan to Vintage Trains during the year.

Support Coach 35476 was 99041

Support Coach 21232 was 99040 On static display at West Shed.

Museum & Education

Following Covid the Museum has reopened with a small income being from sales.

During the year we lost our curator and some volunteers due to the effects of Covid. This has slowed progress on museum related matters.

FINANCIAL REVIEW

Investment policy and objectives

The company has no direct investments, other than cash at bank. Interest is earned on surplus cash balances.

Reserves policy

It is the policy of the charity to maintain unrestricted funds, which are free reserves of the charity of the charity, at a level which provides sufficient funds to cover management, administration and support costs; and to respond to emergency applications for grants, which arise from time to time.

Unrestricted free reserves at the end of 2023 were £387,383 (2022: £76,915) disclosing an increase in the year. The Trustees are confident that this reserve together with the concentrated fundraising during 2023 continuing into 2024 will enable the Trust to continue its progress in restoring and maintaining its stock of locomotives and coaches.

Page 2

The Princess Royal Class Locomotive Trust

Report of the Trustees for the Year Ended 31 December 2023

FINANCIAL REVIEW

Review of the Financial Year

Total unrestricted incoming resources for the Trust reached £551,897 (2022: £264,965) this included a trading donation from PRCLT Company of £215,787 (2022: £231,831). Yet again highlighting the importance the Trust's profit making activates which the subsidiary carries out. The Trust continues to rely heavily upon the support and generosity of its Patrons and other donors who during the year contributed £268,110 (2022: £23,975).

The Trust's general expenses continue to be closely monitored to ensure that sufficient funds will be available for general revenue expenses.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The charity is controlled by its governing document, the memorandum and articles of association, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.

Recruitment and appointment of new trustees

The existing board of trustees undertakes the selection, recruitment and appointment of new trustees

REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number

02970246 (England and Wales)

Registered Charity number

1042090

Registered office

The West Shed Midland Railway Centre Swanwick Junction Ripley Derbyshire DE5 4AD

Trustees

G Oulsnam (resigned 25/7/2023) P S Wood (resigned 25/8/2023) L Truswell (resigned 25/7/2023) M Hollingworth G Henshall D Tilling (resigned 25/7/2023) C Powell

Company Secretary

G Oulsnam

Page 3

The Princess Royal Class Locomotive Trust

Report of the Trustees for the Year Ended 31 December 2023

REFERENCE AND ADMINISTRATIVE DETAILS Independent Examiner

K R Carey BA FCA McDade Roberts Accountants Limited Chartered Accountants 316 Blackpool Road Fulwood Preston Lancashire PR2 3AE

SHARE CAPITAL

The company is limited by guarantee and does not have a share capital.

Approved by order of the board of trustees on ............................................. and signed on its behalf by:

.................................................................... C Powell - Trustee

Page 4

Independent Examiner's Report to the Trustees of The Princess Royal Class Locomotive Trust

Independent examiner's report to the trustees of The Princess Royal Class Locomotive Trust ('the Company')

I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 December 2023.

Responsibilities and basis of report

As the charity's trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').

Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity's accounts as carried out under Section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under Section 145(5) (b) of the 2011 Act.

Page 5

Independent Examiner's Report to the Trustees of The Princess Royal Class Locomotive Trust

Independent examiner's statement

Since your charity's gross income exceeded £250,000 your examiner must be a member of a listed body. I can confirm that I am qualified to undertake the examination because I am a member of the Institute of Chartered Accountants in England and Wales, which is one of the listed bodies.

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:

  1. accounting records were not kept in respect of the Company as required by Section 386 of the 2006 Act; or

  2. the accounts do not accord with those records; or

  3. the accounts do not comply with the accounting requirements of Section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or

  4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities (applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)).

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

K R Carey BA FCA

McDade Roberts Accountants Limited Chartered Accountants 316 Blackpool Road Fulwood Preston Lancashire PR2 3AE

Date: .............................................

Page 6

The Princess Royal Class Locomotive Trust

Statement of Financial Activities for the Year Ended 31 December 2023

Notes
INCOME AND ENDOWMENTS FROM
Donations and legacies
Other trading activities
2
Investment income
3
Total
EXPENDITURE ON
Raising funds
4
Charitable activities
5
Expenditure
Total
NET INCOME/(EXPENDITURE)
Transfers between funds
16
Net movement in funds
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD		 Unrestricted
fund
£
263,761
215,787
1,157
480,705
2,964
158,405
161,369
319,336
(8,871)
310,465
76,915
387,380		 Restricted
funds
£
72,351
-
-
72,351
-
171,869
171,869
(99,518)
8,871
(90,647)
131,619
40,972		 31.12.23
31.12.22
Total
Total
funds
funds
£
£
336,112
33,134
215,787
231,831
1,157
275
553,056
265,240
2,964
4,336
330,274
403,814
333,238
408,150
219,818
(142,910)
-
-
219,818
(142,910)
208,534
351,444
428,352
208,534

The notes form part of these financial statements

Page 7

The Princess Royal Class Locomotive Trust

Statement of Financial Position 31 December 2023

Notes
FIXED ASSETS
Tangible assets
10
Heritage assets
11
CURRENT ASSETS
Debtors
13
Cash at bank
CREDITORS
Amounts falling due within one year
14
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT
LIABILITIES
NET ASSETS
FUNDS
16
Unrestricted funds
Restricted funds
TOTAL FUNDS		 Unrestricted
fund
£
26,912
6,600
33,512
335,880
41,747
377,627
(23,759)
353,868
387,380
387,380		 Restricted
funds
£
40,971
-
40,971
-
-
-
1
1
40,972
40,972		 31.12.23
Total
funds
£
67,883
6,600
74,483
335,880
41,747
377,627
(23,758)
353,869
428,352
428,352
387,380
40,972
428,352		 31.12.22
Total
funds
£
131,387
6,600
137,987
67,489
91,276
158,765
(88,218)
70,547
208,534
208,534
76,915
131,619
208,534

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2023.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 2023 in accordance with Section 476 of the Companies Act 2006.

The trustees acknowledge their responsibilities for

The notes form part of these financial statements

Page 8

The Princess Royal Class Locomotive Trust

Statement of Financial Position - continued 31 December 2023

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

The financial statements were approved by the Board of Trustees and authorised for issue on ............................................. and were signed on its behalf by:

............................................. C Powell - Trustee

The notes form part of these financial statements

Page 9

The Princess Royal Class Locomotive Trust

Notes to the Financial Statements for the Year Ended 31 December 2023

1. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) '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) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

During the year the company was in receipt of relief in respect of the Coronavirus Job Retention Scheme. The income is recorded based on the claim periods made relating the financial year.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Buildings - 5% on cost Plant and machinery - 25% on cost Computer equipment - 33% on cost

Heritage assets

There is no depreciation charge on heritage assets because it has been estimated that the assets have a useful life of such length that any depreciation charge would be negligible and can be ignored on the basis of materiality.

This is contrary to Generally Accepted Accounting principles.

Taxation

The charity is exempt from corporation tax on its charitable activities.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the note 16.

Page 10

The Princess Royal Class Locomotive Trust

Notes to the Financial Statements - continued for the Year Ended 31 December 2023

2.
OTHER TRADING ACTIVITIES
Donated Profits from PRCLT Ltd
3.
INVESTMENT INCOME
Bank Interest Received
4.
RAISING FUNDS
Raising donations and legacies
Telephone
Sundries
5.
CHARITABLE ACTIVITIES COSTS
Expenditure
6.
DIRECT COSTS OF CHARITABLE ACTIVITIES
Staff costs
Locomotive Expenses
Insurance
Light and heat
Examination Fees
Repairs & renewals
Bank Charges
Depreciation		 Direct
Costs (see
note 6)
£
327,132		 31.12.23
£
215,787
31.12.23
£
1,157
31.12.23
£
1,596
1,368
2,964
Support
costs
£
3,142
31.12.23
£
81,105
9,373
21,085
34,256
4,192
25,969
668
150,484
327,132		 31.12.22
£
231,831
31.12.22
£
275
31.12.22
£
1,303
3,033
4,336
Totals
£
330,274
31.12.22
£
127,363
191,976
20,207
3,050
-
23,213
1,000
34,793
401,602

Page 11

The Princess Royal Class Locomotive Trust

Notes to the Financial Statements - continued for the Year Ended 31 December 2023

7. NET INCOME/(EXPENDITURE)

Net income/(expenditure) is stated after charging/(crediting):

31.12.23 31.12.22
£ £
Depreciation - owned assets 150,484 34,793

8. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 December 2023 nor for the year ended 31 December 2022.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 December 2023 nor for the year ended 31 December 2022.

9. STAFF COSTS

The average monthly number of employees during the year was as follows:

31.12.23 31.12.22
Administrative 4 5

No employees received emoluments in excess of £60,000.

10. TANGIBLE FIXED ASSETS

COST
At 1 January 2023
Additions
At 31 December 2023
DEPRECIATION
At 1 January 2023
Charge for year
At 31 December 2023
NET BOOK VALUE
At 31 December 2023
At 31 December 2022		 Freehold
property
£
2,500
-
2,500
-
-
-
2,500
2,500		 Buildings
£
813,572
-
813,572
687,170
126,253
813,423
149
126,402		 Plant and
machinery
£
80,112
86,980
167,092
77,634
24,224
101,858
65,234
2,478		 Computer
equipment
£
9,297
-
9,297
9,290
7
9,297
-
7		 Totals
£
905,481
86,980
992,461
774,094
150,484
924,578
67,883
131,387

Page 12

The Princess Royal Class Locomotive Trust

Notes to the Financial Statements - continued for the Year Ended 31 December 2023

10. TANGIBLE FIXED ASSETS - continued

Included in cost or valuation of land and buildings is freehold land of £2,500 (2022 - £2,500) which is not depreciated.

11. HERITAGE ASSETS

HERITAGE ASSETS
MARKET VALUE
At 1 January 2023 and 31 December 2023
NET BOOK VALUE
At 31 December 2023
At 31 December 2022		 Total
£
6,600
6,600
6,600

In accordance with Statement of Recommended Practice on Accounting for Charities the company's historic assets have not been capitalised unless purchased since 1st January 2008. Details of the company's historic assets which have not been capitalised due to their acquisition prior to this date are as follows:

1) Locomotive 46233 "Duchess of Sutherland" currently being used by the Trust's subsidiary to generate income.

4) Locomotive 46203 currently on static display and awaiting restoration.

5) 21 " gauge locomotive 6203 and one coach on display.

6) 21" locomotive 6201 and two coaches on display.

8) Royal Special Saloon 45000 on static display after restoration was completed.

9) Dynamometer Car No.1 fully restored and on static display.

The Trustees are of the opinion that the total value of these historic assets is £4,325,000.

The other railway vehicles not listed as Museum items have an estimated value of £210,000.

The charity also owns other historical artefacts and a museum collection with an estimated value of £202,000.

The charity also owns several smaller items of railway equipment with a going concern value given by the trustees of approximately £82,000. This has been given to the trust to be repaired or renovated as necessary.

Page 13

The Princess Royal Class Locomotive Trust

Notes to the Financial Statements - continued for the Year Ended 31 December 2023

12. FIXED ASSET INVESTMENTS

There were no investment assets outside the UK.

The company's investments at the balance sheet date in the share capital of companies include the following:

PRCLT Company Ltd

Registered office: Nature of business: Locomotive operation

PRCLT Company Ltd
Registered office:
Nature of business: Locomotive		 operation
%
Class of share: holding
Ordinary 100

The shares in the company were gifted to the company on incorporation and consequently have no cost in the company's accounts.

13. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Other debtors
Prepayments
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Bank loans and overdrafts (see note 15)
Trade creditors
Social security and other taxes
Other creditors
Accrued expenses		 31.12.23
£
335,880
-
335,880
31.12.23
£
-
-
(10,008)
30,266
3,500
23,758		 31.12.22
£
63,861
3,628		 31.12.22
£
63,861
3,628
67,489
31.12.22
£
8,695
40,153
2,325
30,469
6,576
88,218
88,218

14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Page 14

The Princess Royal Class Locomotive Trust

Notes to the Financial Statements - continued for the Year Ended 31 December 2023

15. LOANS

An analysis of the maturity of loans is given below:

31.12.23 31.12.22
£ £
Amounts falling due within one year on demand:
Bank overdrafts - 8,695
16. MOVEMENT IN FUNDS
Net Transfers
movement between At
At 1.1.23 in funds funds 31.12.23
£ £ £ £
Unrestricted funds
General fund 76,915 319,336 (8,871) 387,380
Restricted funds
West Shed Extension 131,619 (140,165) 8,695 149
MEND 22 Project - 40,647 176 40,823
131,619 (99,518) 8,871 40,972
TOTAL FUNDS 208,534 219,818 - 428,352
Net movement in funds, included in the above are as follows:
Incoming Resources Movement
resources expended in funds
£ £ £
Unrestricted funds
General fund 480,705 (161,369) 319,336
Restricted funds
West Shed Extension - (140,165) (140,165)
MEND 22 Project 72,351 (31,704) 40,647
72,351 (171,869) (99,518)
TOTAL FUNDS 553,056 (333,238) 219,818

Page 15

The Princess Royal Class Locomotive Trust

Notes to the Financial Statements - continued for the Year Ended 31 December 2023

16. MOVEMENT IN FUNDS - continued

Comparatives for movement in funds

Net
movement
At 1.1.22
in funds
£
£
Unrestricted funds
General fund
190,207
(113,292)
Restricted funds
West Shed Extension
161,237
(29,618)
TOTAL FUNDS
351,444
(142,910)
Comparative net movement in funds, included in the above are as follows:
Incoming
Resources
resources
expended
£
£
Unrestricted funds
General fund
265,240
(378,532)
Restricted funds
West Shed Extension
-
(29,618)
TOTAL FUNDS
265,240
(408,150)
A current year 12 months and prior year 12 months combined position is as follows:		 At
31.12.22
£
76,915
131,619
208,534
Movement
in funds
£
(113,292)
(29,618)
(142,910)
Unrestricted funds
General fund
Restricted funds
West Shed Extension
MEND 22 Project
TOTAL FUNDS		 At 1.1.22
£
190,207
161,237
-
161,237
351,444		 Net
movement
in funds
£
206,044
(169,783)
40,647
(129,136)
76,908		 Transfers
between
funds
£
(8,871)
8,695
176
8,871
-		 At
31.12.23
£
387,380
149
40,823
40,972
428,352

Page 16

The Princess Royal Class Locomotive Trust

Notes to the Financial Statements - continued for the Year Ended 31 December 2023

16. MOVEMENT IN FUNDS - continued

A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
Restricted funds
West Shed Extension
MEND 22 Project
TOTAL FUNDS		 Incoming
resources
£
745,945
-
72,351
72,351
818,296		 Resources
expended
£
(539,901)
(169,783)
(31,704)
(201,487)
(741,388)		 Movement
in funds
£
206,044
(169,783)
40,647
(129,136)
76,908

West Shed Extension

This fund relates to the building of the charity's museum. This was funded mainly from a grant received from the Heritage Lottery Fund and the company's own general fund. This project has been completed. Any further costs relate to depreciation charges.

MEND 22 Project

This fund relates to the grants received for installation of Solar Panels, all of which has been expensed and the project completed. Any further costs relate to depreciation charges.

17. RELATED PARTY DISCLOSURES

There were no related party transactions for the year ended 31 December 2023.

Page 17

The Princess Royal Class Locomotive Trust

Detailed Statement of Financial Activities for the Year Ended 31 December 2023

31.12.23 31.12.22
£ £
INCOME AND ENDOWMENTS
Donations and legacies
Gifts & Donations 336,112 33,134
Other trading activities
Donated Profits from PRCLT Ltd 215,787 231,831
Investment income
Bank Interest Received 1,157 275
Total incoming resources 553,056 265,240
EXPENDITURE
Raising donations and legacies
Telephone 1,596 1,303
Sundries 1,368 3,033
2,964 4,336
Charitable activities
Wages 81,105 127,363
Locomotive Expenses 9,373 191,976
Insurance 21,085 20,207
Light and heat 34,256 3,050
Examination Fees 4,192 -
Repairs & renewals 25,969 23,213
Bank Charges 668 1,000
Buildings 126,253 33,678
Plant and machinery 24,224 930
Computer equipment 7 185
327,132 401,602
Support costs
Management
Postage and stationery - 1,012
Governance costs
Accountancy 3,142 1,200
Total resources expended 333,238 408,150
Net income/(expenditure) 219,818 (142,910)

This page does not form part of the statutory financial statements

Page 18