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2021-12-31-accounts

Company registration number: 02188631 Charity registration number: 1076037

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Vale of Rheidol Railway Limited

(A company limited by share capital) Annual Report and Financial Statements for the Year Ended 31 December 202i

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

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Vale of Rheidol Railway Limited

Contents

Reference andAdministrative Details 1
Strategic Report 2
Trustees' Report 3 to6
Independent Auditors' Report 7 to 10
Consolidated Statement ofFinancial Activities 11 to 12
Consolidated Balance Sheet 13
Balance Sheet 14
NotestotheFinancialStatements 15to36

Vale of Rheidol Railway Limited

Reference and Administrative Details

Trustees Dr CR H Higgs Mr L A Iolo Mr C § Langer Mr P JN Ellis Charity Registration Number 1076037 Company Registration Number 02188631 The charity is incorporated in England . Registered Office Marwick Farm Loxhill Godalming Surrey GU8 4BE Auditor MMO Limited Wellesiey House 204 London Road Waterlooville Hampshire PO7 7AN Bankers Royal Bank of Scotland Guildford 10 North Street Guildford GUI 4AQ Santander Customer Service Centre Bootle Merseyside L30 4GB

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Vale of Rheidol Railway Limited

Strategic Report for the Year Ended 31 December 2021

The trustees, who are directors for the purposes of company law, present their strategic report for the year ended 31 December 2021, in compliance with s414C of the Companies Act 2006.

Achievements and performance

Key non-financial performance indicators

Success is measured im 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

Policy on reserves

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 maintain its income. The operating costs consist of train running costs, wages, and the maintenance of track, locomotive, 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

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 various 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 strgfggic report was approved by the trustees of the charity on shifts signed on its behalf by:

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LA Iolo
ee
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: 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 2021.

Vale of Rheidol Railway Limited

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.

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-TheThe charity'sprovision mainof objectives a working are:

a museum by operating as a narrow gauge railway line and associated station between Aberystwyth and Devils Bridge, Ceredigion; including its associated station, workshop and museum assets.

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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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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.

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Vale of Rheidol Railway Limited

Trustees' Report

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.

Trustees and Officers

The trustees and officers serving during the year and since the year end were as follows:

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Trustees: Dr CR H Higgs
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Mr LA Iolo MrC5 Langer Mr P JN Ellis

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 oftrustees

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 managementpersonnel 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.

Important non-adjusting events after the financial period

Following the death of PJ Rampton, The Vale of Rheidol Railway Limited is due to receive assets from his estate. The interim estate accounts prepared by Stevens & Bolton dated 29 June 2022 values the estate due to the company as £10,076,698.

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Vale of Rheidol Railway Limited

Trustees' Report

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, 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 company 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

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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 anny4f report was approved by the trustees ofthe charity on helt signed on its behalf by:
Mr ‘olo
Trustee
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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 2021, 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).

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 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 EBthical 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:

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 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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

« Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

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

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Vale of Rheidol Railway Limited

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

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.

Mrse. McIntosh (Senior Statutory Auditor) For and on behalf of MMO Limited, Statutory Auditor

Wellesley House

204 London Road Waterlooville Hampshire PO7 7AN

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Vale of Rheidol Railway Limited

Consolidated Statement of Financia) Activities for the Year Ended 31 December 2021 (including Consolidated Income and Expenditure Account and Statement of Total Recognised Gains and Losses)

Unrestricted
funds
Restricted
funds
Endowment
funds
Total
2021
Note £ £ £ £
Income and Endowments from:
Donations and legacies 3 1,216,446 - - 1,216,446
Charitable activities 4 533,778 - - 533,778
Other trading activities 5 120,447 - - 120,447
Investment income 6 3,175 - - 3,175
Totalincome 1,873,846 - - 1,873,846
Expenditure on:
Raising funds 7 (181,487) - - (181,487)
Charitable activities 8 (866,011) - - (866,011)
Otherexpenditure 9 (16,810) - - (16,810)
Total expenditure (1,064,308) - - (1,064,308)
Netincome 809,538 - - 809,538
Netmovement infunds 809,538 - - 809,538
Reconciliation offunds
Total funds brought forward 1,329,764 651,551 633,650 2,614,965
Totalfundscarriedforward 24 2,139,302 651,551 633,650 3,424,503

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The notes on pages 15 to 36 form an integral part of these financial statements. Page 11

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Vale of Rheidol Railway Limited

Consolidated Statement of Financial Activities for the Year Ended 31 December 2021 (Including Consolidated Income and Expenditure Account and Statement of Total Recognised Gains and Losses)

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|||||||| |---|---|---|---|---|---|---| |Unrestricted|Restricted|Endowment|Total| |funds|funds|funds|2020| |Note|£|£|£|£| |Income|and Endowments|from:| |Donations and legacies|3|376,441|-|-|376,441| |Charitable|activities|4|11,931|-|~|11,931| |Other trading activities|5|(42,890)|-|-|(42,890)| |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)| |Net expenditure|(139,452)|-|-|(139,452)| |Net movement|in funds|(439,452)|-|-|(139,452)| |Reconciliation|of funds| |Total funds brought forward|1,469,216|651,551|633,650|2,754,417| |Total funds|carried forward|24|1,329,764|651,551|633,650|2,614,965|

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All of the group's activities derive from continuing operations during the above two periods. The funds breakdown for 2020 is shown in note 24.

The notes on pages 15 to 36 form an integral part of these financial statements, Page 12

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Vale of Rheidol Railway Limited

(Registration number: 02188631) Consolidated Balance Sheet as at 31 December 2021

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|||||||||| |---|---|---|---|---|---|---|---|---| |2021|2020| |Note|£|£| |Fixed|assets| |Tangible|assets|16|3,975,538|3,663,772| |Heritage|assets|17|3,298,068|2,832,182| |Investments|56,894|62,017| |7,330,500|6,557,971| |Current|assets| |Stocks|19|87,647|83,883| |Debtors|20|$5,558|42,499| |Cash|at bank and in hand|21|771,426|390,968| |914,631|$17,350| |Creditors: Amounts|falling due within|one ycar|22|(19,846)|(165,385)| |Net current|assets|894,785|351,965| |Total|assets|less|current|Habilities|8,225,285|6,909,936| |Creditors:|Amounts|falling due|after more|than one|year|23|(4,800,682)|(4,294,871)| |Net assets|3,424,603|2,615,065| |Funds|of the|group:| |Endowment|funds|633,650|633,650| |Restricted|income|funds| |Restricted|funds|24|651,551|651,55]| |Unrestricted|income|funds| |Called up|share|capital|100|100| |Unrestricted|funds|2,139,302|1,329,764| |Total|unrestricted|funds|2,139,402|1,329,864| |Total funds|24|3,424,603|2,615,065|

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The financial statements on pages 11 to 36 were approved by the trustees, and authorised for issue on .............-+ and signed on their behalf by:

Mr L A Iolo Trustee

The notes on pages 15 to 36 form an integral part of these financial statements. Page 13

Vale of Rheidol Railway Limited

(Registration number: 02188631) Balance Sheet as at 31 December 2021

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|||||| |---|---|---|---|---| |2021|2020| |Note|£|£| |Fixed|assets| |Tangible assets|16|3,975,538|3,663,772| |Heritage assets|17|3,298,068|2,832,182| |Investments|56,994|62,117| |7,330,600|6,558,071| |Current|assets| |Stocks|19|4,426|4,426| |Debtors|20|299,859|216,715| |Cash at bank and|in hand|41|604,990|285,870| |909,275|507,011| |Creditors: Amounts|falling due within one year|22|(14,591)|(155,146)| |Net current assets|894,684|351,865| |Total assets less current|liabilities|8,225,284|6,909,936| |Creditors: Amounts|falling due after more than one year|23|(4,800,682)|(4,294,871)| |Net assets|3,424,602|2,615,065| |— Ee|—EEEEE|ees| |Funds|of|the|charity:| |Endowment|funds|633,650|633,650| |Restricted|income|funds| |Restricted|funds|24|651,551|651,551| |Unrestricted|income|funds| |Called up share capital|100|100| |Unrestricted funds|2,139,301|1,329,764| |Total unrestricted funds|2,139,401|1,329,864| |Total funds|24|3,424,602|2,615,065| |The financial statements|on pages|11|to 36 were approved by the trustees, and authorised for issue on|whale20| |and signed fn|their behalf|by:|

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Mr lo
Trugte
The notes on pages 15 to 36 form an integral part of these financial statements.
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Vale of Rheidol Railway Limited

Notes to the Financial Statements for the Year Ended 31 December 2021

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

| 2 Accounting polictes | 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)) (issued in October 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

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 2021.

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No statement of financial activities is presented for the charity as permitted by section 408 of the Companies Act 2006. The charity made a loss after tax for the financial year of £809,537 (2020 - loss of £139,451).

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Vale of Rheidol Railway Limited

Notes to the Financial Statements for the Year Ended 31 December 2021

A subsidiary is an entity controiled 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.

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.

Accounting policies of subsidiaries have been changed where hecessary 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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Vale of Rheidol Railway Limited

Notes to the Financial Statements for the Year Ended 31 December 2021

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

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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.

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:

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 2021

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:

Asset class

Land and Buildings Plant and machinery Motor vehicles Civil engineering and track

Depreciation method and rate

Buildings that are under considerable maintenance are not depreciated, others are at rates from 7 to 50 years straight line 10% or 20% or 25% straight line 20% straight line 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 2021

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 cail 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.

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

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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,
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Vale of Rheidol Railway Limited

Notes to the Financial Statements for the Year Ended 31 December 2021

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 transtation 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 becomes a 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 2021

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 Tealise 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 2021

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 (ili) 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 qd) 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.

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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7

Vale of Rheidol Railway Limited

Notes to the Financial Statements for the Year Ended 31 December 2021

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

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|||||| |---|---|---|---|---| |Unrestricted| |funds|Total| |||General|funds| ||Donations|and|legacies;| |||LegaciesDonations from individuals|501,194138,233|501,194138,233| |||Gift aid reclaimed|96,389|96,389| |)|Grants,|including|capital|grants;| |||Government|grants|480,630|480,630| |||Total for 2021|1,216,446|1,216,446| |||Total for 2020|376,441|376,441| |:|4|Income|from charitable|activities| |||Unrestricted| |||funds|Total| |£|£| |||General|funds| |||533,778|533,778| |:|Total|for 2021|533,778|533,778| |||Total for 2020|11,931|11,931|

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Vale of Rheidol Railway Limited

Notes to the Financial Statements for the Year Ended 31 December 2021

5 Income from other trading activities

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||||| |---|---|---|---| |Unrestricted| |funds|Total| |General|funds| |£|£| |Trading|income;| |Other trading income|19,189|19,189| |Other income from other trading activities|101,258|101,258| |Total for 2021|120,447|120,447| |Total|for 2020|(42,890)|(42,890)| |6|Investment|income| |Unrestricted| |funds|Total| |General|funds| |£|£| |Other income|from fixed asset investments|3,175|3,175| |Total for 2021|3,175|3,175| |Total for 2020|2,644|2,644|

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7 Expenditure on raising funds

a) Costs of trading activities

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||||| |---|---|---|---| |Unrestricted| |funds|Total| |General|funds| |Costs|Note|£|£| |of goods sold|181,487|181,487| |Total|for 2021|181,487|181,487| |Total for 2020|77,623|77,623|

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Vale of Rheidol Railway Limited

Notes to the Financial Statements for the Year Ended 31 December 2021

8 Expenditure on charitable activities

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||||||| |---|---|---|---|---|---| |Unrestricted| |funds|Total| |General|funds| |Note|£|£| |Train|costs|323,761|323,761| |Staff costs|126,167|126,167| |Allocated|support|costs|10|186,183|186,183| |Govemance|costs|10|229,900|229,900| |Total for 2021|866,011|866,011| |Total for|2020|409,955|409,955|

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In addition to the expenditure analysed above, there are also governance costs of £229,900 (2020 - £167,002) which relate directly to charitable activities. See note 10 for further details.

9 Other expenditure

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||||| |---|---|---|---| |Depreciation,|amortisation|and|other similar costs| |Total|for 2021|

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|||| |---|---|---| |Unrestricted| |funds|Total| |Note|General£|funds£| |16,810|16,810| |16,810|16,810|

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:

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Vale of Rheidol Railway Limited

Notes to the Financial Statements for the Year Ended 31 December 2021

10 Analysis of governance and support costs

Governance costs

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|||||| |---|---|---|---|---| |Unrestricted| |funds|Total| |General|funds| |£|£| |Staff costs| |Wages and salaries|85,939|85,939| |Audit|fees| |Audit|of the|financial statements|11,304|11,304| |Legal|fees|43,533|43,533| |Marketing|and|publicity|5,757|5,757| |Depreciation,|amortisation and other similar costs|71,787|71,787| |Other governance|costs|11,580|11,580| |Total|for 2021|229,900|229,900| |Total|for 2020|167,002|167,002| |11|Net incoming/outgoing|resources| |Net incoming/(outgoing)|resources|for the|year|include:| |2021|2020| |£|£| |Audit|fees|11,304|4,443| |Depreciation of fixed|assets|88,597|64,747| |12|Trustees|remuneration|and expenses|

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During the year the group made the following transactions with trustees: Mr LA Iolo Mr L A Iolo received remuneration of £55,000 (2020: £53,333) during the year.

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

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Vale of Rheidol Railway Limited

Notes to the Financial Statements for the Year Ended 31 December 2021

13 Staff costs

The aggregate payroll costs were as follows:

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|||||| |---|---|---|---|---| |2021|2020| |£|£| |Staff costs|during|the|year were:| |Wages|and|salaries|212,099|86,647| |Other|staff costs|7|10| |212,106|86,657|

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

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|||||| |---|---|---|---|---| |2021|2020| |No|No| |Operation of|the railway|35|35| |Administration|and|support|5|5| |40|40|

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29 (2020 - 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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||||||| |---|---|---|---|---|---| |14|Auditors'|remuneration| |2021|2020| |£|£| |Audit|of the|financial|statements|11,304|4,443|

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Vale of Rheidol Railway Limited

Notes to the Financial Statements for the Year Ended 31 December 2021

15 Taxation

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

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| | |

Vale of Rheidol Railway Limited

Notes to the Financial Statements for the Year Ended 31 December 2021

16 Tangible fixed assets

Group

|

: | : ! | | |

Group
Land and Furniture and
buildings equipment Total
£ £ £
Cost
At 1 January2021 3,272,848 1,268,566 4,541,414
Additions 392,070 12,741 404,811
Disposals (4,449) - (4,449)
At 31 December2021 3,660,469 1,281,307 4,941,776
Depreciation
At 1 January 2021 227,341 650,301 877,642
Charge forthe year 35,985 52,611 88,596
At 31 December2021 263,326 702,912 966,238
Netbook value
At 31 December 2021 3,397,143 578,395 3,975,538
At 31 December 2020 3,045,507 618,265 3,663,772
Charity
Landand
buildings
Furniture and
equipment
Total
£ £ £
Cost
At January 2021 3,272,848 1,268,566
Additions 392,070 12,741 404,811
Disposals (4,449) - (4,449)
At31 December2021 3,660,469 1,281,307 4,941,776
Depreciation
At 1 January2021
Chargefortheyear
227,341
35,985
650,301
52,611
877,642
88,596
At31 December2021 263,326
ae
702,912 966,238
eee
i
Netbookvalue
At31 December2021 3,397,143
——————
578,395
enee
eee
3,975,538
At31December2020 3,045,507 618,265 3,663,772

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Vale of Rheidol Railway Limited

Notes to the Financial Statements for the Year Ended 31 December 2021

17 Heritage assets

Group

Group
Other heritage
asset class 1 Total
£ £
Cost
At 1 January2021 2,832,182 2,832,182
Additions 465,886 465,886
At 31 December2021 3,298,068 3,298,068
Depreciation
At 31 December 2021 - -
Net book value
At31 December2021 3,298,068 3,298,068
Charity
Other heritage
asset class 1 Total
£ £
Cost
At ft January 2021 2,832,182 2,832,182
Additions 465,886 465,886
At31 December2021 3,298,068 3,298,068
Depreciation
At31 December 2021 - -
Netbookvalue
At 31 December2021 3,298,068 3,298,068
18 Fixed asset investments
Group
2021 2020
£ £
Otherinvestments 56,894 62,017

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Vale of Rheidol Railway Limited

Notes to the Financial Statements for the Year Ended 31 December 2021

Other investments
Listed
investments Total
£ £
Cost orValuation
At January 2021 62,017
Revaluation (17,295) (17,295)
Additions 16,773 16,773
Disposals (4,601 ) (4,601)
At31 December 2021 $6,894 56,894
Net book value
At31 December2021 56,894 56,894
At 31 December2020 62,017 62,017
Charity
2021 2020
£ £
Other investments 56,894 62,017
Shares in group undertakings and participating interests
Subsidiary
undertakings Total
£ £
Cost
At 1 January 2021 100 100
At 31 December2021 100 100
Netbookvalue
At 31 December 2021 100 100
At31December2020 100 100

Page 31

Vale of Rheidol Railway Limited

Notes to the Financial Statements for the Year Ended 31 December 2021

Other investments

Listed
investments Total
£ £
Cost or Valuation
At1January2021 62,017 62,017
Revaluation
Additions
(17,295)
16,773
(17,295)
16,773
Disposals (4,601 ) (4,601)
At31 December2021 $6,894 56,894
Net bookvalue
At3} December2021 56,894 56,894
At 31 December2020 62,017 62,017
19 Stock
Group Charity
2021 2020 2021 2020
£ £ £ £
Stocks 87,647 83,883 4,426 4,426
20 Debtors
Group Charity
2021 2020 2021 2020
£ £ £ £
Trade debtors 45,375 32,314 41,473 $,237
Duefromgroup undertakings - - 257,936 211,026
Prepayments 450 450 450 450
Otherdebtors 9,733 9,735 - 2
55,558 42,499 299,859 216,715

21 Cash and cash equivalents

Group Charity
2021 2020 2021 2020
£ £ £ £
Cashon onhand 4,474 3,555 4,474 3,555
Cash atbank 766,952 387,413 600,516 282,315
771,426 390,968 604,990 285,870

Page 32

Vale of Rheidol Railway Limited

Notes to the Financial Statements for the Year Ended 31 December 2021

22 Creditors: amounts falling due within one year

Group Charity
2021 2020 2021 2020
£ £ £ £
Trade creditors $8,529 13,234 57,742 12,066
Hire purchase and finance leases 677 3,574 677 3,574
Other taxation andsocial security 65,688 54,376 65,688 54,376
VAT grantrepayable (120,828) (10,857) (119,001) (13,591)
Other creditors - 88,028 - 87,986
Accruals 15,780 15,780 9,485 9,485
Deferred income - 1,250 - 1,250
19,846 165,385 14,591 155,146
23 Creditors: amounts falling due afteroneyear
Group Charity
2021 2020 2021 2020
£ £ £ £
Other loans 4,800,682 4,271,372 4,800,682 4,271,372
Deferred income - 23,499 - 23,499
4,800,682 4,294,871 4,800,682 4,294,871

Page 33

Vale of Rheidol Railway Limited

Notes to the Financial Statements for the Year Ended 31 December 2021

24 Funds

Group

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||||||| |---|---|---|---|---|---| |Balance|at 31| |Balance|at|1|Incoming|Resources|December| |January|2021|resources|expended|2021| |£|£|£|£| |Unrestricted|funds| |General| |General|1,329,764|1,873,846|(1,064,308)|2,139,302| |Restricted|funds| |Restricted|651,551|-|-|651,551| |Endowment|funds| |Expendable| |Endowment|633,650|-|-|633,650| |633,650|-|-|633,650| |Total fands|2,614,965|1,873,846|( 1,064,308)|3,424,503| |Balance|at 31| |Balance|at|1|Incoming|Resources|December| |January|2020|resources|expended|2020| |£|£|£|£| |Unrestricted|funds| |General| |General|1,469,215|257,679|(397,130)|1,329,764| |Restricted|funds| |Restricted|651,551|-|-|651,551| |Endowment|funds| |Expendable| |Endowment|633,650|-|-|633,650| |633,650|-|-|633,650| |Total funds|2,754,416|257,679|(397130)|2,614,965|

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Page 34

Vale of Rheidol Railway Limited

Notes to the Financial Statements for the Year Ended 31 December 2021

Charity

Charity
Balance at31
Balance at 1
January2021
Incoming
resources
Resources
expended
December
2021
£ £ £ £
Unrestricted fands
General
Unrestricted 1,329,764 1,676,237 (866,700) 2,139,301
Restricted funds
Restricted 651,551 - - 651,551
Endowment funds
Expendable
Endowment 633,650 - - 633,650
633,650 - - 633,650
Totalfunds 2,614,965 1,676,237 (866,700) 3,424,502
Balance at 31
Balance at I Incoming Resources December
January2020 resources expended 2020
£ £ £ £
Unrestricted funds
General
Unrestricted 1,469,215 257,679 (397,130) 1,329,764
Restricted funds
Restricted 651,551 - - 651,551
Endowment funds
Expendable
Endowment 633,650 - - 633,650
633,650 - - 633,650
Totalfunds 2,754,416 257,679 (397,130) 2,614,965

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.

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. Page 35

Vale of Rheidol Railway Limited

Notes to the Financial Statements for the Year Ended 31 December 2021

25 Analysis of net funds

Group

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|||||| |---|---|---|---|---| |At|31| |At|1|January|December| |2021|2021| |£|£| |Cash at bank|and|in hand|390,968|390,968| |Net debt|390,968|390,968| |At|31| |At|1|January|December| |2020|2020| |£|£| |Cash|at bank and|in hand|234,786|234,786| |Net debt|234,786|234,786|

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26 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.

27 Non-adjusting events after the financial period

Following the death of PJ Rampton, The Vale of Rheidol Railway Limited is due to receive assets from his estate, The interim estate accounts prepared by Stevens & Bolton dated 29 June 2022 values the estate due to the company as £10,076,698.

Page 36