Kempton Great Engines Trust
Kempton Great Engines Trust Limited
Annual Report and Accounts
31 December 2023
The Trustees, who are also directors of the Charity for the purposes of the Companies Act 2006, present their report with the financial statements of the Charity for the year ended 31 December 2023. The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, and the Accounting and Reporting by Charities; Statement of Recommended Practice (second edition) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard 102 ('FRS102').
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Kempton Great Engines Trust
REFERENCE AND ADMINISTRATIVE DETAILS
Company Name
Kempton Great Engines Trust Limited
Registered Company Number 03094226
Registered Charity Number
1048936
Scheduled Monument Number 153 Registered Office Kempton Steam Museum Kempton Park Waterworks Snakey Lane Hanworth Middlesex TW13 6XH
Trustees
Richard Albanese
John Anderson (Chair) Felix Charteris Stephen Fielding David Lawrie Abdullah Seba - appointed 24 January 2023 Jerry Scholefield Susan Webb Martin Wicks (Treasurer) Company Secretary
Steven Bamforth
Steven Bamforth retired as Company Secretary on 12 March 2024 and Jeremy Scholefield retired as trustee on 28 May 2024. Valerie Mills was appointed as trustee and Company Secretary on 13 February 2024. Stephen Hewes was appointed as trustee and Treasurer on 3 June 2024.
Independent Examiner
Sara Williams
Bankers
CAF Bank Ltd
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MESSAGE FROM THE CHAIR
2023 was a year in which we focussed on looking ahead to secure our future, the future of the collection and on the delivery of our charitable objectives. In doing so, we also consolidated the changes made to the way we run ourselves that were begun in 2022. All these activities were steps necessary to ensure we have the capacity to achieve our ambitious plans to expand the museum. Longer term sustainability continues to drive a lot of what we do. As highlighted last year, our governance has been developed with how we do things in the areas of finance, business information and people management all been brought under the spotlight as described below.
Perhaps more importantly we continued to work to improve our visitor experience and increase our audience numbers. Over 4,300 people visited the museum in 2023 including 760 under 18 years a significant improvement on 2022. In addition, we worked to maximise the use of the currently available space both in the engine house and outside the building.
Overall, this was a year of continued progress and in achieving our objectives, due entirely to the dedication of all our volunteers and trustees. Together, they contributed around 10,000 hours of voluntary time, a remarkable performance.
We have enjoyed the continued support of Thames Water in facilitating change. Thanks also go to councillors and officers of the London Borough of Hounslow for their encouragement and time, and to Historic England for their advice and facilitating our work plans.
2023 was a year of putting in place the foundations for the future. As I look ahead, I have no doubt that, building on another successful year, we are on a path to greater things.
John Anderson
Chair
3 September 2024
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Kempton Great Engines Trust
DIRECTORS’ REPORT
ABOUT KEMPTON GREAT ENGINES TRUST
Kempton Great Engines Trust Ltd. trades as Kempton Steam Museum. The Trust was incorporated on 23 August 1995 with the aim to preserve the historic triple expansion steam pumping engines at Kempton Park Pumping Station and make them accessible to the public as a museum. The museum building and its original steam pumping engines and other equipment is a Scheduled Monument (No 153). It is also Grade II* listed. In 2002 the “Sir William Prescott” engine was returned to steam and in December that year the museum was inaugurated by the then HRH The Prince of Wales. The museum was opened to the public in 2004.
Our Vision
To be a national centre for learning about the supply of drinking water and its importance to the world
Our Mission
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To tell the story of the Kempton Park Pumping Station and its vital role in the supply of drinking water from past to present
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Enhance and maintain the Engine House as a working display of the pinnacle of traditional steam pumping engine development and transition to turbine technology
Our values
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Our behaviour will be based on the Nolan principles for standards in public life: selflessness, integrity, objectivity, accountability, openness, honesty, leadership
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We will be inclusive and diverse respecting the rights of everyone regardless of ethnicity, religion and sexual orientation.
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Enable involvement through volunteering.
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Be locally relevant to global concerns.
STRUCTURE, GOVERNANCE AND MANAGEMENT
The Kempton Great Engines Trust is incorporated as a company limited by guarantee, and is governed by its articles of association. The articles outline the provisions for the running of the Trust, which trades as Kempton Steam Museum. Overall responsibility is entrusted to a board of trustees. Appointments of new trustees are approved by the Board, with selection based on the skills required to complement existing skills of board members.
Where appropriate, oversight and decisions are delegated to sub-committees of the board, with committees’ terms of reference and membership are approved by the board. During the year, we rationalised previous governance structures of sub-committees and a new Conservation committee was added to ensure that we look after the monument to the correct standard. We are supported here by input from Historic England and Hounslow council.
The trustees are all volunteers who undertake self-study training and involve third-party experts as required. New trustees are invited to meet with existing trustees, visit the museum and receive relevant documentation. The bulk of our conservation work and the running of the museum as a public venue is carried out by volunteers. A paid part-time bookkeeper is the only employee.
The trustees regularly review the major risks to which the charity is exposed. A Risk Register is maintained and is reviewed and updated on a regular basis. Insurance cover is maintained against normal commercial risks.
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The trust is participating in the formative Alpha group of waterworks museums, which will enable sharing of knowledge and skills in future.
As we reported last year, the trustees have an ambition to extend and expand the museum. We have outgrown what we are able to do in in our current building. Our longer-term aim remains to expand the museum into the original Boiler House immediately adjacent to the Engine House. This Grade II* listed structure is a huge volume of now redundant space which could accommodate our needs well into the future.
The trustees recognised the importance of being able to describe why such a huge task matters and what the organisation is trying to achieve. Towards the end of the year trustees held two externally funded and facilitated workshops to look again at our strategy and what we needed to do to achieve it. From this common understanding we determined to produce a new 5-year strategic plan and conduct a further review of governance in 2024 to ensure we would be fit to deliver the strategy. It was also recognised that taking our people with us was essential and work to improve communications was started.
OBJECTIVES AND PERFORMANCE
Public benefit
The trustees confirm that they have complied with the duty in Section 17 of the Charities Act 2011 to have due regard to the Charity Commission’s general guidance on public benefit and that the activities carried out by Kempton Great Engines Trust during the year were all undertaken to further its objects. A detailed explanation is given under activities below.
Objectives
The Trust’s charitable objects are set out in the Articles of Association as revised in January 2023. They are for the public benefit:
To promote, encourage, improve and advance the education of all about past, present and future importance of conserving and sustaining clean public water supplies by:
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1) The collection, preservation, safeguarding, interpretation and display of equipment, objects and artefacts of whatsoever nature relating to, but not exclusively, the story of the Kempton Park site and its role in the supply of safe clean water to large areas of London; and
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2) The operation of a museum at Kempton Park pumping station based on the appropriate sector standards which provides the public the opportunity to see the original steam engines working in their original setting alongside examples of evolving turbine technology; and
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3) A wider understanding and appreciation of the importance of the industrial revolution in the social and economic development of Great Britain, including coal power, electricity generation, railways and civil engineering.
Visitor activity
Attracting visitors in increasing numbers is essential both to meeting our purposes and as a main source of income. We do this mainly by opening for one weekend each month between March and November (except July) when the “Sir William Prescott” pumping engine is run in steam four times each day. The museum is also open every Sunday through the season as a static exhibit. During open days, guided tours to the top of the static No 7 engine are provided allowing visitors to get up close whilst learning about aspects of the engineering and operation of the engines and pumps.
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Kempton Great Engines Trust
Individual visitor numbers over the year rose to 5,098, an increase of over 32% compared to 2022. People under the age of 18 years continued to be admitted free of charge, and we once again held admission prices level with the prior year.
In addition to the steaming weekends, in 2023 we held two special fundraising events. These jazz nights with a live band were very popular showcasing the working engine in a very atmospheric setting. Almost 200 hundred visitors participated in these events which also provided additional income to support the charity.
The museum continues to host a small number of educational visits from local school children studying local history and science.
Refreshments and Merchandise
The café and shop are an important part of improving our visitor experience and a significant source of income. We keep prices of snacks and a range of beverages at affordable levels and we continued to add lines to the shop. This year the café and shop generated over £16,800 (2022: £9.500).
Increasing visitor space
The work started in 2022 to relocate a mechanical workshop away from the rear of No 7 engine continued throughout 2023. This is a large undertaking but when completed in 2024 will enable us to increase visitor space in the Engine House.
Volunteering
The museum is run entirely by volunteers in two main areas:
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Technical
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Front of house
The total number of hours worked by volunteers in 2023 was circa 10,000.
Technical
Our main attraction is our original no. 6 engine which is driven by steam. It requires constant care and attention to maintain in good and safe working order. We have a dedicated group of around 25 volunteers who take on these behind-the-scenes activities under the direction of the Technical Committee that reports to the Trust Board. We currently have 11 volunteers who are fully qualified in all aspects of the operation of the Great Engine, with the remainder currently receiving training.
Front of house
Every bit as important as engineers and electricians are the volunteers who make our visitor experience as enjoyable and comfortable as possible. These people do everything from welcoming visitors at the front door, helping out in the car park, looking after the toilets and, of course, serving refreshments.
Developing Volunteering
A high and sustainable level of volunteering will be vital to our future. This will be a challenge as it is across the sector. In 2023 we planned and developed a project to carry out a strategic review of volunteering to significantly improve our performance in this area. The project will report in 2024.
Accreditation
During the year, we were successful in being awarded “working towards accreditation” status by Arts Council England. We are supported by an accreditation mentor in taking forward work to achieve the
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required standards over the next three years. The accreditation process will be a key business driver for the coming period.
Moving the Boiler House project
Concurrently, discussions with Thames Water continued about the scope of the project and possible new leases. After receiving a strong letter of support from Thames Water a successful project proposal for funds for a number of first outputs was made to the Architectural Heritage Fund. The project will be carried out in 2024.
Learning and Activity Centre
The Boiler House project will take some years to complete. Over 2023, working with Hounslow Council, and Historic England, we developed proposals to build a moderately sized new building adjacent to the museum. The purpose of this structure is to increase our capacity for learning, volunteering and other community purposes. It will be necessary to secure planning permission for the building and we have continued to progress this project since the year end.
Audience
The Museum’s rating from visitors is high, at 4.8 out of 5 on Google based on 341 reviews. Typical comments include:
“The steam museum is a hidden gem, located inside are two giant 3 stage steam engines built to pump water for the surrounding area. Completely run by volunteers all extremely knowledgeable and friendly.”
“A fabulous attraction on a steaming day. Friendly volunteers who are knowledgeable and a nice cafe.”
“Visited recently while one of the engines was running. What an impressive place! Really enjoyed it and the volunteers were super knowledgeable and friendly. A true gem.”
“What a marvellous day out. Easy to find and lots to look at and learn. We had just a few hours to take it all in, and could have spent all day here. The engine that's running is magnificent, with men in white boiler suits attending to it and to all your questions. And down in the depths, more curious machines and exhibits.”
The breakdown of visitor demographics captured during a recent study was:
Age: 53% of those surveyed were over 60 years of age, and 26% between the ages of 41 and 60. The high age of visitors demonstrates a potential opportunity for the museum to market to younger audiences.
Gender: 63% of those surveyed were male, and 35% female, with the remainder preferring not to say.
Ethnicity: 83% of survey responders identify as being white British, with many others not preferring to say.
Developing our audience
Achieving our purpose and reaching accreditation means developing and diversifying our audience. To help us achieve this we started work with the Worcester Polytechnic Institute on a project to help us understand our current audience and to make recommendations for improvement. This project was completed in May 2024 and its recommendations are being actioned.
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Partnership
A list of supporting partners is below in the Financial Review section. The museum has links with other pumping stations at the London Museum of Water and Steam and Crossness. Sharing knowledge and experience of mutual challenges will be important as we pursue accreditation. We will aim to extend such collaboration in areas such as sustainability.
We have excellent links to London Borough of Hounslow in various functions which we will maintain. We are also members of the Hounslow Cultural Partnership giving us access to other cultural sites in the borough with whom we continue to work closely.
Thames Water will be a major partner as we move the museum expansion plans forward not just in relation to the buildings but also delivering our vision.
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Kempton Great Engines Trust
FINANCIAL REVIEW
Principal funding sources
The principal sources of funding during the year were:
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Sales of tickets for admission to the museum
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Refreshments
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Merchandise
Visitor numbers increased by approximately 40% in 2023 compared with the previous year which was affected by the latter stages of the Covid pandemic. The increase in attendance resulted in a doubling of revenues from attendance including refreshment and merchandise sales from £39,759 to £63,712 in 2023. Location hire income was significantly higher at £18,525 (2022: £1,200).
Donations from the public of £1,651 (2022: £1,180) were received during the year.
The Trust received a capital grant of £18,875 from the London Borough of Hounslow in each of 2022 and 2023 as a contribution to the cost of installation of a visitor lift which was commissioned in 2023.
The trust has no restricted funds. The fixed assets acquired from capital grants are used for the Trust’s principal charitable purpose, and hence related revenue is treated as unrestricted funds.
Reserves policy
The Trustees have a reserves policy of holding £50,000 as a sufficient fund to ensure that the No 6 engine can be kept in full working order in the event of unexpected engineering works requiring specialist contractors. The policy is reviewed annually.
Total reserves at the end of 2022 have been restated for two factors:
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Inclusion of income from business interruption claims relating to 2020 and 2021 of £30,466, omitted in error, and
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An impairment charge for £15,449 related to fixed assets in the course of construction was deemed inappropriate and was therefore reversed.
Total reserves were £191,136 (31.12.22 restated: £170,527), and the balance on the bank accounts was £124,245 (31.12.22: £111,245) at the year-end date. The surplus reserves will enable the Trust to pursue its growth ambitions and act as a buffer should trading losses be incurred.
There were no significant commitments made as at the end of the year. At the end of 2022, the museum had a commitment of £24,200 for the planned installation of the visitor lift.
Funds in deficit and going concern
There were no funds in deficit at the end of the accounting year.
The trustees have assessed that the charity will be able to continue as a going concern. In making this assessment the trustees have taken into account all available information about the future for at least the 12 months from the date the accounts were approved. In particular, the trust holds reserve funds held as a precaution for any repairs required to the main engine plus reserves held to cover the risk that visitor numbers are reduced for whatever reason.
Investment policy and objectives
Kempton Great Engines Trust does not have significant funds to invest and funds above those needed to deal with day-to-day transactions are kept on bank deposit.
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Kempton Great Engines Trust
Funds held as custodian for others
Kempton Great Engines Trust does not hold any funds as custodian for others.
Partnership
We are grateful for the support of:
London Borough of Hounslow Thames Water Historic England Association of Independent Museums Museum of London
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Kempton Great Engines Trust
INDEPENDENT EXAMINER’S REPORT
I report on the accounts for the year ended 31st December 2023 set out on pages 12 to 16.
Respective responsibilities of the trustees and examiner
The charity’s trustees (who are also the directors for the purpose of company law) are responsible for the preparation of the accounts. The charity’s trustees consider that an audit is not required for this year (under Section 145 of the Charities Act 2011 (the 2011 Act)) and that an independent examination is required.
Having satisfied myself that the charity is not subject to audit under company law and is eligible for independent examination, it is my responsibility to:
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Examine the accounts under Section 145 of the 2011 Act;
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Follow the procedures laid down in the General Directions given by the Charity Commission (under Section 145(5)(b) of the 2011 Act); and
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State whether particular matters have come to my attention.
Basis of the independent examiner’s report
My examination was carried out in accordance with the General Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as the trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently no opinion is given as to whether the accounts present a ‘true and fair view’ and the report is limited to those matters set out in the statement below.
Independent examiner’s statement
In connection with my examination, no matter has come to my attention which gives me reasonable cause to believe that, in any material respect, that:
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the requirements:
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to keep accounting records in accordance with Section 386 and 387 of the Companies Act 2006; and
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to prepare accounts which accord with the accounting records, comply with the accounting Requirements of Section 394 and 395 of the Companies Act 2006 and with the methods and principles of the Statement of Recommended Practice: Accounting and Reporting by Charities
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have not been met; or
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to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.
Signed Date: 14[th] September 2024
Sara Williams BA Hons MA MICB FICFA
Independent Accounts Examiner
Fellow Institute of Certified Forensic Accountants. Member of Institute of Certified Bookkeepers.
14[th] September 2024
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FINANCIAL STATEMENTS
Combined statement of Financial Activities and Income and expenditure account for the year ended 31 December 2023
| 2022 | |||
|---|---|---|---|
| Notes | 2023 | restated | |
| Income | £ | £ | |
| Donations | 3 | 5,701 | 4,479 |
| Grants | 4 | 18,875 | 18,875 |
| Charitable activities | 63,712 | 39,759 | |
| Supporter subscriptions | 2,031 | 1,150 | |
| Location hire | 18,525 | 1,200 | |
| Bank Interest | 2,201 | 433 | |
| Business Interruption Claim | 5 | - | 33,091 |
| Total | 111,045 | 98,988 | |
| Expenditure on charitable activities | |||
| Operations | 55,945 | 23,632 | |
| Administration | 6 | 34,492 | 32,376 |
| 90,437 | 56,008 | ||
| Net income in the year / net movement in funds | 20,608 | 12,511 | |
| Opening funds as at 1 January | 170,527 | 158,016 | |
| Total funds as at 31 December | 191,135 | 170,527 |
No corporation tax was payable in the year (2022: £nil).
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Kempton Great Engines Trust
Statement of Financial Position as at 31 December 2023
| Notes | 2023 | 2022 Restated |
|
|---|---|---|---|
| £ | £ | ||
| Fixed Assets (net of depreciation) | 7 | 67,415 | 56,175 |
| Current Assets | |||
| Cash in Bank, on Deposit and in hand | 124,245 | 111,245 | |
| Stock | 1,957 | 3,107 | |
| Accruals | (2,482) | - | |
| Net current assets | 123,721 | 114,352 | |
| Net Assets | 191,136 | 170,527 | |
| Represented by | |||
| Restricted funds | - | 3,426 | |
| Unrestricted funds | 191,136 | 167,101 | |
| Total funds | 191,136 | 170,527 |
The total reserves of £191,136 as at 31 December 2023 represented unrestricted funds, as capital grants have been fully applied to the acquisition of fixed assets. At 31 December 2022, £3,426 of the grant income of £18,875 received had yet to be invested in fixed assets.
John Anderson
Chair and Trustee 3 September 2024
Stephen Hewes Treasurer and Trustee 3 September 2024
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Kempton Great Engines Trust
Notes to the financial statements
1. Basis of preparation
These accounts have been prepared under the historic cost convention, the Companies Act 2006 and the FRS 102 account standard as applicable for smaller companies.
Judgements and estimates
The trustees have made the following judgements when preparing these accounts:
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Refreshment and gift shop sales are treated as ancillary to the primary purpose trading of the museum.
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In accordance with the SORP, no value has been assigned to the time and services provided by volunteers and trustees to the charity free of charge on the basis that these services can not be resold.
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No valuation of the heritage assets is available, and the cost of obtaining a valuation is not commensurate with the benefit to the users of the accounts and the charity.
The main estimates made by trustees in the preparation of these accounts is that of the useful lives of its fixed assets. These are valued in note 7.
2. Restatement of 2022 comparatives
The 2022 comparatives within these accounts have been restated for two factors:
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Inclusion of income from business interruption claims relating to 2020 and 2021 of £30,466, omitted from opening funds as at 1 January 2022 in error, and
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An impairment charge for £15,449 related to fixed assets in the course of construction as at 31 December 2022 was deemed to be inappropriate and was therefore reversed. The impact of this restatement was to increase net income for the 2022 year by the same amount.
| 3. Donations: | 2023 | 2022 |
|---|---|---|
| £ | £ | |
| Public | 1,651 | 1,180 |
| Kempton Great Engines Society | 4,050 | 3,299 |
| 5,701 | 4,479 | |
| 4.Grants from London Borough of Hounslow: | ||
| £ | £ | |
| Grants received | 18,875 | 18,875 |
The grant funding in 2022 and 2023 was in respect of a passenger lift which was brought into use in 2023. In accordance with paragraph 5.10 of the SORP for Charities, the accrual basis for grants has not been applied and instead grant funds have been recognised on receipt.
5. Settlement of Business Interruption Claim
| 5.Settlement of Business Interruption Claim | 2023 | 2023 | 2022 |
|---|---|---|---|
| restated | |||
| £ | £ | ||
| Claim of closures in 2020 and 2021 | - | - | 2,623 |
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| 6.Administration expenses | 2023 | 2022 |
|---|---|---|
| £ | £ | |
| Salaries | 5,263 | - |
| Other office costs | 4,848 | 13,937 |
| Financial Charges | 2,055 | 3,089 |
| Telephone & | ||
| Internet | 2,698 | 2,217 |
| Insurance | 1,840 | 1,550 |
| Marketing & | ||
| Publicity | 3,742 | 3,313 |
| Rent | 1,085 | 875 |
| Depreciation | 12,960 | 7,395 |
| 34,492 | 32,376 | |
| 2023 | 2022 | |
| restated | ||
| 7.Fixed assets | £ | £ |
| Cost | 111,014 | 86,814 |
| Depreciation | 43,599 | 30,638 |
| Net Book Value | 67,415 | 56,176 |
| Net book value | ||
| At 1 January | 56,175 | 42,488 |
| Additions | 24,200 | 21,082 |
| Depreciation | (12,960) | (7,395) |
| As at 31 December | 67,416 | 56,175 |
The fixed assets held in the register represent assets acquired for the operation of the museum and are depreciated over the expected economic lives, generally of 10 years. The increase in the cost value of fixed assets in 2022 and 2023 mainly reflected the acquisition of the passenger lift which was commissioned in 2023 and depreciated from that date.
No value has been assigned to the heritage assets for the purposes of these accounts. The heritage assets include the historically significant two triple expansion steam engines originally commissioned in 1929, owned by Thames Water and leased to the Trust. The building housing the engines is owned and managed by Thames Water.
8. Remuneration
No trustees received renumeration, benefits or reimbursement of personal expenses in the year (2022: £nil).
The amount payable to the Independent Accounts Examiner in respect of the 2023 accounts is £500 (2022: £nil).
The salaries costs included in note 6 represent wages and social security costs of a part-time bookkeeper and security guards employed on an ad hoc basis, the analysis of which is not considered meaningful. No post-employment benefits were provided in the period (2022: £nil).
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The average headcount was a small fraction of one full time equivalent employee. No employees received benefits of more than £60,000 (2022: none).
- Related party transactions – there were no related party transaction requiring disclosure in the year. (2022: none).
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