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 2023 CONTENTS Page Company information Directors, report Income & expenditure account Balance Sheet 6-10 Notes to the financial statements
SOUTH WEST MAIN LINE sfEAM COMPANY Page I OFFICERS AND OTHER INFORMATION For the Year Ended 31st May 2023 DIRECTORS/TRUSTEES Mr P H Gould Chairman Mr J Miller- Vice Chairman MrRCWAbbott Mr J W Dirring Mr M Hibberd Mr A J Reese Mr D R Woodland Mr R W Johns MrAKSugg Mr P C Chainey Mr A Broadhead from 17 May 2023 INDEPENDENT EXAMINER MrSJCook CHARITY REGISTERED Number 1043581 COMPANY REGISTERED Number 2929246 REGISTERED OFFICE Yeovil Junttion Station Stoford Yeovil Somerset BA22 9UU BANKERS Barclays Bank plc King George Street Yeovil Somerset BA20 IPX
SOUTH WEST MAIN LINE STEAM COMPANY IDdependent cx*miners report to tbe trustees of South Wesl Main Lille Stealn Company I report io the charity trnstees on my examirkation of the ac¢ounts of th¢ company for the year ended 31 May 2023. Responsibklities 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 thc prcparation of the a¢¢ounts in accordance with th¢ qUirementS of the Companies Act 2006 ('the 2006 Act.). Having satisfied myself that the accounts of the Company are not reqllired to be audited undcr Part 16 of the 2006 Act and are eligible for independcnt cxamination, report in respect of my cxamination of you charity's accounts as carried out under Section 145 of the Charitics 2011 ('the 2011 Act,). In carrying out my examination I have followed the Directions given by the Charily Commission under section 145(5) (b) of the 2011 Act. Independent examiner's s¢#tement I have complctcd my ex8mination. l eonfinn that no matters have comc lo my attention in connection with the examination giving me cause to believe-. l Accounting records wcr¢ 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 Thc COuntS do not comply with the accounting rwuircmcnts of section 396 of thc 2006 A¢t other than any requirement that thc accounts giv¢ a 'truc and fair view whi¢h is not a matler considered as part of aJ) independent examination- or 4 The accounts have not been prq)ared in accordance with the methods and principles of the Statement of Rccommended Practice for accounting and reporting by charities applicablc to charities preparing their accounts in a¢¢ordance with the Financial Reporting Standard applicable in the UK and Rcpublic of Ireland (FRS 102). I have no concerns and have come across no other matters in connection with the examination to which atten(ion should be drnwn in this report in order to enable a proper undeTStanding of the ac¢ounrs to be reached. S J Cook ACA Croslands. IA Daniclsficld Road, Y¢ovil, Somerset BA20 2LR I l March 2024
SOUTH WEST MAIN LINE STEAM COMPANY Page 2 TRusfEES' REPORT For the Year Ended 31st May 2023 The Trustees (who are also the Directors far the purposes of Company Law) submit their annual report and the unaudited financial statements of the company for the year ended 315t May 2023. The provisions of the Statement of Recommended Practice 'Accounting and Reporting by Charities, (SORP FRS 102 implemented I January 2015) 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 Nemorandum and Articles of Association dated 16 May 1994 (Note 18). 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 moximum number of Trustees. New Trustee5 are initially as515ted 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 lunction. 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 gauges 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 Cammission. REVIEW OF THE BUSINESS The year ended 31 May 2023 proved to be a successful one for the Centre, especially the larger events. Our Tractor and Trains event was expanded to two days with a large number of visitors and exhibits whilst Santa Specia Is exceeded the record set the previous year in numbers (2343) and financial return up by almost £7000. Our regular events held their own, making a continued good return to help cover the overheads. Main Line steam on the other hand continued to appear in modest numbers with 4 different locomotive5 being noted. other notable events included the takeover of Wessex Wagons from Bruce and Helen Harding who continued helping for some time to enable a smooth transition. We are very grateful to them. The commission and sale of bespoke Model Railway wagons fits in well with our aims. Volunteers attend various Model Railway exhibitions with the majority of sales being made on-line. Wessex Wagons has proved to be a well worthwhile acquisition although many unpaid hours are given by volunteers to achieve this. On 17 June 2022, on loan steam engine 'Lord Fisher, was withdrawn from service with its boiler ticket expiring. Some dismantling has taken place to ascertain what repairs are required to achieve a return to service and the costs involved.
SOUTH WEST MAIN LINE STEAM COMPANY Page 3 TRUSTEES, REPORT (CONTINUED) For the Year Ended 31st May 2023 The Centre has been advised that the existing agreement (overhaul and run with no hire fees) can continue at the Centre's discretion. Some significant land expensive) work is anticipated to the boiler this time. In February 2023, physical work commenced on the replacement Toilet Block with the footings and foundations completed at year end. The Centre 15 very grateful to its supporter5 for their contributions to the Appeal, making the construction possible, although it is anticipated that the Centre will a Iso need to use its own funds as work progresses. There are funds available to do this. Income exceeded expenditure by £37156.23. Some £9000 extra received from the Tractor & Santa events over the previous year with the remainder from Wessex Wagans and other continuing income streams, including the Shopi Catering, Memberships and Donations as well ongoing public open days. As the Toilet Block progresses, the Centre's expenditure will rise in the next financial year, offsetting much of the surplus made. The Centre's financial position continues to be satisfactory although the concerns around costs, in particular energy and coal continue, coupled with the Cost of Living cri515 impacting on future visltor numbers. The Trustee5 will continue to exercise financial caution. Statement of Trustees. Responslbllltles The Trustees are responsible for prepari ng the Trustee5' 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 Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). Company Law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to.. Select suitable accounting policies and then a pply them con515tently' Observe the methods and princi ples in the Charities SORP; Make judgments and accounting estimates that are reasonable and prudent. State whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the fi nancial statements; Prepare the financial 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 ti me the fi nancial 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 a55ets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. 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 steps that they ought to have taken to make themselves aware of any relevant i nformation and to establish that the independent examiner is aware of that. information. Signed by order of the trustees on 27 February 2024 P H Gould Chairman and Trustee
SOUTH WEST MAIN LINE STEAM COMPANY Page 4 INCOME AND EXPENDITURE ACCOUNT For the Year Ended 31st May 2023 NOTE 2023 2022 INCOME Operating expenses 114,130.73 77,017.96 77739.76 80202.66 37,112.77 (2462.90) 3917.00 Other Operating Income Operating Surplus Bank interest received 37,112.77 43.56 1454.10 8.43 SURPLUS ON ORDINARY ACTIVITIES io 37,156.33 1462.53 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 sfEAM COMPANY Page 5 BALANCE SHEET As at 31st May 2023 NOTE 2023 2022 FIXED ASSETS Intangibles assets Tangible assets 2,000.00 64,569.13 49451.49 66,569.13 49451.49 CURRENT ASSETS Stock Debtors Cash at bank & in hand 18,143.46 3,374.33 105,770.91 3511.00 2254.64 96772.84 127,288.70 102538.48 CURRENT LIABILITIES Creditors 3512.88 1883.94 NET CURRENT ASSETS 123,775.82 100654.54 TOTAL ASSETS LESS LIABILITIES £190,344.95 £150106.03 RESERVE5 Income and expenditure account io Engine Overhaul Fund io Toilet Block Fund io 159,340.88 31,004.07 0.00 111,653.68 27921.48 10530.87 190,344.95 150106.03 These accounts have been prepared in accordance with the special pravisions 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 2023 the company was entitled to exemption under section 477 of the Companies 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 records and the preparation of accounts. Approved by the directors on 28 February
SOUTH WEST MAIN LINE STEAM COMPANY, Page 6 NOTES TO THE FINANCIAL STATEMENTS For the Year Ended 31st May 2023 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 pages 2-4. The financial statements 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 Prdctice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective l January 20 15)-(Charities SORP {FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companie5 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) Intangible fixed assets The intangible fixed asset relates to goodwill purchased from another business enterprise. It is being amortised on a straight line basis over its estimated useful life of 5 years. ¢) Tangible fixed assets Tangible fixed assets are stated at historic cost or transaction cost less accumulated depreciation. d) Depreciation The leasehold property improvements are being written off at the rate of 20/0 per annum on the straight line basis. The company currently has a 99 year lease which expires on 31 July 2114. In the opinion of the directors, the value of the rolling stock will not fall below its cost value and therefore these assets are not depreciated. The d irectors regularly review this assertion. The other equipment is being written off at the rate of 20010 per annum on the straight line basis. e) Stock Stock relates to Stock purchased for resale as well as to stock of unused coal at the year end. Stock is valued at the lower of cost and net realisable value. f) Debtors Trade debtors are recognised at the settlement amount due. g) Creditors Creditors 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. h) Operating leases Rentals payable under operating leases are charged in the statement of financial activities on a straight line basis over the lease term. i) 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 2023 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 soon 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 charityi the company is exempt from corporation tax and capital gain5 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.. Amortisation of intangible fixed assets Depreciation of tangible fixed assets 2023 2022 500.00 2291.81 13184.13 During the year other income of £nil was received from the Government in respect of a Coronavirus grant. The amount received in the previous year was £3917,00 6. Intangible Fixed ASSETS 2023 Additions 2500.00 AmortlSation to 31 May 2023 (500.00) Balance as at 31 May 2023 2000.00 Balance as at I lune 2022
SOUTH WEST MAIN LINE STEAM COMPANY Page 8 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) For the Year Ended 31st May 2023 7. TANGIBLE FIXED ASSETS Engine structure Shed & Buildings Track Extension Toilet Block Cost As at I" June 2022 Additions 29109.11 6292.40 11474.50 17409.45 As at 31" May 2023 29109.11 6292.40 11474.50 17409.45 Depreciation/Amortisation As at I" June 2022 Charge for the year 6292.40 11474.50 582.18 As at 31, May 2023 582.18 6292.40 11474.50 Net Book Value As at 31" May 2023 £28526.93 £0 £0 £17409.45 As at I" June 2022 £29109.11 £0 £0 £0 Rolllng Other Stock equipment Total Cost As at I, June 2022 Additions 15689.33 65876.82 128442.16 17409.45 A5 at 31" May 2023 15689.33 65876.82 145851.61 Depreciation/amortisation As at I" June 2022 0.00 61223.77 Charge for the year 0.00 1709.63 78990.67 2291.81 As at 31" May 2023 0.00 62933.40 81282.48 Net Book Value As at 31" May 2023 15689.33 2943,42 64569.13 As at I" lune 2022 15689.33 4653.05 49451.49 The company is in the process of building a toilet block and at 31 May 2023 it 15 Still in the course of construction. No amortisation will be provided until construction has been completed and the block has been brought into use
SOUTH WEST MAIN LINE STEAM COMPANY Page 9 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) 8. DEBTORS 2023 Prepayments 92.50 Value added tax 3,281.83 2022 262.50 1992.14 3,374.33 2254.64 9. CREDITORS 2023 2360.38 452.50 700.00 2022 731.44 452.50 700.00 Sundry Creditors Monthly subs and donations in advance Ruston Fund 3512.88 1883.94 10. RESERVES Income and Expenditure Account Engine Overhaul Fund Toilet Block Fund Balance at l June 2022 111,653.68 27,921.48 10,530,87 Retained surplus for year 31,118.18 6,038.15 Transfer from general Funds Income Costs 3,000.00 107.59 -25.00 Transfer between reserves 16,569.02 -16,569.02 Balance at 31 May 2023 159,340.88 31,004.07 Following the gift of steam locomotive 'Pectin' to the company by the 6000 Locomotive Association, donations of £22,510.00 were received. These sums are available to the company for any use. However, the Trustees have elected 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 from the company's operating account inta this fund, and interest received on the fund balance is added to the fund. The toilet block fund is a restricted fund for the construction of a toilet block. Monies raised toward5 this projett are included in this reserve and are released into general funds when construction costs have been made. The costs incurred are included as leasehold property improvements. During the year costs incurred have exceeded the amount of monies raised up to 31 May 2023 and therefore all of the balance of the toilet block fund has been released to the general profit and loss reserve. 11. OPERATING LEASE COMMITMENTS As at 31 May 2023 the charity had annual commitments under non-cancellable operating leases as follows: Operating leases which expire: Over five years 2023 1328.00 2022 1600.00
SOUTH WEST MAIN LINE STEAM COMPANY Page 10 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED} 12. TRUSTEES. EXPENSES No trustee has been paid remuneration or a general expenses allowance for their services s a trustee. Trustees are reimbursed for specific expenses incurred on behalf of the company for travelling, 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 Overhaul Fund for future locomotive overhauls) and also endeavour to maintain, on a prudent basis, adequate unrestricted cash balances for other day to day activities of the Company with a minimum set of £10,000. Surplus unrestricted cash balances are currently In excess of this level. 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 50 the returns at present are not significant. 15. RISK MANAGEMENT The Trustees have a Risk Managernent strategv:_ 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 risks arising from train operations, Slte 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 group5. 17. PLANS FOR FUTURE PERIODS The Centre was pleased that the number of returning volunteers after Covid was unchanged and it is planned to attract new volunteers through advertising and posters to maintain the current level at least. The Toilet Block will be the main special project with completion aimed for Summer 2024. Planning for the South Chord extension is proceeding with some track materials already in hand, thanks to the hard work of volunteers. Fundraising far this will be required as well as an input from the Centre. All approvals have been received 18. GOVERNING DOCUMENT South West Main Line Steam Company is a company limited by guarantee, Incorporated on 16 May 1994 and governed by its Memorandum and Article of AsSOClation. In the event of winding-upi every member uncJert6kes 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 historical interest formerly associated with land transport since the 19th Century and in particular but not exclusively the London and South Western Railway Company. Also to maintain and operate for the beneffit of the public the Tumtable, Water Tower and other structures and facilities at Yeovil and facilities for the operation of steam locomotives at Yeovil and elsewhe.