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2025-09-30-accounts

Charity registration number 1115058 (England and Wales) Company registration number 03873466

THE WESTERN LOCOMOTIVE ASSOCIATION LIMITED ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2025

THE WESTERN LOCOMOTIVE ASSOCIATION LIMITED

Legal and administrative information

Trustees R Smith
D Shelmerdine
I Clayton
P Finch
M Targett
Secretary I Clayton
Charity number (England and Wales) 1115058
Company number 03873466
Principal address Severn Valley Railway
Bridgnorth
Shropshire
WV16 5DT
Registered office 5 Prospect Place
Millennium Way
Pride Park
Derby
DE24 8HG
Independent examiner DJH Derby Limited
5 Prospect Place
Millennium Way
Pride Park
Derby
DE24 8HG

THE WESTERN LOCOMOTIVE ASSOCIATION LIMITED

Contents

Page
Trustees' report 1 - 2
Independent examiner's report 3
Statement of financial activities 4
Balance sheet 5
Notes to the financial statements 6 - 15

THE WESTERN LOCOMOTIVE ASSOCIATION LIMITED

Trustees' report (including directors' report) FOR THE YEAR ENDED 30 SEPTEMBER 2025

The trustees present their annual report and financial statements for the year ended 30 September 2025.

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

Objectives and activities

The charity's objectives are the preservation of its heritage, Class 52 Diesel Hydraulic locomotives D1013 Western Ranger, D1048 Western Lady and D1062 Western Courier on the Severn Valley Railway, whilst maintaining D1013 and D1062 to at least the standard achieved by the former British Railways, Western Region and fit for main line running, “dead in tow.” Alongside its preservation work, the charity also promotes the public education on the history and significance of these locomotives.

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.

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

Achievements and performance

During 2025, the Western Locomotive Association Ltd (WLA) achieved a record level of income, totalling £191,223. Despite also recording its highest ever expenditure at £73,726, the charity still achieved an exceptional net income of £117,497. This performance was significantly supported by a legacy of just over £100,000 from the late Chris Shields, a valued WLA Member. Strong income levels were also maintained across donations, sales and operating activities, while membership grew to 634 – an increase of 93 members or 17% compared to the previous year.

The Trustees are pleased to report that a good level of work was carried out on all three locomotives during the year. The overhaul and bogie project for D1013 advanced well, with the “B” end bogie nearing completion. D1048 continued to undergo assessment and has been found to be in much better condition than previously expected. D1062 delivered 100% availability and accumulated some 2,200 miles of running during the season.

The WLA also maintained its carbon neutral status and with over 500 trees planted since 2021, in support of the Trees for Life’s Forest Revitalisation Project, located in the Highlands of Scotland.

Other achievements for 2025 included the introduction of new credit card style membership cards, the completion of outstanding Gift Aid submissions and modernisation of the Articles of Association, which Members approved at the AGM.

Throughout the year, the Board worked closely with the Management Committee, holding three Board meetings and three Management Committee meetings.

The WLA is grateful to the continued valuable support from its Membership, Working Members and Committee Members.

Financial review

The total incoming resources for the year were £191k - £104k more than 2024. Maintenance and overhaul spend increased this year to £37k compared to the 2024 amount of £23k. Cash reserves remain substantial at £263k as at 30 September 2025.

It is the policy of the charity to hold financial reserves of at least £10,000 at all times. As at 30 September 2025 the charity held free reserves of £422,273 plus a fair value reserve of £478,041.

The trustees have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.

THE WESTERN LOCOMOTIVE ASSOCIATION LIMITED

Trustees' report (including directors' report) (continued) FOR THE YEAR ENDED 30 SEPTEMBER 2025

Nature of governing document

The charity is a company limited by guarantee, incorporated on 9 November 1999 and registered as a charity on 4 July 2006. The company was established under a Memorandum of Association which established the objects and powers of the charitable company and is governed by its Articles of Association.

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

R Smith

D Shelmerdine

I Clayton P Finch M Targett

Recruitment and appointment of trustees

The Directors of the company are also trustees for the purposes of charity law and under the company's articles are known as Members of the Council. The governing board consists of a Board of Trustees who are appointed at the Annual General Meeting and retire by rotation every three years. Retiring members are eligible for re-election.

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

R Smith Trustee Date: .............................................

P Finch Trustee

THE WESTERN LOCOMOTIVE ASSOCIATION LIMITED

Independent examiner's report

TO THE TRUSTEES OF THE WESTERN LOCOMOTIVE ASSOCIATION LIMITED

I report to the trustees on my examination of the financial statements of The Western Locomotive Association Limited (the charity) for the year ended 30 September 2025.

Responsibilities and basis of report

As the trustees of the charity (and also its directors for the purposes of company law), you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006.

Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the Companies Act 2006 and are eligible for independent examination, I report in respect of my examination of the charity’s financial statements carried out under section 145 of the Charities Act 2011. In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the Charities Act 2011.

Independent examiner's statement

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.

Gavin Robert Booth DJH Derby Limited

5 Prospect Place Millennium Way Pride Park Derby DE24 8HG

Dated: .........................

THE WESTERN LOCOMOTIVE ASSOCIATION LIMITED

Statement of financial activities Including income and expenditure account

For the year ended 30 September 2025

Unrestricted
Restricted
funds
funds
2025
2025
Notes
£
£
Income from:
Donations and
legacies
3
141,261
-
Charitable activities
4
15,052
3,492
Other trading
activities
5
28,610
-
Investments
6
2,808
-
Total income
187,731
3,492
Expenditure on:
Raising funds
7
14,945
-
Charitable activities
8
55,234
3,441
Other expenditure
106
-
Total expenditure
70,285
3,441
Net income
117,446
51
Other recognised
gains and losses:
Revaluation of
tangible fixed assets
-
-
Net movement in
funds
10
117,446
51
Reconciliation of funds:
Fund balances at 1 October
2024
782,868
39,387
Fund balances at 30
September 2025
900,314
39,438		 Total
Unrestricted
Restricted
funds
funds
2025
2024
2024
£
£
£
141,261
29,491
-
18,544
10,885
13,351
28,610
31,139
-
2,808
2,184
-
191,223
73,699
13,351
14,945
11,386
-
58,675
36,402
-
106
114
-
73,726
47,902
-
117,497
25,797
13,351
-
435,000
-
117,497
460,797
13,351
822,255
322,071
26,036
939,752
782,868
39,387		 Total
2024
£
29,491
24,236
31,139
2,184
87,050
11,386
36,402
114
47,902
39,148
435,000
474,148
348,107
822,255

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

THE WESTERN LOCOMOTIVE ASSOCIATION LIMITED

Balance sheet

As at 30 September 2025

Notes
Fixed assets
Tangible assets
14
Heritage assets
15
Investments
16
Current assets
Stocks
17
Debtors
18
Cash at bank and in hand
Creditors: amounts falling due
within one year
19
Net current assets
Total assets less current liabilities
The funds of the charity
Restricted income funds
20
General unrestricted funds
21
Fair value reserve
21		 2025
£
134,824
22,621
262,622
420,067
(4,546)		 £
13,231
500,000
11,000
524,231
415,521
939,752
39,438
422,273
478,041
939,752		 2024
£
£
9,113
500,000
11,000
520,113
132,545
22,159
165,608
320,312
(18,170)
302,142
822,255
39,387
304,827
478,041
822,255		 2024
£
£
9,113
500,000
11,000
520,113
132,545
22,159
165,608
320,312
(18,170)
302,142
822,255
39,387
304,827
478,041
822,255
520,113
302,142
822,255
39,387
304,827
478,041
822,255

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 30 September 2025.

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

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

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

The financial statements were approved by the trustees on .........................

R Smith Trustee

P Finch Trustee

Company registration number 03873466 (England and Wales)

THE WESTERN LOCOMOTIVE ASSOCIATION LIMITED

Notes to the financial statements For the year ended 30 September 2025

1 Accounting policies

Charity information

The charity is a private company limited by guarantee, incorporated in England and Wales, and consequently does not have share capital. Each of the trustees is liable to contribute an amount not exceeding £1 towards the assets of the charity in the event of liquidation.

Western Locomotive Association Ltd is a private company limited by guarantee incorporated in England and Wales. The registered office is 5 Prospect Place, Millennium Way, Pride Park, Derby, DE24 8HG.

1.1 Basis of preparation

The financial statements have been prepared in accordance with the charity's governing document, the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2022).

The charity has taken advantage of the provisions in the SORP for charities not to prepare a Statement of Cash Flows.

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

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

1.2 Going concern

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

1.3 Charitable funds

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

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

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

1.4 Income

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

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.

THE WESTERN LOCOMOTIVE ASSOCIATION LIMITED

Notes to the financial statements (continued) For the year ended 30 September 2025

1 Accounting policies

(Continued)

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.

1.5 Expenditure

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

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

1.6 Tangible fixed assets

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

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

Fixtures and fittings 10% reducing balance

1.7 Heritage assets

The locomotives are considered to be heritage assets by the trustees. An impairment review is conducted each year. Should any impairments or movement in impairment arise from this review, this will be charged to the statement of financial activities for the period in which it occurs. The Trustees consider the assets to appreciate in value and therefore that this accounting policy results in the Financial Statements giving them a true and fair view. All tools, components and equipment are written off at the time of purchase.

1.8 Fixed asset investments

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

1.9 Impairment of fixed assets

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

1.10 Stocks

Stocks comprises of engineering components, fund raising merchandise for re-sale and locomotive models. Stocks are valued at the lower of cost or net realisable value.

THE WESTERN LOCOMOTIVE ASSOCIATION LIMITED

Notes to the financial statements (continued) For the year ended 30 September 2025

1 Accounting policies

(Continued)

1.11 Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

1.12 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.

2 Critical accounting estimates and judgements

Heritage assets

The locomotives are reviewed on an annual basis for fair value impairment based on their expected realisable value and estimates of the future economic benefits attributable to them. Management make such estimations taking into account their knowledge of the assets.

THE WESTERN LOCOMOTIVE ASSOCIATION LIMITED

Notes to the financial statements (continued) For the year ended 30 September 2025

3 Donations and legacies

**Unrestricted ** Unrestricted
funds funds
2025 2024
£ £
Strategic donations and appeals 2,650 -
Membership fees 14,040 10,355
General donations 124,571 19,136
141,261 29,491

4 Charitable activities

Sale of goods
SVR driver experience days
Other income
Analysis by fund
Unrestricted funds
Restricted funds		 2025
£
12,652
2,400
3,492
18,544
15,052
3,492
18,544		 2024
£
16,836
2,400
5,000
24,236
10,885
13,351
24,236

5 Other trading activities

**Unrestricted ** Unrestricted
funds funds
2025 2024
£ £
Merchandise sales 25,889 28,648
Raffle receipts 2,721 2,491
Other trading activities 28,610 31,139

THE WESTERN LOCOMOTIVE ASSOCIATION LIMITED

Notes to the financial statements (continued)

For the year ended 30 September 2025

6 Income from investments

Unrestricted Unrestricted
funds funds
2025 2024
£ £
Interest receivable 2,808 2,184

7 Raising funds

**Unrestricted ** Unrestricted
funds funds
2025 2024
£ £
Fundraising and publicity
Staging fundraising events 14,945 11,386
14,945 11,386

THE WESTERN LOCOMOTIVE ASSOCIATION LIMITED

Notes to the financial statements (continued)

For the year ended 30 September 2025

8
Expenditure on charitable activities
Direct costs
Locomotive expenditure resoration and maintenance
Magazine and website
Other expenses
Tools and equipment
Carbon offsetting
Share of support and governance costs (see note 9)
Governance
Analysis by fund
Unrestricted funds
Restricted funds		 2025
£
40,832
3,792
1,987
7,181
304
54,096
4,579
58,675
55,234
3,441
58,675		 2024
£
22,739
4,605
1,825
2,137
304
31,610
4,792
36,402
36,402
-
36,402

9 Support costs

9
Support costs
Support
costs
Governance
costs
£
£
Depreciation
-
1,470
Independent Examiner's remuneration
-
2,189
Legal and professional
-
256
Other resources expended
-
664
-
4,579
Analysed between
Charitable activities
-
4,579
10
Net movement in funds
The net movement in funds is stated after charging/(crediting):
Depreciation of owned tangible fixed assets		 2025
£
1,470
2,189
256
664
4,579
4,579
2025
£
1,470		 2024
£
1,012
1,408
1,839
533
4,792
4,792
2024
£
1,012

THE WESTERN LOCOMOTIVE ASSOCIATION LIMITED

Notes to the financial statements (continued) For the year ended 30 September 2025

11 Trustees

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

12 Employees

The average monthly number of employees during the year was:

2025 2024
Number Number
Total - -

13 Taxation

The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.

14 Tangible fixed assets

Tangible fixed assets
Fixtures and fittings
£
Cost
At 1 October 2024 11,510
Additions 5,589
At 30 September 2025 17,099
Depreciation and impairment
At 1 October 2024 2,398
Depreciation charged in the year 1,470
At 30 September 2025 3,868
Carrying amount
At 30 September 2025 13,231
At 30 September 2024 9,113

THE WESTERN LOCOMOTIVE ASSOCIATION LIMITED

Notes to the financial statements (continued)

For the year ended 30 September 2025

15 Heritage assets

£
At 1 October 2024 and at 30 September 2025 500,000

The fair values of the company's Locomotives were last revalued by an independent valuer in 2004. During last year, following the complete overhaul of the Locomotives that have been carried out since their acquisition, the valuations have been subsequently been assessed by the Trustees. The trustees have arrived at a valuation figure of £500,000, but this has not been verified by any independent third parties. Had this class of asset been measured on a historical cost basis, their carrying amount would have been £21,959 (2024 - £21,959).

16 Fixed asset investments

Cost or valuation
At 1 October 2024 & 30 September 2025
Carrying amount
At 30 September 2025
At 30 September 2024
17
Stocks
Stocks
18
Debtors
Amounts falling due within one year:
Other debtors
Prepayments and accrued income		 Unlisted
investments
£
11,000
11,000
11,000
2025
2024
£
£
134,824
132,545
2025
2024
£
£
21,122
22,159
1,499
-
22,621
22,159		 Unlisted
investments
£
11,000
11,000
11,000
2025
2024
£
£
134,824
132,545
2025
2024
£
£
21,122
22,159
1,499
-
22,621
22,159
11,000
11,000
2024
£
132,545
2024
£
22,159
-
22,159

THE WESTERN LOCOMOTIVE ASSOCIATION LIMITED

Notes to the financial statements (continued)

For the year ended 30 September 2025

19 Creditors: amounts falling due within one year

Trade creditors
Accruals and deferred income		 2025
£
2,846
1,700
4,546		 2024
£
16,675
1,495
18,170

20 Restricted funds

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

At 1
D1013 bogie overhaul
D1048 preservation
Previous year:
At 1
D1013 bogie overhaul
D1048 preservation		 October
2024
Incoming
resources
Resources
expended
At 30
September
2025
£
£
£
£
34,387
885
(3,441)
31,831
5,000
2,607
-
7,607
39,387
3,492
(3,441)
39,438
October
2023
Incoming
resources
Resources
expended
At 30
September
2024
£
£
£
£
26,036
8,351
-
34,387
-
5,000
-
5,000
26,036
13,351
-
39,387		 October
2024
Incoming
resources
Resources
expended
At 30
September
2025
£
£
£
£
34,387
885
(3,441)
31,831
5,000
2,607
-
7,607
39,387
3,492
(3,441)
39,438
October
2023
Incoming
resources
Resources
expended
At 30
September
2024
£
£
£
£
26,036
8,351
-
34,387
-
5,000
-
5,000
26,036
13,351
-
39,387
39,387

21 Unrestricted funds

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

At 1 October Incoming Resources Gains and At 30
2024 resources expended losses September
2025
£ £ £ £ £
General funds 304,827 187,731 (70,285) - 422,273
Revaluation reserve 478,041 - - - 478,041

THE WESTERN LOCOMOTIVE ASSOCIATION LIMITED

Notes to the financial statements (continued)

For the year ended 30 September 2025

21 Unrestricted funds (Continued)
Previous year: At 1 October Incoming Resources Gains and
At 30
2023 resources expended losses September
2024
£ £ £ £ £
General funds 279,030 73,699 (47,902) - 304,827
Revaluation reserve 43,041 - - 435,000 478,041

22 Related party transactions