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2020-12-31-accounts

Charity Registration No. 1127261

Company Registration No. 06167523 (England and Wales)

THE NORTH WALES COAST LIGHT RAILWAY LIMITED ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

THE NORTH WALES COAST LIGHT RAILWAY LIMITED

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees

R G Melton C Davies S Hobbs W A J Smith

Charity number 1127261 Company number 06167523 Registered office Beach Road Fairbourne Gwynedd Wales LL38 2EX Independent examiner Moore Rutland House Minerva Business Park Lynch Wood Peterborough PE2 6PZ

THE NORTH WALES COAST LIGHT RAILWAY 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 - 14

THE NORTH WALES COAST LIGHT RAILWAY LIMITED

TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 DECEMBER 2020

The Trustees present their report and financial statements for the year ended 31 December 2020.

The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts 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)” (as amended for accounting periods commencing from 1 January 2016)

Objectives and activities

The preservation and conservation of the narrow gauge railway at Fairbourne, Gwynedd and all associated buildings of historical and architectural importance. The preservation and conservation of the physical and natural environment at the Penrhyn Peninsular, Gwynedd. The education of the public in the local natural and social history of Fairbourne, the surrounding area and the narrow gauge railway.

The public appeal to raise funds to cover the cost of new track has been successful and is ongoing. The public appeal to raise funds to replace Russell’s boiler was highly successful and is now complete. There is also now a public appeal to raise funds to bring the loco Beddgelert back into service which is also ongoing. During 2020 a Government Grant from the Welsh Heritage Fund was obtained to help support the running costs of the operating subsidiary company which also received Government Business Grants and funds through the Job Retention Scheme. As a response to the pandemic an Appeal was instigated which proved to be highly successful. The response from supporters was exceptional. The Charity was also very fortunate to receive a legacy from a long term supporter. A further legacy was received in January 2021. Through the help of a Government ERF Grant solar panels have now been fitted to the Nature Centre roof. This work was completed in 2021. Renovations to Station buildings commenced in 2020 and were completed in 2021. These included renovating the Point canopy roof and relocating the office and ticket office. In June 2019 work commenced on fitting air brakes to passenger carriages and locos. This work will require significant investment, and will be ongoing for several years. By the end of the year, trial installations had been carried out on four carriages and Tony. Parts were on order to equip Sherpa and work continued on this in 2020.

Achievements and performance

The Charity continues to receive donations from dedicated supporters of the Fairbourne Railway and also the general public. This has ensured that everyone can still benefit from travelling on this historic narrow gauge line learning about the history of the railway and enjoying the conservation area at Penrhyn Point. There are good links with local residents, many of whom volunteer their services saving staff time and costs. The ongoing Track Improvement Fund has now reached £8,392 and the appeal to raise funds for restoring Beddgelert to service, referred to above, had raised £6, 332 by the end of 2020. The 2020 Appeal raised over £15,000 and the legacy amount tota l led £24,000 at the end of 2020. Following lockdown the Railway was able to open from mid-July to mid-September. Despite lockdown, visitor numbers for the year were just under 9,000. (2019 22,000).

Financial review

The Charity's income during the year was derived from passenger fares and donations. Where donors had completed the relevant tax declarations, the charity was able to claim Gift Aid on these donations. During the year, in return for fulfilling its role in running and maintaining the Railway, the Charity remunerated its operating subsidiary, Fairbourne Steam Railway Ltd the sum of £54,600. At the balance sheet date the reserves of £909,396 were deemed to be at an appropriate level. At 31st December 2019 the loan balance between The Charity and the operating company stood at £90,153. The Trustees do not consider that a provision is required to be made against the remaining balance of £87,700 owed from the subsidiary as at 31st December 2020.

It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s expenditure. The Trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.

THE NORTH WALES COAST LIGHT RAILWAY LIMITED

TRUSTEES REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 DECEMBER 2020

The Charity aims to keep a sum in reserve which would allow for final staff payments and payments to other creditors should the operating company cease to trade. This is currently estimated at £25,000 .

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.

Structure, governance and management

The charity is a company limited by guarantee

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 G Melton

C Davies S Hobbs

W A J Smith

Selection of new trustees is by recommendation by existing trustees. Sufficient training will be provided to new trustees to enable them to carry out their duties with the required degree of skill and care .

The Charity is the sole shareholder in the operating company, Fairbourne Steam Railway Limited. The operating company makes a charge to the Charity for operating the Railway on its behalf and in order that the Charity’s objects are fulfilled. Any profits after tax made by the operating company shall be transferred to the Charity.

The charity is a private company limited by guarantee and consequently there is no issued share capital. Each of the members is liable to contribute an amount not exceeding £10 towards the assets of the company in the event of the company being placed in liquidation.

The Trustees r eport was approved by the Board of Trustees.

W A J Smith

Trustee Dated: 10 August 2021

THE NORTH WALES COAST LIGHT RAILWAY LIMITED

INDEPENDENT EXAMINER'S REPORT

TO THE TRUSTEES OF THE NORTH WALES COAST LIGHT RAILWAY LIMITED

I report on the financial statements of the charity for the year ended 31 December 2020, which are set out on pages 4 to 14.

Respective responsibilities of Trustees and examiner

The charity’s Trustees, who are also the directors of The North Wales Coast Light Railway Limited for the purposes of company law, are responsible for the preparation of the financial statements. The Trustees consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed.

Having satisfied myself that the charity is not subject to audit under company law and is eligible for independent examination, it is my responsibility to:

Basis of independent examiner's report

My examination was carried out in accordance with the 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 financial statements presented with those records. It also includes consideration of any unusual items or disclosures in the financial statements, and seeking explanations from you as 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 next statement.

Independent examiner's statement

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

C.A. Rossiter F.C.A

Moore

Chartered Accountants Rutland House Minerva Business Park Lynch Wood Peterborough PE2 6PZ

Dated: 12 August 2021

THE NORTH WALES COAST LIGHT RAILWAY LIMITED

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2020

Unrestricted
Restricted
funds
funds
Notes
£
£
Income from:
Voluntary income
3
87,975
596
Charitable activities
4
26,139
-
Investments
5
18,693
-
Total income
132,807
596
Expenditure on:
Charitable activities
6
66,072
-
Net income for the year/
Net movement in funds
66,735
596
Fund balances at 1 January 2020
827,937
14,128
Fund balances at 31 December 2020
894,672
14,724
Total
2020
£
88,571
26,139
18,693
133,403
66,072
67,331
842,065
909,396
Total
2019
£
98,026
67,986
18,821
184,833
181,572
3,261
838,804
842,065

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

THE NORTH WALES COAST LIGHT RAILWAY LIMITED

BALANCE SHEET

AS AT 31 DECEMBER 2020

Notes
Fixed assets
Tangible assets
10
Investments
11
Current assets
Debtors falling due after one year
12
Debtors falling due within one year
12
Cash at bank and in hand
Creditors: amounts falling due within
one year
13
Net current assets
Total assets less current liabilities
Income funds
Restricted funds
14
Unrestricted funds
2020
£
87,700
98
119,425
207,223
(2,005)
£
504,177
200,001
704,178
205,218
909,396
14,724
894,672
909,396
2019
£
90,153
226
45,641
136,020
(2,078)
£
508,122
200,001
708,123
133,942
842,065
14,128
827,937
842,065

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 December 2020.

The directors acknowledge their responsibilities for ensuring that the charity keeps accounting records which comply with section 386 of the Act and for preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of the financial year and of its incoming resources and application of resources, including its income and expenditure, for the financial year in accordance with the requirements of sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

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 10 August 2021

W A J Smith Trustee

Company Registration No. 06167523

THE NORTH WALES COAST LIGHT RAILWAY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

1 Accounting policies

Charity information

The North Wales Coast Light Railway Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is Beach Road, Fairbourne, Gwynedd, LL38 2EX, Wales.

1.1 Accounting convention

The accounts have been prepared in accordance with 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)” (as amended for accounting periods commencing from 1 January 2016). The charity is a Public Benefit Entity as defined by FRS 102.

The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.

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

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. 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 as to how they may be used. The purposes and uses of the restricted funds are set out below:

15 inch - Purchase and laying of 15 inch track to enable dual gauge running . Beddgelert - Renovation project at Beddgelert.

1.4 Incoming resources

Income is recognised on a receivable basis and is shown gross of any related expenditure

1.5 Resources expended

Resources expended are accounted for on an accruals basis. Expenditure is apportioned between activities on the basis of its purpose, and shown in the appropriate category, unless it is immaterial in the context of these account s .

THE NORTH WALES COAST LIGHT RAILWAY LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

1 Accounting policies

(Continued)

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:

Freehold interest in property 2% straight line Freehold interest in land 0%

The company is required by its governing document to maintain its rolling stock and track in a first-class state of repair in order to meet its charitable objectives, and to comply with its obligations under health and safety legislation. For these reasons, the Trustees do not consider it necessary to provide for depreciation on these assets.

The boilers of steam locomotives and motors of internal combustion locomotives are depreciated as follows:

Boilers: 10% reducing balance Motors: 40% reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year.

1.7 Fixed asset investments

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

1.8 Impairment of fixed assets

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

1.9 Cash and cash equivalents

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

1.10 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.

THE NORTH WALES COAST LIGHT RAILWAY LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

1 Accounting policies

(Continued)

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 p aymen ts 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.

1.11 Group Accounts

Consolidated accounts have not been prepared by virtue of the group, as headed by the company, qualifying as a small group in accordance with section 388 of the Companies Act 2006. These financial statements therefore present information about the company as an individual undertaking and not about its group.

2 Critical accounting estimates and judgements

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

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

THE NORTH WALES COAST LIGHT RAILWAY LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

3 Voluntary income

Unrestricted Restricted
Total
Total
funds funds
2020 2020
2020
2019
£ £
£
£
Donations and gifts 77,220 525
77,745
80,940
Gift aid tax reclaimed 10,755 71
10,826
17,086
87,975 596
88,571
98,026
Charitable activities
Train ticket
Total
sales
2019
2020
£
£
Sales within charitable activities 26,139
67,986
Investments
Unrestricted Unrestricted
funds funds
2020 2019
£ £
Rental income 16,000 16,000
Interest receivable 2,693 2,821
18,693 18,821

4 Charitable activities

5 Investments

THE NORTH WALES COAST LIGHT RAILWAY LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

6 Charitable activities

Unrestricted
expenditure
Restricted
expenditure
£
£
Depreciation and impairment
5,525
-
FSR services for maintaining and operating
54,600
-
Financial administration fees
3,800
-
Fund Raising - Race the Train
-
-
Professional fees
43
-
Premises and delivery costs
50
-
Bank charges and fees
929
-
64,947
-
Share of governance costs (see note 7)
1,125
-
66,072
-
For the year ended 31 December 2019
Unrestricted funds
181,272
-
Restricted funds
-
300
181,272
300
7
Support costs
Support
costs
Governance
costs
£
£
Independent examiners fee
-
1,125
-
1,125
Total
2020
£
5,525
54,600
3,800
-
43
50
929
64,947
1,125
66,072
2020
£
1,125
1,125
Total
2019
£
5,153
166,300
6,300
946
13
420
1,340
180,472
1,100
181,572
181,272
300
181,572
2019
£
1,100
1,100

8 Trustees

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

THE NORTH WALES COAST LIGHT RAILWAY LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

9 Employees

Total
10
Tangible fixed assets
Freehold
interest in
property
Freehold
interest in land
£
£
Cost
At 1 January 2020
156,400
93,000
Additions
-
-
At 31 December 2020
156,400
93,000
Depreciation and impairment
At 1 January 2020
27,360
2,485
Depreciation charged in the year
3,040
(2,485)
At 31 December 2020
30,400
-
Carrying amount
At 31 December 2020
126,000
93,000
At 31 December 2019
129,040
93,000
11
Fixed asset investments
Cost or valuation
At 1 January 2020 & 31 December 2020
Carrying amount
At 31 December 2020
At 31 December 2019
2020
2019
Number
Number
-
-
Plant and
machinery
Total
£
£
294,501
543,901
1,580
1,580
296,081
545,481
8,419
38,264
2,485
3,040
10,904
41,304
285,177
504,177
286,082
508,122
Other
investments
200,001
200,001
200,001

THE NORTH WALES COAST LIGHT RAILWAY LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

12 Debtors

Amounts falling due within one year:
Trade debtors
Other debtors
Amounts falling due after more than one year:
Amount owed by Fairbourne Steam Railway Limited
Total debtors
13
Creditors: amounts falling due within one year
Accruals and deferred income
2020
£
1
97
98
2020
£
87,700
87,798
2020
£
2,005
2019
£
-
226
226
2019
£
90,153
90,379
2019
£
2,078

14 Restricted funds

The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:

Movement in funds Movement in funds Movement
in funds
Balance at Incoming Resources Transfers Balance at Incoming Balance at
1 January 2019 resources expended 1 January 2020 resources 31 December
2020
£ £ £ £ £
£
£
Russell
Firebox 10,547 - (300) (9,947)
-

-
-
15 Inch Track
(2017) 5,237 2,915 - - 8,152
240
8,392
Beddgelert 4,038 1,938 - - 5,976
356
6,332
19,522 4,853 (300) (9,947)
14,128

596
14,724

THE NORTH WALES COAST LIGHT RAILWAY LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

15
Analysis of net assets between funds
Unrestricted
Restricted
2020
2020
£
£
Fund balances at 31 December 2020 are
represented by:
Tangible assets
504,177
-
Investments
200,001
-
Current assets/(liabilities)
190,494
14,724
894,672
14,724
Total
2020
£
504,177
200,001
205,218
909,396
Total
2019
£
508,122
200,001
133,942
842,065

THE NORTH WALES COAST LIGHT RAILWAY LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

16 Related party transactions

During the year the subsidiary company , Fairbourne Steam Railway Limited , received a grant from the charity of £54,600(2019: £166,000 ) to enable it to operate the railway in line with the charity objectives. At the 31st December 20 20 the amount owing by the subsidiary company to the charity was £ 87 , 700 (201 9 : £9 0 , 153 ) The interest charged on the loan during the past financial year was £2, 671 (201 9 : £ 2 , 743 ).

17 Subsidiaries

Details of the charity's subsidiaries at 31 December 2020 are as follows:

Name of undertaking Registered Nature of business Class of % Held
office shares held Direct Indirect
Fairbourne Steam Railway United Kingdom Operating a narrow gauge Ordinary 100.00
Limited railway as a tourist and
educational attraction

The aggregate capital and reserves and the result for the year of subsidiaries excluded from consolidation was as follows:

Name of undertaking Profit/(Loss) Capital and
Reserves
£ £
Fairbourne Steam Railway
Limited 11,370 136,907

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