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← Ffestiniog Railway Society

2024-09-30-accounts

Charity registration number 1064178 (England and Wales) Company registration number 00542449

FFESTINIOG RAILWAY SOCIETY

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2024

FFESTINIOG RAILWAY SOCIETY

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Mr G Bond
Mr G Cole
Mr R D Bentley
Mr C M Tucker
Ms C M Knowles
Mr L Graham-Taylor
Mr N C Smith
Mr P J Hawkins
Mr B W Frith (Appointed 4 May 2024)
Secretary Mr J E Fenner
Charity number (England and Wales) 1064178
Company number 00542449
Registered office Harbour Station
Porthmadog
Gwynedd
LL49 9NF
Auditor Champion Accountants LLP
2nd Floor Refuge House
33-37 Watergate Row
Chester
CH1 2LE

FFESTINIOG RAILWAY SOCIETY

CONTENTS

Page
Trustees' report 1 - 6
Statement of Trustees' responsibilities 7
Independent auditor's report 8 - 10
Statement of financial activities 11
Balance sheet 12
Statement of cash flows 13
Notes to the financial statements 14 - 25

FFESTINIOG RAILWAY SOCIETY

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 30 SEPTEMBER 2024

The trustees present their annual report and financial statements for the year ended 30 September 2024.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's governing document, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019).

Objectives and activities

The principal objective and aim of the Charity in the year under review was to advance the education of the public through the conservation of the Ffestiniog Railway. In practical terms, the activities of the charitable company in furtherance of its objectives are to support the Festiniog Railway Company in its preservation and operation of the Ffestiniog Railway.

Public benefit

The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.

Achievements and performance

The year ending 30 September 2024 has been another successful year for the Ffestiniog Railway Society (the Society). This is particularly pleasing as it has been the 70th anniversary year following incorporation on 24 December 1954. Thanks to the generous support of members it was possible to provide a record amount of just over £650,000 in grant support to the Festiniog Railway Company. Hopefully, the pioneers who answered the call from Leonard Heath Humphreys to attend a meeting at Bristol in September 1951 would have been more than pleased with everything that has been achieved since then. It was a delight to be able to recognise the contributions made by the surviving attendees from the Bristol meeting and other early volunteers at the Annual General Meeting in May 2024.

Whilst it is right that we should celebrate past achievements it is also important that we are mindful of future challenges. The Society has continued to implement its revised Development Strategy which was introduced at the 2024 Annual General Meeting and in subsequent issues of the Ffestiniog Railway Magazine. A new membership category was introduced at an Extraordinary General Meeting held in July 2024 which is intended to encourage growth in the numbers of younger members. The challenge is for the next generation to play a key role in the Society making it relevant to not only themselves but the Ffestiniog Railway of the future. Only then will the legacy of the early pioneers go forward.

Volunteering has continued to provide approximately 50% of the total staff time during 2023/24 which is worth a very significant amount of money to the Company. It is pleasing to see that the regular groups, including Minibash, Megabash, Gigabash, Young Volunteers Training Week, Electrical Working Party, Drains Gang and many others have continued their important work. The Alco Group are continuing their project to rebuild the Mountaineer locomotive. All of these projects are supported by the Society. Individual volunteers work for the Operations and Locomotive departments with a very credible number of locomotive turns being covered by volunteers. The creation of a Volunteer Steering Group, with representation from the Society, has started the process of enhancing the volunteer experience for individuals and the Company.

A proposed headline increase of 10.8% in subscriptions for 2025 was approved by members in 2024. The Society Board is not seeking approval for a further increase in annual membership subscriptions to take effect from 2026 although some increases to life membership subscriptions are being sought. This standstill in the annual membership rate, together with the introduction of direct debit payment facilities, is intended as another measure to stabilise and grow membership numbers.

The Society has been pleased to be able to continue to support the management and operation of the hostels at Minffordd and Penrhyn which are so important to supporting volunteer involvement. Bed nights have continued to grow over and above the significant increase reported in the previous year. The Hostels Sub-Group has been reformed by the Hostels Director and now includes users, FRS directors and officers as well as the Hostel Warden. The September 2024 Board meeting did agree to the first increase in hostels fees for many years but these still remain exceptional value for money. This increase was necessary to be able to help maintain and improve the standard of accommodation available to volunteers.

FFESTINIOG RAILWAY SOCIETY

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2024

The Society together with Cymdeithas Rheilffordd Eryri and the Ffestiniog and Welsh Highland Railways Trust had each loaned the Festiniog Railway Company the sum of £400,000 as part of the emergency arrangements required to ensure the survival of the Company following the severe restrictions on trading that were imposed in response to the covid pandemic. The Society had previously been able to convert a significant part of this loan into grants. In the previous year, the Society Board agreed to convert the outstanding sum of £91,804 to provide additional grants for the installation of welding fume extraction equipment at Boston Lodge, the purchase of a diesel shunter from the estate of the late Adrian Shooter and the purchase of two battery locomotives complete with a variety of spares.

Crossing (Lottie's) Cottage in Quarry Lane, Minffordd holds a very special place in the hearts of many members and volunteers. The building was an asset held by the Company pension fund which found itself in the position of having to realise the value of the asset in order to support the members of the fund. The Company determined to buy back the building from the pension fund and the Society Board agreed to provide a grant of £90,000 to support this purchase, for which specific donations were also received.

The Society has been pleased to have worked with the Company during the year to assist with the continuing implementation of the NLHF Boston Lodge project – the match funding for which has been provided in equal amounts by the Society and the Ffestiniog and Welsh Highland Railways Trust. This project has benefited from the largest ever single grant provided by the Society to the Company. Practical completion of the building works contract was achieved in November 2024. This major project has been very disruptive and the staff (both paid and volunteer) have had to make do with temporary mess and toilet facilities for much longer than expected. However, the completed facilities in the new Den have been well received. Of course, this project has not just been about building works but it has also included volunteering, interpretation and outreach to the local community, all of which have been very successful.

Work is now well underway on the restoration of Tan y Bwlch Station House. The Society Board was able to confirm funding for the final stages of this project at its September 2024 meeting. This was made possible thanks to a generous legacy. Many of the management techniques used on the NLHF Interpretation and Boston Lodge projects are now being rolled out to other projects on the Railways including Station House. This should see the project completed on budget and in time to receive the first occupants before the celebration in summer 2025 of the 70th anniversary of the new Company starting to run passenger trains in 1955.

The Tan y Bwlch Station House work is being carried out by the Mini-Bash team. Before moving on to Station House the team had completed the external restoration of Penrhyn Station. It was very pleasing to hear that the Society funded project had received a National Railway Heritage Award at a ceremony held on 4 December 2024.

The large amount of money held in restricted funds can be deceptive as it can only be used for the purposes expressed by those who have donated. The Society Board has revised its investment policy and it is now benefiting from substantially higher rates of return from these cash balances. However, the opportunity to put these funds to good use as soon as possible is not overlooked and the Stations Fund was used to complete a much needed upgrade of the platform at Blaenau Ffestiniog as part of the 2023/24 winter works programme. This was the first stage of developments at the northern terminus of the Ffestiniog Railway.

The 2024 season got off to a difficult start with many factors including the weather, major sporting events and, of course, a General Election, not to mention a cost of living crisis, that all contributed to sluggish traffic figures. Thanks to a lot of hard work by all concerned the trading position has been much better in the summer and autumn periods. The Society Board has readily agreed to support the Company by allocating funds to a number of projects for completion in the last quarter of the calendar year which should have a positive impact on the trading position. The trustees / directors have been pleased to engage in collaborative discussions with the Company and look forward to being able to continue this approach in 2025.

The Society would not have been able to help the Company in its successful development over the last 70 years without the continued and generous support of its many members past and present for which we are very grateful. There is still a lot to do in order to move from a 'Sustainable' to a 'Regenerative' railway and the Society Board and its officers will continue to provide as much support as possible to achieve this ambition.

FFESTINIOG RAILWAY SOCIETY

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2024

Financial review

The Society ended the 2024 financial year in a strong financial position, continuing the theme from the last couple of years, despite the financial contributions to the Festiniog Railway Company being an all time record of £651,849, compared with the figure of £506,725 from the previous year.

From the General Fund, the major contributions and projects support have included the Boston Lodge NLHF project (£263,938), the purchase of Lotties’ Cottage (£90,000) and the continued support of the volunteer work on Heritage Waggons (£10,016).

Of the Restricted Funds, we have supported last winter’s platform and other works at Blaenau Ffestiniog (£98,600), made final contributions to Linda’s overhaul (£33,998), the Tan y Bwlch station house project (£23,846) and the overhaul of Prince (£20,684). The continued support of the repainting of the Victorian Set saw carriages 18 and 19 and the Curly Roof Van looking splendid at the Bygones Weekend, following support of £28,674. With the team deep in the throes of the Alco Mountaineer overhaul, some spend has now commenced, with £6,267 spent on initial work.

The mix of projects supported cover a whole host of activities involving both volunteer projects and paid staff time.

There are two significant changes in income profile compared to the 2023 financial year with legacies significantly reduced due to the smaller number of legacies received (2023 saw the receipt of the last part of the stations legacy). Conversely, interest income is significantly increased in 2024 as the combination of large cash balances (largely due to previous legacies and other activity) and falling retail interest rates enabled the Society to implement a new investment strategy with money market funds held by JP Morgan/Black Rock. This enabled total investment income to reach £118,115 in 2024 compared to £25,901 in the year before. Expected income will be slightly lower in 2025 due to a further downward shift in interest rates but the money market advantage will still deliver a greater return than otherwise.

The breakdown of membership numbers is as follows:

Annual members
Full
Associate full
Senior citizen
Associate senior citizen
Family - 1st adult
Family - 2nd adult
Family - children
Junior
Volunteer student
Total
Life members
Full
Associate full
Senior citizen
Covenanted
Honorary
Total
Total membership		 2024
694
163
1,517
359
119
118
187
13
12
3,182
2024
1,246
186
133
76
6
1,647
4,829		 2023
755
180
1,572
367
112
111
190
22
20
3,329
2023
1,259
187
120
70
6
1,642
4,971

FFESTINIOG RAILWAY SOCIETY

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2024

The operating cost profile of the Society was slightly higher than 2023 largely as a result of the timing of spend such as the magazine printing and hostel costs.

The overall reserves of the Society remain very healthy and allow the Society to continue to commit to significant support for the Ffestiniog Railway.

Reserves policy

The Society’s policy is to maintain an adequate reserve so as to enable it to discharge its charitable objectives and meet its ongoing day to day requirements. This being the case, the trustees consider that twelve months of general fund expenditure is an appropriate level of reserve to meet the day-to-day running costs of the charity including maintaining production of the in-house magazine and support for the running of the volunteer hostels, with this amounting to a sum of £114,000.

The main need of course is to hold sufficient reserves for its core objective of supporting the Ffestiniog Railway, which includes collecting unrestricted, designated and restricted funds for a number of projects, administering and collecting moneys from the annual appeals as well as raising and maintaining sufficient general funds to meet its obligations for committed charitable objects. As at the end of 2024, the Society's main funds stood at:

Restricted funds: £2,356,939 (2023: £2,480,068)

The restricted funds held by the charity are only available for use on specific projects which are taken forward as resources become available to the Festiniog Railway Company. A detailed analysis of these projects is disclosed in note 17 of the financial statements.

General funds: £412,470 (2023: £551,597)

The Society's 'free' reserve for the year being a surplus of £412,470 (2023: a surplus of £551,597).

Fundraising

Active fundraising continued with regards to the England fund to support the overhaul of Prince, including the on train envelope appeal which, whilst winding down as the loco nears completion, still raised £10,699 including Gift Aid. The Mountaineer appeal also continues with the majority of the income coming from monthly standing orders and additional funds from the sales of merchandise, all adding up to £17,100.

Gift Aid remains a significant contributor to Society funds with £42,597 attributed to 2024.

Plans for future periods

The Society is expecting to see the completion of the Boston Lodge NLHF project and remaining grants concluding in the 2025 financial year. Other significant supported projects are continuing such as Tan y Bwlch station house as well as further exploration of station developments at Blaenau Ffestiniog.

Structure, governance and management

The charity is controlled by its governing document, a memorandum and articles of association, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.

FFESTINIOG RAILWAY SOCIETY

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2024

The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

Mr G Bond Mr J P Bowley (Resigned 4 May 2024) Mr G Cole Mr R D Bentley Mr C M Tucker Ms C M Knowles Mr L Graham-Taylor Dr A F Tucker (Resigned 4 May 2024) Mr N C Smith Mr D R Jones (Resigned 4 May 2024) Mr P J Hawkins Mr B W Frith (Appointed 4 May 2024)

Recruitment and appointment of trustees

All trustees are elected for a period of 3 years and have to stand for re-election every three years if continuing. This election happens at the AGM. Even is someone is co-opted during the year, they still have to formally stand at the next election.

Induction and training of trustees

As part of their induction, new Board members are made aware of their responsibilities as board members. The induction includes an introduction to the objectives, scope and policies of the charitable funds. Charity commission information on trustee responsibility and copies of the previous year’s annual report and accounts are provided.

Relationship with third parties

At the year end the Society holds five ordinary shares and one preference share in the Festiniog Railway Company, which have all been bequeathed to the Society. This constitutes a minority share and does not give any control to the Society. The Society makes grants to the Festiniog Railway Company as part of the pursuance of the main activities of the Society.

The Society also has the right to nominate to the Ffestiniog Railway Trustees for appointment one place on the Board of the Festiniog Railway Company as part of a reciprocal arrangement.

The Society interacts with area and functional groups, which have the common aims of supporting the Ffestiniog Railway.

Risk management

The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error.

Relationship with related parties

The trustees consider the only key management personnel of the charity to be the board of trustees, who are in charge of directing, controlling, running and operating the charity of a day-to -day basis. Details of the trustees' remuneration, expenses and related party transactions are disclosed in a note to the accounts.

Auditor

In accordance with the company's articles, a resolution proposing that Champion Accountants LLP be reappointed as auditor of the company will be put at a General Meeting.

FFESTINIOG RAILWAY SOCIETY

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2024

The Trustees' report was approved by the Board of Trustees.

Mr G Cole Chairman

15 March 2025

FFESTINIOG RAILWAY SOCIETY

STATEMENT OF TRUSTEES' RESPONSIBILITIES

FOR THE YEAR ENDED 30 SEPTEMBER 2024

The trustees, who are also the directors of Ffestiniog Railway Society for the purpose of company law, are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

FFESTINIOG RAILWAY SOCIETY

INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF FFESTINIOG RAILWAY SOCIETY

Opinion

We have audited the financial statements of Ffestiniog Railway Society (the ‘charity’) for the year ended 30 September 2024 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

FFESTINIOG RAILWAY SOCIETY

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF FFESTINIOG RAILWAY SOCIETY

Responsibilities of trustees

As explained more fully in the statement of Trustees' responsibilities, the trustees, who are also the directors of the charity for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Extent to which the audit is considered capable of detecting irregularities, including fraud

The responsibility for the prevention and detection of irregularities, including fraud, lies with the trustees and with those charged with governance. The objectives of our audit in respect of irregularities and fraud are to assess the risk of material misstatement of the financial statements due to fraud, to obtain sufficient, appropriate audit evidence regarding the assessed risks and to respond appropriately to fraud or suspected fraud identified during the audit.

As part of our planning process

The key procedures we undertook to detect irregularities including fraud during the course of the audit included:

FFESTINIOG RAILWAY SOCIETY

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF FFESTINIOG RAILWAY SOCIETY

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing Standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https:// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Susan Harris MA ACA (Senior Statutory Auditor)

For and on behalf of Champion Accountants LLP, Statutory Auditor Chartered Accountants 2nd Floor Refuge House 33-37 Watergate Row Chester CH1 2LE 15 March 2025

Champion Accountants LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

FFESTINIOG RAILWAY SOCIETY

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 30 SEPTEMBER 2024

Unrestricted
Restricted
funds
funds
2024
2024
Notes
£
£
Income from:
Donations and legacies
3
183,572
62,188
Charitable activities
4
139,955
-
Investments
5
43,237
74,878
Total income
366,764
137,066
Expenditure on:
Charitable activities
6
506,205
259,881
Total expenditure
506,205
259,881
Net income/(expenditure)
(139,441)
(122,815)
Transfers between
funds
314
(314)
Net movement in
funds
(139,127)
(123,129)
Reconciliation of funds:
Fund balances at 1 October
2023
551,597
2,480,068
Fund balances at 30
September 2024
412,470
2,356,939		 Total
Unrestricted
Restricted
funds
funds
2024
2023
2023
£
£
£
245,760
122,716
1,021,900
139,955
144,748
-
118,115
6,457
19,444
503,830
273,921
1,041,344
766,086
382,458
219,141
766,086
382,458
219,141
(262,256)
(108,537)
822,203
-
-
-
(262,256)
(108,537)
822,203
3,031,665
660,134
1,657,865
2,769,409
551,597
2,480,068		 Total
2023
£
1,144,616
144,748
25,901
1,315,265
601,599
601,599
713,666
-
713,666
2,317,999
3,031,665

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

FFESTINIOG RAILWAY SOCIETY

BALANCE SHEET

AS AT 30 SEPTEMBER 2024

Notes
Fixed assets
Tangible assets
11
Investments
12
Current assets
Debtors
13
Cash at bank and in hand
Creditors: amounts falling due within
one year
14
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after
more than one year
15
Net assets
The funds of the charity
Restricted income funds
17
Unrestricted funds
18		 2024
£
£
3
6
9
104,074
2,877,849
2,981,923
(124,052)
2,857,871
2,857,880
(88,471)
2,769,409
2,356,939
412,470
2,769,409		 2023
£
£
3
6
9
92,841
3,081,002
3,173,843
(70,603)
3,103,240
3,103,249
(71,584)
3,031,665
2,480,068
551,597
3,031,665

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 30 September 2024.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements under the requirements of the Companies Act 2006, for the year in question in accordance with section 476.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the trustees on 15 March 2025

Mr G Cole Chairman

Company registration number 00542449 (England and Wales)

FFESTINIOG RAILWAY SOCIETY

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 SEPTEMBER 2024

Notes
Cash flows from operating activities
Cash (absorbed by)/generated from
operations
21
Investing activities
Investment income received
Net cash generated from investing
activities
Net cash used in financing activities
Net (decrease)/increase in cash and cash
equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year		 2024
£
£
(321,268)
118,115
118,115
-
(203,153)
3,081,002
2,877,849		 2023
£
£
1,604,483
25,901
25,901
-
1,630,384
1,450,618
3,081,002		 2023
£
£
1,604,483
25,901
25,901
-
1,630,384
1,450,618
3,081,002
1,630,384
1,450,618
3,081,002

FFESTINIOG RAILWAY SOCIETY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2024

1 Accounting policies

Charity information

Ffestiniog Railway Society is a private company limited by guarantee incorporated in England and Wales. The registered office is Harbour Station, Porthmadog, Gwynedd, LL49 9NF.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's governing document, the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.

1.4 Income

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

For legacies, entitlement is taken as the earlier of the date on which either: the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the Society that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably, and the charity has been notified of the executor's intention to make a distribution. Where legacies have been notified to the charity, or the charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material.

Income from government and other grants, whether 'capital' grants or 'revenue' grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received, and the amount can be measured reliably and is not deferred.

FFESTINIOG RAILWAY SOCIETY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2024

1 Accounting policies

(Continued)

Subscription and Society membership income are recognised according to the above criteria with the exception of amounts received and deemed to be received in advance, which are deferred until the income recognition criteria are met:

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the Bank.

1.5 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.

Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources.

In order for donations to meet this recognition criteria, agreements in principle to provide funding for proposed projects are not recognised until valid expense claims are made to the Society, discussed by its board and approved for release.

1.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Plant and equipment 20% per annum straight line. Office equipment 20% per annum straight line. Society films 20% per annum straight line.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

1.7 Fixed asset investments

Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.

FFESTINIOG RAILWAY SOCIETY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2024

1 Accounting policies

(Continued)

1.8 Impairment of fixed assets

At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.9 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.10 Taxation

The charity is exempt from corporation tax on its charitable activities.

1.11 Concessionary loans to the Festiniog Railway Company

As part of its response to the restrictions imposed due to the Coronavirus outbreak, the Society set forth a plan to support the Company through this unprecedented challenge. As part of this, a loan of £250,000 was made to the Company in April 2020, which was then followed by a further £150,000 at the beginning in July 2020.

Both these loans were treated as being repayable on demand and are interest free. Since their initial drawdown by the Company, repayments have been made either through the conversion of balances to notional donations for work carried out on certain projects, or through 'cash' repayments. There is a separate loan advanced to the Festiniog Railway Company of £27,000 to cover cashflow timing differences between projects being undertaken and funds being claimed from the Society.

In line with the provisions within the accounting standards, these loans are recognised initially at cost, with repayments or conversions to grants being recognised in the relevant periods.

1.12 Voluntary assistance

The charitable company has no employees and many of its members give freely of their time to carry out all of the activities of the company. These voluntary contributions are not included in the accounts.

2 Critical accounting estimates and judgements

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

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

FFESTINIOG RAILWAY SOCIETY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2024

3 Income from donations and legacies

Unrestricted
Restricted
funds
funds
2024
2024
£
£
Donations and gifts
44,214
55,919
Legacies
103,030
-
Gift Aid
36,328
6,269
183,572
62,188		 Total
Unrestricted
Restricted
funds
funds
2024
2023
2023
£
£
£
100,133
25,703
74,674
103,030
70,283
932,585
42,597
26,730
14,641
245,760
122,716
1,021,900		 Total
2023
£
100,377
1,002,868
41,371
1,144,616

4 Income from charitable activities

Charitable Charitable
activities activities
2024 2023
£ £
Subscription income 112,424 117,847
Hostel income 21,179 21,228
Magazine income 5,679 4,804
Sundry income 673 869
139,955 144,748
Analysis by fund
Unrestricted funds 139,955 144,748
Income from investments
Unrestricted Restricted Total Unrestricted Restricted Total
funds funds funds funds
2024 2024 2024 2023 2023 2023
£ £ £ £ £ £
Interest receivable 43,237 74,878 118,115 6,457 19,444 25,901

5 Income from investments

FFESTINIOG RAILWAY SOCIETY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2024

6 Expenditure on charitable activities

Charitable Charitable
activities activities
2024 2023
£ £
Direct costs
Donations to Ffestiniog Railway Company 651,849 506,725
Hostel expenses 54,419 50,279
Magazine production costs 40,027 27,410
Registry expenses 1,415 2,205
Sundry expenses 4,559 3,231
Postage and printing costs 2,056 1,872
Other railway support 1,567 -
755,892 591,722
Share of support and governance costs (see note 7)
Support 3,194 2,377
Governance 7,000 7,500
766,086 601,599
Analysis by fund
Unrestricted funds 506,205 382,458
Restricted funds 259,881 219,141
766,086 601,599
Support costs allocated to activities
2024 2023
£ £
Finance costs 3,194 2,377
Governance costs 7,000 7,500
10,194 9,877
Analysed between:
Charitable activities 10,194 9,877

7 Support costs allocated to activities

8 Trustees

None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.

FFESTINIOG RAILWAY SOCIETY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2024

9 Employees

The average monthly number of employees during the year was:

2024 2023
Number Number
Total - -

There were no employees whose annual remuneration was more than £60,000.

10 Taxation

The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.

11 Tangible fixed assets

Plant and
equipment
Office
equipment
Society films
£
£
£
Cost
At 1 October 2023
1,100
1,536
409
At 30 September 2024
1,100
1,536
409
Depreciation and impairment
At 1 October 2023
1,099
1,535
408
At 30 September 2024
1,099
1,535
408
Carrying amount
At 30 September 2024
1
1
1
At 30 September 2023
1
1
1		 Total
£
3,045
3,045
3,042
3,042
3
3

12 Fixed asset investments

Unlisted
investments
£
Cost or valuation
At 1 October 2023 & 30 September 2024 6
Carrying amount
At 30 September 2024 6
At 30 September 2023 6

FFESTINIOG RAILWAY SOCIETY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 30 SEPTEMBER 2024

12 Fixed asset investments

(Continued)

There were no investment assets outside the UK.

The above figures consist of:

a. The Festiniog Railway Company 100 5% preference shares of £10 each - at cost - £1

b. 5 ordinary shares of £1 each - at cost - £5

In the opinion of the trustees, the market value of the shares is similar to their cost.

13
Debtors
Amounts falling due within one year:
Gift aid debtors
Other debtors
14
Creditors: amounts falling due within one year
Notes
Deferred income
16
Trade creditors
Other creditors
Accruals
15
Creditors: amounts falling due after more than one year
Notes
Deferred income
16
16
Deferred income
Arising from Subscriptions in Advance
Deferred income is included in the financial statements as follows:		 2024
£
47,587
56,487
104,074
2024
£
55,188
47,219
14,145
7,500
124,052
2024
£
88,471
2024
£
143,659		 2023
£
34,706
58,135
92,841
2023
£
41,109
-
21,994
7,500
70,603
2023
£
71,584
2023
£
112,693

FFESTINIOG RAILWAY SOCIETY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2024

16
Deferred income
Deferred income is included within:
Current liabilities
Non-current liabilities
Movements in the year:
Deferred income at 1 October 2023
Released from previous periods
Resources deferred in the year
Deferred income at 30 September 2024		 (Continued)
2024
2023
£
£
55,188
41,109
88,471
71,584
143,659
112,693
112,693
111,942
(41,109)
(45,586)
72,075
46,337
143,659
112,693

FFESTINIOG RAILWAY SOCIETY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2024

17 Restricted funds

The restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used.

At
Heritage Fund
Volunteer Hostels' Fund
Minffordd Station
Tan y Bwlch Station
Kids Week
Lineside Vehicle
Hugh Napier
England Locos
Linda
Mountaineer
Kerr Stuart diesel 4415
James Spooner
Vintage Carriages
Stations
LAG drains
Archives
Waggon Tracks
Permanent way
Heritage Buildings
Infrastructure
Health & Safety and Others		 1 October
2023
Incoming
resources
Resources
expended
£
£
£
7,615
1,050
-
1,567
-
(1,567)
3,913
157
-
834
2,875
(396)
7,017
268
(6,302)
32,414
(12)
(32,402)
1,485
60
-
82,865
14,217
(20,684)
42,562
818
(33,998)
51,505
19,451
(6,603)
10,726
8,208
(3,125)
64,072
6,450
-
79,124
2,922
(28,674)
1,245,019
29,155
(101,176)
1,304
38
(1,342)
9,266
10,260
-
1,185
54
-
138,465
5,549
-
356,261
15,274
(23,485)
321,588
13,496
(128)
21,281
6,776
-
2,480,068
137,066
(259,881)		 Transfers
At 30
September
2024
£
£
-
8,665
-
-
-
4,070
-
3,314
-
983
-
-
-
1,544
-
76,398
-
9,382
-
64,354
-
15,809
-
70,522
-
53,372
-
1,172,998
-
-
-
19,526
-
1,239
-
144,014
-
348,050
334,956
(314)
27,743
(314)
2,356,939

FFESTINIOG RAILWAY SOCIETY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2024

17
Restricted funds
Previous year:
At
Heritage Fund
Volunteer Hostels' Fund
Minffordd Station
Tan y Bwlch Station
Kids Week
Lineside Vehicle
Hugh Napier
England Locos
Linda
Mountaineer
Kerr Stuart diesel 4415
James Spooner
Vintage Carriages
Stations
LAG drains
Archives
Waggon Tracks
Permanent way
Heritage Buildings
Health & Safety and Others		 1 October
2022
Incoming
resources
Resources
expended
£
£
£
7,139
476
-
1,554
13
-
3,356
557
-
28
807
-
6,895
122
-
25,513
6,902
-
1,455
29
-
45,075
37,790
-
73,176
14,866
(45,481)
37,773
13,732
-
20,062
3,930
(13,265)
61,371
2,701
-
78,385
739
-
750,000
510,266
(15,247)
1,852
17
(566)
8,497
769
-
942
243
-
136,560
1,905
-
354,705
10,981
(9,425)
43,527
434,498
(135,157)
1,657,865
1,041,344
(219,141)		 (Continued)
Transfers
At 30
September
2023
£
£
-
7,615
-
1,567
-
3,913
-
835
-
7,017
-
32,414
-
1,485
-
82,865
-
42,562
-
51,505
-
10,726
-
64,072
-
79,124
-
1,245,019
-
1,304
-
9,266
-
1,185
-
138,465
-
356,261
-
342,868
-
2,480,068

18 Unrestricted funds

The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.

At
General funds
Previous year:
At
General funds		 1 October
2023
Incoming
resources
Resources
expended
£
£
£
551,597
366,764
(506,205)
1 October
2022
Incoming
resources
Resources
expended
£
£
£
660,134
273,921
(382,458)		 Transfers
At 30
September
2024
£
£
314
412,470
Transfers
At 30
September
2023
£
£
-
551,597

FFESTINIOG RAILWAY SOCIETY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2024

19 Analysis of net assets between funds

Unrestricted
Restricted
funds
funds
2024
2024
£
£
At 30 September 2024:
Tangible assets
3
-
Investments
6
-
Current assets/(liabilities)
500,932
2,356,939
Long term liabilities
(88,471)
-
412,470
2,356,939
Unrestricted
Restricted
funds
funds
2023
2023
£
£
At 30 September 2023:
Tangible assets
3
-
Investments
6
-
Current assets/(liabilities)
623,172
2,480,068
Long term liabilities
(71,584)
-
551,597
2,480,068		 Total
2024
£
3
6
2,857,871
(88,471)
2,769,409
Total
2023
£
3
6
3,103,240
(71,584)
3,031,665

20 Related party transactions

As stated in the principal activities section of the trustees' report, the purpose of the company is to support the restoration of the Ffestiniog Railway. For many years, there has been an arrangement whereby the company nominated one director onto the board of The Festiniog Railway Company and that company nominated a person to sit on the board of this company. At the start and end of the year, Graham Cole was the Society nominee. Graham Cole has not received any benefit from the Society during the year.

During the year, the Ffestiniog Railway Society made donations totalling £651,849 (2023: £506,725) to The Festiniog Railway Company. The makeup of which being made up of current year donations amounting to £651,849 (2023: £414,921), a conversion of the COVID support loan of £nil (2023: £91,804) and year end accruals amounting to £nil (2023: £nil).

The Society also had transactions with related groups and the FR Co during the year, and at the year end the Festiniog Railway Company amount owed to the Society stood at £27,000 (2023: £27,000), with this amount being included within debtors on the balance sheet. The Society also retained funds on behalf of the Dee & Mersey and FR Heritage groups, with the total held within creditors amounting to £14,094 (2023: £21,994).

FFESTINIOG RAILWAY SOCIETY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2024

21
Cash generated from operations
(Deficit)/surpus for the year
Adjustments for:
Investment income recognised in statement of financial activities
Movements in working capital:
(Increase)/decrease in debtors
Increase/(decrease) in creditors
Increase in deferred income
Cash (absorbed by)/generated from operations		 2024
£
(262,256)
(118,115)
(11,233)
39,370
30,966
(321,268)		 2023
£
713,666
(25,901)
986,495
(70,528)
751
1,604,483

22 Analysis of changes in net funds

The charity had no material debt during the year.