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← Vale Of Rheidol Railway Limited

2020-12-31-accounts

Company registration number: 02188631 Charity registration number: 1076037

Vale of Rheidol Railway Limited

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(A company limited by share capital) Annual Report and Financial Statements for the Year Ended 31 December 2020

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MMO Limited Wellesley House 204 London Road Waterlooville Hampshire PO7 7AN

Vale of Rheidol Railway Limited

Contents

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Reference and Administrative Details 1
Strategic Report 2,
Trustees' Report 3 to 6
Independent Auditors' Report 7to9
Consolidated Statement ofFinancial Activities 10 to 11
Consolidated Balance Sheet 12
Balance Sheet 13
NotestotheFinancialStatements 14to36

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Vale of Rheidol Railway Limited

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Reference and Administrative Details Reference and Administrative Details
Trustees Dr CRH
Higgs
Mr LA
Iolo
MrC S Langer
Mr P JN Ellis
Principal Office ParkAvenue
Aberystwth
Ceredigion
SY23 1PG
Registered Office Marwick Farm
Loxhill
Godalming
Surrey
GU8 4BE
The charity is incorporated in England .
Company Registration Number 02188631
Charity Registration Number 1076037
Bankers Royal Bank ofScotland
Guildford
10 North Street
Guildford
GUI 4AQ
Santander
Customer Service Centre
Bootle
Merseyside
L30 4GB
Auditor MMOLimited
Wellesley House
204 London Road
Waterlooville
Hampshire
PO77AN

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. Vale of Rheidol Railway Limited

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Strategic Report for the Year Ended 31 December 2020

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The trustees, who are directors for the purposes of company law, present their strategic report for the year ended 31 December 2020, in compliance with s414C of the Companies Act 2006.

Achievements and performance

Key non-financial performance indicators

Success is measured in-passenger numbers, as if these continue to grow the charity can clearly display that it is reaching more people to further its objectives.

Financial review P Policy on reserves my

The charity's main activity is the operation of a narrow gauge steam railway. The railway is a working museum which charges fares to passengers in order to majntain its income. The operating costs consist of train running costs, wages, and the maintenance of track, locomotives rolling stock and buildings.

The cost structure of setting up, financing and Operating a railway are of such a magnitude that it is anticipated that the railway will always be able to spend more“money in running, maintaining and improvement and development, than it can reasonably be expected to raise from fares, donations and other sundry income.

The trustees do not therefore expect to generate’ long term or medium term reserves. Any reserves which may be generated during a financial period are expected to be attributed to a future maintenance or development project.

Principalfunding sources a The charity is principally funded by train fares and public donations to the railway and the associated Gift Aid that can be claimed from this. It is also funded by vatious grants as and when these can be applied for and awarded. The charity is also financially supported by its parent the Phyllis Rampton Narrow Gauge Railway Trust. The strayégic report was approved by the trustees of the charity on ase signed on its behalf by: Mi/L AAolo ; Tyustg€ :

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Vale of Rheidol Railway Limited

Trustees' Report

The trustees, who are directors for the purposes of company law, present the annual report together with the financial statements and auditors' report of the charitable company for the year ended 31 December 2020.

Trustees

Dr CRH Higgs Mr LA Iolo Mr C S Langer Mr P JN Ellis

Objectives and activities

Objects and aims

The charitable company's activity is the provision of a working museum by the operation of a narrow gauge railway line and associated station and maintenance facilities between Aberystwyth and Devils Bridge, Ceredigion.

The charity's main objectives are:

The achievement of the objectives will further the charity’s purposes by ensuring future community interest in the railway. By growing the presence and increasing visitor numbers the charity is able to educate as many members of the public as possible. All Trustees and senior persons within the charity remain focused on the objectives of the charity.

Objectives, strategies and activities

This year has seen completion of the Weighbridge project. Access for all has been central to our carriage restoration program over the past year. Having successfully applied for and received funding from the coastal communities fund the railway has been busy restoring and converting two historic carriages to enable wheelchair access to the railway. New works have seen the Aberystwyth station site transformed into a replica of a 1930's station this has been partly funded by the welsh government. Staff training has continued with the addition of two new apprentices.

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Vale of Rheidol Railway Limited

Trustees' Report

Public benefit

The Vale of Rheidol Railway operates to demonstrate the operation of a Victorian narrow gauge railway for the benefit of the public.

The railway is open to all members of the public. The public can benefit from and see the preserved locomotives and rolling stock in operation. They are available to be viewed on open days without charge. Various fare concessions are also available on the railway.

The trustees confirm that they have complied with the requirements of section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales.

Social investment policies

The charity invests in staff training to ensure vital skills in the running of the railway are not lost.

There are a number of apprentices working at the charity which is something that is hoped to continue and grow in the future. This coming year the charity hopes to recruit two further apprentices to focus on carriage and wagon building.

Grant making policies

The charity applies for all grants to which it could be entitled to ensure it remains well funded and can continue to work towards its objectives.

Use of volunteers

The charity encourages the use of volunteers where practicable and has seen great success in providing volunteers with roles which provide a sense of achievement and fulfilment.

Going concern

The Trustees are of the opinion that the charitable company is a going concern.

Structure, governance and management

Nature ofgoverning document

The Vale of Rheidol Railway Limited is a charitable company incorporated on 4 November 1987. The charitable company was established under a Memorandum of Association which established the objects and powers of the company, and is governed under its Articles of Association.

Recruitment and appointment of trustees

All the Trustees’ of the charity are directors for the purposes of company law. There is no time limit on how long the Trustees are allowed to serve. The company seeks to recruit Trustees with the range of knowledge necessary to operate a railway and meet its objectives.

Induction and training oftrustees

All the Trustees undergo an induction programme when joining the charity. The subjects covered are the obligations of Trustees; the main documents which set out the operation framework for the charity including the Memorandum and Articles; the financial position and controls as set out in the latest financial statements; future plans and objectives.

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Vale of Rheidol Railway Limited

Trustees' Report

Arrangements for setting key management personnel remuneration

There is one remunerated Trustee, which is allowed by the governing document. Aside from the Chief Executive R Gambrill, no other key personnel are remunerated by the charitable company.

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Statement of Trustees' Responsibilities The trustees (who are also the‘directors of Vale of Rheidol Railway Limited for the purposes of company law) are responsible for preparing the trustees’ report and the financial statements in accordance with the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations. ms i Company law requires the trustees to' prepare financial statements for each financial year. Under company law the trustees must not approve the financial: statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable campany and of its incoming resources and application of resources, including its income and expenditure, for that period: In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company's transactions and ‘disclose with reasonable accuracy at any time the financial position of the charitable company 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 charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Disclosure of information to auditor

Each trustee has taken steps that they ought to have taken as a trustee in order to make themselves aware of any relevant audit information and to establish that the charity's auditor is aware of that information. The trustees confirm that there is no relevant information that they know of and of which they know the auditor is unaware.

The anny4l report was approved by the trustees of the charity on apa) and signed on its behalf by:

Mi/L AAolo Tyust

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Vale of Rheidol Railway Limited

Independent Auditor's Report to the Members of Vale of Rheidol Railway Limited

Opinion

We have audited the financial statements of Vale of Rheidol Railway Limited (the 'charitable parent company') and its subsidiaries (the 'group') for the year ended 31 December 2020, which comprise the Consolidated Statement of Financial Activities, Consolidated Balance Sheet, Balance Sheet and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is United Kingdom Accounting Standards, comprising Charities SORP - FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and applicable law (United Kingdom Generally Accepted Accounting Practice).

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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 group 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 group's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were 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 trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

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Vale of Rheidol Railway Limited

Independent Auditor's Report to the Members of Vale of Rheidol Railway Limited

In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material | misstatement in the financial statements or a material misstatement of the other information. 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.

Opinion on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the group and the parent charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Trustees' Report.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities (set out on page 6), the trustees 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 charity or to cease operations, or have no realistic alternative but to do so.

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Vale of Rheidol Railway Limited

Independent Auditor's Report to the Members of Vale of Rheidol Railway Limited

Auditor’s responsibilities for the audit of the financial statements

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.

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Use of our report

This report is made solely to the charitable parent company's trustees, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the group'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 charitable parent company and its trustees as a body, for our audit work, for this report, or for the opinions we have formed.

CLC 0 Mrs Gillian McIntosh (Senior Statutory Auditor) For and on behalf of MMO Limited, Statutory Auditor

Wellesley House 204 London Road

Waterlooville Hampshire PO7 7AN

paket (oo [ozs

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Vale of Rheidol Railway Limited

Consolidated Statement of Financial Activities for the Year Ended 31 December 2020 (Including Consolidated Income and Expenditure Account and Statement of Total Recognised Gains and Losses)

Unrestricted Restricted Endowment Total
funds funds funds 2020
Note £ £ £ 2
Income and Endowments from:
Donations and legacies 3 296,505 - - 296,505
Charitable activities 4 11,931 - - 11,931
Other trading activities 5 37,046 - 37,046
Investment income 6 2,644 - - 2,644
Total income 348,126 - - 348,126
Expenditure on:
Raising funds 7 (77,623) - - (77,623)
Charitable activities 8 (409,955) - - (409,955)
Total expenditure (487,578) - - (487,578)
Netexpenditure (139,452) - - (139,452)
Netmovement in funds (139,452) - - (139,452)
Reconciliation offunds
Total funds brought forward 1,469,213 651,551 633,650 2,754,414
Totalfundscarriedforward 23 1,329,761 651,551 633,650 2,614,962

The notes on pages 14 to 36 form an integral part of these financial statements. Page 10

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Vale of Rheidol Railway Limited

Consolidated Statement of Financial Activities for the Year Ended 31 December 2020 (Including Consolidated Income and Expenditure Account and Statement of Total Recognised Gains and Losses)

Unrestricted Restricted Endowment Total
funds funds funds 2019
Note £ £ £ £
Income and Endowments from:
Donations and legacies 3 838,826 - - 838,826
Charitable activities 4 564,901 - - 564,901
Other trading activities 5 241,235 - - 241,235
Total income 1,644,962 - - 1,644,962
Expenditure on:
Raising funds 7 (339,677) - - (339,677)
Charitable activities 8 (1,089,464) - - (1,089,464)
Total expenditure (1,429,141) - - (1,429,141)
Net income 215,821 - - 215,821
Netmovement in funds 215,821 - - 215,821
Reconciliation offunds
Total funds brought forward 1,253,392 651,551 633,650 2,538,593
Totalfundscarriedforward a3 1,469,213 651,551 633,650 2,754,414

All of the group's activities derive from continuing operations during the above two periods. The funds breakdown for 2019 is shown in note 23.

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The notes on pages 14 to 36 form an integral part of these financial statements. Page 11

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Vale of Rheidol Railway Limited

(Registration number: 02188631) Consolidated Balance Sheet as at 31 December 2020

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|||||||||||| |---|---|---|---|---|---|---|---|---|---|---| |2020|2019| |Note|£|=| |Fixed|assets| |Tangible|assets|15|3,501,037|3,275,602| |Heritage|assets|16|3,293,262|3,293,262| |Investments|62,017|59,373| |6,856,316|6,628,237| |Current|assets| |Stocks|18|83,883|46,710| |Debtors|19|42,497|64,426| |Cash|at|bank|and|in|hand|20|390,968|234,786| |517,348|345,922| |Creditors:|Amounts|falling|due|within|one|year|21|(463,731)|(58,279)| |Net|current|assets|53,617|287,643| |Total|assets|less|current|liabilities|6,909,933|6,915,880| |Creditors:|Amounts|falling|due|after more|than|one|year|29|(4,294,871)|(4,161,366)| |Net|assets|2,615,062|2,754,514| |Funds|of the|group:| |Endowment|funds|633,650|633,650| |Restricted|income|funds| |Restricted|funds|23|651,551|651,551| |Unrestricted|income|funds| |Called|up|share|capital|100|100| |Unrestricted|funds|1,329,761|1,469,213| |Total|unrestricted|funds|1,329,861|1,469,313| |Total|funds|23|2,615,062|2,754,514| |The|financjal|statements|on pages|10 to 36 were approved by|the trustees,|and|authorised|for issue on asla}2.| |and|signe4jon|their|behalf by:|

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Mr If A lol Trugtee

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The notes on pages 14 to 36 form an integral part of these financial statements. Page 12

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Vale of Rheidol Railway Limited

(Registration number: 02188631) (Registration number: 02188631)
f.. Balance Sheet as at 31 December 2020
ile 2020 2019
iy Note £ £
Fixed assets 7 :
Tangibleassets
Heritage assets
Investments		 je
4 '
a		 15
16		 3,501,037
3,293,262
62,117		 3,275,602
3,293,262
59,473
Phd 6,856,416 6,628,337
Currentassets : j
Stocks Bl 18 4,426 4,426
Debtors 19 216,713 135,750
Cash at bank and in hand 20 285,870 183,243
507,009 323,419
Creditors: Amounts fallingduewithinoneyear 21 (453,489) (35,875)
Net current assets , 53,520 287,544
Total assets less current liabilities 6,909,936 6,915,881
Creditors: Amounts fallingdue aftermore than oneyear 92 (4,294,871) (4,161,367)
Net assets 2,615,065 2,754,514
Funds ofthe charity:
Endowment funds’ * 1,329,764 1,469,213
Restricted income funds
Restricted funds 23 651,551 651,551
Unrestricted income funds
Called up share capital 100 100
Unrestricted funds 633,650 633,650
Total unrestricted funds. 633,750 633,750
Totalfunds 23 2,615,065 2,754,514

The finangial statements on pages 10 to 36 were approved by the trustees, and authorised for issue on salar and sign€d on their behalf by:

MyL X Iolo ‘ Tiusfee 4

The notes on pages 14 to 36 form an integral part of these financial statements. Page 13

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Vale of Rheidol Railway Limited

Notes to the Financial Statements for the Year Ended 31 December 2020

1 Charity status

The charity is limited by share capital, incorporated in England . The address of its registered office is: Marwick Farm

Loxhill Godalming Surrey GU8 4BE

The principal place of business is: Park Avenue Aberystwth Ceredigion SY23 1PG

2 Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

The financial statements have been prepared in accordance with 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 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). They also comply with the Companies Act 2006 and Charities Act 2011.

Basis of preparation

Vale of Rheidol Railway Limited meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.

Basis of consolidation

The consolidated financial statements consolidate the financial statements of the charity and its subsidiary undertakings drawn up to 31 December 2020.

No statement of financial activities is presented for the charity as permitted by section 408 of the Companies Act 2006. The charity madea loss after tax for the financial year of £139,451 (2019 - loss of £215,821).

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| contingent liabilities recognised is recorded as goodwill. | Inter-company transactions, balances and unrealised gains on transactions between the charity and its subsidiaries, which are related parties, are eliminated in full. | Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated | financial statements.

Vale of Rheidol Railway Limited

Notes to the Financial Statements for the Year Ended 31 December 2020

A subsidiary is an entity controlled by the charity. Control is achieved where the charity has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.

The results of subsidiaries acquired or disposed of during the year are included in the statement of financial activities from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the group.

The purchase method of accounting is used to account for business combinations that result in the acquisition of subsidiaries by the group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill.

Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the group’s equity therein. Non-controlling interests consist of the amount of those interests at the date of the | original business combination and the non-controlling shareholder’s share of changes in equity since the date of the combination. Total comprehensive income is attributed to non-controlling interests even if this results in the non-controlling interests having a deficit balance.

Exemption from preparing a cash flow statement

The charity opted to early adopt Bulletin 1 published on 2 February 2016 and have therefore not included a cash flow statement in these financial statements.

Going concern

The trustees consider that there are no material uncertainties about the group's ability to continue as a going concern nor any significant areas of uncertainty that affect the carrying value of assets held by the group.

Income and endowments

All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of the income receivable can be measured reliably.

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| Deferred income | Deferred income represents amounts received for future periods and is released to incoming resources in the period for which, it has been received. Such income is only deferred when:

Vale of Rheidol Railway Limited

Notes to the Financial Statements for the Year Ended 31 December 2020

Donations and legacies

Donations are recognised when the charity has been notified in writing of both the amount and settlement date. In the event that a donation is subject to conditions that require a level of performance by the charity before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that these conditions will be fulfilled in the reporting period.

Legacy gifts are recognised on a case by case basis following the grant of probate when the administrator/executor for the estate has communicated in writing both the amount and settlement date. In the event that the gift is in the form of an asset other than cash or a financial asset traded on a recognised stock exchange, recognition is subject to the value of the gift being reliably measurable with a degree of reasonable accuracy and the title to the asset having been transferred to the charity.

Grants receivable

Grants are recognised when the group has an entitlement to the funds and any conditions linked to the grants have been met. Where performance conditions are attached to the grant and are yet to be met, the income is recognised as a liability and included on the balance sheet as deferred income to be released.

Expenditure

All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. Other support costs are allocated based on the spread of staff costs.

Raisingfunds

These are costs incurred in attracting voluntary income, the management of investments and those incurred in trading activities that raise funds.

Charitable activities

Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

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Vale of Rheidol Railway Limited

Notes to the Financial Statements for the Year Ended 31 December 2020

Support costs

Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources, for example, allocating property costs by floor areas, or per capita, staff costs by the time spent and other costs by their usage.

Governance costs

These include the costs attributable to the charity’s compliance with constitutional and statutory requirements, including audit, strategic management and trustees’s meetings and reimbursed expenses.

Taxation

The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

Tangible fixed assets

Individual fixed assets of any value are initially recorded at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

Work completed in the restoration of assets is funded by surpluses from the Vale of Rheidol Railway Limited and loans from the Phyllis Rampton Narrow Gauge Railway Trust.

Heritage assets

Owing to the unique nature of the heritage assets, the costs of obtaining valuations would be onerous compared with the corresponding benefits to the charitable company and the users of the financial statements. The heritage assets are therefore shown at original cost and are not depreciated. The objective of heritage assets is to display them in the proposed museum. As much documentation as to the provenance of heritage assets is obtained and retained by the charitable company. Access to the assets is carefully managed in order for preservation.

Depreciation and amortisation

Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows:

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||||||||||| |---|---|---|---|---|---|---|---|---|---| |Asset|class|Depreciation|method|and|rate| |Buildings|that|are|under|considerable| |Land|and|Buildings|maintenance|are not depreciated,|others| |are|at|rates|from|7|to|50|years|straight|line| |Plant and|machinery|10% or 20% or 25%|straight|line| |Motor vehicles|20%|straight|line| |Civil|engineering|and|track|2%|straight|line on|track|only|

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Vale of Rheidol Railway Limited

Notes to the Financial Statements for the Year Ended 31 December 2020

Fixed asset investments

Fixed asset investments, other than programme related investments, are included at market value at the balance sheet date. Realised gains and losses on investments are calculated as the difference between sales proceeds and their market value at the start of the year, or their subsequent cost, and are charged or credited to the Statement of Financial Activities in the period of disposal.

Unrealised gains and losses represent the movement in market values during the year and are credited or charged to the Statement of Financial Activities based on the market value at the year end.

Stock

Stock is valued at the lower of cost and estimated selling price less costs to complete and sell, after due regard for obsolete and slow moving stocks. Cost is determined using the first-in, first-out (FIFO).

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the charity will not be able to collect all amounts due according to the original terms of the receivables.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

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Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the charity does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Borrowings

Borrowings are classified as current liabilities unless the charity has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

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Vale of Rheidol Railway Limited

Notes to the Financial Statements for the Year Ended 31 December 2020

Foreign exchange

Transactions in foreign currencies are recorded at the rate of exchange at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are reported at the rates of exchange prevailing at that date.

The results of overseas operations are translated at the average rates of exchange during the period and their balance sheets at the rates ruling at the balance sheet date. Exchange differences arising on translation of the opening net assets and results of overseas operations are reported in other comprehensive income and accumulated in equity (attributed to non-controlling interests as appropriate).

Other exchange differences are recognised in the Statement of Financial Activities in the period in which they arise except for:

1) exchange differences on transactions entered into to hedge certain foreign currency risks (see above);

2) exchange differences arising on gains or losses on non-monetary items which are recognised in other comprehensive income; and

3) in the case of the consolidated financial statements, exchange differences on monetary items receivable from or payable to a foreign operation for which settlement is neither planned nor likely to occur (therefore forming part of the net investment in the foreign operation), which are recognised in other comprehensive income and reported under equity.

Fund structure

Unrestricted income funds are general funds that are available for use at the trustees! discretion in furtherance of the objectives of the group.

Restricted income funds are those donated for use in a particular area or for specific purposes, the use of which is restricted to that area or purpose.

Financial instruments

Classification

Financial assets and financial liabilities are recognised when the group becomesa party to the contractual provisions of the instrument. | Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements | entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

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Vale of Rheidol Railway Limited

Notes to the Financial Statements for the Year Ended 31 December 2020

Recognition and measurement

All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Financial assets and liabilities are only offset in the statement of financial position when, and only when there exists a legally enforceable right to set off the recognised amounts and the group intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Financial assets are derecognised when and only when a) the contractual rights to the cash flows from the financial asset expire or are settled, b) the group transfers to another party substantially all of the risks and rewards of ownership of the financial asset, or c) the group, despite having retained some, but not all, significant risks and rewards of ownership, has transferred control of the asset to another party.

Financial liabilities are derecognised only when the obligation specified in the contract is discharged, cancelled or expires.

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Vale of Rheidol Railway Limited

Notes to the Financial Statements for the Year Ended 31 December 2020

Debt instruments

Debt instruments which meet the following conditions are subsequently measured at amortised cost using the effective interest method:

(a) The contractual return to the holder is (i) a fixed amount; (ii) a positive fixed rate or a positive variable rate; or (iii) a combination of a positive or a negative fixed rate and a positive variable rate.

(b) The contract may provide for repayments of the principal or the return to the holder (but not both) to be linked to a single relevant observable index of general price inflation of the currency in which the debt instrument is denominated, provided such links are not leveraged.

(c) The contract may provide for a determinable variation of the return to the holder during the life of the instrument, provided that (i) the new rate satisfies condition (a) and the variation is not contingent on future events other than (1) a change of a contractual variable rate; (2) to protect the holder against credit deterioration of the issuer; (3) changes in levies applied by a central bank or arising from changes in relevant taxation or law; or (ii) the new rate is a market rate of interest and satisfies condition (a).

(d) There is no contractual provision that could, by its terms, result in the holder losing the principal amount or any interest attributable to the current period or prior periods.

(e) Contractual provisions that permit the issuer to prepay a debt instrument or permit the holder to put it back to the issuer before maturity are not contingent on future events, other than to protect the holder against the credit deterioration of the issuer or a change in control of the issuer, or to protect the holder or issuer against changes in levies applied by a central bank or arising from changes in relevant taxation or law.

(f) Contractual provisions may permit the extension of the term of the debt instrument, provided that the return to the holder and any other contractual provisions applicable during the extended term satisfy the conditions of paragraphs (a) to (c).

Debt instruments that are classified as payable or receivable within one year on initial recognition and which meet the above conditions are measured at the undiscounted amount of the cash or other consideration expected to be paid or received, net of impairment.

With the exception of some hedging instruments, other debt instruments not meeting these conditions are measured at fair value through profit or loss.

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Commitments to make and receive loans which meet the conditions mentioned above are measured at cost (which may be nil) less impairment.

Investments

Investments in subsidiaries and associates are measured at cost less impairment. For investments in subsidiaries acquired for consideration including the issue of shares qualifying for merger relief, cost is measured by reference to the nominal value of the shares issued plus fair value of other consideration. Any premium is ignored.

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Vale of Rheidol Railway Limited

Notes to the Financial Statements for the Year Ended 31 December 2020

Fair value measurement

The best evidence of fair value is a quoted price for an identical asset in an active market. When quoted prices are unavailable, the price of a recent transaction for an identical asset provides evidence of fair value as long as there has not been a significant change in economic circumstances or a significant lapse of time since the transaction took place. If the market is not active and recent transactions of an identical asset on their own are not a good estimate of fair value, the fair value is estimated by using a valuation technique.

3 Income from donations and legacies

==> picture [437 x 150] intentionally omitted <==

----- Start of picture text -----
|||||| |---|---|---|---|---| |Unrestricted| |funds|Total| |General|funds| |£|£| |Donations|and|legacies;| |Donations|from|individuals|13,826|13,826| |Legacies|149,431|149,431| |Grants,|including|capital|grants;| |Government|grants|133,248|133,248| |Total|for 2020|296,505|296,505| |Total for 2019|838,826|838,826|

----- End of picture text -----

4 Income from charitable activities

==> picture [436 x 91] intentionally omitted <==

----- Start of picture text -----
||||| |---|---|---|---| |Unrestricted| |funds|Total| |General|funds| |£|£| |11,931|11,931| |Total|for 2020|11,931|11,931| |Total|for 2019|564,901|564,901|

----- End of picture text -----

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Vale of Rheidol Railway Limited

Notes to the Financial Statements for the Year Ended 31 December 2020

5 Income from other trading activities

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Unrestricted
funds Total
General funds
£ £
Trading income;
Other trading income 16,094 16,094
Other income from other trading activities 20,952 20,952
Total for2020 37,046 37,046
Total for2019 241,235 241,235
6
Investment income
Unrestricted
funds Total
General funds
x £
Other income from fixed asset investments 2,644 2,644
Totalfor2020 2,644 2,644

7 Expenditure on raising funds

a) Costs of trading activities

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Unrestricted
funds		 Total
General funds
Note £ £
Costs ofgoods sold 77,623 77,623
Total for2020 77,623 77,623
Total for2019 339,677 339,677

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Vale of Rheidol Railway Limited

Notes to the Financial Statements for the Year Ended 31 December 2020

8 Expenditure on charitable activities

Unrestricted
funds Total
General funds
Note £ £
Train costs 76,453 76,453
Staff costs 15,599 15,599
Allocated support costs 9 150,901 150,901
Governance costs 9 167,002 167,002
Total for 2020 409,955 409,955
Totalfor2019 1,089,464 1,089,464

In addition to the expenditure analysed above, there are also governance costs of £167,002 (2019 - £277,004) which relate directly to charitable activities. See note 9 for further details.

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9 Analysis of governance and support costs

Governance costs

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Unrestricted
funds
General		 Total
funds
£ £
Staffcosts
Wages and salaries 71,058 71,058
Audit fees
Auditofthe financial statements 4,443 4,443
Legal fees 3,050 3,050
Marketing and publicity 13,504 13,504
Depreciation, amortisation and other similar costs 64,747 64,747
Other governance costs 10,200 10,200
Total for 2020 167,002 167,002
Totalfor2019 277,004 277,004

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Vale of Rheidol Railway Limited

Notes to the Financial Statements for the Year Ended 31 December 2020

10 Net incoming/outgoing resources

Net (outgoing)/incoming resources for the year include:

Net (outgoing)/incoming resources for the year include:
2020 2019
£ £
Audit fees 4,443 5,709
Depreciation offixed assets 64,747 64,747
11 Trustees remuneration and expenses
Duringtheyearthegroupmadethefollowingtransactionswithtrustees:

Mr LA Iolo Mr LA Iolo received remuneration of £53,333 (2019: £53,333) during the year.

No trustees have received any other benefits from the charity during the year.

12 Staff costs

The aggregate payroll costs were as follows:

The aggregate payroll costs were as follows:
2020 2019
£ £
Staffcosts during the yearwere:
Wages and salaries 86,647 313,619
Other staffcosts 10 5,251
86,657 318,870

The monthly average number of persons (including senior management team) employed by the group during the year expressed as full time equivalents was as follows:

year expressed as full time equivalents was as follows:
2020 2019
No No
Operation ofthe railway 35 35
Administration and support 5 6
40 41

29 (2019 - 29) of the above employees participated in the Defined Contribution Pension Schemes.

No employee received emoluments of more than £60,000 during the year.

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Vale of Rheidol Railway Limited

Notes to the Financial Statements for the Year Ended 31 December 2020

13 Auditors' remuneration Audit of the financial statements

2020 2019
4,443 5,709

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Vale of Rheidol Railway Limited

Notes to the Financial Statements for the Year Ended 31 December 2020

14 Taxation

The group is a registered charity and is therefore exempt from taxation.

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Vale of Rheidol Railway Limited

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Notes to the Financial Statements for the Year Ended 31 December 2020

15 Tangible fixed assets

Group

Group
Land and Furniture and
buildings equipment Total
£ £ +
Cost
At January 2020 2,822,988 1,244,339
Additions - 290,182 290,182
At 31 December 2020 2,822,988 1,534,521 4,357,509
Depreciation
At January 2020 186,820 604,905
Charge for the year 34,012 30,735 64,747
At 31 December 2020 220,832 635,640 856,472
Net book value
At 31 December 2020 2,602,156 898,881 3,501,037
At 31 December 2019 2,636,168 639,434 3,275,602
Charity
Land and Furniture and
buildings equipment Total
£ £ £
Cost
At January 2020 2,822,988 1,244,339
Additions - 290,182 290,182
At 31 December 2020 2,822,988 1,534,521 4,357,509
Depreciation
At January 2020 186,820 604,905
Charge for the year 34,012 30,735 64,747
At 31 December 2020 220,832 635,640 856,472
Net book value
At 31 December 2020 2,602,156 898,881 3,501,037
At31December2019 2,636,168 639,434 3,275,602

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Vale of Rheidol Railway Limited

Notes to the Financial Statements for the Year Ended 31 December 2020

16 Heritage assets
Group
Other heritage
asset class 1 Total
£ £
Cost
At January 2020 3,293,262
At 31 December 2020 3,293,262 3,293,262
Depreciation
At 31 December 2020 ei =
Net book value
At 31 December 2020 3,293,262 3,293,262
Charity
Other heritage
asset class 1 Total

Cost
At January 2020 3,293,262
At 31 December 2020 3,293,262 3,293,262
Depreciation
At31 December 2020 :
Net bookvalue
At31 December2020 3,293,262
17 Fixed asset investments
Group
2020 2019
£ £
Otherinvestments 62,017 59,373

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Vale of Rheidol Railway Limited

Notes to the Financial Statements for the Year Ended 31 December 2020

Other investments

Listed
investments Total
£ £
Cost or Valuation
At January2020
Revaluation		 59,373
10,489
Additions 5,666 5,666
Disposals (13,511) (13,511)
At 31 December 2020 62,017 62,017
Netbookvalue
At 31 December 2020 62,017 62,017
At 31 December 2019 59,373 59,373
Charity
2020 2019
£ £
Other investments 62,017 59,373
Shares in group undertakings and participating interests
Subsidiary
undertakings Total
£ £
Cost
At January 2020 100
At 31 December 2020 100 100
Net book value
At 31 December 2020 100 100
At31December2019 100 100

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Vale of Rheidol Railway Limited

Notes to the Financial Statements for the Year Ended 31 December 2020

Other investments

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Listed
investments Total
a £
Cost or Valuation
At January 2020 59,373
Revaluation 10,489 10,489
Additions 5,666 5,666
Disposals (13,511) (13,511)
At 31 December 2020 62,017 62,017
Net book value
At 31 December 2020 62,017 62,017
At 31 December 2019 59,373 59,373
18 Stock
Group Charity
2020 2019 2020 2019
£ £ = £
Stocks 83,883 46,710 4,426 4,426
19 Debtors
Group Charity
2020 2019 2020 2019
£ £ £ £
Trade debtors 32,314 31,698 5,237 2,688
Due from group undertakings - - 211,026 110,067
Prepayments 450 450 450 450
Other debtors 9,733 32,278 a 22,545
42,497 64,426 216,713 135,750
20 Cash and cash equivalents
Group Charity
2020 2019 2020 2019
£ £ £ £
Cash on hand 3,555 4,859 3,555 4,859
Cash atbank 387,413 229,927 282,315 178,384
390,968 234,786 285,870 183,243

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Vale of Rheidol Railway Limited

Notes to the Financial Statements for the Year Ended 31 December 2020

21 Creditors: amounts falling due within one year

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Group Charity
2020 2019 2020 2019
£ £ £ £
Trade creditors 13,234 26,318 12,066 21,565
Hire purchase and finance leases 3,574 7,989 3,574 7,989
Other taxation and social security 54,376 64,994 54,376 64,994
VAT grantrepayable (10,857) (52,762) (13,591) (66,413)
Other creditors 386,374 - 386,329 -
Accruals 15,780 10,490 9,485 6,490
Deferred income 1,250 1,250 1,250 1,250
463,731 58,279 453,489 35,875
22 Creditors: amounts falling due after one year
Group Charity
2020 2019 2020 2019
£ < £ £
Other loans 4,271,372 4,137,867 4,271,372 4,137,867
Other creditors = fe = 1
Deferred income 23,499 23,499 23,499 23,499
4,294,871 4,161,366 4,294,871 4,161,367

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Vale of Rheidol Railway Limited

Notes to the Financial Statements for the Year Ended 31 December 2020

23 Funds

Group

Group
Balance at 31
Balance at 1 Incoming Resources December
January 2020 resources expended 2020
£ £ £ &
Unrestricted funds
General
General 1,469,213 348,126 (487,578) 1,329,761
Restricted funds
Restricted 651,551 - - 651,551
Endowment funds
Expendable
Endowment 633,650
eee
633,650		 -
aes
-		 -
633,650
es
-
633,650
Totalfunds 2,754,414 348,126 (487,578) 2,614,962

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Vale of Rheidol Railway Limited

Notes to the Financial Statements for the Year Ended 31 December 2020

Balance at 31
Balance at 1 Incoming Resources December
January2019 resources expended 2019
£ £ £ £
Unrestricted funds
General
General 1,253,392 1,644,962 (1,429,141) 1,469,213
Restricted funds
Restricted 651,551 - - 651,551
Endowment funds
Expendable
Endowment 633,650 - : 633,650
633,650 - - 633,650
Totalfunds 2,538,593 1,644,962 (1,429,141) 2,754,414

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Vale of Rheidol Railway Limited

Notes to the Financial Statements for the Year Ended 31 December 2020

Charity
Balance at 31
Balance at 1 Incoming Resources December
January 2020 resources expended 2020
£ 2e £ £
Unrestricted funds
General
Unrestricted 633,650 - - 633,650
Restricted funds
Restricted 651,551 - - 651,551
Endowment funds
Expendable
Endowment 1,469,213 348,126 (487,575) 1,329,764
1,469,213 348,126 (487,575) 1,329,764
Total funds 2,754,414 348,126 (487,575) 2,614,965
Balanceat 1 Incoming Resources Balance at31
December
January 2019 resources expended 2019
£ £ £ £
Unrestricted funds
General
Unrestricted 633,650 - - 633,650
Restricted funds
Restricted 651,551 - - 651,551
Endowment funds
Expendable
Endowment 1,253,392 1,644,962 (1,429,141) 1,469,213
1,253,392 1,644,962 (1,429,141) 1,469,213
Totalfunds 2,538,593 1,644,962 (1,429,141) 2,754,414

The specific purposes for which the funds are to be applied are as follows:

The endowment fund relates to assets from British Rail as at 1 April 1989.

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Restricted funds include grants received from the Welsh Assembly Government for the ongoing running costs of the shed and workshop. New restricted funds this year relate to the Trackwork claim which was unspent as the year end.

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Vale of Rheidol Railway Limited

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Notes to the Financial Statements for the Year Ended 31 December 2020

24 Analysis of net funds

Group

==> picture [440 x 164] intentionally omitted <==

----- Start of picture text -----
||||||||| |---|---|---|---|---|---|---|---| |At|31| |At|1|January|December| |2020|2020| |iz|£| |Cash|at bank|and|in|hand|234,786|234,786| |Net|debt|234,786|234,786| |At|31| |At|1|January|December| |2019|2019| |£|£| |Cash|at bank|and|in hand|322,304|322,304| |Finance|leases|and|hire|purchase|contracts|(27,769)|(27,769)| |Net debt|294,535|294,535|

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25 Parent and ultimate parent undertaking

The company's immediate parent is Phyllis Rampton Narrow Gauge Railway Trust, incorporated in England.

These financial statements are available upon request from the registered office or the Charity Commission.

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