SITTINGBOURNE AND KEMSLEY LIGKf RAILWAY LTD FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Registered Company No: 01036616 Registered Charity No: 1057079 SITTINGBOURNE AND KEMSLEY LIGHT RAILWAY LtMITED FINANCIAL STATEMENTS FOR THE YEAR EI¥DED 31 DECEMBER 2023 IriDEX Pa Report of the Trustees l Dbectors tndependent Examiner's Report to the T￿￿¢S Statement of Financial Acuvities Balance Sheet 7-12 Notes to the Financial Statements SITTINGBOURNE AND KEMSLEY LIG￿ RAILWAY LINtrrED REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER2023 Page I Th¢ T￿￿tec/DirectOrS sub]nit their report together with the unauditrd financial statcnwits for th¢ year ¢nded 31s1 December 2023 Ob'ectivts and Activities The Charity is PrI￿arity engag¢d in the advancement of the edtLcatiOD ofthe public by the establisbment and preserv.alion of a wotking narrow-gaoge heritage railway. Achievements and Performance Early in the year an unexpected triumph for our ¢Dgine¢ring team was winning the national HeriTage Railway Association Coiley Award for Steam Locomotive Engin￿ring in recognition of the higb standard of the overlHul and restorauon of Premier to traffic. Winning against stiff competition from larger Tai]ways across the UK was a tribute to our volunteers. Premier returnedto traffic in May 2022. Donations aDd ￿ants were achievedto support the ongoing woJ* oll Project Sitttngbourne aDd to enhance our macbille shop equipment so that we can utthrtake mor¢ work in-house to spetd up our overhauls. A complete renewal of the safety wires along the whole length of the Viaduct was undert8ken ￿ well as Ph&8e I l of the Viaduct Conservatton Progran]me. Ib order to catch up with this programme following Covid d¢fen31s the Board were recommended to fijud bringTng forward Phas¢ 12 to be ondertaken J1￿ aftct the yc&r end and thi5 w&$ ac¢eptrf requirEng a review of our cash flow the year. Leader w&9 with(trawn at the explly of her certificate but heT owneTthip was banded over to the Charity so that we could in due CO[￿Se undenake her overhaul. Sbordy after the end of the year she w&s re-located under cover in a new mus¢nm at Margate alongside the standard gauge Pioneer It. The fllBt stsge of redevelopmenr of Sittingboume Viaduct new platfomi w&8 cujnpleted in time for trie Christinas Train service aud further work will tske plac6 in Autumn 2024. Post Balance Sheet Events The volunteers of the railway hav¢ continued to contrbL uts considerable time and ¢JTort towards maintaining and developitigthe ratlway for the ben¢fit and education of the public. Considerable "b¢hind the scenes" work continues to tak¢ place to ests1blish & secure fuwr¢ for the railway as a key part of the regeneration of Sittiugbourn¢ and Milton Regis. The future of the railway r¢quires ongoing and active support from our members and any who have not a&Tvely participatsd before are strongly invtted to contact Offi¢¢rs listed in "The New Bogie" to support the Charity and to share the enjoyment. Good relations continue with Swale Borough Council ￿thOugh the furtller development of MiltUD Creek County Parf( is progresslng very slowly. The upgrading of Mtltt)n Regis (Asd&) Station wiIl be reviewed in tbe fitture followillg a clarifi￿tiOn of further development of the County Paik. Refurbishment of Sitiingbourne Booking Office was completed before Easter 2024, together wilh significant rnajor rnaintenance to tbe F(y)tplatt Café and Souvenir Shop at Kebtsley Dowrn. The Dew Museum was open¢d after ¢ODversion from Santa's Grotto. The extra'catcb up" Pbase 12 of the viaduct wnsmration was carried out b¢fore we opened at Easter 2024. The Board has received corthation that the next ph&8e ¢au be sChedlll￿ for th¢ winter of 202516 in order thatwe caD plan accordingty. ear" left us for Quainton Road Museum in the Spring as a preliminary to aIlow the start of reorganisation of Kemsley Dowrt and 'UDiqu¢" then joined Nol for a new display. W¢ w¢re happy to join DS Smith plc in cel¢brating the Centenary of Kemsley Paper Mill ia July. Melior played an active part in the celebrations as. tO￿ther with Unique. she shared her Centenary with the Mill. The Trustees are confident that we will wntinue to be able to deliver a safe and popular prothIot to enhance our support for the abn8 and objectives of th¢ Charity. SITTINGBOURNE AIYD KEMSLEY LIGHT RAILWAY LIMITED REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DEcEI￿BER 2023 Page 2 Financial Revie The railway has adequate r¢serves to continue as a going concern uttti] the end of tbe 2024 operating se&qon and the TnLStee Directors are activety ¢Kploring additional fimding sources to help to deliver plaDned developments intended to improv¢ ourvisitors. experiences. Ill¢0￿¢ for the y¢aT w&s £107,074, a S]￿lficant incr¢as¢ from £88.759 in 2022. Exp¢nditiwe for the year was £116,065 an increase from £7S,893 in 2022 &q a reS￿t of extra maintenance works being undertaken to catth up with conservation of Mihon Regis Viaduct following deferral as a result of Covid together with Prnject Siitingbourne wokn. Overall. the tharity made a Ioss of £8.991 against a profit of £9,866 in 20?2. The net asset position of th¢ charity has decreased from £59,143 to £50,152. Ste note OD the Reserves policy below. Reserves Polic The Clw relies upon awrent trading income forth¢ fulfilment of its objedives. Certain historic teservesgre identified in the financial statemertts. There aTe no restrictiorts llpon thc use of fill)ds tn fitrtherdncc of the Charity's aims. Unrestricted fi￿d5 81 the Y￿-end arnoullted to £26.544 (2022 - £32,172) Designated funds at the year-end amouiited to £23.608 (2022 - £26.971) as set out in note 9. Total fimds as at 31 December 2D23 were £50,152 (2022- £59.143). Goifj Concern The return to pre-pande]nic revenues by the end 4)f 2022 enabled extra Investment in key projects during 2023 and whilst the result 1.8 recorded in these accoTJnts for 2023. the Trustees are Confident that the investtnent will protect the Charity as a going concern as described in the Post Balance Sheet Èvents above. The Trustees are satisfied that these accounts are WTrectly prepared on a going Concern basis. Plans for Future Periods The TTusiees and the Charity are conunitted to the continutng preservation and PTesentation to the publT¢ of the fornw Bowater's narrow-gauge industrial railway. From Teference to the sethion "Going Concern" aiM)ve it will be und¢rstood that tbe TnJste¢s are developing long tenn plans at this time and a pres¢ntation will be given at the end of this me￿ill¥. Structure GovernaDce and Mana Constitution The Company was registered as a Charity on 25tb July 1996. The Charity is a Company Limited by Guaraitr and is Tegistered ty its Memorandum and Articles of Asso¢iation. ement T.rustee Directors aDd their appointment The Charity is limited by g￿antce alld h&8 no Share CapitaL Each Tn￿ee is liable to conlnbute a sum not exceeding £1 lli th¢ event of the Charity betng WODnd up while they are members, or withiu QDe year of ¢essation of b¢ing a member. It 15 D]aDaged by a Board of Tn￿ee Direoors. Two are appointed by virtur of their oftice (Finance Manager and Managing Director) and the reD]ainder are elected iJJ rotation in accordance with the Charity's Articles of Associatio￿ There are llo employees; the Charity being oper*ed entirely by volunleers. At the Annua] General Meeting to be beld on Sattwday 17115 August 2024, Mr David John Prfitchard wiu resigtt in accordance with Clauses 30 and 31 of th¢ Charity's knides of Associatiojk and will not offer himself fur re-eJ¢ction. Mr Daniel Shaw w&8 C(FOPtcd to Lbe Board of Directors in June 2024 and will offer himself for election at the AGM. Trustee induction gnd trainlDg Most Trusttes have already beou familiar with the c￿￿Tity througb having served as volunteers or s¢rvic¢ in the local community. N¢w Trustees are briefed on thetr legal obligations under charity and company law, the contenl of the Memorandum and Articles of Association. the Board and decisio￿-Making processes. rec￿tt financial perfomiance and fLllure plans. Trustse Directors and their inter£sts No contract ¢xiSts with a Company in which a Trostee I)irector or their immedratè fatllity has all int¢r¢sL Risk management Thc current and anticipated Thsks to the Charity are reviewed by Trustees at their tegular theetings. The Charity 1$ subject to t5p￿la1 risks (kne to the nature of its railw&y operations and consi¢JeratioD of th¢s¢ risks 15 aided by active membership of the Heritage Railway Association and reguJatory bodi￿. SITTINGBOURNE AND KEMSLEY LIGHT RAILWAY LIMITED REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023 Page 3 Referen¢e and Administrative Detsil$ ' tered number 01036616 number 1057079 stered office 51 Russell Drtv¢ Whitstabl¢ Kent CT5 2RG Iod cndent Examtner P. Haining E89., FCA. Kings Mill PractAce Bankers Natwest pl Sittingboume Kent ME104EQ Trustee Directors and Seereta The Tn￿te¢ Director5 of the Charity dwing the periDd and thereafter aT¢ as follows: EI¢cted Trustees Paul Vincent Best Paul ADdrcw Willtams Daniel lames Ptle (retired 19 August 2023) E]izabeth mar.tra￿t Fuller L)aFid Jobn Ptitchard TTUStees by virtue of Office Finance Manager olm Reginald Fu11er Managing Directot Vacancy The Company Secretary of the Charity dwing the period and thereafter is Nicholas Guy Widdows. Trusttes, Res onsibllities in Relation to the Financial Statejnents The Trustees (who are also directors of Sillingboorne al￿ Kemsley Light Railway Limited for the pUr￿Se of company law) are responsil)Je for preparing tbe Trustees, report and the ￿anCIal statements in ￿cOrdance with 4)plicable law and United Kingdom AG¢0unti￿tr Siandards (United Kingdom Generauy Accepted Accounting Practice). Company law requires the Tnjstee Directors to prepare finan¢iaJ statements for each finan¢ial year. Under company law the Trllstee/Directors must not approve the finanoial srdtemettts unless they are satisfied that they glve a true and fair view of the state of affairs of the chartiable company and of the ttkcoming resources and application of res0￿CeS, inclllding the in¢otne and w)Endithre, of the charitabl¢ company for that p¢rio(L In preparlng these financial statements, the Trustees are required to: selert suitable accounting poliries and thej) apply them consistent]y' observe the methods and pyinciples of t￿e Charities SORP 2015. make judgements and accounting estrmates that are re&sonable and pThdont' prepare the financial statements on a going CODcern basis llDless it is inappropriate to presume that the charity win cotitinue iti operation. The Th￿tee$ are responsible for keeping adequate accountxng records that are sufficlent to show and explalD the clwitsble company°s traDsa¢tions and disclose Witb reasonable accuracy at any time the financial position of the charitable company and enable them to ensurc that th¢ financial stalements roJnply with the Compani¢s Act 2006. They are also responsible lor safeguarding the &8sets of the charitable company and hellce for taking reasonable st¢ps for the prevention and detection of fraud and otheT )￿egUlarItieS. In preparing tbis r¢porL the Trustees have taken advantage of the small collws exemptiims provided by s¢ction 415A of the Compani¢s Act 2006. This report w&R approved by the Trnxtees i)n 17 Aogust 2024 and signed on thcir behalf by.. Fl C Widdows C(nnpany Secretary FOR THE YWIENDED 31st DECEMBKR 2023 IxepotlKm thefthkncl￿ WIioy6 of th¢%hè61gbJo th¢ yeay ¢u4ted 31Jt D 11ti8 isJRd¢wloly L¥i a* ¢hatiWS a&.a body, kb 8¢ofion,l¥ of the. ChArttiN Art2DII aD&re4nht ade urth ￿ctIo￿ 1:54 of that I¢L My wOts.h48 undertth SD ts I migbt stat6 to tht tknityl thuse. i aj ryutred to.stats. to th¢DJ in this rep￿ 8lld for AD otbet purpos& tiiF qtrnt permitted_ ty law, I do llot a¢cept or assutrtt JFspoNsibllity 10 a)ry.oJwotii¢rtluitho thuty and thcclwiy's tr4stE¢.s ¥alK￿Y, WQJK forthisftoortorforthopibw Ihave ¢hatify% trutst¢£s (who are 8]xo the dire¢toTh ofts Gompany fy thp. pwos of.company I￿., are rRsoonslbl¢ fosth¢p•" to fp.llow thc proxdur¢s laid dm tb¢ Gtllffjl DireFfjgfy8 gygu by th¢. Oh￿ity comroi￿ und¢raeolion 145 (5J,(b) 2UII AGE .* oits in the s¢teiTient belaw. . .olth¢ QompanlqsA¢t2fjQ¢.8lld Qll. vf tlv COmEWlli*S Att Y006 Oad ￿ hlothods., and pxkn¢ip]es Df the Ststenthnt pf K¢cDJllthOud¢d tTrocli¢y ', H0rn3. LodsA Cro*. ID.FtaDd SITTtNGBOURNE AND KEMSLEY LIGHT RAILWAY LIMrfED STATEIVIENT OF FINANCIAL ACTIvrrtES FOR THE, YEAR ENDED 31 DEc￿mBER 2023 Page 5 Designated UDrestrlcted 2023 2022 Note ]F4COME FROM: Charitable activities Members, SubscriptiODS General donations (inc. Covid Grattts) Desiwted Fund Income: Locomotive Restoration Engineerin. Ewipment Museum Fund SOS Appeal donatkons (inc. Viaduct) l)roject Sittingbourne (Phase J) Tlrketsl Special Trains Publications ￿Ld SouveDtr$ Refreshments Steam and Beer Events Christmas Opening Investments Ballk interest received Other Sundry Totsl 4,879 3.530 4,879 3.530 6.436 9.812 3,782 1,874 4034 160 9,812 J782 1,874 4,834 0,160 35,678 5,919 J6,031 7,426 7,139 8,500 20 1.750 3.949 32,780 6.589 35,678 5,919 16.03J 7,426 7,139 3,107 6,330 io io 490 88,759 26A62 80,612 107,074 EXPENDITURE ON: acti Cost of Sales Operating Costs (Comm. + Fng.) SOS App¢al Expenditure Cmc Viaduct) Sittingbourne S￿urity Project Sittingbotuno Support costs tndependent eL4miners fee Steam & Beer Event 15,805 38285 15,805 48JY7 17,535 15,0fv1 42,924 2,130 1,620 10,112 17.535 12,647 12,647 15,IlJ 1,430 S,140 15,111 1,430 5,140 l3,068 1,350 2,737 Totsl 771 116,065 Net Movement in Funds (13,832) 4,841 (￿91} 9.866 Transfer,8 10,469 (10.469) RECONCILtATIO]W4 OF FUNDS: TotaL fi￿aS brought forsyard 26971 59,143 Tota] funds carried forward 23,61)8 26.544 50,142 59,143 All ttansactions are derived from Continuing activities. All recognised gains artd losses are included in th¢ statement of fmancia] activitiw. SITTINGBOURNE AND KEMSLEY LIGHT RAILWAY LIivirrED (Registered Number 01036616) BALANCE SHEET AS AT 31 DECEMBER 2023 Page 6 Nots 2023 2022 FtXED ASSETS Tangible Assets CtIRRENT ASSETS Stocks Debtors 4,039 729 4,017 1,806 Loan to SKLR Heritage (Repayable ID moTe than l yeaT) Casb in ltstkd atid iti ballk 1,000 1,000 45.975 51,743 53.910 60,733 CREDrroRS (amounts du¢ within one year) 1,600 1,600 NET CURJiENT ASSETS 50,143 TOTAL AssEfs less CURRENT LMBLIThES 50,152 59.143 UNRESTIUCTED CHARITY FUNDS Designated Fund8 GeDeral Funds 23,608 26.544 26,971 TOTAL FUNDS 50,152 59.143 The company's fmallcial statements have been prepared in accordance with the speGiaI provisions appIi¢able to ¢on]panies subject to the small compantes regin]e of the Companies Act 2006. The Trustees consider that the cotnpaDy is entitled to exemption from the requireme]It to have an audit wider the provisions of section 477 of the Companics Act ?006 ('*h¢ Act,) and njembers have llot re