2020-09-30-accounts

REGISTERED COMPANY NUMBER: I)0542449 (Englnd Wales) REGISTERED CHARITY NUMBER: 11)64178 Rt rt of the Trustees d ttemen for the Year EDdtd 30 Se tember 2020 for Ffestin Rxilw• So¢1¢ Dunn & Ellis Cyf Chartered ACCountan￿Sta1uttsry Auditors Chanered A¢¢ountsnts Adeilad St David's Building Stryd Lombard Street Portbmadog Gwynedd LL49 9AP 'A45SIC20' 0210612021 COMPANIES HOUSE AIS 11210

Ffestinio RAilw8 Socie Contents of the Finanell St•terneRts for the Year Ended 30 St tember 2020 Pagt Society Chairman's AGM Report Report of tht Trustees 3 to I Report of the Independent Audittsrs 12 to 13 Statement of Finn£ial Activiti 14 Bal#nce Sheet 15 Cs$h Flow S¢4ternenl 16 Notes to the Cash Flow Stattmtni 17 Notes to th¢ Finaneial Stalem¢Dts 18 to 32

Ffestini Railwa So¢ie Socie ChTrrnan's AGM Re lor the Year Ended 311 Se ternber 2020 2020 has been a most challen8rn8 year from the e8rly hints of ihe Arrival of the Covid-19 virus and the subwueni lockdown of the UK - the Tailway had io immediely prepare for the impaa li would have on almosi every aspect of the or8aniwion. Lockdown was imposed iowards th¢ end of March resuliing in ihe Ii)ss of the lu¢rativ¢ tirnetsbl¢d trains from E&st¢r onwards. Plans wer¢ developed to us¢ the fle¢t of heritsge urriag¢s wÈth compartrnents which were adapted to becorne Covid compliant. this required the installation ofdividing panels mounted ort top of the seat backs to separate each companment and maintain social distsncing. Up to sjx Iiains a day ran using the small locomotives, njnning at 15mph io reduce the fiJel consumption and were completely stsffed by wolunie¢rs to keep th¢ ¢0sts to minimum. The return trip from mid-july until late October w&s IHbly as far as Tan y Bwlch. which allowed the passengers to enjoy refr¢5hments at ihe "Tan y Bwl¢h Tea Room" served by art enthusiastic team led by Sandfa Bond and Deby Rowson who welcorned the arrival of each train. They had recently taken over the café and converted it illto a very attractive tea room which had become a favouritc venue for locals and Visito￿ alike. In a new environrnent tk¢kets to (ravel were only sold on-line and entitled th¢ holder to oc¢upy a specific companmertl whL¢h was ¢omprehensively cleaned between each departure. A large team of volunteer ststion hosts efficiently escorted pwengers to their compartment. A train wa5 only allowed 10 run if li was sufficiently booked to produce a profit and as a resulL some were inevitsbly cancell¢d. The service that could be run w&T considered a great success and vi51tor5 understood and attepted the restrictions that the Gov¢rnment had imposed, however li would never provide sufficient profit to maintsin the Company's nornial wage The Company mad¢ several applications ftsr grants from Govemment fvnds set up to support businesses in Wales. Some were successful and provided useful sums, but li still l¢ft the Company wilh a significant shortfall. It W&5 obs¢Tv¢d ihai heritsge railways in England were able to acce55 much larger grants than those made available in Wales. In¢ome in recent years had b¢¢n around £6m and was li was in¢virable thai it would be only be in the region of £1 m by the year end. "Survival" is the watch-word and it is to be hop¢d thai with vacctnes soon to be administered, 2021 rnight bring some level of norniality bxk to the everyday wfomiance of the railway. The Government furlough scheme was used but it didn't avoid one third ofthe paid staff being made redundant at the end of (ktob¢r. Unfortunately, loyalty and commitrneni do not alway5 guarantee the future of a position on the payroll and some longstanding employee5 1¢ft for pastures new. It was with great regret ihat we saw thern depart and we wish them every success for the future. Those who remain are now part of a much more strearnlined stsff structure which should retain many of the skills. experience and knowledge requiT&J to maintain ihe infrastrucwre. engrneering and operational side of the railway. However. there will have to be grtater de￿nde[]rY on volunteers and it is to be hoped that the unpaid workforce will be retained and enthusiasm re8¢nered * a tim¢ when the health of th¢ nation may still be in question. Because of the lack of in¢ome. it w&$ thought qui1¢ early on that supporlers and members of the FR s￿lery and ¢he Welsh Hi8hland Railway Society (CRhE) might be willing to donate to an Emerg¢ncy Appeal. A steady flow of contributions brought in over £580,1)00 for whi¢h we r¢main immensely grate￿1. In addition. th¢ two So¢ieiies and the Trust. (Th)w referred to &8 the Three Charities). each offered a loan of £400.000 to the Company whi¢h, giv¢0 ihe circumstances, fomied a sub51aniial fighting fund. After the financial year end. nearly 50A of the FRS contribuiion h&4 b¢¢n converted inio grdnts. The money used ai ihis time of crisis was tsken from the general fund which is ¢on5tantly topped up by donattons and legacies received from our members- once again. we are very grateful for their support. However, £300,000 which had previously been approved to support the Testoration of Tan y Bwlch Station house w&% witlklrawD in order to b￿51 the availabl¢ fund& The Society direciors are particularly pleased a1￿ul the coming together of ihe Societit5 and the Trust to support th¢ Company. Clearly, the "Ff¢sttniog Family- working in a more ¢ollaborive way makes a great deal of sense a5 all our objectives are to ensure the long-terni survival of the rdilway. The dirrftors W¢1￿Me the burgeoning policy decails of the fortntghlly Company knard meetings being shared with us and that we are given the chan¢¢ to off¢r ftedback and ideas that might prove to be valuabl¢. The regular use of virtual meeting ieehnology has provided the facility to make this an easy proposition. There is a desire that thi5 arTan8em¢nt will wntinue into the futur¢. Meanwhile, the outcome is awaited of th¢ applicion to UNESCO for the slate industry of North Wale& including th¢ Ffestiniog Railway. to be registered as a World Heritage Siie. The second round bid for rhe National Lottery Heritsge Fur￿ Boston Lixlge Works Int¢Tpr¢thtion amd Dewelopment Project is PToceeding. The earlier project to re-roof the blacksmith'5 shop at Boston Lodge and rebuild its five tsll chimney5 was finally cornpleted. It had been partly funded by the Soctety and illustrates the stsndard of work lh￿ should b¢ applied ro all the heritage buildings. Pag¢ I

FfestiTri Soei oc5 Chfiirman'$ AGM Re for tht Y¢gr Ended 30 Se tember 20 The woikshops at B05ton Lodge have mad¢ the most of tlk coniract work available to which ha& attracted outside incomq espccia]ly that received from th¢ ¢onstNuion of wriages. This included a Pickering brake-composlte WTiag¢ for the We15h Highland Heritage Raj"1￿Y and a Nortb Wales Narrow Gauge Ashbury tr￿81¢ brak¢-composiie carriage which will help 10 complde the FR'S hiS￿riC carri3g¢ fleet. Th¢ ¢reaing shop ¢onstNcied a new underfrnme for the National Trarnway Museum at Crich. Work was urnlertaken by skilltsj stsff in the e[¢￿]ng shop on Lilla and Hugh Napier ftir which FRS had monty available in restri¢t¢d funds. Due to the successful fundraising, there was a150 rnoney reserved specifically to finish the rcbuilding of the Gwrge England l¢)comotive Welsh Pony aTKI Gcnerdl Manager Paul Lwin w&% deterniined that it be finished by the l)egJ"tming of May. Sadly. rnany of th¢ Company organise4A major events planned for 2020 were lo￿ to thc pandemic. These included the re-enactment of the historic Fairlie trtal4 the Victorian weekend in (ktotw and th¢ sno￿110￿1an and lh¢ Snowdonian Lirnit￿ fund-raising trait The So¢idy AGM was alw a easualty and had io be converted to a Vi￿al event and ihe xconwanying weekend eyertt for members abat)dor)ed. It was unfortunate that there were no preSen￿tionS where we were able to retognise the effort5 of volunteers. In rcccnt years our General Manager has always trieJJ io include some activity to attra¢t the interest of the members aNI ¢0 $￿W gratitude to member5 for th¢ir coniinuing suppon. On this o¢tssion it was the turn of Welsh Pony to be steamcd up and workin8 for the first tim¢. It was showrb live on Facebook and following advance publicity 27.000 people "tuned-in". At thc scaled dow￿ vimage event in Ottobcr thr loco was namcd at a ceremony l￿d at a v¢ry we4 Dduallt Station. Social media is now b¢ing used extensively io market the rnilvdy. Thi5 rnay indi￿C the demise of the traditional ti]netable leafld but it has allowal changes to be made to the timetsble or planTKd events, which h&5 been cssentia] when lockdown was irnposed at Short noti¢e. The development of the on]iT kilities also allowed tickets to be book￿1 remotely involving a rninimurn of on-sii¢ perg)onel and the purchase of sOu￿nirS frorn the shop to continue. In 2019 the Booking OtTi¢¢ discovered 9)me membership cards fri)m Soci¢ties W¢T¢ b¢ing used ftaudulently to obtain members. tickets when ihey were offered by people who were not memixrs. The FRS board readily ¢ommitte4J to combat the problern by introducing new memberslu"p ￿d5 complde with a phOtO￿h of the registered hold¢r. They began to be distributed by the registrar to those who werc renewing towards the end of the 2020. The ben¢fJts for members are yet to be reviewed. H. R. L. Wilson 2L Alkn Pa8e 2

Ffestirti Railw8 Socit 15tered number: 00542449 ort of the Tru51ees for the Vtar Ended 30 S¢ temb¢r 2020 The trust¢e$. who are also directo￿ of the charity for the purposes of the Companies Act 2006. pTes¢nt their rryjort with the financial statements of th¢ Charity for the year ended 30 September 2020. The trustees hav¢ adopted the provisions of A¢¢ouniit)g and Reporting by Charities.. Statemenl of Recommended Prdctice applicable to charities preparing their accounts in accordance wilh the Finaneial Reporting Stsndard applicable in the UK and Republic of Ireland (FRS 102) {effective l January 2019)- OBJECTIVES AND ACTIvrriES Objettive$ #nd aims The principal obje¢iiv¢ and aim of the Charity in the year under review was ts) advance the education of the public through the conseryation of ihe Ffesiiniog Railway for the publi¢ benefit and ihrough the promotion and encrTrurag¢m¢nt of voluntary work in suppon of the Ffestiniog Railway. In practical tem)s, the aciiviti¢s of the ¢h8ritable company in furtherance of its objects are to support The Festiniog Railway Comparty in its preservation and operation of the Ffestiniog Railway. Public benefit The trustees confirm that they have complied with their duties as set out in Section 17(5) of the 2011 Charities Act to have due regard to the publt¢ benefjt guida￿¢ published by the Charity Commission. Volunteerig Although not stri¢tly voluni¢¢rs, groups of apprenti¢¢s from Network Rail Wales spen¢ four we¢ks over the winter monihs working with infrlstructure tearns frorn P¢rrnanent Way. Lineside and Signa15 and Tele8raph departmenls. Twelve members of the Imperial College London Railway and Transport Society visired to advance the cabling and laying of track in the new ca￿lage shed. This w&s supplemenied by rnember5 of the Dee and Mersey Group and later the Rest of the World Gang who ¢ompleted further trxk laying there. However. volunteering generdlly was fraught with problerns during the year with various levels of restriction imposed, som¢ of which ￿OpPed work altogether and some which prevented volunteers travelling from England resylting in many working parties being abandoned. All the main volunreering events in¢luding Megabash in Mar¢h. Ihe Volunt¢er Re¢ruiimeni Weekend in April. Young Volunteer5, Trainin8 Week in ALtguM and Gigabash in October were cancelled. The proJ￿t to clear the trackbed of the Dinas bra￿h iowards the bottom of the Llechwedd Quarry inclin¢, and an assessment made regarding the w>ssibility of it being re0[￿￿ sometirn¢ in the fvture was also cancelled. Various opportLLnities were thken by volunreer groups to carry out limited work irt iheir areas of activÈty berween th¢ various periods of lockdown. Penrhyn Hostel r¢mained ¢losed &s it qualified as a bunkhouse and could not b¢ used during the pandemi¢. Thanks to the Hostel warden. limited ac¢omm(d*ion was kept sanitized and available when restriciions allowed in Minffordd. The Lineside team were able io gath¢r a number of volunteets iogether to clear the brambles and vegetstion from the line before the trdins could start running in mid-july and the S&T departmeni worked to ensure the 5ignalling equipment would function at Rhiw Goch (whi¢h would see frequent use as part of the Covid strvi¢e). The Jasper Group Colllinued with mainienance of the pole route irtcluding th¢ rectificaiion of damage caused by woodpeckers. Th¢ Tracksid¢ Drains volunteers wer¢ tn action clearing blockage5 aThl replacing drnins in many localion5 and installed over 70 new chamber lids that had been consirueted as a homework projeci in the garage of ieam members. The Friends of Tan y Bwlch Station worked to enhance the station and envhrons to make ihem and the Tea Rooms an attracti¥e destinaiion both for walkers and for those visiting by trdin. Thi5 pmved to be invaluable when the railway w&5 forced to terminale Coyid-compliant trains there during the summer period. Norn)ally ihe Parks and Gardens volunteers look aft¢r the rnany flower window boxes and gardens up and down the line io ¢nsure there is a spl&sh of colour and to enhance the view from ihe iage windows. But this time there w& an urgent need to prepare for ihe recomrnencement of train 5ervi¢e% and a Dew group of local volunteers was assembled io recover the pre5¢ntstional stsndards lost during the pertod the railway was forced to c105e. A second group of local volunteers a150 form¢d the Friends of Penrhyn Ststion ￿ help mainthin high sthndards there. Page 3

Ffe Railwa Soeie 'stertd Trumber: 011542449 Re rt of the Trustees for the Ytar End¢d 30 S¢ ttmber 2112 OBJECTIVES AND ACTIVITIES The last major project rna5terminded by Eil¢¢n Clayton MBE before sh¢ sadly p&ssed away was th¢ restoration of the Gweiihdy. the corrugated iron building in the car park at Minffordd Ststion. The project w&s led by Alan Norton and involved a tearn of some 20 or so volunteers using a wide variety of skills. It was completed io a Very high standard, the intention being to use il primarily as a warm and well*uipped workshop but is now so well apkN)tnted that it Could also be used ￿ an exhibition hall or Meeting roorn. It w&% entered into the 2020 National Railway H¢ritage Awards and dexrv¢dly won the Volunteeis, Award category. The result was announced at a virtual wemony late in the year. Project l¢ader Alan Norton had previously sthrted ihe refurbishment and repainting of the metsl fooibridge ai Tan y Bwlch back in 2018 but had been diverted to the Gweithdy restoration pioje¢L He returned with his volunt¢ef t¢3m to frnish ihe job while the trdif15 were running during the better weather ofihe summer month5. The bridge now h&s new 5tsin1¢5s Meel mesh side-panels and a fresh colour scheme that looks very attraciive. The Electrical Group continued wrth instsllation work in the new carriage shed, including pulling in Cables, hanging lighting. fjxing power sockets 4nd Constructing distribution boards. Ifs a vast building and will tsk¢ tim¢ to ¢omplete. The historic Kerr Stuart diesel 4415 is a restordtion project being ca￿led out following a Conservation Management Plan. Ifs proving to be a very complex job for the voluntrets as some components are having io be remanufactured., it will take tim¢ to work through to ¢ompleiion. The Waggon Trxks team made great progress by Constructing and instslling end doors on their storage shed. They also corhtinued to odvan¢¢ the backlog of waggon repairs which when Complete will rewrn further waggons io the operational fleeL The Archivists have continued to work through large quantities of paper records including personal collections provided by dece&s¢d members. They are runnin8 out of space to sorL dL8ilise (using a new proftssional scanner). Catslogue and store the pap¢rs and ar¢ looking for a convenient location for a suitable new building. All the Trusiees, Company directors and dirrttor5 of the Societies are volunteers. The FR Society has a large team of volunteer officials including those who look after membership matters. produ¢iion of ihe Mag￿ne. financial matter$ and secretsrial work. We offer our sincere thanks to tt￿1 all for th¢ir dedicat¢d h¢lp. and also to th¢ rn¢mber$ themselves for their loyal support. Page 4

Ffestinio RailwA Socie i$tered nurnbtr. 01)542449 Re ort of the Trv5tees for the Year Ended 30 Se Itmber 21120 FINANCIAL REVIEW Finanei¥l positio The total operating surplus for th¢ year amounted to £3,756 (2019.. Surplus of £646.160) and there were no transf¢rs between the reserves in the year (2019". £6.437)- Detsils of direct charitable expenditure can be found in the Ststement of Financial Activities. The Societys iotal fund balance at the end of 2020 w&% £1.321,894 (2019= £1.318.138). Prin¢ip81 fundiAg sourees Finance With th¢ pandemic and the initial lockdown througknut the UK the COVID19 appeal was launched in conjunction with the FFRWHR Tnjst and Welsh Highland Railway Society. Whilsi the overall appeal raised some £580.IJOO, the FR Society fairly quickly raised £50.000 of this through the very kind arKI generous support of the members. The Society Board also made available £400.000 in loans thai were paid over bcfore trains Starting running and the railway was able to earn some portion of inwrne. These loans are inierest free and were expe¢t¢d to be in pla¢e for at least one year. Soon after ihe year end. Slightly under half was converted into grdnts covering a number of significant Permanent Way works carried out during the year. The Society h&% seen a significant r¢duction in income during this finan¢ial y¢ar ¢ompar¢d io prior years but thi5 IS prirnarily due to rhe significani legacies r￿e1ved in 2019 tothlling £711,582 Compared 10 £94.269 in the Current year. We have seen 8 51ight decrease in membership Subscriptions during the year - this is mainly due to slightly reduced annual membership r¢newals. With the Hosrel ou¢ of bounds for the majority of the year due to lockdown and then limited occuparty possible in the summer. it is understandable that the income is signifJ¢antly down in 2020. This is particularly disappointing noi io b¢ able io hav¢ ihe usage having recently invested in ihe improvements. Despite limited activity. the Socrety ha5 continued to support projects where possible, even more n¢¢e5sary in this year with limited extemal income ftir ihe Festinio8 Railway Cornpany. The rnajor project Wa5 the completion of the Welsh Pony projec¢ for which the Society paid £55.710 in the year to fund the last steps of thf £260,000 projecL which of ¢ourse had the pleasing ourcome of seeing ih¢ l(Ko in ￿gUlar service once the COVIDI 9 servic¢s commenced in th¢ summer. It is worth recording ihai the Welsh Pony appeal has been one of the most successful appeals the Society has run. with a combination of donation& on train envelopes aThJ standins orders raising the phenomenal sum, $upplern¢nted by Gift Aid. Other restricied fund projects supports included £4.820 from the Lilla filnd to ¢omplete aspects of the overhaul whilst fellow Quarry Hunslet Hugh Napier was retubed and had sorne chassi5 work support¢d. with £8,690 paid durÉng ihe year. The relayin8 work at Rhiw Plas was supported by £l1.753 from the Infrastructure ￿nd to improve the trackbed and drainage there. Fmm the general fvnd. another major proje¢1 supp)rted was the continuation of the rebuilding of the Boston Lodge Bla¢ksmiths Shop. Again. drspite restrictions, 8ood pro8r¢ss was ¢v¢ntually made with the new roof completed, chitnneys rebuild and l)eehives' insthlled. The Society support in this year was £73.442. Other contributions from the general fund included £19.175 for points in Boslon i￿ge, £15.582 herithge waggons work. £17.810 for sleepers and baseplates. The Society helped to provide 'prime the pump. funding for the National Heritsge Lott¢ry Fund application for Boston Lodge. to the tune of £5.464. osiels As would be expected. due to the COVID19 situation, the ¢xcupan¢y of the hostel has been seve¥ely reduced. Until March, we were following a slight upward trend until th¢ pand¢mi¢ stru¢k ar0 the host¢l was closed for three months including all of April. May and June. Whilst we saw piecemeal lifting of the lockdown re51ri¢tions and ultimaiely th¢ resumption of rdilway servi¢es in July, the requirement5 for social distancing meant Minffordd hostel ¢ould only b¢ us¢d at a fraciion of its capacity due to the communal nature of the modules. At its peak in September. the hostel was at 200/ occupancy with a grand total of 205 bed nhghts. This 15 a clear disapp)bntm¢nt on the bxk of fiJrtheT investmEnt of £20.260 in the quality of the host¢l and we look ftirward to a pickup in 2021. Page S

Ffestin Rgilwa cie istered number. 00542449 R¢ ort ol the Trnstees for the Ye8r Ended 30 S¢ tember 2020 FINANCIAL REVIEW Prinelpal [￿￿￿]ng sources Membershi dre ition As in previoLÉS years, Ihe rnajortty of the Sociews incorne cam¢ from the continued support of tts mu¢￿valued members. The classification and breakdo￿) of fee paying memberships are a5 follows.. 2019 929 1.535 209 378 140 137 253 25 57 2020 Full members Senior ¢iiizens Associate Senior Giiizens associate Family main Family- spouse I paTts7er Family- Child Juniofs Volunteer students IA67 361 214 22 Life Covtnanted life Senior ¢itizen lif¢ Associate life Honorary life members 1.366 78 92 lJ41 97 197 To￿1 m¢mbership 5.403 5305 The So¢iety'$ m¢mbership yeaT from thE 1st January to the end of December. which differ5 from its xrounling year by three months. As a resulL th¢ So¢i¢ty x¢rues a proporrion of its annual membershtp incom¢ so as to carry it over io the relevani accouniing period. The Socitty is a150 aware that sotne Members have prepaid their mernbership by a varying number of years. and again, these ideniified amounts are Ca￿led over to the relevant accounting periods. The same approach 15 also undertaken for Diarnond Jubilee Appeal donors who are provided with Sociery membership. Life and woctated life membership fees represent one off ￿￿trIbutIOnS by these members for continued lifelong membership. In order that the Society5 continuing obligations to ihese members is adequarely reflected in its financial stst¢ment$, lif¢ membership income receivcd 15 accrued and written off over an 10 year period. which is considered by the Trustees to produce a reasonable approXim￿lOn of expected a¢crued benefii and marche5 the approach undenak¢n by rwo sirnilar organisations. Re rt on the rnember5ht numbers Membe￿h]p fell by 200 over the year (mostly in annual subs) compared to tluctuation5 of around 50160 for the last few couple of year5. we only have to 80 back a few years io see something Comparable eg 2016117 we lost 96. The number not renewing is noi that much worse than sorne other years so we believe it is fair to say that ¢xisting memb¢rs hav¢ mostly Stuck with u5 through the year. Sadly the number of deceased members is double the normal rate and from the letters received a number sadly succumbed to Covid-19. Wher¢ we have noticed a difference is in new member recruithieni. The numbers joining us by Variou$ m¢ans (Web site. printed torms etc) rernain comparabl¢ to last year apart from those joining as Instsnt MembeT5 ai Harbour Station, down to 43 from 198 last year (whb¢h hs not surprishn8 given th¢ signifKantly r¢stri¢ted footf411 in the staiion this year). We have only had one memb¢r making contsci abo￿ any forn) of refund. Investmenl policy and obj¢£tives The So¢i¢ty has adopted a con5ervaiive knvestment plan, which ensures all surplu5 fvnds are tnvest¢d in an interest- bearing account with Natwest bank. This risk-free approach involve5 regular rebalancin8 of investments b¢twen uffeni and reserve accounts. The intereu earned is allocat￿ monthly across all funds in line with the balances in those fvnds ai ihe beginning of The month. Page 6

Ffestinio Railw8 Socie ste urnber. 0542449 ort of the Tru5tetS f r the Ve*r Ended 30 Se tembtr 2020 FINANCIAL REVIEW R¢5erves poliey The Society's policy is io maiTrtain an adequate reserve so to enable it to discharge ie5 charitsble obj¢ctive5 and meet its ongoing day io day requirements. This being the cas< the trustees c(snsider that twelve rnonths of general expenditur¢ is an appropriate level of Fe5eYve to med ihe day-tO•day Tunning costs of thE charity including maintaining production of the in-house rnagazine and support for the running of ihe volunieer hosiels. with this amounting io a sum of £65,000. The main need of ¢ours¢ is to hold sufficient reserves for its core objective of supporting the Ffestinitsg Railway. which includes collecting unrestricted, designated 8nd ￿kn¢ted fvnds for a numb¢r of projects. adminisiering and collecting moneys from the annual appeals as well as raising and mainlaining sutTLcieni general funds to me¢t its obligation5 for committed charitable objects. As at the end of 2020 ihe So¢iety's main funds stood at- estri £751.913 {2019: £770.723) The Testrhcted funds hEld by the chvity are only available for use on specific PToJects which are taken forward as resources become available to the Festiniog Railway Company. A detailed analysis of these projects is dI￿10￿d in no¢¢ 16 ofthe finan¢ial stsi¢ments. General funds-. £569,981 (2019= £547.415) The So¢iety's'fr¢e' reserve for the year being a surplus of £569.972 (2019= a surplus of £547,406). Although at firsi glance the uncomTnitted fund balance appears large, the differen¢e is earnwked for a programme of grant appli¢atiDns from the Fesiiniog Railway Company over a four year PEriod that Tneet the objectives of the charity- Pa8e 7

Ffestinio Railw cie istered muM￿r. OOS42449 Re ort of the Trustees for ihe Year Ended 30 Se lember 202(1 EVENTS sif4CE THE YEAR END AND FUTURE PtANS As part of its response io the CoronaVin￿ ouibreak and ihe restrictions put in plav during March 2020. the Society auihorised that a loan facility of £250.000 be made available to the Festiniog Railway Company. This amount to come out of the So¢iety'5 a¢¢umulated cash reseryes. with thi5 being in addition lo a loan of £150,000 which wa5 made to the Feminiog Railway Company ai the beginning of 2020. Both loans are interest free and repayable on 30 September 2023. As ai the 30 Sepiember 2020. the amount outstanding a result of th¢ financial support provided to the Festini08 Railway Company amounied to £400.￿0. Subsequeni to ihe financial year end, the board of trustees agreed to convert £183.196 of the financial loan support into a grani. with this representing costs incurred by ihe Festiniog Railway Company infras¢rucrure projects ￿ Crossing MawT. SpooneTS Hollow and Rhiw Pla5. No other post balance sheei events that requir¢ reporting or dl￿10$1ng in the accounts have occurred since 30 Sept¢mb¢r 2020. STRUCTURE, GOVERNANCE AJ¥D MANAGEMENT Governing dotumenl The ¢harity is ¢onirolled by its governin8 documenL a me[￿rand￿M and articles of associatio￿ and constitutes a lirniied company, limited by guarantee. as defined by the Comparties Act 2006. InduftlDB and training ofn¢w ¢rnstees As part of th¢ir induction, new Board members are made aware of their responsibilities &s board member5. Th¢ induction includes an iniroduction to the objectives. scope. and policies of the charitable funds. Charity Commission informaiion on trustee re5w)nsibÈlity and wpi¢s of th¢ p￿ViouS yeavs annual ffport and t¢￿￿n(S are provided. Page 8

Ff¢stinio Railwa Socie istered numb¢r." IJ0542449 rt of the Trustees for the Year Ended 30 Se ternbtr 2020 STRUCTURE. GOVERNANCE AND MANAGEMEJYT RelAtionship with third parties At the year end the Soch¢ty holds five ordinary shares and one preference share in the Fe5tinio8 Railway Company, wbi¢h have all been bequeathed to the Society. This ¢onsiitutes a minority share and does not give any control to the Society. The Society makes grants to th¢ Fesiiniog Railway Company as parr of the pursuance of ihe main XiiVili¢5 of the So¢iety. The Society also has the righi w nominate io ihe Ffe￿In108 Railway TnLStees for appointment one place on the Board of the Festiniog Railway Company part of 3 re¢iprocal arrangemenL The So¢i¢ty int¢ra¢ts with area and functional group& whidk have the comrnon aims of supportin8 the Ffestiniog Railway. Risk mNagment The trustees have a duty to identify and fe¥i¢w ihe risks to which the charity is exposed and to ensufe appropriate controls are in place to provide reasonable assurance #gainst fraud and ¢rror. Related party and key man#8ethettt ptrsotythel The trustees consider lh¢ only key management personnel of the charity to be the board of trnstee5. who are in charge of directing, controlling. running and operating the charity on a day to day basis. Deiai15 of the tru5tees' rernuneration. ¢xpens¢s and related party transactions ar¢ disclosed in a nots to th¢ xwunts. REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number 00542449 (Englarsd and Wales) Reglstered Charity number 1064178 Registered 0￿]¢¢ Harbour Station Porthmadog Gwynedd LL49 9NF Trustees Mr H R L Wilson Mr G Cole MrGPBond Mr D J Charlton Mr R M Collins Mr P J Hawkins Mr D RJones Mr S G Miller MrN C Smith Mr M N Wolstenholme Dr A F Tucker Mr L G Graham-Taylor Chairnian tkputy ChaiM￿n Treasurer (resI￿ed 22.3.20) (4>pointed 4.7.20) VSct-Pre5idtTrts Rev Dr R F Buxion Mr A Heywood Mr TN Oulton Mr A J Savage CompaDy S¢cret*ry Mr J E Fenner Page 9

Ffestinio Railwa Socie '$tsred tyvmber: l)0542449 Re rt of ihe Trustee5 f Y the Ve4r Ended 30 Se ttmber 21120 REFERENCE AND ADMINISTRATIVE DETAIIS Audittsrs Dunn & Elli5 Cyf Chartered Accountants/Ststutory Audiior5 Adeilad Si David's Building Stryd Lombard Street Porthmadog Gwynedd LL49 9AP B4Dkers National Westrninsier Bank plc 2nd Fl¢)or Bryn Eiri&s Abergele Road Colwyn Bay LL29 8BY Akl¢rmore bank plc Apex Plaza Forbury Road Reading RGI IAX EVENTS SINCE THE END OFTHE YEAR Information relating to ev¢nts since the end of the year is given in the Th)tes io the financial sthiements. ST ATEMENT OF TRUSTEES, RESPONSIBILITIES The trustees (who are also the direciors of Ffesliniog Railway Society for the purrM)se5 of company law) ar¢ responsible for preparing the Annual Report and ihe financial siatements in accordance with applicable law #nd United Kingdom Atcounting Standard5 (United Kingdom GeE)erally A¢cepied Accounting Practic¢)- Company law requires ihe tnjsiees to prepar¢ financial sthtem¢nts for each financial year which give a true and fair vi¢w of ihe slate of affairs of the charitable company and of the iTwming resources aTMI application of Te50urces. including the income and expenditur¢, of th¢ charitsble company for that period. In preparing those finartcial s¢a¢emenlS, the trustees are required to select suitable accounting poli¢ie5 and then apply them consisnily' observe the methods and prI￿lpIeS in ihe Charity SORP- rnake judgem¢nts and estimates that are reasonable and pruden( prepare the financial statements on the going ¢onc¢rn basis unless it is inappropriate to presume that the charitable company will continue in busine5S. The trustees ar¢ r¢5ponsibl¢ for keeping proper accouniing records which disclose with reasonable accuracy at any time Ihe financial position of the charitsble company and to enable them to ensure thai the financial slatements comply wilh th¢ Companies Act 2006. They are a19) responsible for safe8uardin8 the of ihe ¢haritsble company and hence for taking r¢asonable st¢ps for th¢ pieveTilion and detection of fraud and other irregularitie5. STATEME]YT AS TO DISCLOSURE OF INFORMATION TO AUDITORS Sts far as the trustees are aware. there is no relevant infomiation (as defined by Section 418 of the Companies Act 2006) of which the charitable company's auditors are wiawar¢. and exh tyustee has taken all the steps that they ought to have taken as a irusiee in order io make them aware of any audii inforniion and to e5thblish that the charitable company's auditors ar¢ aware of thai infomiation. Page 10

Ffe5tiDiO Raihv* Soei 'stered number: 0542449 ort f tlke Trust e￿ber 2020 Approved by order of ihe board of trust￿ on ...'2£ .kni............ aThl sÉgrted on its behalf by. Mr H R L Wilson- T￿￿et Pagell

rt of the Inde Ffestinio Railwa ndent Audilofs to the Members of Socie istered ￿umber. 00542449 Opirtion We have audited th¢ financial 5taiements of Ffestiniog Railway Sociery (the 'charitsble company) for the year ended 30 September 2020 which comprise the Statement of Financial Activities, the Balance Sh¢e( the Cash Flow Statement and notes to the financial staternents. including a surnrnary of significant accountin8 polirie5. The financial reporting fram¢work thai has been applied in their preparation is applicable law and United Kingdom A¢couniin8 Standards (United Kingdom Generally A¢¢epted Accounting Practice). In our opinion the financial statements= give a true and fair view of ihe swe of the charitable compan￿$ afyairs as at 30 September 2020 and of its incoming Te50urces and application of resour￿$, in¢luding its income and expenditure, for th¢ year then ended., have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Prdctice; and have been prepared in accordaTKe with the requirements of the Companies Act 2006. BA$is for opinion We condu¢ied our audit in accordance with lrtternational Standards on Auditing (UK) {ISAs IUK)) and applicable law. Our re5ponsibiliiies under those stsndards e fvrther described im the Auditor5, responsibilities fof the audit of the fIna￿la1 slat¢m¢nts S¢¢iion of our r¢pon_ We are ind¢pendent of ihe ¢harirable cornpany in X¢Ordan￿ wilh the ethi￿[ requirements that are relevdnt to our audit of the financial stat¢ments in the UK, including the FRC'S Ethical Standard. ar￿ we have fulfilled OUT oiher ethi¢al responsibilities Jn accordance wÈth ihese requirements. We believe ihai th¢ audii evidence we havt obtained is 5uffiGient and appropria to provide a basis for our opinion. Contlusions relating to going concern We have nothin8 to report in re5pxI of the followin8 matters in relation to which the ISAS (UK) require us to report to you where- the irustees, tsse of the going concern IHsis of ¥counting in th¢ preparation of th¢ fjnancial statements is nol appropriate" or the trustees have not diKlosed in the financial staiements any identified rnat¢rial urcertainties that May wl 518nificant doubt about the charitable company's ability to continu¢ io adopi the going concern basis of accounting for a period of at least twelve month5 from ihe date when the financial $￿ernents are authori5ed for issue. Other informAtion The trustees are r¢sponsibl¢ for the other inftiM￿loll. The other informarion cornprises the information Includ￿ in the Annual Report, other than the financial ststements and our Report of the IndepeNJ¢nt Audiiors ih¢reon. Our opinion on th¢ financial ststem¢nts does t)ot cover the other infom)ation and. except io th¢ ¢xtent otherwise explicitjy stated in our report. we do not express any form of as5uran¢e conclusion thereon. In Connection wtth our audit of the financial 5tatem¢nts. our r¢sponsibiliry is to read the oiher information and. in doing $0, consider whether the other infomiion is materially inconsistent with the flnancial statements OT our knowledge obtained in the audit or otherwise appears io be materially missthied. If we identify such material inconsistencies or apparent material misstatements. we arc required to determine whether there is a rnaterial misstatement in the financial statements or a material mi55taiement of th¢ other inforniion. If. based on the work w¢ have p¢rforni¢d, we conclude that ther¢ is a mat¢Tial missthiemeni of this other infom)ation. we are required to report that fact. We have nothing to report in this regard. Oplnions on other mtters prescribed by the Compnies Act 21106 In our opinion, based on the work underraken in the course of ihe audit.. the infornbation given in the Reprt of the T￿St¢eS for ihe financial year for which the financial statements are prepared is ¢onsis*nt Wlth the financial statements; and Ihe Report of the Trnmees has been prepared in accordance with applicable legal requirements. Page 12

of the Inde endent Audilors lo th Members of Ffestinio Railwa Socie istertd nurnber: 011542449 Matters on which we •r¢ required to report by eie¢ptioTh In ihe light of the knowledge and undeT5tanding of the chaTitsble company and its environmeffl obtsined in the course of the audiL we have noi ideniified marial misstsiements in the Report of the Trnstres. We have nothing io report in resp¢ct of the following matters wher¢ the Companies Act 2006 rwllires us to report to you if. in our opinron= adequate accounting records have not been kepi or re￿m$ adequate for our audit have not b¢¢n re￿Ived from branches not VlSlted by us.. or the financial statements are nol in agreernent with the accountrng record5 and returns; or ¢¢rtain disclosures of trustees, rernunerdtion specified by law are not rnade. or we have noi received all the infom)atiOTt and explanations we require for our audil: or the trustees were not entitled io take advantsge of the small companies exemption from the requirement to prepar¢ # Stregic Report or in preparing the Report of th¢ Trustees. Responsibllities of trusttes As explained more fully in the Ststem¢ni of TTus¢ees' Responsibiliiie& the trusiees {who are also the dire¢tors of the charitable company for the purwjses of company law) are responsible for the preparation of the flnancial 5tatefflent5 and for being satisfied thai ihey give a true and fair view. and for such intemal control as the trustees deiermine is nec¢ssary to enable the preparation of financial staiem¢nts thw are fre¢ frorn maierial missra¢ement, whether due to fraud or error. In preparing the financial srarements. the iwstees are responsible for assessing the charitable company's ability to cO￿tinue as a going concern. di￿losIng, as appl]￿ble. mwers related to going concern and using the going concern basis of accounting unless ihe trustee5 either intend to liquidate the charitsble company or to ¢e&se operations. or have no realistic alternative but to do so. Our responsibilitles for the audit of the r)nneil 5t#¢ernents Our objectives are tt> obthin r￿onable assurdrKe aboui whether the financi21 statements 15 a whole are free from rnaterial misstatemenL whether due io fraud or error. and to issue a Report of the Independent Auditors thal includes our opinion. R¢asonable &ssuranc¢ is a high level of assuTan¢e. but is nor a guarantee ihai an audit condu¢t¢d in cordance with ISAS IUKI will always detect a malerial mis5tatemenl when li exists. Misstatements can arise from fraud or error and are Considered material if. individually or in the aggre8ate. they could reasortably be expected io inlluence the e¢onornic decisions of users tsken on the basis of these finan¢ial $￿teMents. A fvrther d¢￿riptIOn of our responsibilitFes for the audit of the financial stsiements is located on the Financial Reporting Council'5 website at www.frc.org.uk13ydirorsr¢sponsibiliti¢s. This descripiion forn￿ part of our Report of lh¢ Ind¢pend¢nt Audiiois. Use of report This report is made solely to ihe clwirable company's member& as a body. in accordance with Chapter 3 of Part 16 of thr Companies Act 2006. Our audit work has b¢¢D undertsken $0 that w¢ might swe to ihe ¢harithle ¢ompaoy's rnetnbers those matters we are required to sthie to them in an audiiors, report and for no other purpose. To the fulle51 extent permitted by law, we do not accept or &ssum¢ responsibility to anyone other than the ¢harithble Company and lh¢ charirable company's members as a body. for our audit work, for this repo¢ or for the opinions we have formed. MTI erth Williams (S¢ttior Staw Auditor) for and on behalf of Dunn & Ellis Cyf Chartered Accountantslstahjtory Auditors Adeilad St David's Building Stryd Lombard Stree¢ Porthmadog Gwynedd LL49 9AP Date.. 24 March 2021 Page 13

Ffe5tinio Soci¢ St#terneNt or Financial Activities lJ)eor rati sn Ineorne and Ex nditure Acc f r the Y¢•r Ended 30 St ember 2020 30.9.20 Ttstil fwnds 30.9.19 Total fvnd$ Unrestricted fvnd Restricted funds No1¢5 INCOME AND ENDOWMENTS FROM Donation￿ lega¢ie$ & gift aid 98J26 139W6 237062 806,697 Chritsblt activities Hostel income Subscriptions 11,475 1118,048 11,475 10&048 22,846 117,825 Raising charitsble fijnds Investment income 3,469 982 3,469 6.342 1,636 443 Tot1 222JDO 139.979 362279 955.346 EXPENDITURE ON Raising chariiable funds 41670 44fv70 51.840 Charitable activt¢i¢s Hosiel expenses Donaitons to the FR Company 42,793 103.666 42,793 262,455 58.384 190.347 IS8,789 Governanc¢ and support 8.615 Total 199,734 15&789 358J23 309.186 NET INCOMEI(EXPENDITURE) 22J66 (18*JO) 3.756 646,160 RECONCILIATION OF FUNDS To¢41 bro￿@hI forward 547.41S 770,723 l J18,J38 671,978 TOTAL FUNDS CARRIED FORWARD 569.981 751913 .318.138 The notes fornj part of ihese financial ststements Page l4

00S4 B81gllce Sheet r 2112 30.920 Total 30.9.19 Toial fv￿Js lld fijnds Notes FLXED ASSETS Tangible assets Investments 13 14 CURREprr ASSETS Dcbtors C&sh at bank 15 464.627 357Jii 463.418 1014.829 742J86 751.912 1,494298 1.478247 CREDITORS Amounts falling due within one year 16 {1142OY) (114299) (108.637) NET CURJI￿￿ ASSETS 7SI 628 177 ￿12 089 ,369,610 TOTAL ASSETS LESS CURRENr LIABILITIES 62&186 7SI,912 IJ80,098 1.369,619 CREDITORS ATnounts falling due after more thaD ODe year 17 (58204) (582IM} (51,481) NET ASSETS 21 12 1,318,138 FUNDS Unre4rirfed fvnds Restricted funds 18 569,982 751912 547,415 770 723 TOTAL FiTNDS 21 These financial statements have bctn pr in x¢ordaDce with th¢ provisions applicable to ¢hariiable companies subject to thE Stnajl sJ>mpaTries' regim& The fIna￿jaI gai¢m¢nts were wrov¢O by the Board of Truses and authorised for is￿¢ on .W....2*4.......... and w¢r¢ 5igKd on its beha]f by: MrHRLWil - Tnjstce Mr G P Bond- Tru&ee The note5 fonn part of thcse financial statements Pa8c 15

Ffestini RaiJw4 Socie Csh Flow St•teme•t for the Year Ended 30 Se tember 2020 30.9aO 30.9.19 Notes Cash Ilows from optrating a¢¢Svilies Cash 8enered from operations 344 494) 207.137 ' Net cash (v￿d inyprovided by operating activiiies 344.494) 207,137 Cgsh flows from inve$ting Activiti¢s Purchase of fixed asset inv¢srments Interest received 1,425 1.636 Net ¢ash provided by investing activtties 1.635 Chang¢ in t2$h nd ta5h equiv41tnts i tht reporting period Cash and c¥$h equivalents ** the beginDing of th¢ reporting p¢riod 1343,069) 208,772 1.014J19 806.057 C•sh ¥nd tash ¢quivlents at th¢ ¢•d of the r¢pbrtiDg periiMI 1.014.829 The notes forni part of these finwKial Statements Pa8e 16

Ffestini Railwa Sotie Notes lo the Cash Flow S¢3t¢ment for the Year Ended 30 Se ternber 2020 RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES 30.9.2 30.9.19 Net incothe for the reporting PEriod (a5 per the StattThent ofFinncial Activities) Adjustments fDr. Interest received InCr￿e in debtors Increase1(deCre￿) in creditors 3,756 646,160 (1.425) {359,120} 12295 (1,636) (366,221) 71 166) Net eash (ustd invprnvided by optTtiDTrY 344 494) 207,137 ANALYS15 OF CHANGFS IN NET FUNDS At 1.10.19 Cash flow At 30.9.20 Nel cash Cash at bank 1,014.829 343.0691 671.760 1,014.829 343.069 671,7611 Total 071 760 The note5 forn) part of these financial statements Pag¢ 17

Ffestin Railwa Socie Nott$ to the Financial Ststements for the Year Ended 30 Se tember 20211 STATUTORY I]4FORMATIO Ffestiniog Rarlway So¢iety 15 a IiTnited company. limitvj by guarantee a5 defined by the Companie$ Act 2006 and is registered in England and Wales. The company is also fegisiered as a ¢hatity Wlth rhe Charity Comrnission. The company's registered numbers and registered office address can be found under the "Reference and administrativ¢ detsi15" section of the Report of the Truste¢s. ACCOUNTING POLICIES Basis of preparing ihe financial statements The financial statements of the charitsble Company, which is a public benefii entity under FRS 102, have been prepared in accordanc¢ with th¢ Charities SORP (FRS 102) 'Accouniin8 and R¢porting by Charitaes.. Staternent of Recommended PTaciice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in ihe UK and Republic of Ireland (FRS 102) (effective l January 2019)., Financial Reporting Stsndard 102 The Financial Reporting Stsndard applicable in the UK and Republtc of Ireland, and the Companie5 Act 2006. Th¢ financial sutements have be¢n prepared und¢r the histori￿1 c05t conveniion, with the ¢xception of investments which are included at market value. Incom¢ Ineornithg resources All incomtn8 resources are in¢luded on the Statemeni of Fina￿la1 Activities when it is probable that the income will be received and ihe amount can be measured reliably. This is sn keeping with the requirements of the abovementioned accountin8 stsndards. The Society has thus developed the following ￿711¢Y for recognising incoming resourees= a. li has ¢ntitlemenL it is probable the amounts will be received. and c. wh¢n the amouni can b¢ reliably measured. Incom¢ from govemment arKi other grants. whether 'capiral' graTts or'revenue, gran￿ is recognised when ihe Charity has entitlement to the funds. any p¢rforrnan¢e conditions attached ¢0 ih¢ grants hav¢ been met, it 15 probable that the income will be received and the arnount can be mwured reliably and is not defe￿ed. For le8acieK entitlement is taken a5 the earlier of the date on whi¢h either.. the charity 15 aware that probate ha5 been granted, the estate has been finaliscd and noiification has been rnade by the exttutorfs) to the Society that a di5tribulion will be rnade. or when a distributi(Trn is received from ihe ¢stste. Receipr of a lega¢y, in whole or in pao is only considered probable when the amount can b¢ rneasur￿ reliably and the charity has be¢n noiified of the ¢x¢¢uto¢s intention to make a distribution. Where lego¢ies have been notified io the charity. or the charity is awart of the grdnting of probate, and the criteria for in¢ome recognition have not been meL then the l¢ga¢y is a treated as a contingent asset and diKlosed if m*erial. Interest on funds held on deposit is included when rec¢ivable 8nd th¢ amouni can be measured reliably by the charity. this is nomially upon notification of the interest paid or payable by the Bank. Donations ar¢ g¢n¢rally rewrded upon ￿lPL SubscTipiion and Society membership income are re¢ognised according to ihe above criteria with the exception of amounts received and deemed to be received in advance, which ar¢ deferred until the income rewgnition riteria ar¢ met-. Annual membership r¢lating to th￿e b￿lfth of ihe membership inc(sme 15 deferred until the subsequent period. Advanced rn¢mbership rrfeipts are deferred and rele8sed in ihe period to which they r¢late. Diamond Jubilee Appeal income is received for a S year membership period and is deferred and apportioned accordingly. Life and as50crated life membership income is deftrred aThJ amortised of a deemed l O year period, which 1$ commensuTate to the wjlicy adopled by to other similar organisations. Pag¢ 18 continued...

Ffestinio Railwa Socie Notes t the Finanei81 St8t¢ments- tonlinued for the Year Endtd 30 St tember 21120 ACCOUNTING POLICIES- tontinu¢d Expenditure Resotsrtes expended. including primary P￿rpo￿ donations Liabilities are re¢ogni5ed as expenditure a5 soon as ihere is a legal or constructive obligation cornmitting the charity to that expenditure, it is probabl¢ thai a transfer of e¢onomic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditur¢ is accounted for on an accruals basi5 and ha5 been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attribuied io particular headings they have been allocated to activities on a basis consi￿ent with ihe use of resources. In order for donations io meet thrs recognition criieria. a8re¢ments in principle to provide funding for proposed projects are noi recognised until valid expense claims are made to ihe Society. diseussed by its board and approved for rel¢as¢. Tangible fixed assets Tangible fixed assei additions ar¢ ¢apitslised if th¢y ¢ost mor¢ ihan £1,000 and can be us¢d for more than on¢ y¢ar. Qualifying assets are inilially recognised at their cosl price and are subsequently recorded at cost. less accumulated depreciation and less amounts recognised in respect of impairnient. Depreciation is Provided ￿ ihe follow?ng annual rates in Order to ￿lte off each asset ov¢r its e5timthd use￿7 Plant and machinery is dep￿]￿ed over 5 years on a straighi line basis. No deprecÈation h&$ be¢n Gharged in the5¢ acc4wnis in resp¢ct of offi¢¢ equipm¢ni and s￿Iety Film4 which have been depreciated in previou5 years to their nominal residual valu¢. Taxation Th¢ ¢harity is exempi from corporation tax on tts charitable activities. Fund accounting Unresiricied funds can be used in a¢cordan¢e with the Charitable obje¢tives at th¢ discretion tsf the trustees. Restricted funds can only be used for particular restricted purposes within the objects of the charity- Re5tTlrtions arise wh¢n specified by ihe donor or when funds are raised ftir particular restrictrd pUr￿se$. Further explanation of ihe nature and purpose of each fund is included in the notes to the financial staternents. Conce5sionary loans to the Fe5tiniog Railway Compaoy Frorn April 2020. &s part of its response to th¢ Coronavirus outbreak. the Society lent £250.000 to the Company. This was followed by a ￿rther £150,000 lent to th¢ Company at th¢ beginning in July 2020. Both th¢s¢ loans are repayable on 30 September 2021 and ar¢ intrrest free. Repayment dates rnay be exp¢￿ed to be discussed furth¢r. In line with the provisions with?n the accounting slandards, th¢5¢ loans ar¢ re￿gniSed initially at ¢osi, with repayments or con￿r$10n$ to grants being recognised in the relevant periods. Voluntary assi$t*ne Th¢ company has no employees and many of its members give freely of their time to carry out all of lh¢ activities of th¢ Company. These voluntary contributions are not included in the a¢counts. Pa8e 19 continued..

Ffestinio Railw* Socie Notes to the Fingntl81 St8lemeAtS- CDlltiTrued for the Year Ended 30 Se tember 2020 DONATION& LEGACIES & GIFT AID 30.9.20 30.9.19 Donations Gift aid Legacies 108,930 34.663 66,238 28.877 711,582 237,862 306.697 RAISING CHARITABLE FUNDS 30.9.20 30.9.19 Magazine income Sundry income 3,238 231 3,880 3,469 6,342 IJ¥VESTMENT INCOME 30.9.20 30.9.19 Deposit account interest .425 1.636 INCOME FROM CHARITABLE ACTIVITIES 30.9.20 30.9.19 H05tel income Subscripiions Family & a5s0ciat¢ mernbership Student & junior mernbership Life membership 11,475 74.947 22.846 77.828 11,965 848 20,288 13,603 1,440 24,954 119,523 140.671 Page 20 continued...

Ffe$tinio R¥ilw* So¢ie Notes to the Financi•l Siat¢ments- continued for the Year Ended 30 Se tember 2020 RAISING CHARITABLE FUNDS Administrative expenses 30.9.211 30.9.19 Magazine Registry ¢xpens¢s Postage, prinitng & publicity Sundries 38001 J.655 1,142 39.897 1,925 1.548 8,470 44,070 51,840 CHARITABLE ACTIVITIES COSTS Direct Costs Hostel expense5 Donations to the FR Company 42,793 262 4SS 305 GOVERNANCE & SUPPORT COSTS Governance osts Finance Totals Gov¢manc¢ and support rt¢. io. AUDITORS. REMUNERATION 30.9.20 30.9.19 Fees payabl¢ to the chariws auditors for the audit of th¢ ¢hariWs financial statements 3210 2,920 Ac¢ountan¢y costs 2.79S 2.540 TRUSTEES, REMUNERATION AJ¥D BENEFITS There were no trustees, remuneration or otkr ben¢fits for the year ended 30 S¢ptember 2020 nor for th¢ year ended 30 Seprernber 2019. Tr￿￿te¢s, exp¢nses There were no trustees. expenses paid neither for the year end>J 30 S¢premb¢r 2020 Th)r for the year ended 30 Septelnber 2019. Page21 onttnued...

Ffestinio Railwg Soci Notes to the Financial Statements- ¢ODti4M for the Year Endtd 30 Se tember 2020 12. COMPARATIVES FOR THE STATEMENT OF FINANCIAL AcfiviTIES- 2019 SOFA (Breakdown of ihe 2019 column from page 14) Unrestricted fvnd Restri¢d fvnds Total fvnd5 INCOME AND ENDOWMEJYIS FROM Donaiiofts, lega¢i¢s & gift aid 344.459 462,238 806.697 Charitable attivities Hostel in¢orne Subscriptions 22,846 17,825 22,846 117.825 Raising Charl￿ble funds Investment income 6,342 810 6,342 1.636 826 Total 492282 463.064 955,346 EXPENDITURE ON Raising ¢harithbl¢ fijnds 51,840 31,840 Charitable a¢tiviti¢5 Hosi¢l expenses Donations to the FR Company 58.384 115.045 58.384 190.347 75.302 Governanee and support 8.615 8.615 Total 233.884 75.302 309.186 NET INCOME 258.398 387.762 646.160 T¥nsf¢r$ between funds (6.437) 6,437 Net movernent in 251.961 394.199 646.160 RECONCILIATIOJ4 OF FUNDS Total funds browght forward 295.453 376.525 671,978 TOTAL FUNDS CARRIED FORWARD 547.414 770,n4 1,318.138 13. TANGIBLE FIXED ASSETS Plant and m￿hinery Office equipmeni Society films Totsls COST At l October 2019 ond 30 S¢pi¢mlxr 2020 4Vg DEPRECIATION At l O¢iober 2019 and 30 September 2020 408 NET BOOK VALUE At 30 Septemb¢r 2020 At 30 September 2019 Page 22 ntinu¢d...

Ffe5tini R•ilw8 ie Notes to the FiTraneiAI Staternents- continued for the Year Ended 30 St ternber 2020 13. TANGIBLE FIXED ASSETS- ￿￿tIn￿ed The ner book value at 30 Septernber 2020 represents fixed assets used for the management and administrydtion of the ¢harity. 14. FIXED ASSET INVEsfMENTS Fixed asset investrnents MARKET VALUE At l October 2019 and 30 September 2020 NET BOOK VALUE At 30 September 2020 At 30 September 2019 There were no investment assets Outside UK. The above figures Consi￿ OF. a. The Festini08 Railway Company l 00 5% prefererKe shares of £10 each- * cost- £1 b. S ordinary shar¢5 of £1 ea¢h- at wst- £5 In the opinion of the trustee4 the market Wdlue of the shares is similar to their cost. 15. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 30.9.20 30.9.19 Gift aid debtor Fesiiniog Ratlway Company loan Legacies VAT 33.930 427,1)00 357,911 3.697 63,982 36,222 357,911 5.303 822,538 463,418 Page 23 continued..

Ffestini Rai Socie N tes to the FinTrcial Stiemtthi$- ¢ontin￿ed for the Ve4r Ended 30 Se t¢mb¢r 2020 16. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 30.9.20 30.9.19 Trade credilols A¢¢rued FR Company donations Dee & Mers¢y group FR heritage group SubscFipiions and don*ions receiT4ed in advance Accrued expenses 7.391 37.080 7,900 14,034 36.772 5.460 50JQO 7.91)0 14,048 35,95 6.0115 114309 108.637 17. CREDITORS: AMOUNTS FALLING DUE A ￿ER MORE THAN ONE YEAR 311.9.2D 30.9.19 SubsLriptions and donations received in advaTKe 58.204 51,481 Page 24 continued...

Ffestinio Railw Iyotes to the Financial Statements- contlDued for the Year Ended 30 Se tember 2020 18. MOVEMENT IN FVNDS Net movement in fvnd5 Ai 1.10_19 At 30.920 Unregtriet¢d fund5 General fund 547.415 22,567 569,982 Restrieted fu￿d5 Heritag¢ fund Volunteer hostel furtd Minffordd Station Tan y Bwlch Striion Kids Training Week Linesid¢ vehi¢le Blanche England Lo¢os Lilla maintenance Mounlaineer Kerr Stuart diesel 4415 James Sp)oner Bug Boxes First class inierior LAG drains Archives Waggon tracks Pernianent way Health. safety and others Ashover earl of M¢rion¢th Rhiw Goch signal box Volunteer tools Blaenau Ffesiini08 Ststion Hu8h Napier Heriiage Buildings Covid-19 6.292 1551 254 6,546 1,553 2,707 3,046 9,885 12,812 2,1199 22.492 1,163 4,422 10,940 54.419 92,521 S25 4,61 I 7247 941 136.700 1,997 4,037 277 2,707 3.IM3 52 12.798 2.096 7&202 5051 3,021 15,023 49,677 50.087 524 4,1132 2.799 441 148298 1.995 4,fi32 276 1,033 14 (55,710) (4,688) 1,401 {4,083) 4,742 42.434 579 4.448 50 {11,598) 144 519 12,106 357911 14S 5A9 7.971 354,058 (4,135) (3,853) 7,125 770.723 18.811 751,912 TOTAL FUNDS l J18,138 3,756 321,894 Page 25 ntinued..

Ffestini Railw* Sotie Notes to tite Fin•TrciAI S¢•tern¢nts- ¢fjntiMued for the Ye#r Ended 311 ternber 2020 18. MOVEMENT IN FUNDS- ￿ntinued Net movement in funds, i￿luded in the above 8r¢ as follows.. Incoming Resources exp¢nd¢d Movemenl in funds Unrestricted funds General fvnd 222JIKI (199,73J) 22,567 Restricted f¥nds Heritsge fund Volunteer hostel fund Minffordd Station Tan y Bwlch Ststion Kids Trainin8 Week Lineside vehicle Blanche England L(Kos Lilla mainlenancc Mounthineer Kerr Stuart diesel 441 S James Spooner Bu8 Boxes First class inierior LAG drains Archives Waggon ird¢ks Permanent way Healih, safety and others Ashover Earl of Merioneth Rhiw Go¢h signal box Vtslunteer tools Hugh Napier Heritage Buildin85 Covid-19 2$4 254 2,7117 2.707 973 14 60 1.033 14 2,157 132 1.401 4,026 4.742 42.434 (57167) (4,820) (55,710) (4,688) 1.401 (4,083) 4.742 42,434 (8,109) 955 17.737 500 155 1376) (13389) 579 4,448 soo (11.598) (11,753) (8,6911) 13.946) so.000) (4,135} (3.853) 93 158,790) 18,811) TOTAL FUNDS 362279 3S8.523) Page 26 ontinued.

Ffestinio RiJw Sott Notes to the Financial StatementS- Colltinued f r the Y¢ar Ended 30 Se ttmber 2020 18. MOVEMENT IN FUNDS- eoDtiDu¢d Comparativu for movement • funds- (2019 f￿re$) Net movement in funds Trdnsftrs between funds At 1.10.18 At 30.9.19 Unre5tritted funds G¢n¢ral fund 295,453 258.399 16,437) 547,415 Restricted funds Heritagc fund Volunteer hosiel ￿nd Minffordd Station Tan y Bwlch Station Kids Training Week Lineside vehicle Blanche En8land Locos Lilla maintenance Mounraineer Kerr s￿art diesel 4415 James Sp¢)oner Bu8 Boxes First cla55 interior LAG drains Archives Waggoll tracks Pernianent way Health. safety and others Ashover Earl of Merioneth Rhiw Goch signal box Volunteer tools Bla¢nau FfesthniD8 Ststion Tunnel Portals Hugh Napier Heritsge Buildings 6,336 1.548 9.144 3.037 6,595 12,772 2.093 97.604 3.343 2.927 6.032 43.955 4.447 963 3.891 1.992 9.97J 147.993 1.990 4.026 276 (44) 6,292 1,551 (15.581) 6.437 3,043 8,852 12.798 2.096 78,202 5.851 3.021 15,023 49.677 50,087 524 4.032 2,799 441 148.298 1.995 4,032 276 1.153 144 519 2257 26 (19.402) 2,508 94 8.991 5.722 45.640 (4391 807 {9,532) 305 707 518 3212 (563) (3212) 12,106 357.911 12.106 376.525 387.761 6.437 770.723 TOTAL FUNDS 671.978 646.160 1.318,138 Page 27 continued...

Ffestinio Rilw Soeie Notes to th¢ Financial Statements- coAtinued for the Ytar Ended 30 St tember 202 18. MOVEMENT IN FUNDS- continued Comparative nei rnovement in fund& included in the alM)ve are as follows: Incoming resources Resources expended Mtsvement in funds Unrestricted fund$ General fund 492282 1233,883) 258,399 Restricted funds Heritage fund Volunteer hosiel ￿nd Minffordd Station Tan y Bwlch Siation Kids Training Week Lineside vehicle Blanche England Locos Lilla mainLenan¢¢ Mountaineer Ke￿ Stuart dies¢l 4415 James Spooner Bug Boxes First cl￿$ interior LAG drains Archiv¢s Waggon track5 Pernianeni way Health, safery and ￿h¢r$ Ashover Rhiw Goch signal box Volunteer tools Blaenau Ffestini08 Station Tunnel Ponals Hugh Napier Heritage Buildings 89 (133) (44) 6.722 (22.303) (15,581) 9.520 26 (7.263) 2,257 26 4,494 2,508 94 14.845 5,722 45,640 (23,896) (19,402) 2.508 94 8,991 5,722 45,640 (439) (5,854) {440) (633) (1,465) (9,548) 774 2272 16 305 807 (9.532) 305 (564) (563) {8) 12.106 357.911 (3204) (3.212) 12.106 357,911 463.064 (75.303) 387,761 TOTAL FUNDS 955,346 309.186 646,160 Page 28 ¢on(inued...

Ffestinio Railwa s￿1¢ Notes to the Finan¢iail Statement5- con¢iDued for the Year Ended 30 Se ternber 21120 18. MOVEMENT IN FUNDS- ¢ontinu¢d A current y¢ar 12 months and prior year 12 rnonths ¢ombin¢d posiiion 1$ as follows.. Net moverneni in fund5 Transfers between fijnds Ai 1.10.18 At 30.9.20 Unrestricted funds General fund 295.453 280.966 (6.437) 569.982 Restricted funds Heritage fund Volunteer hostel fund Minlrordd Staiion Tan y Bwlch Sthtion Kids Training Week Ltneside vehicl¢ Blanche England Locos Lilla maintenance Mountaineer Kerr Shjart diesel 4415 James Spooner Bu8 Boxes Fiist class interior LAG drains Archives Waggon ¢ra¢ks Perman¢nt way Healih. safety and others Ashover Earl of Merioneth Rhiw GcLh signal box Volunteer too15 Blaenau Ffestiniog Statton Tunnel Portals Hugh Napier Heritage Buildings Covid.19 6,336 1.548 9.144 3,037 6.595 12.772 2.093 97.604 3.343 2.927 6.032 43.955 4,447 963 3.891 1,992 9.973 147,993 1.990 4.026 276 210 6.546 1,553 2.707 3.046 9.885 12,812 2,099 22.492 1,163 4.422 10,940 54.419 92,521 525 4.611 7,247 941 136,700 1,997 4.037 277 1.154 145 519 (12,874) 6.437 3,290 40 (75.112) (2.180) 1,495 4.908 10,464 88.074 {438) 720 5255 (9.032) (11.293) 707 518 3.212 (562) (3.212) 7.971 354.058 7,125 7.971 354.058 7.125 376,525 368.950 6,437 751,912 TOTAL FUNDS 671.978 649.916 1.321.894 Page 29 continued...

Ffe Rllwa Socie Notes to the Finantial Stst¢rnents- contiTru¢d for the Year Ended 30 Se tember 2020 18. MOVEMENT IN FUNDS- toTrti4ed A ¢urrent ytaT 12 months and prioT year 12 months Combined net rnovement in fvnds, included in the abov¢ are as follows= Incoming Resources expended Movement in funds Unre5tricled funds General fund 714.582 (433.616) 280,966 Re5¢ri£t¢d funds Heritsge fund VolLtnteer hostel fvnd Minffordd Starion Tan y Bwlch Ststion Kids Training Week Lineside veht¢le Blanche England L&)¢os Lilla rna1ntena￿e Mountaineer Kerr Stuart di¢s¢l 4415 James S￿O￿tr Bug Boxes First class interior LAG drains Archives Waggon tracks Perrnanent way Health, safety and others Ashover Earl of Merioneth Rhiw Goch signal box Volunteer tools Blaenau Ffestini08 Ststion Tunnel Portals Hugh Napier Heritage Buildings Covid-19 343 (133) 210 9.429 (22,303) (12.874) 10,493 40 {7,203) 3,290 40 6.651 2,640 1.495 18,871 10.464 88.074 (81.763) (4.820) (75.112) {2,180) 1.495 4.908 10.464 88.074 (438) 720 5,255 (9.032) (11,2931 (13,963) (440) (1.009) 114,754} (9.548) (11.753) 1.729 20.009 516 460 (564) (562) (8) 16.661 358.004 57.125 (3.204) (8.690) 13,946) 50.000) (3,212) 7.971 354,058 7,125 603.043 234,093) 368,950 TOTAL FUNDS 1.317.625 667.709) 649.916 Unr¢stri£ted F￿ndS See the Reserves Policy for full detsils. Restricted Funds The Volunteer Hostel Fund 15 for th¢ hos*1 in Penrhyn. The Herita e Fund was set up in 1998 as 'partnership fuThJing" with The Fwiniog Railway Trust for ihe Ffestiniog Railway Heritsge Proje¢¢ encompassing carriages 15 and 16 and slate wagon r¢storation. The fund is used to 511PPOrt herita8e minded proje￿. The En land Ioc05 Fund was set up to fund the rebuild of Prin¢¢ and upon completion of that loco is ihe home of funds raised for the restoration io working condition of fellow England lo￿ We15h Pony. Page 30 continued...

Ffesiinio Railw8 Soci Notes to the Fin•ncial S¢*tements- ¢ODtiDu for the Year Ended 30 Se ternber 1020 18. MOVEMENT IN FUNDS- coTrtiThued irst Class Interior Fund has been set up a5 a result of the Lift Memberfs Appeal to enhance first class accornmodatton on the Ffestiniog Railway. The Lilla Maintenance Fund set up in 1998. aims to rat5¢ money tt) contribute towards th¢ ongoing rn8intenance of ihe I￿Orn011¥t. The Mountaineer Fund exists to return the ALCO l(Ko to tralTic in as close Is possibl¢ to its CUTrent ftirm. The Drains Fund has been set up following a large donaiion for the purposes of supplying materials for tb¢ future maintenance of the drainage infrastructure on the Ff￿lin108 Railway. ¢hiv und has been sei up has part of an appeal to improve the conditions for the preservation of the priceless collection of Ffestiniog Railway ar¢hiwe information. he Trackbeds and Embartkments Fund has been sei up & a result of a legacy specified for that purpose. OthET5 includt fijnds for heahh and Safety PToj¢¢ts and volunieer ¢ntenainm¢nt eguipm¢rn. General Fund AppropriatiODS Donations to the Fe5tiniog Railway Company in respect of: 2020 2019 £7,862 BL fence BL points Horticulture centre Blacksmiths Electrics Fairlie / DE boiler Heritage waggons Hostel Plas Smart £19.175 £5,658 £19549 £73.442 £3,816 £11,443 £2.889 £15582 £20260 £575 £180 Slate benth £135 Sundry Baseplate51Sleepers Boston Lodge NHLF £17,964 19. RELATED PARTY TRANSACTIONS As stated in the principal a¢¢ivities section of the trustees, report. the PUTPts5e of the company 1$ to support th¢ restoration of ihe Ffestiniog Railway. For many years, there has been an attangement whereby the company nominated on¢ director onto the board of The Fe5tinio8 Railway Cornpany and that company nominated a person to sit on th¢ board of this company. During the year. the Society nominee Sam Mill¢r. Sam Miller did not receive any benefii from the Society during the year. During the year the Fftstinho8 Railway Society made donatl0115 lO￿lI1ng £262,455 (2019.. £190.347) to The Festiniog Railway Cornpany. The makeup of which being Tnade up of curreni year donwion$ amouniing io £262.455 {2019.. £154.965) and year end xcruals amounting to £nil (2019.. £35,384). The Society also had trdnsaclions wilh related gmups and the FR Co during the year. and at the ￿&r end th¢ Festiniog Railway Company amount ow¢d to the So¢i¢ry siood at £427,000 (2019." £36222). with this amtsunt being included within debtors on the balance Sheet. The Society also retained funds on behalf of th¢ Dee & M¢rs¢y and FR Heritage group& with the totsl held within creditots amounting to £21.948 (2019.. £21.934). Pag¢31 continved...

Ff¢stinio Railwa Socie N te5 t the Financial Statethtnt5- eontinutd for the Year Ended 30 S¢ ttrnber 2020 20. POST BALANCE SHEET EVENTS A5 noted in the a¢¢ounts during 2020. the Ffe5tiniog Railway Society loaned £400,OIXI to th¢ Fe5tiniog Railway Company lo support cash flow during the COVID pandemic. This loan is interest free. wiihout security and repaydble in S¢pr¢rnbu 2021. Subsequent io the financial year end. the board of trustees a8reed to conv¢rt £183,196 of th¢ financial loan support into a gran¢ with ihis represeniing costs incurred by the Festiniog Railway Company infr8structure projects at Crossing Mawr, Spoon¢rs Hollow and Rhiw Plas. Page 32