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2022-12-31-accounts

THE SIR NIGEL GRESLEY LOCOMOTIVE TRUST LIMITED

REPORTS AND FINANCIAL STATEMENTS

31 DECEMBER 2022

Company No. 00901015 Registered Charity No. 1079591

RAWSE, VARLEY & CO Chartered Accountants Bradford

THE SIR NIGEL GRESLEY LOCOMOTIVE TRUST LIMITED

Annual Report of the Trustees for the year ended 31 December 2022

Trustees’ Report

The Trust Board has pleasure in presenting their report and the group financial statements for the year ended 31 December 2022, which are also prepared to meet the requirements for a directors’ report and accounts for Companies Act purposes.

Constitution

Following a special resolution of ‘The A4 Locomotive Society Limited’ to change its name to 'The Sir Nigel Gresley Locomotive Preservation Trust Limited’ in 1998 as a company limited by guarantee and not having a share capital (retaining company registration number 901015), the Trust was registered as a charity number 1079591. An Extraordinary General Meeting held on the 26[th] October 2014 passed a resolution that changed the name to ‘The Sir Nigel Gresley Locomotive Trust Limited’. The Trust is governed by a Memorandum and Articles of Association. In the event of the company being wound up or dissolved the liability in respect of the guarantee is limited to a sum not exceeding £10.00 per member of the company.

The Charity’s Objects

The Trust was established to advance the education of the public through the preservation, operation and exhibition of locomotives of historic or scientific importance, specifically the A4 Pacific Locomotive named ‘Sir Nigel Gresley’. The Trustees will carry forward the original objectives of The A4 Locomotive Society from its formation in 1967 to maintain ‘Sir Nigel Gresley’ in main line working order. To this end overhauls have been carried out periodically to comply with the safety requirements of the national railway system. The most recent overhaul commenced in November 2015 and was completed with various milestones between April 2022 & April 2023.

There were no material changes in the policies of the Charity during the year.

Risks & Reserves

The Trustees continue to identify and review major risks to which the Charity is exposed in furthering its objectives and have put systems in place to mitigate these risks. The locomotive is protected and insulated in the ownership of the Trust and an improved distinction between the owner (The Trust) and the Operator (The Sir Nigel Gresley Locomotive Company Limited (SNGLC)) exists, in particular the financial arrangements incorporated in a Bailment Agreement between the Companies.

A register of relevant interests of Trustees and SNGLC Directors is maintained; this is in line with Charity Commission guidance.

With an overhaul now complete the risk profile has changed to those associated with operating. Compared to previous operating periods the agreement the Trust has executed with the Royal Scot Locomotive and General Trust (RSL&GT) greatly reduces the risks by giving us a guaranteed income.

The Trust policy on reserves is somewhat different from most charities in that the objective of the charity is on a 10-year funding cycle based on the operational period of the locomotive. This means that what the Trust often refers to as the “overhaul fund” is in other words a type of reserve. As such, the policy of the Trust is to accumulate a reserve sufficient to fund an overhaul every 10 years. This policy has been in place since the formation of the Trust and the latest review was carried out as at the end of 2022. In line with the SORP requirements (see below), the level of reserves is effectively our existing cash balance, as documented herein, and the purpose of the funds is to fund the overhaul of our locomotive and coach, and return them to mainline operation. The timing of the majority of expenditure is during the overhaul process. It is our objective to have a residual reserve fund to start the next operating period and this was achieved in 2022 but, as noted above, the Trustees recognise that the nature of our activity is such that this is impossible to guarantee will always be achieved.

Main activities and achievements of the year 2022

The start of 2022 saw a strong push towards the completion of the overhaul. The locomotive was rolled out for Members on the 12[th] February in temporary LNER black livery. It was steamed in March then immediately moved to the Severn Valley Railway for running in. Sir Nigel Gresley made its first moves under its own power on 23[rd] March and returned to revenue earning service on 21[st] April 2022.

The overhaul of E21096 was also completed and the coach joined the locomotive at the Severn Valley Railway in March, where it was used on the running in trains. The coach was formallly named “The Roger Barker Coach” at a ceremony in Grosmont which took place on members’ day in October.

Following a starring role in the Severn Valley Railway spring gala, the locomotive was moved by rail back to Crewe, where final preparations for mainline certification were made. Light and loaded test runs were completed in mid-May. On 21[st] May the locomotive worked it’s first mainline tour since 2014 with a SNGLT Members train from Crewe to Carlisle. This was made possible by the working relationship we have (via the agreement with RSL&GT) with Locomotive Services Group, who provided the stock and operated the train.

1

Following the initial tour, inspection of the boiler showed a defect in the main steam pipe which was fitted during the 2002 – 2005 overhaul. Repairs took until September when the locomotive was once again the star of a steam gala, this time at the North Yorkshire Moors Railway. Following some further special services on the NYMR the locomotive returned to Crewe before successfully working three railtours in the run-up to Christmas. These trips started with a return to the East Coast Mainline with a King’s Cross to York tour.

During the year the locomotive remained in its temporary black livery as LNER No. 4498.

The financial results for the year are set out in the following Group Statement of Financial Activities. The final results show the group net income for the year was £73,388. Cash at the end of the year was £191,797, an increase of £63,411 during the year. Coming at the end of the overhaul this represents a very satisfactory result. Although the overhaul expenditure was over budget, income held up well, meaning cash reserves were enough to complete the overhaul.

Income from subscriptions, donations and gift aid amounted to £106,778 (2021 - £56,302). Merchandise and memorabilia sales amounted to £41,398 (2021 - £4,509) . Income from hire of the locomotive and associated engineer services was £69,277 (2021 – NIL).

To keep members up to date with activities regular updates are made on our website, including the exclusive Members’ area, and in our magazine 'Chime'. In addition, the Trust runs a Facebook page to provide regular updates and also as a promotional activity.

During 2022, the overhaul and operation of the Locomotive was managed by the engineering and support team organised in The Sir Nigel Gresley Locomotive Company Limited.

The Trust has an agreement with the Royal Scot Locomotive and General Trust about the mainline operation of 60007. The arrangement achieves the following objectives:

At the end of the 2022, Trust membership has grown to a healthy total of 855 (789 in 2021/22), comprising 236 life members (241 in 2021/22) and 619 annual members (548 in 2021/22)).

Future Developments

The start of 2023 saw Sir Nigel Gresley repainted into BR express blue livery as voted for by Trust members during the overhaul. Following the painting, routine maintenance was carried out before a successful visit to the Nene Valley Railway over Easter 2023. The locomotive then returned to Crewe. Over the summer a programme of tours will be operated in the South West for Saphos Trains with the locomotive based at Bishops Lydeard.

In order to take advantage of potential contract engineering opportunities, a new company has been established named SNG Engineering Limited. This company is a company limited by shares and is wholly owned by SNGLT Ltd. It has not yet traded.

The Trustees are confident that the company remains a going concern.

The Trustees

The Trustees during the year and at the date of signing this report are:

President
J F Graham
Vice President C D D Newton
Chairman
 C N Wilson
Secretary J F M Jackson
Chief Mechanical Engineer R Swales
Treasurer
 M H McHugh
Education Officer D R McIntosh
Trustee responsible for sales D B Gott
Trustee A J M Flood
Editor of Chime M W Bateman
Volunteering Representative R J Shearman

In accordance with the Articles of Association of the Trust, Don Gott, David McIntosh and Joan Jackson retire from the Board and, being eligible to do so, offer themselves for re-election.

Although the Trustees provide their time on a voluntary basis, there is a recognised need for professionalism and safety in the ownership, repair and running of the Locomotive. The Trustees have working roles as indicated above.

2

The Trustees periodically review the composition of the board of Trustees and from time to time seek to appoint new Trustees. Vacancies are usually advertised in ‘Chime’. Potential new Trustees are asked to provide a CV, after which they are interviewed by the Chairman and at least one other appropriate Trustee, appropriate being determined by anticipated responsibilities. The prospective appointee must then be approved by the board of Trustees and must provide two references of good character that will be reviewed by the Hon. Secretary and the Chairman. They are also directed to the Charity Commission website in order to read the duties and responsibilities of trustees, after which they must sign an eligibility to become a trustee form. Once these steps have been completed the appointment is confirmed by the Hon. Secretary.

Statement of Trustees' Responsibilities

The trustees are responsible for preparing the Trustees’ Report and the financial statements for each accounting period in accordance with applicable law and regulations. Under that law the trustees have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). The financial statements are required by law to give a true and fair view of the state of affairs of the company and of the surplus or deficit of the company for that period. In preparing those financial statements, the trustees are required to:

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

The Charities SORP (FRS 102) requires Trustees to include in their report:

Independent Examinations

A company that meets two of the following three criteria may elect for exemption from audit under company law:

To be eligible for Independent Examination a charity's gross income must not exceed £1,000,000 or where gross income exceeds £250,000, the aggregate value of its assets must not exceed £3.26m.

As the Trust fulfils the above criteria the Trustees resolved in 2012 and until further notice to move to publishing Independently Examined accounts in place of Audited accounts.

So far as each Trustee is aware, there is no relevant information of which the company’s Independent Examiner is unaware. Each Trustee has taken all the steps that they ought to have taken as a Trustee to make themselves aware of any relevant information and to establish that the Independent Examiner is aware of that information.

Other relevant organisations

Independent Examiner: Roger Varley of Rawse, Varley & Co, Lloyds Bank Chambers, Hustlergate, Bradford BD1 1UQ

Bankers: HSBC Bank plc, The Parade, Leamington Spa for main business accounts;

The Unity Trust Bank plc, Nine Brindley Place, Birmingham, B1 2HB for members’ subscriptions and regular donations

Subsidiary Companies: The Sir Nigel Gresley Locomotive Company Limited (Formerly The A4 Locomotive Society Ltd.), Lloyds Bank Chambers, Hustlergate, Bradford, BD1 1UQ SNG Engineering Limited, Lloyds Bank Chambers, Hustlergate, Bradford, BD1 1UQ

Independent Examiner

Roger Varley of Rawse, Varley & Co is willing to continue in office, and a resolution proposing his reappointment and authorising the Trustees to fix his remuneration will be put to the annual general meeting.

Signed on behalf of the Trustees by

C. N. WILSON Chairman

J. F. M. JACKSON Secretary

10[th] June 2023

3

THE SIR NIGEL GRESLEY LOCOMOTIVE TRUST LIMITED

Independent Examiner’s Report to the Trustees of

The Sir Nigel Gresley Locomotive Trust Limited

I report on the financial statements of The Sir Nigel Gresley Locomotive Trust Limited for the year ended 31 December 2022 set out on pages 5 to 11 which comprise the Group Statement of Financial Activities, the Group and Company Balance Sheets and the related notes.

Respective responsibilities of trustees and examiner

The trustees (who are also the directors of the company for the purposes of company law) are responsible for the preparation of the financial statements. The charity’s trustees consider that an audit is not required for this year under section 144 of the Charities Act 2011 (The Charities Act) and that an independent examination is needed.

It is my responsibility to:

Basis of independent examiner’s statement

My examination was carried out in accordance with general directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the financial statements, and seeking explanations from the trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given as to whether the financial statements present a ‘true and fair’ view and the report is limited to those matters set out in the statement below.

Independent examiner’s statement

In connection with my examination, no matter has come to my attention to indicate that:

K R Varley Chartered Accountant Bradford

10[th] June 2023

4

THE SIR NIGEL GRESLEY LOCOMOTIVE TRUST LIMITED

Accounting Policies

The Trust and its subsidiary companies have adopted the following accounting policies which form an integral part of the financial statements.

Basis of accounting

These financial statements have been prepared under the historical cost convention.

The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland 102 (Charities SORP (FRS 102)), as updated, and with the Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland 102 (FRS 102) and with the Companies Act 2006. The Trust is a public benefit entity for the purposes of FRS 102.

Basis of consolidation

The group financial statements combine the financial statements of The Sir Nigel Gresley Locomotive Trust Limited and its subsidiary companies made up to 31 December each year.

Fund accounting

Unrestricted funds are available for use at the discretion of the Trustees in furtherance of any of the purposes of the Trust.

Designated funds form part of the unrestricted funds and represent funds earmarked by the Trustees for particular purposes. The Trustees have the power to re-designate such funds within unrestricted funds.

Restricted funds are subject to restrictions imposed by donors as to the purposes to which the funds may be applied.

Income recognition

All income is included in the statement of financial activities on the accruals basis when the group is entitled to the income, the receipt of the income is considered probable and the amount can be measured reliably. Donated goods and services are included at the value to the Trust, when any conditions associated with the donated items have been met and economic benefit can be measured reliably.

Expenditure

Expenditure is recognised on the accruals basis when there is a legal or constructive obligation to make payment to a third party and the amount of the obligation can be measured reliably. Expenditure on raising funds comprises costs of commercial trading and the Chime publication. Expenditure on charitable activities comprises locomotive running and repair costs, insurance, other direct costs and associated support costs.

Support costs are those functions that assist the work of the company but are not directly incurred in raising funds and undertaking charitable activities. Such costs are presently allocated wholly to expenditure on charitable activities on the grounds that any costs relating to the raising of funds are insignificant.

Tangible fixed assets and depreciation

Tangible fixed assets are stated at cost less depreciation. The locomotive, boiler and coach are treated as separate assets and each are subject to periodic major overhauls that restore the operating potential of the asset.

The cost of such major overhauls is capitalised as representing the cost of the asset concerned.

Depreciation is calculated to write off the above costs over the period to the next expected major overhaul at the following annual rates:

Locomotive - 10.3% of cost Boiler - 10.3% of cost Coach - 5% of cost

No depreciation is charged whilst major overhauls are in progress.

Stock

Stock is stated at the lower of purchase cost and net realisable value.

5

THE SIR NIGEL GRESLEY LOCOMOTIVE TRUST LIMITED

Group Statement of Financial Activities (incorporating an income and expenditure account) Year ended 31 December 2022

Donations and legacies:
Membership subscriptions
Gift Aid tax receivable
Other donations and legacies
Other trading activities:
General sales
Investment income:
Bank deposit interest
Income from charitable activities
Hire of locomotive and engineer services
Total income and endowments
Expenditure on raising funds
Fund raising trading: Cost of general sales
Expenditure on charitable activities
General repairs and maintenance
Locomotive running costs
Insurance
Travelling and subsistence
Depreciation

Support costs allocated to charitable activities
Salaries and national insurance (note 2)
Chime magazine
Postage and telephone
Printing and stationery
General expenses
Bank charges
Professional fees
Independent examiner’s fee
Total expenditure
Net income before depreciation
Depreciation
Net income before taxation
Taxation (note 3)
Net movement in funds (note 8)		 £
8,653
10,305
87,820
21,575
10,649
28,118
9,384
4,480
56,968
109,599
-
5,984
1,147
1,691
1,473
893
970
1,280
13,438
130,356
56,968
 2022
£
106,778
41,398
547
69,277
218,000
144,612
73,388
-
73,388		 £
7,409
9,694
39,199
1,940
-
170
6,540
1,937
-
8,647
-
5,227
120
60
748
337
472
1,252
8,216
42,856
-		 2021
£
56,302
4,509
848
-
61,659
18,803

42,856
-
42,856

The above statement relates entirely to unrestricted funds.

6

THE SIR NIGEL GRESLEY LOCOMOTIVE TRUST LIMITED

Group Balance Sheet 31 December 2022

Net assets employed
Fixed assets
Tangible fixed assets (note 4)
Current assets
Stock held for sale
Trade debtors
Other debtors
Prepayments
Cash at bank and building society
Current liabilities
Creditors due within one year:
Trade creditors
Other taxes and social security
Accruals
Net current assets
Total assets less current liabilities
Represented by
Unrestricted funds:
Designated funds (note 6)
General funds (note 6)
Total funds(note 8)		 £
5,063
1,961
10,305
15,761
191,797
224,887
1,172
13,882
23,959
39,013




 2022
£
939,994
185,874
1,125,868
164,749
961,119
1,125,868		 £
3,989
412
14,711
17,984
128,386
165,482
11,673
2,658
5,669
20,000



 2021
£
906,998
145,482
1,052,480
164,749
887,731
1,052,480

The accounts have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

Approved by the trustees on 10[th] June 2023 and signed on their behalf by:

C. N. WILSON Chairman

J. F. M. JACKSON Secretary

7

THE SIR NIGEL GRESLEY LOCOMOTIVE TRUST LIMITED

Balance Sheet 31 December 2022

Net assets employed
Fixed assets
Tangible fixed assets (note 4)
Investment in subsidiary companies (note 5)
Current assets
Stock held for sale
Amount owed by subsidiary
Trade debtors
Other debtors
Prepayments
Cash at bank and building society
Current liabilities: creditors due within one year
Other taxes and social security
Amount owed to subsidiary
Accruals
Net current assets
Total assets less current liabilities
Represented by
Unrestricted funds:
Designated funds (note 6)
General funds (note 6)
Total funds(note 8)		 £
5,063
69,236
1,961
10,305
28
165,263
251,856
1,161
100
2,576
3,837

For the year ended 31 December 2022 the company was entitled to exemption from audit under Section 477 (2) of the Companies Act 2006.

The members have not required the company to obtain an audit in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(i) ensuring the company keeps accounting records which comply with Section 386 and 387 of the Companies Act 2006; and

The accounts have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

Approved by the trustees on 10[th] June 2023 and signed on their behalf by:

C. N. WILSON Chairman

J. F. M. JACKSON Secretary

8

THE SIR NIGEL GRESLEY LOCOMOTIVE TRUST LIMITED

Notes to the Financial Statements 31 December 2022

1. Statutory information

The Sir Nigel Gresley Locomotive Trust Limited is a private company, limited by guarantee, registered in England and Wales. The company’s registered number is 00901015 and its registered office is Lloyds Bank Chambers, Hustlergate, Bradford BD1 1UQ. The Trust is a registered charity, number 1079591

2. Staff costs and Trustees’ remuneration and expenses

The average number of employees during the year was one (2021 – one).

Staff salaries amounted to £39,586 (2021 - £37,970) and Employer’s National Insurance contributions amounted to £1,000 credit (2021 - £1,315 credit)). These amounts have been charged to the overhaul contract until its completion (2021 – net of government grants of £24,500 specifically related to staff costs).

The Trustees received no remuneration for the year (2021 - none).

The Trustees incurred travel and other expenses in the course of providing services to the Trust and its subsidiaries amounting to £6,348 (2021 - £2,152) including VAT, from which donations amounting to £5,924 (2021 - £2,152) were made to the Trust.

3. Taxation

No charge for taxation arises on the net income for the year (2021 – none).

In general terms the Trust is exempt from tax on income and gains applied to its charitable objects.

4. Tangible fixed assets

Group and company
Locomotive
£
Cost:
1 January 2022
472,807
Additions
51,777
31 December 2022
524,584
Depreciation:
1 January 2022
-
Charge
31,656
31 December 2022
31,656
Net book value - 31 December 2022

492,928
- 31 December 2021

472,807		 Boiler
£
341,780
28,160
369,940

-
22,324
22,324
347,616
341,780		 Coach
£
92,411
10,027
102,438
-
2,988

2,988
99,450
92,411		 Total
£
906,998
89,964
996,962

-
56,968

56,968

939,994
906,998

The above assets are considered to be heritage assets for the purposes of the Charities SORP (FRS 102), as updated.

5. Investment in subsidiary companies

The Trust has effective voting control of The Sir Nigel Gresley Locomotive Company Limited, which is a company limited by guarantee (company no. 03700456) and there is therefore no cost of investment. The main activity of the subsidiary is the operation of Class A4 steam locomotive Sir Nigel Gresley, including the overhaul. Transactions for the year comprised overhaul costs of £89,964 (2021 - £83,100) and group VAT movements of £17,650 (2021 - £6,031) less funding and other transfers of £66,444 (2021 - £72,885).

During the year the Trust formed a new subsidiary, SNG Engineering Limited, a company limited by shares (company no. 13861809). At 31 December 2022 the company had not undertaken any transactions.

9

THE SIR NIGEL GRESLEY LOCOMOTIVE TRUST LIMITED

Notes to the Financial Statements 31 December 2022

5. Investment in subsidiary companies (contd.)

The summary financial performance of The Sir Nigel Gresley Locomotive Company Limited is as follows:

Income
Expenditure
Net income/(loss)
The assets and liabilities of the subsidiary were:
Current assets
Current liabilities
Net liabilities
6.
Fund accounts
Group
Opening balances
Net income for the year
Transfer of funds
Closing balances
Analysis of net assets between funds:
Tangible fixed assets
Current assets
Current liabilities
Net assets
Company
Opening balances
Net income for the year
Transfer of funds
Closing balances
Analysis of net assets between funds:
Tangible fixed assets
Investment in subsidiary companies
Current assets
Current liabilities
Net assets		 2022
£
69,277
48,031
_
21,246
42,267
104,512
_
(62,245 )
Major
General
Overhaul
Fund
Fund
£
£
887,731
164,749
73,388
-
-
-
_
_
961,119
164,749
939,994
-
60,138
164,749
(39,013 )
-
_
_
961,119
164,749
971,222
164,749
52,142
-
-
-
_
_
1,023,364
164,749
939,994
-
100
-
87,107
164,749
(3,837 )
-
__
_____
1,023,364
164,749		 2022
£
69,277
48,031
_
21,246
42,267
104,512
____
(62,245 )		 2021
£
-
6,608
__
(6,608 )
42,301
125,792
_
(83,491 )
Total
£
1,052,480
73,388
-
__
1,125,868
939,994
224,887
(39,013 )
___
1,125,868
1,135,971
52,142
-
_
1,188,113
939,994
100
251,856
(3,837 )
______
1,188,113		 2021
£
-
6,608
__
(6,608 )
42,301
125,792
_____
(83,491 )		 2021
£
-
6,608
______
(6,608 )

Both funds are unrestricted funds. The major overhaul fund is a designated fund. There are no restricted funds.

10

THE SIR NIGEL GRESLEY LOCOMOTIVE TRUST LIMITED

Notes to the Financial Statements 31 December 2022

7. Parent company statement of financial activities

As permitted by Section 408 of the Companies Act 2006 the statement of financial activities of the parent company has not been presented. In summary, the financial performance of the parent company included in the group statement of financial activities is as follows:

Income
Expenditure

Net Income
 2022
£
148,723
96,581
_
52,142		 2021
£
61,659
12,195
______
49,464

8. Reconciliation of movement in members’ funds

Opening members’ funds
Net income for the year
Closing members’ funds		 Group

2022
2021
£
£
1,052,480 1,009,624
73,388
42,856
_ _
1,125,868 1,052,480		 Company
2022
2021
£
£
1,135,971
1,086,507
52,142
49,464
_
_
1,188,113
1,135,971

9. Financial commitments

There were contracted capital expenditure commitments at 31 December 2022 of £1,535 (2021 – £7,150).

.

11