2021-12-31-accounts - Llangollen Railway Trust Limited

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REGISTERED COMPANY NUMBER: 03040336 (England and Wales) REGISTERED CHARITY NUMBER: 1046614

REPORT OF THE TRUSTEES AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31ST DECEMBER 2021

FOR

LLANGOLLEN RAILWAY TRUST LIMITED

M. D. Coxey and Co. Limited Chartered Accountants and Statutory Auditors 25 Grosvenor Road Wrexham LL11 1BT

LLANGOLLEN RAILWAY TRUST LIMITED

CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2021

		Page
Report of the Trustees	1	to	7
Statement of Trustees' Responsibilities		8
Report of the Independent Auditors	9	to	12
Statement of Financial Activities		13
Balance Sheet		14
Cash Flow Statement		15
Notes to the Cash Flow Statement		16
Notes to the Financial Statements	17	to	27
Detailed Statement of Financial Activities	28	to	29

LLANGOLLEN RAILWAY TRUST LIMITED

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31ST DECEMBER 2021

The trustees who are also directors of the charity for the purpose of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31st December 2021.

This report has been prepared in accordance with the small company regime of the Companies Act 2006. The trustees have adopted the provisions of the Statement of Recommended Practice (SORP) Accounting and reporting by Charities 2011. The trustees have complied with the duty in section 17(5) of the 2011 Charities Act.

OBJECTIVES AND ACTIVITIES

Objectives and aims

The objectives of the charity remain the same, being to support the restoration, preservation and operation of the Llangollen Railway for the benefit of the public.

The main objectives for the year continue to be:-

The management, maintenance and restoration of a heritage railway.
To proceed with the construction of a full station facility to be known as Corwen Station.
The production of Steam at Llangollen, the in house magazine of the Railway.
The encouragement of volunteer activity in support of the above aims
The preservation of heritage skills.

Public benefit

The Llangollen Railway has a very high profile both locally and nationally and its interaction with the public is vital. The public and the towns of Llangollen and Corwen benefit enormously by the railway's presence as a tourism, leisure, transport and educational facility.

The line first opened in the 1860s and is operated to 21st century standards in a way that in addition to being educational allows a fun and safe experience, knowing that participation is helping to preserve real history for the future.

The Railway is open to all, either on a visitor level or as an opportunity to volunteer as a working member. "Everyone is welcome" has always been a cornerstone of the Railway's philosophy, and since restoration started over forty years ago it has provided an enhancing experience for innumerable people locally, nationally and internationally.

The Railway has a very significant effect on the local economy both in the employment it provides and also the number of visitors it attracts to the Dee Valley and North East Wales.

Statement of compliance

The trustees have referred to the Charity Commission's general guidance on public benefit when reviewing the 2021 activities and making plans for future periods, and believe that they have complied with their duty to have due regard to this guidance.

Volunteers

Volunteers represent a considerable human resource contribution to the operation of our Heritage Railway, throughout all of the operational, engineering, commercial and customer focussing departments. This inevitably serves as an intrinsic component of a viable and sustainable business. Through a volunteer framework and policy of engagement, induction, training, and on-going supervision, volunteers are integrated within the small employee team to ensure the Railway can deliver its charitable purposes:being the primary custodian of a heritage railway, which centres on the interpretation and preservation of an industrial heritage attraction for public benefit. The project therefore contributes to wider community identity, whilst serving as an additional economic driver for the wider local and regional tourism and business sectors.

The Railway currently has 347 registered volunteers, with over 200 volunteers routinely rostering on a weekly basis (during operational periods).

The volunteer framework allows for people (many of the older age brackets), to remain active and involved in a project they are enthusiastic about, whilst equally in the knowledge they are supporting a charitable cause.

Page 1

LLANGOLLEN RAILWAY TRUST LIMITED

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31ST DECEMBER 2021

STRATEGIC REPORT Achievement and performance Charitable activities

A momentous year.

Pre-Reopening

The start of the year was all about the Trust's trading arm, Llangollen Railway PLC. The PLC had had 3 disastrous years of trading and it became very clear to the new board there was no way to stem the tide. The level of overheads, accumulated debts and contractual liabilities was such there was no way to trade out of the situation. The directors would have been at risk of wrongful trading and were obliged to operate without directors and officers liability insurance which could not be obtained anywhere in the tourism, leisure or travel sectors from 1st January.

The directors invited the bank to appoint administrators on 1st March and formal administration followed on 25th March.

Provisions were made in the 2020 accounts in respect of the Trust's shareholding, very much a book loss as the shares were all donated and never had any market value, and sums due by way of inter-company debt. The total overall amounted to £279,310.

As remarked last year in the section 'Post balance Sheet Events', appeals went out to raise funds and we are extremely grateful to members, shareholders, volunteers, supporters and members of the public who rallied to the cause. We are also very grateful to local media and the Railway press generally who all helped to promote and support us. Approximately £170,000 was raised by way of these donations.

The finances also benefitted by £37,860, being unspent Welsh Government Cultural Recovery Fund Phase I grant which we were allowed to keep, and a £40,000 business rates relief grant from Denbighshire County Council. A Cultural Recovery Fund Phase II grant, £137,583 in outcome, was also secured which gave us the confidence to reopen the line on 9th July. We are very grateful to the Welsh Government, via its various business support and funding arms, for its support, together with that of Llangollen Town Council and Denbighshire County Council.

Before reopening, we had to secure a deal with the administrators to purchase the PLC's intellectual property rights, software, data, systems, including telephone, website, e-mail addresses, office equipment, etc. We also had to acquire the leasehold property improvements, without which the whole of the railway line was not secure. This was completed in April at a cost of £40,000 excl VAT, together with foregoing any claim in the administration for sums owed to the Trust by the PLC of £90,000 approximately on a gross basis, but actually worth less than £2,000 in terms of a potential dividend in the administration.

There then followed the auction of the PLC's rolling stock and plant & equipment. Thanks to the donations received we were able to purchase an accessible-adapted carriage, road railer, 12t crane and Lowmac, all considered essential to ongoing operations. The total cost was £116,696 excl VAT.

Neither the deal nor asset purchases would have been possible without the donations referred to and the board is very appreciative of such support.

The auction realised a value of broadly double the estimates of the auctioneers. The board did consider reapproaching the administrators to perhaps renegotiate the deal with them as the indebtedness of the PLC to the Trust became worth nearer £20,000 potentially. However, that may have paved the way for the administrators too so the board considered the matter was best left alone.

The board decided not to take any part in the administration, including using its right to vote when called upon, as this could have placed us in conflict with other creditors.

Post Reopening

The railway had been closed since November 2020 and a huge amount amount of work was required to prepare for reopening. As ever, the Trust owes a huge debt of gratitude to our volunteers in this respect.

We reopened on 9th July with the Railcar Group providing the traction, as indeed it has for most of 2021, supported by the Diesel Group. Steam traction was provided by 3802 on some weekends and for the Santa Specials.

Page 2

LLANGOLLEN RAILWAY TRUST LIMITED

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31ST DECEMBER 2021

Passenger loading forecasts were based on 50% of pre-pandemic levels and were about 10% ahead of forecast in outcome.

Having relied less on steam power, and delayed rehiring, the Trust ended the year in a very strong cash position and essentially debt-free.

Looking ahead, significant expenditure will be required on the permanent way in particular which has suffered through under-investment for some years. The carriages too have only benefitted from expenditure when necessary and we need to improve the quality of the passenger experience.

7754 and Austin 1

Having sold Jennifer back to its original owner, the Trust owns 2 steam locomotives.

Austin 1 is out on semi-permanent hire.

It is hoped 7754 will be back in steam by the end of 2022 but much work, including on the boiler, is still required. Financing is not yet clear either.

Corwen station

It is hoped Corwen Station will be open to passenger traffic in 2022. This is by no means certain however as much remains to be done by the small band of dedicated volunteers who continue to do an incredible job.

A grant of £163,721 under the Government's Levelling Up Fund has been approved for the purpose of building a canopy on the on platform building. Progress in this respect may determine when reopening will take place as there may be a political imperative in terms of a grander event.

Outlook

A major concern for the Trust, the heritage railway sector generally and numerous other organisations which rely on volunteers, both national and local, big and small, is the availability of volunteers. Our numbers are about 30% down and this is reflected across the voluntary sector as a whole.

This leads to concerns also for the preservation of heritage skills. We will be trying to work with local colleges, for example, to try to address this by means of work experience and apprenticeships.

The environment

This is also an obvious concern for the sector and is being addressed by the Heritage Railway Association as best it can. Whilst it can be said that steam power in the industry contributes very little to the overall problem, that particular argument doesn't really stand scrutiny. The fact is, taken together with all the other so-called minor contributors, it all adds up to the big problem the world is increasingly waking up to.

There are no easy solutions to the fuel issue currently but greener alternatives are being developed and tested.

Financial review

Investment policy and objectives

The nature of the trust's funding is such that there will never be enough funds to do everything we wish to achieve in terms of heritage restoration. The Trust continues to depend very heavily on donations, legacies and grants to carry out larger projects in particular, for example the building of Corwen Station.

As funds are invariably tight the annual accounts are unlikely ever to report a significant net income and occasionally there will be net expenditure.

It is the boards policy to continue to operate debt-free with the exception of the odd small finance lease which may be expedient. In this respect we have to bear in mind there is a working capital need January to March in particular of approximately £150,000.

Where surplus funds arise these are invested in short term interest bearing deposit accounts.

Page 3

LLANGOLLEN RAILWAY TRUST LIMITED

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31ST DECEMBER 2021

STRATEGIC REPORT Financial review

Reserves policy

The trustees have established the level of reserves (that is, those funds that are freely available) that the charity ought to maintain. Reserves are needed to bridge funding gaps, cater for unforeseen events and special projects arising. The trustees consider that the minimum level of reserves to be held is £100,000 but it remains to be seen if this is achievable.

After the experience in the administration with regards to advance ticket sales we have created a reserve of £30,000 which is shown in the balance sheet in current assets i.e as cash in hand, and carved out of Undistributed Funds. This should cover the advance sales for most periods of the year.

Restricted funds	£

Total Restricted funds	2,095,305
Less:
Restricted Tangible assets	(1,766,452 )
Restricted Intangible assets	(23,958)
Restricted Investment	(61,024 )
Restricted debtor	(11,729)
Restricted funds held for future
periods (Bank):	232,142


Unrestricted funds:	694,326
Designated funds:	30,000

Principal risks and uncertainties

The charitable company's operations expose it to a variety of financial risks including price risk, credit risk, liquidity risk and cash flow risk.

The charitable company's principal financial instruments comprise sterling bank accounts together with trade debtors and trade creditors that arise directly from operations.

Price risk - Price risk is managed by monitoring the market, current rates of inflation and costing products and services in accordance with these factors.

Credit risk - Credit risk is mitigated by monitoring and managing the credit limits given to its customers.

Liquidity risk - Liquidity risk is managed by maintaining a balanced mix of income streams, with a limit to the number of payment by results or in arrears payment contracts at any one time.

Cash flow risk - is managed through our credit management procedures, cash flow forecasting and negotiation of payment terms where practicable

Financial and risk management objectives and policies

The trustees review the risk register at least annually and review the major risks to which the company is exposed. The principal risks to Llangollen Railway Trust Limited as at 31st December 2021 were:

" The Covid-19 pandemic and associated restrictions continue to adversely affect our ability to deliver our services
" Failure to secure funding to fulfil the organisation's business plan
" Poor performance or dissatisfaction with the quality of delivery to all of our customers
" Reputational and financial issues experienced
" Loss of business-critical staff

Page 4

LLANGOLLEN RAILWAY TRUST LIMITED

REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31ST DECEMBER 2021

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

Llangollen Railway Trust Limited is a company limited by guarantee governed by its Memorandum and Articles of Association dated 6th March 1995. It is registered as a charity with the Charity Commission, number 1046614. Anyone over the age of 18 can become a member of the company. Each member agrees to contribute £1 in the event of the charity being wound up.

Governance Review

A formal, external review of governance was undertaken in 2020 which highlighted there was much work to do internally in terms of policies and procedures, and board recruitment to ensure it has necessary commercial, financial and legal skills. Progress has been and continues to be made in this respect, including the appointment of permanent advisers.

We are developing a framework of responsibility to provide leadership and oversight, and a strategic plan, to build on the governance review and learn lessons form the past through the prism of our One Railway volunteer, member and employee consultation initiative.

An external appointment as chairman is being sought.

Appointment of new trustees

As set out in the Articles of Association one third of the trustees retire by rotation each year and shall if they so wish offer themselves for re-election. The trustees have the power to co-opt such trustee(s) as they see fit, such trustee(s) co-opted shall be appointed until the following AGM, where they may stand for reappointment.

Organisational structure

The board of trustees, which shall number a minimum of four with no maximum numbers, administers the charity.

Decision making

LRT has a small employed senior management team (Trust Manager & Chief Engineer). Both have experience of Organisational Management within the charitable and heritage sectors, specific to organisations that have both engineering and public/tourism components. Both senior managers oversee a strategic section of 4 principal divisions - Organisation/Administration, Operational, Engineering and Volunteering. Each division incorporates several 'heads of departments' within them, which serve to directly oversee each departmental plan, which has been endorsed and mandated by the Senior Management Team. The Senior Management Team is answerable to the Board of Trustees which through a 'Framework of Responsibility' outlines delegated authorities to the management team, who in turn will work closely with their respective departments and HODs. There is regular contact with specific Board Trustees on several specific matters (e.g. Finance, HR, Safety etc), which is also reinforced by a routine, monthly Board meeting, to ensure appropriate oversight (checks and balances). - Each department has a plan of activity, be it engineering, interpretation or commercially focussed. Each plan incorporates its actions, in an economic sense, into the Organisation's budget forecast, which is directly (daily/weekly) overseen by the senior management team, with the Board collectively affording scrutiny at monthly meetings.
Due to the close communication between the HODs, the Senior Management Team and the Board, it is felt suitable oversight is assured and any unexpected situations, requiring small or significant decision making is therefore robustly addressed.
Should additional advice be required to inform internal organisational decision making, e.g volunteer management or HR matters (including payroll) etc, the Board and Management team will work collaboratively with suitable external agencies and seek opinion. This is exampled with utilising an external HR company to support ongoing staffing matters, to working with likeminded volunteer/charity organisations to develop robust policies and procedures.
LRT has now developed an organisational strategy which hopes to 'set its stall out' (so to speak), which aims to demonstrate a mature approach to sustainability, whilst appreciating lessons learnt from the past. The strategy is based on the following structure;
Purpose - Our Charitable Objectives
Principles - Collaboration, Communication, Compliance and Cohesion
Priorities - 1. Governance and Leadership, 2. Commitment to Heritage Preservation 3. Public Benefit
4.Financial Resilience 5. Volunteer Experience
Plans - lots of them - purposeful and costed to support each priority.

Page 5

LLANGOLLEN RAILWAY TRUST LIMITED

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31ST DECEMBER 2021

STRUCTURE, GOVERNANCE AND MANAGEMENT

Induction and training of new trustees

New trustees undergo a training process to explain to them their statutory obligations under charity and company law, the Memorandum and Articles of Association, the organisational structure and decision-making process. Trustees are encouraged to attend suitable external events where these will enhance the substance and quality of their role. All trustees, both existing and newly appointed, are required to confirm that they have read and understood the Charity Commission booklet CC3A, "The essential trustee" and CC3 "The essential trustee, what you need to know".

Related parties

Llangollen Railway Trust has a wholly-owned subsidiary, being Llangollen & Corwen Railway (Trading) Limited. This company is and has been dormant for many years.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

03040336 (England and Wales)

Registered Charity number

1046614

Registered office

The Station Abbey Road Llangollen Denbighshire LL20 8SN

Trustees

P H Freeth R F Gordon (resigned 13.3.21) P J Coles P Bailey (resigned 29.10.21) R J Creasey P J Edwards A Maxwell (resigned 2.2.21) Mrs M Theobald M K Williams Technical Support Engineer, Retired (appointed 13.3.21) R Abbott (appointed 25.4.22)

Company Secretary

R J Creasey

Auditors

Anthony Lewis F.C.C.A Chartered Accountant M. D. Coxey and Co. Limited Chartered Accountants and Statutory Auditors 25 Grosvenor Road Wrexham LL11 1BT

Bankers

Barclays Bank plc Leicester LE87 2BB

Page 6

LLANGOLLEN RAILWAY TRUST LIMITED

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31ST DECEMBER 2021

REFERENCE AND ADMINISTRATIVE DETAILS

Bankers

National Westminster Bank Plc 62 Mostyn street Llandudno Conwy LL30 2WY

AUDITORS

The auditors, M. D. Coxey and Co. Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

Report of the trustees, incorporating a strategic report, approved by order of the board of trustees, as the company directors, on 17th October 2022 and signed on the board's behalf by:

P H Freeth - Trustee

Page 7

LLANGOLLEN RAILWAY TRUST LIMITED

STATEMENT OF TRUSTEES' RESPONSIBILITIES FOR THE YEAR ENDED 31ST DECEMBER 2021

The trustees (who are also the directors of Llangollen Railway Trust Limited for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (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 incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to

select suitable accounting policies and then apply them consistently;
observe the methods and principles in the Charity SORP;
make judgements and estimates that are reasonable and prudent;
state whether applicable 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.

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to 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 audit information of which the charitable company's auditors are unaware; and
the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.

Page 8

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF LLANGOLLEN RAILWAY TRUST LIMITED

Opinion

We have audited the financial statements of Llangollen Railway Trust Limited (the 'charitable company') for the year ended 31st December 2021 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement 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 (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

give a true and fair view of the state of the charitable company's affairs as at 31st December 2021 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.

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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the 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 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 trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.

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.

In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. 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:

the information given in the Report of the Trustees for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Report of the Trustees has been prepared in accordance with applicable legal requirements.

Page 9

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF LLANGOLLEN RAILWAY TRUST LIMITED

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the 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 where the Companies Act 2006 requires us to report to you if, in our opinion:

adequate accounting records have not been kept or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of trustees' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities, 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 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 charitable company or to cease operations, or have no realistic alternative but to do so.

Page 10

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF LLANGOLLEN RAILWAY TRUST LIMITED

Our responsibilities for the audit of the financial statements

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 a Report of the Independent Auditors 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
we identified the laws and regulations applicable to the company through discussions with directors and management;
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations;

To address the risk of fraud through management bias and override of controls, we:

performed analytical procedures to identify any unusual or unexpected relationships;
tested journal entries to identify unusual transactions;
assessed whether judgements and assumptions made in determining accounting estimates were indicative of potential bias; and
investigated the rationale behind significant or unusual transactions;

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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 Report of the Independent Auditors.

Page 11

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF LLANGOLLEN RAILWAY TRUST LIMITED

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Anthony Lewis (Senior Statutory Auditor) for and on behalf of M. D. Coxey and Co. Limited Chartered Accountants and Statutory Auditors 25 Grosvenor Road Wrexham LL11 1BT

17th October 2022

Page 12

LLANGOLLEN RAILWAY TRUST LIMITED

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31ST DECEMBER 2021

Notes INCOME AND ENDOWMENTS FROM Donations and legacies 2 Other trading activities 3 Investment income 4 Total EXPENDITURE ON Raising funds 5 Charitable activities 6 General costs Property costs Total Net gains/(losses) on investments NET INCOME/(EXPENDITURE) Transfers between funds 18 Net movement in funds RECONCILIATION OF FUNDS Total funds brought forward TOTAL FUNDS CARRIED FORWARD	Unrestricted funds £ 205,296 427,888 26 633,210 54,350 162,071 35,644 252,065 - 381,145 (2,297) 378,848 345,477 724,325	Restricted fund £ 482,705 - - 482,705 56,115 120,700 54,632 231,447 - 251,258 2,297 253,555 1,841,750 2,095,305	31.12.21 Total funds £ 688,001 427,888 26 1,115,915 110,465 282,771 90,276 483,512 - 632,403 - 632,403 2,187,227 2,819,630	31.12.20 Total funds £ 335,562 133,378 25 468,965 119,081 58,068 78,508 255,657 (220,560) (7,252) - (7,252) 2,194,479 2,187,227

The notes form part of these financial statements

Page 13

LLANGOLLEN RAILWAY TRUST LIMITED

BALANCE SHEET

31ST DECEMBER 2021

Notes FIXED ASSETS Intangible assets 12 Tangible assets 13 Investments 14 CURRENT ASSETS Stocks 15 Debtors 16 Cash at bank and in hand CREDITORS Amounts falling due within one year 17 NET CURRENT ASSETS TOTAL ASSETS LESS CURRENT LIABILITIES NET ASSETS FUNDS 18 Unrestricted funds Restricted funds: Restricted TOTAL FUNDS	Unrestricted funds £ - 317,122 1 317,123 36,125 41,917 396,242 474,284 (67,082) 407,202 724,325 724,325	Restricted fund £ 23,958 1,766,452 61,024 1,851,434 - 11,729 232,142 243,871 - 243,871 2,095,305 2,095,305	31.12.21 Total funds £ 23,958 2,083,574 61,025 2,168,557 36,125 53,646 628,384 718,155 (67,082) 651,073 2,819,630 2,819,630 724,325 2,095,305 2,819,630	31.12.20 Total funds £ - 1,979,873 61,025 2,040,898 - 23,525 152,567 176,092 (29,763) 146,329 2,187,227 2,187,227 345,477 1,841,750 2,187,227

The financial statements were approved by the Board of Trustees and authorised for issue on 17th October 2022 and were signed on its behalf by:

P H Freeth - Trustee

The notes form part of these financial statements

Page 14

LLANGOLLEN RAILWAY TRUST LIMITED

CASH FLOW STATEMENT

FOR THE YEAR ENDED 31ST DECEMBER 2021
31.12.21
Notes
£
Cash flows from operating activities
Cash generated from operations
1
669,794
Net cash provided by operating activities
669,794
Cash flows from investing activities
Purchase of intangible fixed assets
(25,000)
Purchase of tangible fixed assets
(193,977)
Sale of tangible fixed assets
25,000
Net cash used in investing activities
(193,977)
Change in cash and cash equivalents in
the reporting period
475,817
Cash and cash equivalents at the
beginning of the reporting period
152,567
Cash and cash equivalents at the end of
the reporting period
628,384

31.12.20
£
187,290
187,290
-
(50,750)
-
(50,750)
136,540
16,027
152,567

The notes form part of these financial statements

Page 15

LLANGOLLEN RAILWAY TRUST LIMITED

NOTES TO THE CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST DECEMBER 2021

1. RECONCILIATION OF NET INCOME/(EXPENDITURE) TO NET CASH FLOW FROM OPERATING ACTIVITIES

OPERATING ACTIVITIES
Net income/(expenditure) for the reporting period (as per the Statement of Financial Activities) Adjustments for: Depreciation charges Losses on investments Profit on disposal of fixed assets Increase in stocks Increase in debtors Increase/(decrease) in creditors Net cash provided by operations	31.12.21 £ 632,403 91,318 - (25,000) (36,125) (30,121) 37,319 669,794	31.12.20 £ (7,252) 78,508 220,560 - - (2,539) (101,987)
		187,290

ANALYSIS OF CHANGES IN NET FUNDS

	At 1.1.21	Cash flow	At 31.12.21
	£	£	£
Net cash
Cash at bank and in hand	152,567	475,817	628,384
	152,567	475,817	628,384
Total	152,567	475,817	628,384

The notes form part of these financial statements

Page 16

LLANGOLLEN RAILWAY TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2021

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.

The trustees consider that there are no material uncertainties about the Trust's ability to continue as a going concern.

Status and principal activities

Llangollen Railway Trust Limited is a company limited by guarantee, incorporated in England and Wales. Its Registered Office is The Station, Abbey Road, Llangollen, Denbighshire, LL20 8SN.

The principal activity of the company is that of the repair and maintenance of transport equipment.

Financial reporting standard 102 - reduced disclosure exemptions

The charitable company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland':

the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c).

Significant judgements and estimates

In the application of the Company’s accounting policies, management are required to make judgements, estimates and assumptions about carrying values of assets and liabilities that are not readily available from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The key judgements and sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are described below:

- Estimated useful lives and residual values of fixed assets:

The carrying value of fixed assets are reviewed each year end for indicators of impairment triggers. If such triggers exist, management would be required to carry out a formal impairment review using a discounted cash flow model to determine their value in use on a cash-generating unit basis. The value in use calculation requires management to estimate the future cash flows expected to arise from the cash-generating unit and a sustainable discount rate in order to calculate the present value.

Depreciation of tangible fixed assets has been based on estimated useful lives and residual values deemed appropriate by the directors. Estimated useful lives and residual values are reviewed annually and revised as appropriate. Revisions take into account estimated useful lives used by other companies operating in the sector and actual asset lives and residual values, as evidenced by disposals during current and prior accounting periods.

- Estimated write down of stock to net realisable value:

Stock valuation has been based on an estimated useful life and residual value deemed appropriate by the directors. The estimated write down of stock to net realisable value is reviewed annually and revised as appropriate by the directors.

- Revenue recognition:

In making its judgement, management consider the detailed criteria for the recognition of revenue as set out within Section 23 of FRS 102. The directors are satisfied that the recognition point being typically when goods are delivered and legal title has passed is correct.

continued...

Page 17

LLANGOLLEN RAILWAY TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST DECEMBER 2021

1. ACCOUNTING POLICIES - continued

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.

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.

Raising funds

Costs of generating funds comprise those costs directly attributable to the commercial activities of the Trust.

Charitable activities

The costs directly attributable to the maintenance of the railways. Donations to other charities are allocated to charitable activities.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 0, is being amortised evenly over its estimated useful life of nil years.

Tangible fixed assets

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

Land, Buildings and Improvements - The length of the lease Plant and machinery - 10% on cost Motor vehicles - 10% on cost

The vintage locomotives are not depreciated.

Expenditure of a capital nature is recognised as an addition to fixed assets. All fixed assets are stated at cost.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

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 notes to the financial statements.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

continued...

Page 18

LLANGOLLEN RAILWAY TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST DECEMBER 2021

1. ACCOUNTING POLICIES - continued

Financial instruments

The following assets and liabilities are classified as financial instruments - trade debtors and trade creditors.

Trade debtors and trade creditors are measured at the undiscounted amount of cash or other consideration expected to be paid or received.

Financial assets are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in profit and loss.

The charity's functional and presentational currency is the Pound Sterling (£).

2. DONATIONS AND LEGACIES

DONATIONS AND LEGACIES
Unrestricted funds £ Donations 40,590 Gift aid 45,981 Legacies 74,225 Grant income 44,500 205,296	Restricted funds £ 174,312 - - 308,393 482,705	31.12.21 Total funds £ 214,902 45,981 74,225 352,893 688,001	31.12.20 Total funds £ 213,032 47,724 21,274 53,532
			335,562

Grants received, included in the above, are as follows:

Welsh Assembly Cadwyn Clwyd Denbighshire CC Covid-19 WCRF Phase 2 Corwen platform grant WCRF Phase 1 George Cadbury Fund	31.12.21 £ - - 40,000 137,583 22,950 147,860 4,500 352,893	31.12.20 £ 5,877 7,655 40,000 - - - -
		53,532

3. OTHER TRADING ACTIVITIES

Unrestricted funds £ Fundraising events - Ticket sales 373,673 Subscriptions 32,578 Magazines, raffles and locomotive hire 10,711 Holiday letting income 2,441 Other sales 8,485 427,888	Restricted funds £ - - - - - - -	31.12.21 Total funds £ - 373,673 32,578 10,711 2,441 8,485 427,888	31.12.20 Total funds £ 86,514 - 32,119 3,019 8,351 3,375
			133,378

continued...

Page 19

LLANGOLLEN RAILWAY TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST DECEMBER 2021

4. INVESTMENT INCOME

Unrestricted funds £ Bank interest 26 5. RAISING FUNDS Other trading activities Unrestricted funds £ Purchases 11,587 Staff costs 1,805 Hire of plant and machinery 25,532 Bad debts - Steaming expenses 10,710 Holiday letting expenses 2,064 Support costs 2,652 54,350 6. CHARITABLE ACTIVITIES COSTS General costs Property costs 7. SUPPORT COSTS Management £ Other trading activities 2,652 General costs 163,464 Property costs - 166,116	Restricted funds £ - Restricted funds £ 15,255 40,860 - - - - - 56,115 Direct Costs £ 110,000 - 110,000 Finance £ - 3,507 - 3,507	31.12.21 Total funds £ 26 31.12.21 Total funds £ 26,842 42,665 25,532 - 10,710 2,064 2,652 110,465 Support costs (see note 7) £ 172,771 90,276 263,047 Other £ - 5,800 90,276 96,076	31.12.20 Total funds £ 25 31.12.20 Total funds £ - - 1,745 103,748 3,675 9,913 -
			119,081
			Totals £ 282,771 90,276
			373,047
			Totals £ 2,652 172,771 90,276
			265,699

continued...

Page 20

LLANGOLLEN RAILWAY TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST DECEMBER 2021

8. NET INCOME/(EXPENDITURE)

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

	31.12.21	31.12.20
	£	£
Depreciation - owned assets	90,276	78,508
Hire of plant and machinery	25,532	1,745
Surplus on disposal of fixed assets	(25,000)	-
Goodwill amortisation	1,042	-
Independent examiner fees	-	2,500
Auditors remuneration	6,000	-

9. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31st December 2021 nor for the year ended 31st December 2020.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31st December 2021 nor for the year ended 31st December 2020.

10. STAFF COSTS

STAFF COSTS
	31.12.21	31.12.20
	£	£
Wages and salaries	41,779	-
Social security costs	128	-
Other pension costs	758	-
	42,665	-
The average monthly number of employees during the year was as follows:
	31.12.21	31.12.20
Administration	5	-

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

11. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

INCOME AND ENDOWMENTS FROM Donations and legacies Other trading activities Investment income Total EXPENDITURE ON Raising funds	Unrestricted funds £ 324,659 46,863 25 371,547 119,081	Restricted fund £ 10,903 86,515 - 97,418 -	Total funds £ 335,562 133,378 25
			468,965
			119,081

continued...

Page 21

LLANGOLLEN RAILWAY TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST DECEMBER 2021

11. COMPARATIVES FOR THE STATEMENT OF FINANCIAL Charitable activities General costs Property costs Total Net gains/(losses) on investments NET INCOME/(EXPENDITURE) Transfers between funds Net movement in funds RECONCILIATION OF FUNDS Total funds brought forward TOTAL FUNDS CARRIED FORWARD 12. INTANGIBLE FIXED ASSETS COST Additions AMORTISATION Charge for year NET BOOK VALUE At 31st December 2021 At 31st December 2020	ACTIVITIES - continued Unrestricted Restricted funds fund £ £ 56,230 1,838 33,505 45,003 208,816 46,841 (175,560) (45,000) (12,829) 5,577 (18,588) 18,588 (31,417) 24,165 376,894 1,817,585 345,477 1,841,750	Total funds £ 58,068 78,508 255,657 (220,560) (7,252) - (7,252) 2,194,479 2,187,227 Goodwill £ 25,000 1,042 23,958 -

continued...

Page 22

LLANGOLLEN RAILWAY TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST DECEMBER 2021

13. TANGIBLE FIXED ASSETS

COST At 1st January 2021 Additions At 31st December 2021 DEPRECIATION At 1st January 2021 Charge for year At 31st December 2021 NET BOOK VALUE At 31st December 2021 At 31st December 2020 FIXED ASSET INVESTMENTS MARKET VALUE At 1st January 2021 and 31st December 2021 NET BOOK VALUE At 31st December 2021 At 31st December 2020	Land, Buildings and Improvements £ 2,390,223 51,960 2,442,183 570,989 51,965 622,954 1,819,229 1,819,234	Plant and machinery £ 310,820 140,017 450,837 150,181 38,311 188,492 262,345 160,639 Shares in group undertakings £ 1 1 1	Motor vehicles £ - 2,000 2,000 - - - 2,000 - Unlisted investments £ 61,024 61,024 61,024	Totals £ 2,701,043 193,977	Totals £ 2,701,043 193,977
				2,895,020
				721,170 90,276
				811,446
				2,083,574
				1,979,873
					Totals £ 61,025
					61,025
					61,025

14. 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:

Llangollen & Corwen Railway (Trading) Limited

Registered office: The Station, Abbey Road, Llangollen, Denbighshire, LL20 8SN Nature of business: Hire of locomotives

Nature of business: Hire of locomotives
	%
Class of share:	holding
Ordinary	100
		31.12.21	31.12.20
		£	£
Aggregate capital and reserves		(3,495)	(3,136)
Loss for the year		(359)	(175)

In 2007 the Trust was gifted £86,024 worth of shares in Great Western 3802 Ltd. Another £20,000 worth of shares were gifted in 2009. The total cost of the investment in Great Western 3802 Ltd at 31st December 2019 was £106,024.

continued...

Page 23

LLANGOLLEN RAILWAY TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST DECEMBER 2021

14. FIXED ASSET INVESTMENTS - continued

Locomotive 3802 was sold during the year by the directors of Great Western 3802 Ltd. The Trust holds approximately 45% of the shares and there will be a payment to the Trust, possibly around £60,000, once final corporation tax computations have been completed.

The accounts currently show the impaired investment amounting to £61,024 in the company in advance of the disposal proceeds due in 2022.

15. STOCKS

Stocks 16. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Trade debtors Amounts owed by group undertakings VAT Prepayments and accrued income Gift aid 17. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Trade creditors Directors loans 2019 Other creditors Accruals and deferred income 18. MOVEMENT IN FUNDS Net movement At 1.1.21 in funds £ £ Unrestricted funds General fund 345,477 381,145 Designated fund - - 345,477 381,145 Restricted funds Restricted 1,841,750 251,258 TOTAL FUNDS 2,187,227 632,403	31.12.21 £ 36,125 31.12.21 £ 14,864 3,110 9,707 17,857 8,108 53,646 31.12.21 £ 49,812 - 100 17,170 67,082 Transfers between funds £ (32,297) 30,000 (2,297) 2,297 -	31.12.20 £ - 31.12.20 £ 2,095 2,812 1,719 530 16,369 23,525 31.12.20 £ 11,975 10,000 700 7,088 29,763 At 31.12.21 £ 694,325 30,000
		724,325 2,095,305
		2,819,630

continued...

Page 24

LLANGOLLEN RAILWAY TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST DECEMBER 2021

18. MOVEMENT IN FUNDS - continued

Net movement in funds, included in the above are as follows:

Unrestricted funds General fund Restricted funds Restricted TOTAL FUNDS	Incoming resources £ 633,210 482,705 1,115,915	Resources expended £ (252,065) (231,447) (483,512)	Movement in funds £ 381,145 251,258
			632,403

Comparatives for movement in funds

Unrestricted funds General fund Restricted funds Restricted TOTAL FUNDS	At 1.1.20 £ 376,894 1,817,585 2,194,479	Net movement in funds £ (12,829) 5,577 (7,252)	Transfers between funds £ (18,588) 18,588 -	At 31.12.20 £ 345,477 1,841,750
				2,187,227

Comparative net movement in funds, included in the above are as follows:

Unrestricted funds General fund Restricted funds Restricted TOTAL FUNDS	Incoming resources £ 371,547 97,418 468,965	Resources expended £ (208,816) (46,841) (255,657)	Gains and Movement losses in funds £ £ (175,560) (12,829) (45,000) 5,577 (220,560) (7,252)	Gains and Movement losses in funds £ £ (175,560) (12,829) (45,000) 5,577 (220,560) (7,252)
				(7,252)

Page 25

continued...

LLANGOLLEN RAILWAY TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST DECEMBER 2021

18. MOVEMENT IN FUNDS - continued

A current year 12 months and prior year 12 months combined position is as follows:

Unrestricted funds General fund Designated fund Restricted funds Restricted TOTAL FUNDS	At 1.1.20 £ 376,894 - 376,894 1,817,585 2,194,479	Net movement in funds £ 368,316 - 368,316 256,835 625,151	Transfers between funds £ (50,885) 30,000 (20,885) 20,885 -	At 31.12.21 £ 694,325 30,000
				724,325 2,095,305
				2,819,630

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 Restricted TOTAL FUNDS	Unrestricted funds General fund Restricted funds Restricted TOTAL FUNDS	Incoming resources £ 1,004,757 580,123 1,584,880	Incoming resources £ 1,004,757 580,123 1,584,880	Resources expended £ (460,881) (278,288) (739,169)	Gains and losses £ (175,560) (45,000) (220,560)	Gains and losses £ (175,560) (45,000) (220,560)	Movement in funds £ 368,316 256,835 625,151

Restricted Funds: Balance b/fwd		Income Transfers Expenditure Balance c/fwd
Pannier Fund 7754	21,711	4,500		-	(18,254)		7,957
Engine Shed	25,000	-		-	-		25,000
Wagon Fund	660	-		-	(110)		550
Corwen Extension	1,489,229	-		-	(41,365)		1,447,864
Flail Appeal	6,239	-		-	-		6,239
Investment	61,024	-		-	-		61,024
CCRD	86,514	17,849		-	(10,700)		93,663
Full steam ahead fund	-	151,962		-	(8,574)		143,388
WCRF Phase 1	-	147,860		-	(147,860)		-
WCRF Phase 2	-	137,583		-		-	137,583
Grant - platform project	151,373		22,950	2,297		(4,583 )	172,037
	1,841,750	482,704		2,297	(239,403 )		2,087,348

Page 26

continued...

LLANGOLLEN RAILWAY TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST DECEMBER 2021

19. CAPITAL COMMITMENTS

CAPITAL COMMITMENTS
	31.12.21	31.12.20
	£	£
Contracted but not provided for in the financial statements	-	-

20. RELATED PARTY DISCLOSURES

During the year ended 31st December 2021 the following transactions took place between Llangollen Trust Limited and Llangollen and Corwen Railway (Trading) Limited, which is owned solely by the Trust.

	2021	2020
	£	£
Sales	-	-
Purchases	-	-

As at 31st December 2021 the following balances were outstanding:

	Debtors	Debtors	Creditors	Creditors
	2021	2020	2021	2020
	£	£	£	£
Llangollen and Corwen Railway (Trading)
Limited	3,110	2,812	-	-

21. GUARANTEES BY MEMBERS

The company is limited by guarantee. Each member has agreed to pay £1 in the event if the charity being wound up.

Page 27

LLANGOLLEN RAILWAY TRUST LIMITED

DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31ST DECEMBER 2021

INCOME AND ENDOWMENTS Donations and legacies Donations Gift aid Legacies Grant income Other trading activities Fundraising events Ticket sales Subscriptions Magazines, raffles and locomotive hire Holiday letting income Other sales Investment income Bank interest Total incoming resources EXPENDITURE Other trading activities Purchases Wages Social security Pensions Hire of plant and machinery Bad debts Steaming expenses Holiday letting expenses Charitable activities Grant expenditure Support costs Management Rent and rates Insurance Light and heat Telephone Printing, stationery and advertising Carried forward	31.12.21 £ 214,902 45,981 74,225 352,893 688,001 - 373,673 32,578 10,711 2,441 8,485 427,888 26 1,115,915 26,842 41,779 128 758 25,532 - 10,710 2,064 107,813 110,000 3,202 60,587 31,499 6,328 6,474 108,090	31.12.20 £ 213,032 47,724 21,274 53,532
		335,562 86,514 - 32,119 3,019 8,351 3,375
		133,378 25
		468,965 - - - - 1,745 103,748 3,675 9,913
		119,081 - 4,932 - - - 7,295 12,227

This page does not form part of the statutory financial statements

Page 28

LLANGOLLEN RAILWAY TRUST LIMITED

DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31ST DECEMBER 2021 Management Brought forward Legal and professional Sundries Accountancy Bookkeeping Travel and motor expenses Training and recruitment Subscriptions Finance Bank charges Other Repairs and maintenance Goodwill Land, building and improvement depreciation Plant and machinery depreciation Profit on sale of tangible fixed assets Total resources expended Net income before gains and losses Realised recognised gains and losses Realised gains/losses on unlisted investments Net income/(expenditure)	31.12.21 £ 108,090 19,703 14,013 2,652 10,266 6,192 1,400 3,800 166,116 3,507 29,758 1,042 51,965 38,311 (25,000) 96,076 483,512 632,403 - 632,403	31.12.20 £ 12,227 13,153 4,533 2,623 1,200 144 690 - 34,570 901 22,597 - 78,508 - - 101,105 255,657 213,308 (220,560) (7,252)

This page does not form part of the statutory financial statements

Page 29