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 2024 CONTENTS Page Company information Directors, report Income & expenditure account Balance Sheet 7-12 Notes to the financial statements
SOUTH WEST MAIN LINE STEAM COMPANY Page I OFFICERS AND OTHER INFORMATION For the Year Ended 31st May 2024 DIRECTORS/TRUSTEES Mr P H Gould - Chairman Mr J Miller-vice Chairman (Resigned 18 October 2023) Mr R C W Abbott-vice Chairman from 17 January 2024 Mr A Broadhead (Resigned 25 September 2023) Mr P C Chainey (Resigned 24 May 2024) Mr N Coultas (Appointed 21 February 2024) Mr J W Dirring Mr W E Gane (Appointed 18 October 2023) Mr M Hibberd Mr R W Johns Mr A J Reese Mrs H M Sims (Appointed 18 Ortober 2023) Mr S R Sims (Appointed 18 October 2023) MrAKSugg Mr D R Woodland (Resigned 12 May 2024) INDEPENDENT EXAMINER Mr S J Cook CHARITY REGISTERED Number 1043581 COMPANY REGISTERED Number 2929246 REGISTERED OFFICE Yeovil Junction Station Stoford Yeovil Somerset BA22 9UU BANKERS Barclays Bank plc King George Street Yeovil Somerset BA20 IPX
SOUTH WEST MAIN LINE STEAM COMPANY Independent examiners report to the trustees of South West Main Line Steam Company K report to the charity trustees on my cxamination of the accounts of the company for the year ended 31 May 2024. 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 ihe 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 201 l Act,). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5) (b) of the 201 l Act. Independent examiner's statement I have completed my examination. I confirn] that no matters have come to my attention in connection with the examination giving me cause to believ¢: l Accounting records were not kept in respect of the Company as quired 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 Rewrting 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 und¢rstanding of the accounts to be reached. S J Cook ACA Croslands, l A Danielsfjeld Roa( Yeovil. Somerset BA20 2LR 14 March 2025
SOUTH WEST MAIN LINE STEAM COMPANY Page 2 TRUSTEES. REPORT For the Year Ended 31st May 2024 The Trustees (who are also Directors for the purposes of Company Law) submit their annual report and the unaudited financial statements of the company for the year ended 31" May 2024. The provisions of the Statement of Recommended Practice 'Accounting and Reporting by Charities. (SORP FRS 102 implemented l 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 Memorandum 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 Trustee5 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 continue5 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 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 Commission. REVIEW OF THE BUSINESS The year ended 31 May 2024 was another successful twelve months, both in number of visitors and also financially, despite the current financial restraints that many people face. Our main focus continues to be on attracting families with younger children although the railway enthusiast5 Visit, not only to look around but also witness main line steam visits. These visits are still at a low level and have not recovered to pre-covid numbers. The first steam Punk and Classic Car event was held in August 2023 and will be repeated due to its popularity. The other major events, Tractor & Train weekend, Easter weekend and Model Railway exhibition all drew high numbers of visitors. Halloween and in particular Santa Specials also contributed to the overall surplus the Company achieved.
SOUTH WEST MAIN LINE STEAM COMPANY Page 3 TRUSTEES. REPORT (CONTINUED) For the Year Ended 31st May 2024 The sale on-line of bespoke Model Railway wagons continues to expand assisted by the presence of volunteers at Model Railway Exhibitions in the West Country. The Trustees very much appreciate the many hours volunteers put into Wessex Wagons in attending shows, also processing and dispatching on-line orders. Our volunteers are the life-blood of the Company who give generously of their time, whatever the weather and often above and beyond wh3t would be expected. The Company is also most grateful for the continuing donations towards the Toilet Block of over £8,000 in this year. The toilet block construction continues and by the year end the fabric of the building had been complete with the internal fitting out along with other more minor matters. Although it takes more time, volunteers are being used wherever possible to keep costs down. Although the surplus for the year was reduced from £37,156 to £16,014 this is after amortising the cost of moving donated railway track in connection with the South Chord project which cost £14,372 and the purchase of a significant amount of replacement sleepers and fittings costing £7,455. The price for electricity led to an increase in expenditure just under £5,000. The Company's financial position continues to be satisfactory. The Trustees are aware of some significant future expenditure in connection with the Transfer Shed roof and overhaul of Andrew Barclay 'Lord Fisher,. Timing and totals are not yet known. This, with the current economic conditions, will require caution to continue to be required. STATEMENT OF TRUSTEES. RESPONSIBILITIES 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 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 apply them consistently; Observe the methods and principles 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 financial statements; Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
SOUTH WEST MAIN LINE STEAM COMPANY Page 4 TRUSTEES. REPORT (CONTINUED) For the Year Ended 31st May 2024 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 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 information and to establish that the independent examiner is aware of that information. Signed by order of the Tru.stees on 27 February 2025 P H Gould Chairman and Trustee
SOUTH WEST MAIN LINE STEAM COMPANY Page 5 INCOME AND EXPENDITURE ACCOUNT For the Year Ended 31st May 2024 NOTE 2024 2023 INCOME Operating expenses 124,612.27 110,079.94 114,130.73 77,017.96 14,532.33 37,112.77 Other Operating Income Operating Surplus Bank interest received 14,532.33 1,481.27 37,112.77 43.56 SURPLUS ON ORDINARY ACTIVITIES 10 £16,013.60 £37,156.33 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 6 BALANCE SHEET As at 31st May 2024 NOTE 2024 2023 FIXED ASSETS Intangibles assets Tangible assets 1,500.00 99,824.04 2,000.00 64,569.13 101,324.04 66,569.13 CURRENT ASSETS Stocks Debtors Cash at bank & in hand 18,100.91 5,321.88 85,324.12 18,143.46 3,374.33 105,770.91 108,746.91 127,288.70 CURRENT LIABILITIES Creditors 3,712.40 3,512.88 NET CURRENT ASSETS 105,034.51 123,775.82 TOTAL ASSETS LESS LIABILITIES £206,358.55 £190,344.95 RESERVES Income and expenditure account 10 Engine Overhaul Fund 10 Toilet Block Fund 10 172,354.48 34,004.07 0.00 159,340.88 31,004.07 0.00 £206,358.55 £190,344.95 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 2024 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 27 February 2025
SOUTH WEST MAIN LINE STEAM COMPANY Page 7 NOTES TO THE FINANCIAL STATEMENTS For the Year Ended 31st May 2024 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 Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effettive l January 2015)-(Charities 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) 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. c) Tangible fixed assets Tangible fixed assets are stated at historic cost or transaction cost less accumulated depreciation. d) Depreciation The leasehold property improvements (Engine Shed) 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. The track extension is amortised at 100 % in the year of acquisition because in the opinion of the directors the rai15 were donated and the costs relate to the transport only. In the event of a winding up, the rails would have no or only a very limited value. 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 directors regularly review this assertion. The other equipment is being written off at the rate of 200/0 per annum on the straight line basis, commencing in the year following the year of acquisition. e) Stock Stock relates to stock purchased for resale, unused coal & diesel and presents for the following year's Santa Specials held 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.
SOUTH WEST MAIN LINE STEAM COMPANY Page 8 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) For the Year Ended 31st May 2024 I. ACCOUNTING POLICIES (CONTINUED) 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. 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. EXPENDrruRE 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 to that category. 4. TAXATION As a registered charity, the company is exempt from corporation 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: Amortisation of intangible fixed assets Amortisation of tangible fixed assets Depreciation of tangible fixed assets 2024 2023 500.00 14,954.33 1,079.63 500.00 582.18 1,709.63
SOUTH WEST MAIN LINE STEAM COMPANY Page 9 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) For the Year Ended 31st May 2024 6. INTANGIBLE FIXED ASSETS Goodwill Cost As at I. June 2023 Additions 2,500.00 0.00 As at 31" May 2024 £2,500.00 Amortisation As at I" June 2023 Charge for the year 500.00 500.00 As at 31" May 2024 £1,000.00 Net Book Value As at 31" May 2024 £1,500.00 As at I" June 2023 £2,000.00 7. TANGIBLE FIXED ASSETS Engine structure Track Shed & Buildings Extension Toilet Block Cost As at I" June 2023 29,109.11 6,292.40 11,474.50 17,409.45 Additions 0.00 0.00 14,372.15 31,064.64 As at 31, May 2024 29,109.11 6,292.40 25,846.65 48,474.09 Depreciation/Amortisation As at I" June 2023 582.18 6,292.40 11,474.50 Charge for the year 582.18 0.00 14,372.15 0.00 0.00 As at 31" May 2024 1,164.36 6,292.40 25,846.65 0.00 Net Book Value As at 31" May 2024 £27,944.75 £0.00 £0.00 £48,474.09 As at I" June 2023 £28,526.93 £0.00 £0.00 £17,409.45
SOUTH WEST MAIN LINE STEAM COMPANY Page 10 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) For the Year Ended 31st May 2024 7. TANGIBLE FIXED ASSETS (CONTINUED) Rolling other Stock equipment Total Cost As at I" June 2023 Additions 15,689.33 65,876.82 0.00 5,852.08 145,851.61 51,288.87 As at 31" May 2024 15,689.33 71,728.90 197,140.48 Depreciation/Amortisation As at I" June 2023 0.00 62,933.40 Charge for the year 0.00 1,079.63 81,282.48 16,033.96 As at 31" May 2024 0.00 64,013.03 97,316.44 Net Book Value As at 31" May 2024 £15,689.33 £7,715.87 £99,824.04 As at I. lune 2023 £15,689.33 £2,943.42 £64,569.13 The company is in the process of building a toilet block and at 31 May 2024 it is still in the course of construction. No amortisation will be provided until construction has been completed and the block has been brought into use. 8. DEBTORS Prepayments Value added tax 2024 453.93 4,867.95 2023 92.50 3,281.83 £5,321.88 £3,374.33 9. CREDITORS 2024 2,644.90 367.50 700.00 2023 2,360.38 452.50 700.00 Sundry Creditors Monthly subs and donations in advance Ruston Fund £3,712.40 £3,512.88
SOUTH WEST MAIN LINE STEAM COMPANY Page 11 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) For the Year Ended 31st May 2024 10. RESERVES Income & Expenditure Account Engine Overhaul Fund Toilet Block Fund Balance at l June 2023 159,340.88 31,004.07 0.00 Retained surplus for year 7,675.35 8,338.25 Transfer from general funds -3,000.00 3,000.00 Transfer between reserves 8,338.25 -8,338.25 Balance at 31 May 2024 £172,354.48 £34,004.07 £0.00 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 eletted 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 into this fund, and interest received on the fund balance is added to the fund. The toilet block fund is a designated fund for the construrtion of a toilet block. Monies raised towards this project 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 2024 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 2024 the charity had annual commitments under non cancellable operating leases as follows: 2024 2023 Operating lease5 which expire: Over five years £1,449.40 £1,328.00 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 incurred on behalf of the company for travelling, stationery & postage etc. and for authorised purchases made personally on behalf of the company.
SOUTH WEST MAIN LINE STEAM COMPANY Page 12 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) For the Year Ended 31st May 2024 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 interest bearing accounts 15. RISK MANAGEMENT The Trustees have a Risk Management 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 risks arising from train operations, 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 Construction of the Toilet Block continues although completion is now expected in March 2025 due to the use of volunteers wherever possible to contain costs. Planning for the South Chord is in progress and more rail was recovered during September and October 2023 which, added to the existing recovered stock, totals enough rail for the project. Significant fundraising will be required for the other aspects. The sale of Model Railway wagons continues to grow and it is anticipated that this trend will continue. The cost of the overhaul of Lord Fisher will be significant and will require a long term view to be assessed. 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 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 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 benefit of the public the Turntable, Water Tower and other structures and facilities at Yeovil and facilities for the operation of steam locomotives at Yeovil and elsewhere.