REGISTERED COMPANY NUMBER: 03040336 (Ei llglnnd Wale8) GISTERED CIIARITY NUMBEIL. 1046614 REPORT FTHETR MEN FOR THE YEAR ENDED 31sr DECEMBER 2 FOR LL4NGOLLEN RAILWAY TRUST LI￿IrIED M. D. Coxey w]d Co. Limited Chartered AccoUnt￿ltS and Stamtory Auditors 25 Grosvenor Road Wrcxliam LLII IBT GOLLEN RAILWAY TR CONfENfs OF THE FINANCIAL TATE FOR THE YEAR ENDED 31STDECEIKfftER 2024 Page Rcport of the TTU5tee5 Slaternent of Trnstees, Responsibilitieg Report of the Independent Auditors 8 10 11 Statan¢nt of Financial Activities 12 Balance Sheet 13 Casb Flow Statem¢nt 14 Notes to the Casli Flow Statement 15 Not¢5 to the Financial Statements 16 to 26 Dda11￿ Stat¢m¢nt of Financial Activities 27 to 28 LLANGOLLEN RAIL AY LIMITED REPORT OF THE TRUSTEE FOR THE YEAR ENDED 31ST DECEMBER 2024 The ttu*es who are also direclors of the charity foi, th¢ purpose of the Companies 2006) pr¢$¢nt theii. report with the financial gtatem&ils of the charity for the year ended 31st December 2024. This report has been prepared in accoi'dance with the small cornpany I'egirne of the Companies Act 2006. The trusÉ¢es have adopted the provisions of the Statement of Recommend￿ Practice {SORP) Accounting &nd reporting by Charities 2011. The trustees l]av¢ ¢oinpli¢d with the duty in scclion 17(5) of the 2011 Chariti¢s A¢1. OWEcfivEs AND ACTivrriEs Objectives and aims Th¢ obj¢dive5 of the cbarity remain the sam4 being to support the rest￿.￿tion, preservation and operation of the Llangollen RaiLway for the E¢nefit of th¢ publi¢. This 15 achieved by m¢an8 of ¢ducatioll, particularly related to engineeriiig and the history of railways locally & natioi)ally, in the natural environm¢iJt of th¢ Dee Valley which conlrli )ules to heath and wellbeing. The illain objwtives for the year are:. - The manag¢ment, maintenance and rcstoration of a heritage rdilway. ~ The eiicouragemenl of volunteer actlvity in supFrf)rt of the abDve aims. - The preservation of heritage skills. - Prescrving the railway and its history for the public in an immersive, infomiative, educationd style. - Expanding meMbe￿bip of the rnilway, - tlic conlinucd improvement of our governance alld accoun¢ability, Publi¢ benefit The Llangolleii Railway has a very high profile both l(Kally and nationally and its iiileraction with ih¢ public is vital. Tlie public and the towns of LI￿golIen &nd Convell benefit enonnougly by tbe railway's pmsence ag a tourism, leisure, transport and educatioiial facility. The line first q)ened in the 18605 and is O￿ated to 21st centhry standards in a way that in addition ID being education allows a fun and safe experien¢G knowing that parti¢ipatioii is helping to presenre real history for th¢ firture. Tb¢ Railway is opcn to all, ¢ithcr on a vi5iloT level ffl. a5 an opportunity to volunteer as a wotting member. Everyone is welcome" has always been a coillerstone of th¢ Railwdy'5 phi1050phy* and since restoration started over forty years ago it bas provided ali ¢nlianGillg experi¢nG¢ for innumerable people locally, nationally and intcrnationally. The Railway hag a very significant effect on the lo¢al economy both in the ernployment it provides and also the number of visitor5 it attrncts to the Dee Valley aiidNorth East Wales, Statement of compllHnce Th¢ trustees have referred to the Charity Commission's general guidance on public I￿nefIt when reviewing the 2024 activities and inaking plans for future periods, and klicvc that they have cornplied with their duty to have due Tegard lo this guidance, Volunteers Volunteers represent a considerable human resource contribution to the operntioii of our Herit&ge Railway, throughout all of the operational, engineering, commercial and ¢ustom¢r focussing depai'Lrnents. This inevitably serves as an intrinsic component of a viabl¢ and sustainable business. ThiDugh a volullte¢r fram¢work aiid policy of engagemenL induGtion, trainin& and ongoing supervision, volunt¢¢rs are integrated within the smaLI employ¢e to ensure tlie Railway can deliveA' its charitable purpose being the primary custodian of a hetitag¢ railway, whiGh centi'es on the inta'pretation and pr¢s¢￿ation of an industrial heritage attrdction for public beiiefit. The project therefore contributes to wider ¢onimunity identity, whilst serving as an additional e¢onomic drivcr for the wider local and regioiial tourism and business sectors. The Railway currently has 380 registered volunteer4 with approximately 250 volunteers routinely rostering on a weekly basis (during op￿atIonal periods). The volunteer framewot* allows for peopl¢ (many of the older age b￿kets), to remain active and involved in a project tIL¢y arc ¢nthu5iaslic about, whi15t equ￿lY in the knowldge they are sUPPOrting a charitable cause. Page I LLANGOLLEN RAILWAY TRUST LIMrfED FOR THE Y£AR ENDED 31ST DECEMBER 2024 STRATEGIC PORT Aclilevementg alld perforjnance Charitable actlvltles We C￿ltInUed our usual programme of special event5 alongside day-to4ay Dp¢tations, We a150 continued to make overdue Improve￿entS to our infrastructure and coaching stock. None of this would have been possible without the efforts of a great many volunteers w0￿1ng alongside the paid staff. As ever, we owe a huge debt of gratitude to all Concerned, Counterculture Partn¢rship rq)ort¢d lo the board following their review on governaThw 0￿ratiOnS and strategic plans for the future. The Shared Prosperity Fund grnnt £375,000 has funded the review above but a]so enabled us to iiivest in volunteer Co-ordinalion and training) th¢ customer exp¢ri¢n¢e, ￿]d ¢nviroiim¢ntal protection, not least alternatives to burning fossil fuels. Fln4ndal perforniance Ii h&g bc¢n a challenging ycar, Whilst tiGkel salcs were slightly in exc￿ of 2023, sales have not recovered to prfrpandemic levels. Inevitably this impacts on our ability to cov¢r op¢rational c05ts, Cash resources have covered the losg but inevitably these are finite. Outlook A major continuing concern for the TrusL the heritage railway sector generally and numerous other organi5ation5 which rely on volunteers, bcth national and lo¢al, bÈg stnall, is the availability of volunteers. Our null]be￿ remain about 30Yo down and this is reflected across the voluntary sectoi. as a whole. This leads to concerns also for the preservation of heritage skills. We are working with local collegcg, for example, to ty to address this by m¢ans of work experience and apprenti￿shAps, The Cost of living crises remains a major concern in tenns of passfflger numbcr5, costs and itnpact on our voluTrtccrs. The trustees will continue to atst cautiously as regards motive power and discretionary spffld. The enviroJllDent This is also an obvious concern for thc sector alld is being addressed by the Heritage Railway Association as best il can. Whilst it Gan be said Ibal stearn power in the industry coniributes very little to the ov¢rall probl¢m, that particular argument doesn% really sland s¢rutiny. The fa¢t is, tak¢n together witli all tbc other so-c&tLed Minor contributorn, il all adds up lo the big problem the world faces. Thff¢ ar¢ no ¢asy Solutions to th¢ fuel issue currently but greener alternativ£s are being developed and tested. We are working with OUT public sector and third sector paTtners on carbon offs¢t a¢tivitie5. Flnanctal revlew InVestn￿nt policy and objectlves The n&ture of the trust's funding is sueh that there will never be enough funds to do everything we wish to achieve in terms of lietitage restoration, The Trust continues to depend very heavily on donation4 legacies and grants to cany out larger projects in particular, for example tbe building of Corwen Station, It is the board's policy Éo continu¢ to operate debt-frec witl) the exception of the odd &naLI finance leas¢ whiGh may be expedient. In this reg￿t we have to bear in mind there is a working ¢apital need January to June in partÉ¢ular of approximately £3(NJ,000. Where surplus funds ari8¢ th¢s¢ are invesl¢d in short tsrm interest bearing deposit accounts, Page 2 LLANGOLLEN RA]LWAY TRUST LIMITED REPORT OF THE TRUS FOR THE YEAR ENDED 31 TDE EMBER 2 8TRATEGIC REPORT riinAn¢i41 review Reserves poliey The trustees have consider&1 the level of reserves the ¢hariiy ought to maintain to ffldeavour to cnsure financial viability for the long term. Ideally we would have a capital reserve of £IOO,000 to towards a major cata8trophe or other significant, unforeseeii n¢al, Cash resources do not pennit this curr¢iitly howw¢r ovcr and above workiiig capitaj rcquii'emcnts. The account with Barclays Bank also holds the £30,000 Advance Sales Reserve created in the wake of our experience in the administrntion and eventual liquidation of LlanEollen Railway PLC. Reytrictsd fimds Total Restricted funds 1,138,(K14 R¢stricted Tal￿1b]e assets Restricted Intangible assets Restl'L¢t¢d debtor Restricted fimds held for thture periods (Bank).. (1,050,598) (16,458) (61,093) 9,855 Unrestri¢t¢d fijnds: Designated funds: 936,681 330,000 Prlnelpal rlsks and untertAlntles Tlie charitabl¢ company's opeTErtions exp05e it to a variety of financial risks including price risk, credit risk. liqutdity risk and Cash flow risk. The charitable company's principal financial instrlunents comprise sterling bank accounts tog¢th¢r with trade debtors and trade creditors that arise directly from operations. Price risk - Pric¢ Tisk 15 lTr￿￿ged by inonitoring the maTkeL current rates of inflation and costing Products and s￿'ViCeS in accordance withthe5e factors. Credit risk - Credit risk is mit1g￿.ed by monitoring and n￿lla￿8 the credit limits given to our ¢ustom#rs. Liquidity risk - Liquidity risk 15 managed by matntaining sufticient casb balances for wo￿1￿8 capital during the first 6 months of th¢ ycar, a balanced mix of iiicomc streams, and managing closely the debtorOcreditors mix. Stock holdings are i'elativety low. Casli 'flow risk Cash flow risk 15 managed through care￿[ budgeting. our cre41it managem¢nt prncedures and negotiation of payment terms where prncticable. riinancinl wnd risk management objectives and poliel Th¢ trustees r¢vi¢w th¢ risk r¢gisL¢r at least annually and revlew the major risks to which the CoMp￿Y is exposed. Tlie principal risks to Llangollen Ratlway Trust Litnited as at 31st Decembei. 2024 w¢re', - Failure to secure grant fundiiig to fulfil tli¢ O￿aniSatIOn,5 business plan - Fo￿. perforn]ance or dissatisfaction with the qU￿lty of delivery to all of customers . Loss of business-critical staff and volunteers - Cost of living/¢n¢rgy ¢risis impacting custom￿1 and volunteers Pagc 3 AY TRUST LINIrrED REPORT OF THE TRUSTEES FOR THE YEARENDED 31ST DECEMBER 2024 srRucfuRE, GOVERNANCE AND MANAGEMENr Governing documelll Llangollen Railway Trust Limited is a ¢otnpany limited by guarantee governed by its Memoralldum and Articles of Asso¢iation datd 6th March 1995. It is registered as a charity with tlie Charity com￿ls$I0n, number 1046614. Anyone over the age of 18 can becoine a member of the company, Eacli member agrees lo contribute £1 in tlie event of the ctwity being wound up, GoYernan¢e Revlew Following the externa] i'eview in 2020, Counteiculture Partnership undeitook a furth￿ review in 2024. Whild there re￿￿11￿ more to do, we do have the policies and procedures of a well-rnan&ged 21 st century charity and company of our size. We havc a cle￿. framework of responsibility to provide leadership and oversitht. A number of advisers in other, I'elated fields joifted the board during the year. Tliey have brought additional breadth and depth lo diseusgion and decision making. Appointment of new trustees As set out in Ibe i¥rticles of Association one third of the trustees rctire by rotatioii each year and shall if they so wish offer themselves for re-ele£Éion. The trustws have the power to CD-OPt such trusterfs) as they see fit, such trnsteels) Co-opted shall be appointed until the following AGM, where they may stand for fonnal appointment. OrganisRtionRI structure The board of trustees, which shall number a minimum of f￿1. with no maximum numb¢r8, administers the charily. Declslon maklng LRT has a small employed senior ManageM￿t team (frnsl Manager, Chief Engineer & Ope]ztions Manager). All have experience of Organisational Mmagcment within th¢ chaTitabl¢ and hcritagc scGtor8 sp¢¢ifi¢ ¢0 organisations that have both engille￿i1]g and publi¢/tourism components. The senior rnanagers oversee a strategic section of 4 principal divisions - Organisation/AdministratLon, Op¢rational, Engir)¢¢ring and Volimt¢¢ring. Fach division incorporates several ¢ads of departn￿ts, within tliem, which serve lo directly oversee each dwartmental plan, which has been ￿ldOr5ed and mandated by the Sen(or Matwtnent Tearn. The Senior Managemeni Team is answerable to the Board of Trustees which through a Framework of ResE)onsibility' outlines deleg&ted authorities to the Matlage￿ell1 tew who in turn will work closely with their wective departnicnts and HOD5, Th¢r¢ is a r¢gular progrdrnm¢ of SP¢GAfi¢ sub-¢onMnitte¢ and full boat71 meetings. E￿h department has a plan of activity, be it engineering, interpretation or commercially focu￿ed. Each plan incorporates its action4 in ali economic se1￿, into the Organisation's budget forecasL which 18 directly {dailylweeldy) overgeen by the senior management team, with the BO￿.d collectively affording 5CTUtiny via subcornrnittee or full board m¢etings. Due to the close communication betw￿ the HODS, the Senior Managonent Team and the Board, it is felt suitable ov¢r8ight is assured and any unexpected situations, requiring sinall or significant decision making are therefo￿ Tobustly addressed. Should additional advice be required to inform internal organisxtAona] d¢¢isioii making, ¢,g voluntcer ma11agemenl or HR inatters (inGludiiig payroll) etc, the Boai'd and mallage￿¢nt team will work collaboratively witli suitable ext¢mal agencies and seek oplnion. This is exampled with utilising an external FIEi company to support ongoing staffing mattcr5, to workiiig with lik¢-mind¢d volunteerlcharity organisations to develop robust policies and procedui'es. LRT has now developed an organisatioiial strategy which aims to d¢monstr&te a rnatur¢ approach to sustainabillty, whilst appTeciating1¢5son5 learnt froin the past. The strategy is based on the following strncture. - Pury￿Se- Our Charitable Objectiv¢s - Principles - Collaboration, Cornmunicatlo￿ CoJDpliance and Cohesion - Priorities - l. Governanc¢ and Leadership, 2. Commitm¢nt to H￿'ltage PrcservatlDn, 3. Public Benefit. 4. Financial Resilience, 5. Volunl'eer Experience - Plan8 . purposeful and costed to support each priority. Page 4 LLANGOLLEN RAILWAY TRUST LIMtrED RTOF FOR THE YEAR ENDED 31 ST DECEMBER 2ff24 STRUCTURE, GOVKRNANCE AND MANAGEMEI NT Ittdvctlon tr4llllng of new trustees New twstees undergo a training proc£ss to explain to than their 5tatu¢ory obligations undcr rli&rity and company law, the M¢morandum and Articles of Association, the organisational struGture and decisioii-making process. Trustees a encouraged to attend suitable ¢xl¢rnai events where these will enhance the substance and quality of their rol¢. All trust¢¢s, both existing and newly appM)inted, are required to confirm that they liave itad alld uiiderstood the Charity Commission booklet CC3, The esseiitial trustee, what you need to know, wh&t you need to do Related pRrties Llai)gollen Railway Trust has a w1￿11Y-0wnea subsidiary, being Llangollcn & Convai Railway (Trading) Limited. This company is aith has iwi doirnant for M￿]Y years. REfiERE( NCE AND ADMINISTiLITIVEI DETAtLS Registered Company Tru￿ber 03040336 (England and W&les) Reglstered Charity niunber 1046614 Registered office The Station Abbey Road Llangollen Denb1￿]Shirt LL20 8SN P J Cole5 (rcsigned 31.12.2024) P H Fre£th (ChainTLan) R J Cir&sey P J Edwards (resigned 08.11.2024) M Theobald P Br¢wer R E Carter (appointed 21.09.2024) Company Setretary R J Creasey Auditors M. D. Coxey and Co. Limited Chart¢red Awuiitallts and Ststutory AuditOTS 25 Grosvenor Road Wrexharn LLII IBT Bankers Ba￿lay9 Business Direct Leicester LE87 2BB AUD￿oRs The auditors, M. D. CoK¢y and CD. Limited, will be proposed for re-appointment at the forthcoming Annual General Meeling. Page 5 LLANGOLLEN IL4ILWAY TRusf LIMrrED FTHETR EES FOR THE YEAR ENDED 3 1ST DECEMBER 2024 Report of the truslees, in¢orporaling a stra¢egtc r¢port, approvd by order of thc EK>ard of trusle&s, as the compaiiy dii'ectors, on 12111 Septenther 2025 and signed Qll the board's behalf by.. R J c￿aSeY- Trustee Page 6 LLAN . RAILWAY TRUST LI￿￿tTED STATEM8NT OF TRUSTEES, BESPONSIBILITIE FOR THE YEAR ENDED 31ST DECEMBER 2024 The Iruslees (who are also the dir¢¢tors of Ljangollen Railway Ti'ust Limited for th¢ purposes of comp&ny law) a responsible for prep￿.11]g the Report of the Trustees and the finan¢ial statements in aCCord￿ce with appli¢able law and United Ilingdom Accounting Standards (United Kingdom Geiierally Accepted Accounting P￿ctiCe). Coinpany law r¢quir¢s ihe ts'ustc¢s to prcpwr fin&ncial statements for each financial year which give a tme and fair view of the state of affairs of the clwitable company and of the incoming i'¢sour¢es aiid application of re￿U￿eS, including tbe income and expenditure, of the charitable ¢oinpany for that period. In preparing tbose financial slalcment5, the li'ustees are required to s¢l¢¢t suitabl¢ ￿cOUntIng policie5 and then apply them consistently observe the meth(Kls and prlnciples in the Charity SORP. makejudgem¢nts and estimates that ar¢ reasonable aid prudent. state whetlier applicable accounting standards have been followe￿ subject to any material dwartures dis¢lo$ed and explained in Ihe finanGial s¢atth]ents' prepare the financial stal'ements On the going concern basis unless it is inappropriate to presume that the Ch￿itable cotnpany will continue in business. The trustees are responsible for keeping proper accountlllg records which disclose with reasonable accuracy at any time the financial position of the Glwitable company and to enable thein lo ensure that tlie financial statements I￿P]Y with the Companies A¢t 2006. Th¢y are al80 responsibl¢ for Safeguarding the assets of the charilable compaiiy and hence for taking reasonable steps for the prcvcntion and dcteGtion of fraud and other irr¢gulw'iti¢s, In so far as the trL￿e¢S are aware., th¢r¢ is no ￿l¢v￿lI audit infornialiolt oFwliicli the charitable company's auditors are unaware. and th¢ trnslees have taken all Steps that they ougbt to hav¢ taken to inak¢ thcrn5elves aware of any relevaiil audit infol￿ation and to ¢stablish ihat the auditors arc aware of tbat InfOrn￿ll0ll. Page 7 REPORT OF THE INDEPENDENT AUDrroRS TO TIIB LLANGOILEN RAILWAY TRUST LIMITED ERS OF Opinion We have alld1t￿ the financial statements of Llangollen Railway Trust Limited (Ilie 'Ch￿Itable cornpany,) for the year ended 31st Decembei. 2024 which coinprise the Statement of Financial Activities, the Balan¢e Sh¢el, the Cash Flow Statemeiit and note8 to the financial statements, including a summary of sigiiifi¢ant a¢¢ounting policies. The financial i'eporting framNvork that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (Ulllted Kingdom Geno711y A¢¢¢pt¢d A￿oUnting Practice). In our opinion the fIiianeial statements.. give a tme and fail. view of the sl&te of the charitable company's affaiL3 as at 31 st December 2024 and of ils incoming rc50urcc5 and applicatioi) of resDUTces, including its income and expenditui'e, for the year then ended. have been propei'ly pr¢pared in a¢cordanGc willi United Kingdom Generally A¢cepted Accounting Prnctice. and have been prepared in accordance with the requiLetn¢nls of thc Companies Act 2006. Basis for oplnion We condud¢d our audit in accordance with Inlemational stand￿￿s on Auditing (UIC) (tSAs (UK)) and applicabl¢ law. Our responsibilities under those standards are further dcsGribed in the Auditord responsibilities for the audit of th¢ fil￿]C1a1 statements section of our report. W¢ are indq)endcnt of the chaJitabl¢ ¢otThpally in accordance with the elliical requirements that are relevant to our audit of tbe financial stat¢mfflts in th¢ UK including tbe FRC'S Ethical Staiidard, and we have thlfilled our other ethickll i'espongibilities in accordance with tbes¢ rquir¢m¢nts, We believe that th¢ audit cvid¢n¢¢ w¢ hav¢ obtained is sufficient and ￿propriate to provide a basis for our cyinioti. Condusi(bns r¢l4ting to going coneern trt auditing the financial staternents, w¢ hav¢ concluded that the I'rustees, use of the going concem basis of accouiiting in the preparatiffli of the financial statements is appropriate. Based on the work we have performed, we have not identified ￿lY material uncertainties relating to events or conditions tliat, individually or collectively, may cast significant doubt oll the charitable company'B ability to continue as a going concem for a period of at l¢ast twclvtt mont115 from when tbe fman¢ial statements arc auth0ri5ed for issue. Oui. responsibilities and the responsibilitieg of the trustets with respect to going ¢on¢¢m arc described in thc relevant secLions of this report. Other inforniatioll The trustees are responsibl¢ for th¢ other infoiTration. The other infornutioii comprises the information included in the AnDu¢il Report, other than the financial staternents and ourR¢port of tbe Independent Auditors thereoii. Our opinion on tlie financial statement5 does not cover tbe other infomiation and, except to the extent otherwise ¢xpli¢i¢ly Stat￿ iii our ￿por( we do not eApifss any form of assurdnce conclusion thereoll. In connection witb oui. audit of the fmanGial stateM￿rts, oui re4)onsibility is lo read the other illformatioii and, in doing so, consider whether the other infonnalion is materially inconsistent willi the financial statements or knowledge obtained in the audit or otherwise appears to be inaterially misstated, If we id¢ntify such material inconsist¢ncies or apparent material tnisstatements, we arc required to detemine whether this gives rise lo a material rnisstatement in the financial stat¢m¢nts th¢ms¢lvcs, If, based on the work w¢ have rformed, we conclude that there is a material misslthment of this other Infom￿¢10￿ w¢ ar¢ r¢quired to ryOTI that fact. W¢ have notliiiig to report in this regard. Oplnlon8 on other matters prescribed by the Companies Act 2(Mh5 In our opinion, based on the work undertaken In the course of the audit: the infom]ation giveii in the Rel￿ of the Tmstees for the financial year for which the fin￿1claI statements are pryared i8 consistent with the financial sta*menls' and the Rq)ort of th¢ Trusttrs has bc¢n prepared in accOrd￿lce with applicable legal requirements. Page 8 REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBE LLANGOLLEN RAILWAY TRUST LIMIfED Matters on JYhl¢h we Rre required to report by exeeptioll In the light of the knowledge and undetstanding of the chw'itable ￿MpanY and its envir￿)Ment obtailled in the course of Ihe audiL we hav¢ not identified material mi&statemcnts in the Report of the TDJstees. W¢ hav¢ nothing to i'4)ort in tr5pect of the following matters Whe￿ the CDn]panie5 Act 2006 requires us to report to you if, in our opinion: adequate accounting records have not beet] kept or rdurns adequate for our audit have not been rcc¢ived from branches not visited by us" oi, the financial staten¢nls are not in agreanent with the accounting records and return4 or certain dIs¢losu￿ of trustees, i'emuneration specified by law are not made,. or we have not received all tbe infomlalion alld ¢xplanalions wc requii'e for our audit. Responslbllltles of trustees As explained more ￿1]Y in the Statement of Trustees, Responsibilities, the trustees (who are also the directors of Ibe charitable company for the purposes of company law) are ￿sPOil51b]E for the preparation of the financial statements and for being satisfied thai they give a truc and fair view, and for such internal conti'ol as the twstees detsmiine is necessary to cnable the preparation of financial stateM￿ts that w'e free from material misstatcmenL whcther due to fraud or error, In preparing the financial statements, the trnstees are Ksponsible for ass&8sing the charitable ¢ompany'5 ability to continue &8 a going ¢onccrn, disclosing* as applic&ble, Matte￿ related to going concern and using the goiDg concern basis of a¢Gounting unles5 the trustees either intend to liquidate tb¢ charitable Company or to ccase (yerdtion8, or have no realistic alternative but to do so. Page 9 F THE INDEPENDENf AUDrroRS TO THE MEMBERS OF GOL TR ITED Our respomibilitles for the Audlt of the flnanctsl statements Our objective5 are to obtaiii [￿O[lab]e assutwice about wl)¢thei' the fill￿]¢￿al statements as a whole are fr¢¢ from Tnateri&l misstatement, whether due to fraud or error, and to issue a Report of the Indep¢lldent Audito￿ that includes our opinion. Reasonable assurance 18 a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAS (UK) will always detect a material Inisstatement when it exists. Misstatements Can arise from fffwd or error and are considered material if, individually or ill the aggregate, they oould r¢asonably be expected to influence the economic decision8 of users taken on the basis of thes6 fLna]i¢ial 5tat¢ments. Our approach to id¢ntifying and assessing ihe risks of mateiial tnisstatement in respect of irregularities, includillg fraud and non-compliance with laws and regulations, was as follows.. the engagement partner ensured that the engagement temi collectively liad the appropriate competence, ¢apabilities and ski115 to identify or recognise non-compliance with applicable laws and rcgulations. we identified the laws ￿ld regul￿10n8 applicable to th¢ ¢ompally through discussions with d1￿CtOrS and other management we ￿sessed the extent of compliance with the laws and regulations identified above through making enquiri&s of managernent al￿ inspecting legal corresw>ndence' and iden¢ified laws and rrgulations were communicatsl within the audit team regularly and the team remaiiicd alert to lllStan¢cs of non-compliance tbroughout th¢ audit, We assessed the susceptibility of the company's fitwicial statements lo material Misstat￿llent, including obtaining an understanding of how fraud miglit occur, by.. making enquiries of rnanagement as lo wh¢re they consideird there was susceptibility to fraud, their kllowledge of actu&l, SUSP¢Gted and all¢ged frnud,. and - considering the internal controls in pl￿ to mitigate risks of fraud and non-compliance with laws and iegulations,, To address the risk of fraud tl]rough management bias and override of controls, we.. - perfomied analytical procedures to identify any unusual or unexpected re[￿lon81]ipS,. - tested jow'nal entries to id￿ltify unusual t￿￿aCtiOns. a5$¢￿ed whether judgen]ents and ￿sUMptiOnS mad¢ ill del¢rmining accounting estimates were indicative of potential and - inv¢stigated the rationale behind significant or unusual transactions, T1￿ are inherent limitations in our audit pri￿lureS desGribed abov¢. Thc mol'e i'¢moved that laws and r¢gulalions a fN)m financial t￿￿a¢tiOnS the less likety it l5 that we would becorne aware of non-¢ompli8nce. iiuditing ￿andardS also limil tbe audit procedures requir¢d lo id¢nlify non4omplianc£ with laws and Tegulations to enquiry of the directors and other mmagem¢t)t and th¢ inspection of regulatory and legal cotTespondence, if any. Material misstatements tt)at arise due to frdud can be harder to detect than those that arisg from error as they may iiivolv¢ deliberate coiicealment OT coIIusioii. A ￿rther d¢scription of our re8pon5ibilities for the audit of the financial statements is l(Kated oil the Financial Reporting Council's w¢bsit¢ a¢ www.frc.Drg.uk/auditorsre5ponsibililies. This description foms part of our Rq)Drt of tlLe Indq)endent Auditors. Page 10 T OF THE ]NDEPEND￿￿T A S TO THE MEMBERS OF LLANGOLLEN WAY TRUST L Use of our repprt Tbis i'eport is Inade solely tt) the cliaritable company's m¢inb¢rs, a5 a iM)dy, in accordance with Chapttt 3 of Part 16 of the Companies Act 2006. Our audit work has b¢en undertaken 80 that we might State to the ch￿'itablC compan)Hs MeInbe￿ those matters we are ￿quired to state to thern in an auditors, i'¢port and foi no otber purpos¢, To the fullest extent pennitted by law, we do not accept or assume responsibility to anyone oth￿. than the charitable company and the ¢haritablc ¢ompany'5 member5 as a body. foi. our audit worK for this i'eport, or ft)i' the opinions we have formed. Joaniic Evans (Senior Statutory Auditor) for and on behalf of M, D, Cox¢y and Co. Limitcd Chartei'ed Ac¢owrtants and Statutory Auditots 25 ￿￿$v¢nOT Road Wrexharn LLI I IBT 12th Septanber 2025 Page 11 LLANGOLL AY TED STATEMENT OF FINANCIAL AcrivrriES COBPORATING AN INCO[¥￿ AND EXPENDITURE ACCO END 31ST DECEMBER 2024 31.12.24 Total ftlnds 31.12.23 Total funds Unrestricted nds Restricted fijnd Notcs INCOME AND EI NDOWMENTS FROM Donations and legacies 90,087 288,790 378,877 240,444 Other Iradiltg activities Investmellt income 1,114,625 3.579 1,1 l4,625 3,579 1,082,848 4,254 Total 1,208,291 288,790 1,497,081 1,327,546 EXPENDiTtJRE ON Raising fimds 762,159 270297 1,032,456 902,933 CharltAbie actlvltl4s General costs Fropcrty Gosts 561.320 37,042 26,988 45.869 588J08 82,911 $48,364 129,043 Tot 1,360,521 343,154 1,703,675 1,580J40 NEI T INCOMEI(LXPENDfTURE) (152,230} (54,364) (206,594 > (252,794) RECONCILIATION OF FUNDS Total funds brought forward 1,418,911 1,192,368 2,611,279 2,864,073 'roTAL FUNDS CARRIED FORWARD 1266,681 1,138,004 2,4(M,685 2,611279 The notds form part of these financial statements P￿¢ 12 LLANGOLLEN RAIL AY BALANCE SHEET 31ST DECEMBER 2024 31.12.24 Total funds 31.1223 T￿al funds Unr¢8trided funds Restricted rund Not¢s FtXED ASSETS Intangible assets Tangible assets luvestmenty. 12 13 14 5,6(KJ 1,057997 16,458 1,050,598 22,058 2,108,595 25,358 2,186,532 I,C￿3,598 1,067,056 2,130,654 22LI,891 CURRE￿ ASSETS Stocks Debt(Trrs Cash at bal￿ and in hand 15 16 23,159 44,506 248,3S6 23,159 105,599 258211 18,575 175,519 483985 61,093 9,855 316,021 70,948 386969 678,079 CREDITORS Amoullts falling due within one year 17 (112938) (112,938) (278,691) NKT CURRENT ASSETS 203,083 70,948 274,031 399388 TOTAL ASSETS LESS CURRENT LKABILITIES 1.266,681 1,138,004 2,404,685 1611,279 NET ASSETS 1,266,681 1,138,004 2,404,685 2,611,279 18 Unre8tri¢tcd funds Restricted thnds. Restricted 1,266,681 1,418.911 1,138,004 1,192,368 TOTAL Flir￿Ds 2,404,685 2,611,279 The financial s￿ements w¢re ap￿.0Ved by the Board of Tru81ee8 and auth0ri5cd for i5suc on 12th Sq)tember 2025 and were signa on its b¢half by: R J Creas¢y- Trus Tlie notes fomi part of these financial stat¢tn¢nts Page 13 LANGOLLEN RAILWAY TRUST LltvIrrED CASH FLOW STATEMENr FOR THE YEAR ENDED 31sr DECEMBER 2024 31.12.24 31,12.23 Notes Cash floivs from operAting Activities Cash g¢nerat¢d from operations (218,274) 36.497 Net ¢￿h (used ill}Iprovided by operating activitie8 (218.274) 36,497 Cash flows from investlng #¢tiwitleg Purchase of tangible fixed assets Sale of tangible fixed assets (7,500) (190,806) 1,500 Net cash used in investing activities (7,500) (189,306) Change In cash and cash equivHlents ill the repor11￿g period Cash and ¢ash equivalents At the beginning of the reporting p¢rlod {225,774) (152,809) 483,985 636,794 CAsh and cash equivalents at the end of the reporling perjod 258,211 483,985 The notes form part of these financial statements Page 14 LLANGOLLEN RAILWAY TRUST LIMITED N(yfES TO THE CASH FLOW STATEMENr FOR THE YR4R ENDED 31 TDE EMBER 2024 RECONCItJATION OF NET EI XPEtNDrruRI TO NET CASH fiLOW FROM OPEI RATING AcrIvrriES 31.12.24 31.12.23 Net expendlthre for the repordng perlDd (as per the StAtement of FlnftnclAI Acdvldes) Adjustments for: Depr¢¢iation charges Loss on disposal of fiK¢d ass¢ts Decrease/{increase) in group debtors (InCrease)IdeWe￿ in stocks Decr¢ase in deb￿ (Decreaseyincreasc in Grcditors (206,594) (252,794) 88,737 90,602 40,241 {348) 18,480 38,651 101,665 3,530 (4,584) 66,390 (165,753) Net caslA (used in)IproTrryded by operattons {218,274) 36,497 ANALYSIS OF CHANGES IN NET FUNDS At 1.1.24 Cash flow At 31.12.24 Net cash Cayh at bank and in hand 483,985 (225,774) 258,211 483,985 (225,774} 258,211 Total 483985 (225,774) 258.211 The notes fomi part of th￿￿ fin&ncial stat#ments Page 15 LLAN LL TRUS LIMITED NOTE CIAL STATE FOR THE YEAR ENDED 31 ST DECEMBEEi 2024 ACCOUNTING POLICIES Basis of preparing the finttncial 8tatem¢nts The financial statements of the charitable cotnpany, which is a public benefit entity under FRS 102, have be¢n prepared in ￿cOrdanCe with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statetn¢nt of Recommended Practice applicable to cl]ariti&s prepariiig their ￿CoUnt$ in a¢cordaiice with Ihe Financial Rq)orting Standai'd appliGable ii) Ihc UK and Republic of Ireland (FRS 102) (effective l January 2019),, Financial Reporting Standard 102 'The Financial RetK)rling Standard applicable in the UK and Rcpublic of Irelandl ￿]d the Companies Act 2006. The fii]ancial statements have be¢n prepared under the historical cost convention. with the exception of investments which ￿'e included at market value. The Iru5tees consider that there no ￿￿terIal uncertainties about the Trust's ability to continue as & going concern. StAtus And prlnclpal Actlvltles Llangollen Railway Thist Litni*d is & company limited by guarantee, incorporated in Eiigland al￿ Wal¢s. Its Registered Office is The Station, Abbey Road, Llangoll¢n, Denbighshii'¢, LL20 8SN, The prtncipal activity of the company is that of the repair and maintenan¢¢ of traL]SPOrt ¢quipm¢nt. FlnanclAI reportlng stRndftrd 102 - rediiced d18closllre exemptlons The chaLilable cotnpany ha5 taken advantage of the following d1￿105Ure exemptions in prqjaring these financial stat¢ments, &8 p¢rmitted by FRS 102 Th¢ Fillallcial Reporting Standard applicable in Ihc UK and Republic of Ireland,: the requii'ements of paragrapbs 11.42, 11.44, 11.45, 11.47, 11.48{aXiii), 11.4S(a)(iv), 11.48(b) and 11.48(c)' th¢ rcquirements of paragrnphs 12.26, 12.27, 12.29(a), 12,29(b) and 12,29A. SigftificAnt judgemettts and ￿tiMat¢S In the applicatioll of the Company's accouiiting policies, roanagement are required lo tnak¢ judgements, estinTrtes and assumptiong about carrying values of assets and liabilities that are not readily available fro￿ (rtl sources. The estirnats and uiiderlying assumptions are based on historical exp￿ienCe and Dllier factors that are consid¢r¢d to be r¢levanl. A¢tual r¢sults may differ from Ihe5c estimates. The key judgem¢nt8 and sources of estimalion un¢¢rtainty that have a 5LgnifiGant effect on tbe amounts recognised in the financial statements described ￿lOw. - Estimated useful lives and ￿sidUEll values of fixed assds.. The oarrying value of fixed assets are reviewed each year end for Indicators of Trnpairnient trigger5. If such triggers exi¢ management would be required to carry out a forn￿1 in]pairni¢nt review using a disfouiited cash flow mod¢l to det¢rniin¢ th¢ir value in use oll a ¢ash-g¢n¢rating unil basis. The value in use calculation r¢quirGs management to estimate the future cash flows expected to ￿lse from the cash-gen¢rating unit and a sustainable discount rate in order to ca]culate the prcsent va]ue. D¢preciation of tangible fixed assets has been based on estimated use￿[ lives and residual values deemed appropriate by ¢b¢ dii'ectors. Estimated useful liv¢s and r¢sidual valu¢s arc r¢vi¢wcd annua]ly and revised as appropriatc. Revisions take into account estimated usefill lives used by other companies operating in the 5ectoi' and actual asset lives and residual values, as evidenced by disposals during cutyent and prior ac¢ounting periods. In¢o]nc All inco￿¢ i¥ wognised in th¢ Stat¢ment of Financtal Activities once tlie charity has eiititlement to the funds, it is probable tl)at the income will be re¢eivuL and the ￿llOUTht can be rneasured reliably. Page 16 continued... ILANGOLLEN RAILWAY TRUST LIMITED N(yfES T R THE FINAN TEMENfs . continu ED 31ST DECEMBER 2 ACCOUNTING POLICIES- condnued Expendiliire Liabilities are recognised as expenditur¢ as soon as there is a legal OT constructiv¢ obligation coinmitting the ch￿'Ity to that expenditure, it is probable tl]at a transfei. of ecollomic benefits will b¢ requii'ed in setllern¢nt aiid the amount of the obligation can be measured reliably. Expenditur¢ is aG¢ount¢d for on an accThals basis and has been classified under headings tliat aggregate &ll cost related to the category. Where costg ¢anMot be directly attribut￿ lo particul￿. headings they have be¢n allocat￿ lo activities on a basis consistent with the us¢ of RalBlng fund8 Costs of generating funds comprise those costs directly attributable to the comm¢r¢ial activities of the Tw8t. Ch&ritRble activities The cosis direclly attributable to th¢ mainta)ancc of tbe railways. Donations to other chM'ities are allocated to charitable activiti¢s. Goodwill Goodwill, being the ￿￿Ount paid in connecti￿] with the acquisition of a bu8iness in 2021, is being amortised evenly over its estiinated useful life of ten years. Tanglble fixed a88ets Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life. Land, Buildings and Improvements Plant and machineiy Rolling stock Motor vehicles Computer equipment Th¢ l¢ngth of the lease at varying rdte5 on cost 2/D on cost IOO/o on cost 330/0 on c()st Exp¢iidilure of a capital natur¢ is recognised as an addition to fDo¢d assels, All fixed ￿se15 aTe stated at cost. RelAted party exemption The charitable company has taken advaiilage of exemption, under the terms of Financial Reporting Standth 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland,, not to disclose related party transactions wilh wholly owncd subsidiaiig5 WLthin the group. Stocks Stocks are valued at the lower of cost and net realisable valu¢, after making due allowance frir obs￿1￿¢ and slow oving ifrms, Taxatioll The ch￿'ItY is exempt fn)m Co￿oratIon tsx on its Gli￿ltable activities. ri aceountiiig Unrestricted ￿llds can be used in accordance with the ¢haritabl¢ objectives at the discretion of the tru*ces, Restricted funds caD only be used foi. particular restricted pu￿0$￿% within the objects of the charity. Restrictions 15e whe41 specified by the donor or when funds are raised for particular resli'icted puryoses. Further explonation of tbe nature and purpose of each fund is in¢luda in th¢ notes to the fillancial statoments, Hire pUrc1￿Se and leaslng commltments Rentals p&id undei. operating lease8 are cliarged to the Statetnent of Financial Activities on a straight line basis ov¢r th¢ period of the lease, Page 17 continued... LLANGOLLEN RAILWAY TRUST LIMrrED NOTES TO THE FINAN ntinued FOR THE YEAR ENDED 31 ST DECEMBER 2024 ACCOULYTING POLICILS - contIn￿ed Pension ¢ost$ oth¢r post-retirement benefits The charitable company operates a defined contribution pension sGhcnie. Contributions payable to the charitable company'5 pension SCI￿￿ are charged to tbe Statement of Financial Activities in the perirKI to which they irlate. Financiol In$tniment$ The foll¢Mving assets liabilitie5 ate classified as fJnancia] ins¢Nmenls . trade debtors and trade creditors. Trade debtors and trade creditors are m¢asured at tbe undiscovnt¢d amount of cash or other ¢onsideration expected to be paid or received. Financial assets are assessed at the end of each rq)orting period for objective evid￿]ce of impairn]ent. If objediv¢ ¢vid¢n¢e of impainnent is founl ali irnpainnent loss is r¢cognis¢d in profit alld1055. The cliarity's functional and presentational currency is the Pound Steriiiig (£). DONATIONS AND LEGACIES 31.12.24 31.12.23 Total funds Unr¢stri¢t¢d futtds R¢stricled funds funds Donations Gift aid Legacies Grant income 79,755 IOJ32 80,4tM) 10,332 52,755 2,614 52,493 132,582 288,145 288,145 90,087 288,790 378.877 240,444 GrdnL% reGeived, included in the above, are as follows.. 31.12.24 31.12.23 LKvelil￿ up fund Shared PrOsp￿.Ity DCC Cost of living grant 103,552 29,030 286,145 2,000 288,145 132,582 OTllER TRADING ACTlVtTtEs 31.12.24 Total funds 31.12.23 Tolv41 funds UnrestiicteAI funds Restricted funds Cafe in¢omc Ti¢ket sales Subscriptlons Magazines, raffles ajid looomotive hire Holiday lelling income Other sales 100,432 894,340 20,804 53,000 12,789 33,260 100,432 894,340 20,804 53,000 12,789 33,260 104,(M)2 864,072 20,480 47,453 24,087 22,754 1,114,625 1,114,625 1,082,848 Page 18 Continued... LLANGOIL RAtL AY TRUST LIMrrED NOTES TO THE FINANCIAL TA FOR THE YEAR ENDED 31 ST DECEMBER 2024 IIyVF3T￿l NT INCOM 31.12.24 Total funds 31.12.23 Totsl funds Unrnsti'icted nds Restricted nds Bank int¢rest 3,579 3,579 4,254 RAISING FUNDS Other trAding artivlties 31,l2,24 Total funds 31.12.23 Total nds Uiir¢striGtcd funds Restricted funds Purchases Staff Gost5 Hire of plant and m￿hinery Bad debts Steaming expenses Holiday letting expenses 221,052 319,466 95,906 3,991 112,856 8,888 14,215 256,082 235,267 575,548 95,906 3,991 112,856 8.888 322,451 414,673 73,403 80,361 12,045 762,159 270,297 1,032,456 902,933 CHARITABLE ACTivfTIES COSTS Support costs (see not¢ 7) Direct Costs Totals General costs Property costs 4,735 583,573 82,911 588,308 82,911 4,735 666,484 671,219 SUPPORT COSTS Management Finan¢e Other Totals Gelleral costs Prop¢rty Costs 367,787 29,137 1,822 213,964 53,774 583,573 82,911 396.924 1,822 267,738 666,484 Page 19 continued.,, LLANGOLLEN RAILWAY TRUST LllvIfTED ST NTS - continu FOR THE YEAR ENDED 31ST DECEMBER 2024 NLI T INCOMEI(II XPENDrruRE) N¢t incomel{expendItu￿) is stated after Chargin￿(Crediti1]g).' 31.12.24 31.12.23 Depr¢¢iAtion- owned assets Hire of plant and macbineiy Deficit on disposal of fixed assets Goo(hvill amortisation Audito￿ remunerntion 85,437 95,906 87,302 73,403 40241 3,300 6,300 3,300 6,615 TRUSTKES, REMUNERATION AND BENEfilTS There were iio trustees, remunerdtion or other benefits foi. the year ended 315t December 2024 nor for the year Ided 3 1st December 2023. Tru8tee8' expense5 Therc were no ti'ustees, expenses paid for th¢ year ended 31st Duember 2024 nor for the year ended 31st December 2023. io. STAFF cogrs 31.12.24 31.12.23 Wages and salaries S