SOUTH WEST MAIN LINE STEAM COMPANY (A Charitable Company Limited by Guarantee) Registered in England and Wales - Number 2929246 Charity - Number 1043581 ANNUAL REPORT AND FINANCIAL STATEMENTS For the Year Ended 31st May 2021 CONTENTS Page Company information Directors, report Income & expenditure account Balance Sheet Note5 to the financial statements
SOUTH WEST MAIN LINE STEAM COMPANY Independent examiner5 report to the trustees of South West Ivlain Line Steam Company I report to the charity trustees on my examination of the accounts of th¢ company for the year ended 31 May 2021. 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 r¢5ponsiblc for the preparation of the accounts in accordan¢¢ 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 A¢1 and are eligible for independent examination, I report in resp¢¢t of my examination of you charity's accounts as carried out under s¢ction145 of the Charlties Act 2011 ('the 2011 Act,). In carrying out my examination I have followed the Directions given by the Charity Commission ui)d¢r scotion 145(5) (b) of the 2011 Act. Independent examiner's statcment I have completed my examination. I confirni that no matters have com¢ to my attention in connection with then examination giving mc rausc to bcli¢ve'. l Accounting records were not kept in r¢5P¢Qt of the Company as required by section 386 of tli¢ 2006 A¢i' or 2 Tile xc¢ounts do not accord with those records. or 3 Tli¢ ao¢ouuts do not comply with the accounting requirements of section 396 of the 2006 A¢t. Othcr than any quireMent 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 Republie of Ireland (FRS 102). I have no coneems and hav¢ ¢om¢ across no oth¢r inatters in connection with the examination to wliich attcntion should b¢ drawn in this report in order to enable a proper understanding of the accounts to be reached. S J Cook ACA 8 Fri2rs Avenue, Yeovil, Somerset BA20 3HY 17 January 2022
SOUTH WEST MAIN LINE STEAM COMPANY Page I OFFICERS AND OTHER INFORMATION For the Year Ended 31st May 2021 DIRECTORS/TRUSTEES Mr P H Gould Chairman Mr l Miller- Vice Chairman MrRCW Abbatt Mr J W Dirring Mr M Hibberd Mr A J Reese Mr K T Sugg (until 27 September 2020) MrJMRead Mr D R Woodland Mr R W Johns MrAKSugg Mr P C Chainey INDEPENDENT EXAMINER MrSJCook CHARITY REGISTERED Number 1043581 COMPANY REGISTERED Number 2929246 REGISTERED OFFICE Yeovil lunction Station stoford Yeovil Somerset BA22 9UU BANKERS Barclays Bank plc King George Street Yeovil Somerset BA20 IPX
SOUTH WEST MAIN LINE STEAM COMPANY Page 2 TRUSTEES, REPORT For the Year Ended 31st May 2021 The Trustees (who are also the Dirertors for the purposes of Company Law) submit their annual report and the unaudited financial statements of the company for the year ended 31st May 2021. The provisions of the Statement of Recommended Practice 'Accounting and Reporting by Charities, (SORP FRS 102 implemented I January 20 15) and the special provisions relating to small companies within Part 15 of the Companies Act 2006 have been adopted in preparing the annual report and financial statements of the charity. The governing document is the Memorandum and Articles of Association dated 16 May 1994 (Note 16). Trustees are appointed at the Annual General Meeting. One-third of the Trustees retire by rotation annually and may seek re-election. The Trustees may co-opt new Trustees who must then seek election at the next Annual General Meeting. There must be no less than three Trustees at any one time, but there is no maximum number of Trustees. New Trustees are initially assisted by other Trustees and are directed to Charity Commission publications regarding trustee responsibility. No Trustee has a beneficial interest in the Company. All Trustees are members of the Company. The Company has no employees. PUBLIC BENEFIT and PRINCIPAL ACTIVITY The principal activity of the Company continues to be operating and upgrading the site at Yeovil Railway Centre, Yeovil Junction. It offers the general public the opportunity to see servicing and turning of main steam line engines at close quarters. Regular Steam Train Days are also held when demonstrations and commentary are given and exhibitions offered to provide insight into the operation of railways in general and around Yeovil in particular. Occupying the Transfer Shed provides a direct link to the early days of railways and the difference in gauge5 between the Railway Companies. The trustees report that the charitable activities described are for the public benefit. The trustees also confirm that they have complied with section 4 of the Charities Act to have due regard to the public benefit guidance published by the Charity Commission. REVIEW OF THE BUSINESS The Company once again is greatly indebted to the Trustees, Volunteers, Members and Friends who have used their skills and dedication in furtherance of the Company's future. This year, and subsequently, the financial situation has been adversely affected by Coronavirus and the ongoing effect is discussed below. With lockdowns and restrictions related to the Coronavirus pandemic, the Centre was forced to close for long periods to both public and volunteers during the year. The only significant event to operate was a much reduced 4 day Santa Special season, which sold out and resulted in a surplus of £6054 12020 - £ 10127). After staff refreshing and maintenance checks for a second time, the CerTrtre was able to reopen again towards the end of May 2021 although restrictions and safeguards including pre-booking were still in place. During the pandemic, development by Dyer and Butler of the new depot for South West Trains Continued with regular discussions and lirnited involvement with ourselves. A positive development wa5 the resurfacing of the platform we lease at no expense to ourselves. The Centre is grateful for the involvement of volunteers in maintaining a security watch when otherwise the premises would not have been inspected for many weeks at a time. It is pleasing to note the number of volunteers that have returned to the Centre after a long perlod away. Income for the year was down £32327 whS1sr expenses were also reduced by
SOUTH WEST MAIN LINE STEAM COMPANY Page 3 TRUSTEES, REPORT (Continued) For the Year Ended 31st May 2021 £12813, resulting in an operating deficit of £12563 12020 surplus £6961). A strict cost saving exercise was implemented throughout the year to reduce outgoings to an absolute minimurn. The Company were able to claim further Government Covid-19 grants totalling £18674 and financially at least, ended the year with a surplus of £6 13 1, a similar position to one that might have been reasonably expected in normal circumstances. However, projerts that had been planned had to be delayed until restrictions began to ease during May 2021. Statement of Trustees. Responsibilites The Trustees are responsible for preparing the Trustees, Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102.. The Financial Reporting Standard applicable in the UK and Fiepublic of Ireland (United Kingdom Generally Accepted Accounting Practice). Company Law requires the trustees to prepare financial 5tatement5 for each financial year which give a true and fair view of the state of affairs of the charitable company and Df the income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to: Selett suitable accounting policies and then apply them CDn515tently' Observe the methods and principles in the Charities SORP; Make judgements and accounting estimates that are reasonable and prudent,. State whether applicable U K Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; Prepare the financia I statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business. The trustees are responsible for Maintaining proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularitie5. In so far as the trustees are aware.. There is no relevant information of which the charitable company's independent examiner is unaware; and The trustees have taken all 5tep5 that they ought to have taken to make themselves aware of any relevant information and to establish that the independent examiner is aware of that information. Signed by order of the trustees on 17 November 2021 PH Gould Chairman and Trustee
SOUTH WEST MAIN LINE STEAM COMPANY Page 4 INCOME AND EXPENDITURE ACCOUNT For the Year Ended 31st May 2021 NOTE 2021 2020 INCOME 25085.04 57412.86 Operating expenses 37648.62 50461.82 (12563.58) 6951.04 other Operating Income 18674.00 OPERATING SURPLUS Bank interest received 6110.42 21.14 6951.04 43.42 SURPLUS ON ORDINARY ACTIVITIES 6131.56 6994.46 RETAINED SURPLUS BROUGHT FORWARD 104059.59 97065,13 RETAINED SURPLUS CARRIED FORWARD 110191.15 104059.59 The results for the year derive from continuing activities and there are no gains or losses other than those shown above.
SOUTH WEST MAIN LINE STEAM COMPANY Page 5 BALANCE SHEET As at 31st May 2021 NOTE 2021 2020 FIXED AssFrs Tangible a55ets 51161.12 52336.11 CURRENT ASSETS Debtors Cash at bank & in hand 736.61 90736.45 766.84 80124.95 91473.06 80891.79 CURRENT UABILITIES Creditors 403.00 353.00 NET CURRENT ASSETS 91070.06 80538.79 TOTAL ASSETS LESS LIABILITIES £142231.18 £ 132874.90 RESERVES Income & expenditure account Engine Overhaul Fund Toilet Block Fund 110191.15 26186.45 5853.58 104059.59 28153.66 661.65 io £142231.18 £ 132874.90 These accounts have been prepared in accordance with the special provisions of Part 15 of the Companies Act relating to small companies and constitute the annual accounts required by the Companies Act 2006. For the year ending 31 May 2021 the company was entitled to exemption under section 477 of the Companie5 Act 2006 relating to small companies. The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006. The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting record5 and the preparation of accounts. Approved by the directors on 17 November 2021 Paul Gould - Chairman
SOUTH WEST MAIN LINE STEAM COMPANY Page 6 NOTES TO THE FINANCIAL STATEMENTS For the Year Ended 31st May 2021 I. ACCOUNTING POLICIES a) Basis of accounting South West Main Line Steam Company is a Company limited by guarantee incorporated in England and Wales under the Companies Act. The address of the registered office is given on page l.The nature of the charity's operations and its principal activities are set out in the Trustees report on page5 2-4. The financial statement5 have been prepared under the historic cost convention. 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 IFRS 102) (effective l January 20151- (Charitie5 SORP (FRS102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. The charity meets the definition of public benefit under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy. b) Tangible fixed assets Tangible fixed assets are stated at historic cost or transaction cost less accumulated depreciation. c) Depreciation Provision for depreciation is made so as to write off the book values of tangible fixed assets over their expected useful lives by means of the straight line method at the following rates. In the opinion of the directors, the value of the engine shed and rolling stock will not fall below cost value, therefore these assets are not depreciated. All other assets are depreciated at 200/D per annum. Depreciation is not charged in the year of acquisition. d) Debtors Trade debtors are recognised at the settlement amount due. e) Creditors Creditor5 and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in a 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 recognised at their settlement amount. f) Operating leases Rentals payable under operating leases are charged in the statement of financial activities on a straight line basis over the lease temi. g) Government Grants Government Grants of a revenue nature are recognised under the accruals model resulting in income being recognised on a systematic basis over the period. The income is recognised as other income in the profit and loss account.
SOUTH WEST MAIN LINE STEAM COMPANY Page 7 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) For the Year Ended 31st May 2021 2. INCOME Income, which arose wholly within the United Kingdom, is attributable to the principal activities of the company and is recognised where there is an entitlement, certainty of receipt, and the amount can be measured with sufficient reliability. 3. EXPENDITURE Liabilities are recognised as 500n as there is a legal or constructive obligation committing the charity to the expenditure. All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related that category. 4. TAXATION A5 a registered charity, the company is exempt from corporatian tax and capital gains tax, to the extent which income and gains are applied to charitable purposes. The company is not exempt from Value Added Tax (VAT). Irrecoverable VAT is included in the costs of those items to which it relates. 5. OPERATING SURPLUS The operating surplus is stated after charging.. 2021 2020 Depreciation of tangible fixed a55ets £2096.49 £ 2322.40 During the year other income of £18,674 was received from the Government in respect of a Coronavirus grant. The amount of grants recognised in the financial statements is £18,674 (2020 - £Nil) 6. TANGIBLE FIXED ASSETS Engine strurture Shed & Buildings Rolling other stock Equlpment 6292.40 15689.33 64955.32 116046.16 921.50 921.50 Total As at I" June 2020 Additions 29109.11 As at 31" May 2021 £29109.11 £6292.40 £15689.33 £65876.82 £116967.66 Depreciation As at l June 2020 Charge for the year 6292.40 57417.65 £63710.05 2096.49 2096.49 As at 31" May 2021 6292.40 59514.14 £65806.54 Net Book Value As at 31" May 2021 £29109.11 £0 £15689.33 £6362.68 £51161.12 As at I. June 2020 £29109.11 £0 £15689.33 £7537.67 £52336.11
SOUTH WEST MAIN LINE STEAM COMPANY Page 8 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) For the Year Ended 31st May 2021 7. DEBTORS Trade Debtors Value added tax 2021 2020 736.61 766.84 736.61 766.84 8. CREDITORS 2021 403.00 2020 353.00 Monthly subs and donations in advance 403.00 353.00 9. ENGINE OVERHAUL FUND Opening Balance Income through Milk Churn Interest received during the year Transfer from operating funds Cost of overhauling Pectin 2021 28153.66 2020 26891.63 33.45 64.85 3000.00 (1836.27) 36.85 3000.00 (5004.06) 26186.45 28153.66 Following the gift of steam locomotive 'Pectin' to the company by the 6000 Locomotive Association, donation5 of £22510.00 were received. These sums are avail3ble to the company for any use. However, the Trustees have elerted to set up a specific 'Engine Overhaul Fund, to finance the current and next boiler overhaul. A transfer of £250.00 per month is being made frorn the company's operating account into this fund, and interest received on the fund balance is added to the fund. 10. Toilet Block Fund 2021 2020 Opening Balance Income through donations Planning costs 661.65 6032.07 (840.14) 1188.65 (527.00) £5853.58 £661.65 11. Operating lease commitments As at 31 May 2021 the charity had annual commitments under non-cancellable operating leases as follows: Operating leases which expire.. Over five years 2021 £iooo 2020 £iooo As part of their support during the Coronavirus pandemic Network Rail decided not to charge for rent in May 2020.
SOUTH WEST MAIN LINE STEAM COMPANY Page 9 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) For the Year Ended 31°, May 2021 12. Trustees. expenses No trustee has been paid remuneration or a general expenses allowance for their services as a trustee. Trustees are reimbursed for specific expenses incurwd on behalf of the company for travellingi Stationery & postage etc. and for authorised purchases made personally on behalf of the company. 13. Cash Reserves The Trustees will maintain designated Funds for specific projects (eg Engine Qverhaul Fund for future locomotive overhauls) and also endeavour to maintain, on a prudent basis, dequate unrestricted cash balances for other day to day activities of the Company with a minimum set Df £10,000. Surplus unrestricted cash balances are currently in excess of this level. The Company has a restricted fund for the construction of a replacement toilet block. All other funds are unrestricted. 14. Investment Powers and Policy The Trustees keep available funds liquid and the surplus over everyday requirements in an interest bearing account. Interest rates are low so the returns at present are not significant. 15. Risk Management The Trustees have a Risk Nanègernent strategy:_ a) An annual review of the principal risks and uncertainties the charity faces. The establishment of policies to mitigate those risks. b) Attention is also focused on non-financial risk5 arising from train Dperations, site operations, fire, Health & Safety and food Hygiene. These risks are managed through accreditation, Safety Management Systems and ongoing checks of their implementation. 16. Children and Vulnerable Adults The Trustees have in place appropriate policies for these groups. 17. Plans for Future Periods Enhancements to our offering to the public must continue. However, Covid- 19 ha5 delayed some of our future plans and projects. With a return to a degree of normality, work on the replacement Toilet Block planning and extension of the railway onto the South Chord have re-started. The latter will provide a modest platform. This would enable the sympathetic development of the field above giving a proper destination. Subject to various approvals and funding being found. 18. Governing Document South West Main Line Steam Company is a company limited by guarantee, Incorporated on 16" May 1994 and governed by its Memorandurn and Article of Association. In the event of winding-up, every member undertakes to contribute a sum not exceeding ten pounds to cover any debts and liabilities. Its Objects are to educate and maintain a museum for the benefit of the public of items of historlcal Interest formerly associated with land transport between the 19th and 20th Centuries and in particular but not exclusively the London and South Western Railway Company. Also to maintain and operate for the benefit of the public the Turlltable, Water Tower and other structures and facilities at Yeovil and facilities for the operation of steam locomotives at Yeovil and elsewhere.