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2022-03-31-accounts

CHARITY REGISTRATION No: 1139588

COMPANY REGISTRATION NO: 06952089

ROYAL SCOT LOCOMOTIVE AND GENERAL TRUST

FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2022

ROYAL SCOT LOCOMOTIVE AND GENERAL TRUST

CONTENTS

YEAR ENDED 31 MARCH 2022

CONTENTS PAGE
Reference and administrative details 1
Trustees’ annual report 2 - 4
Independent auditor’s report 5 - 8
Statement of financial activities – Group 9
Statement of financial activities – Trust only 10
Balance sheet – Group and Trust 11
Consolidated statement of cash flows 12
Notes to the Financial Statements 13 - 20

ROYAL SCOT LOCOMOTIVE AND GENERAL TRUST

REFERENCE AND ADMINISTRATIVE DETAILS

YEAR ENDED 31 MARCH 2022

The Trustees, who are also directors for the purposes of company law, present their report and the consolidated Financial Statements of the Trust and its subsidiary undertakings for the year ended 31 March 2022.

Registered charity name Royal Scot Locomotive and General Trust Charity registration number 1139588 Company registration number 06952089 Registered office Sixth Floor Capital Tower 91 Waterloo Road London SE1 8RT

The Trustees

The Trustees who served the Trust during the year were as follows:

Mr J J Hosking Mr D J C Dunstone Mr P N Greenwood Mr R Drury Mr P Adds Mr R W Abbey

Auditors

Arnold Hill & Co LLP Chartered Accountants & Statutory Auditor Sixth Floor Capital Tower, 91 Waterloo Road, London, SE1 8RT

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ROYAL SCOT LOCOMOTIVE AND GENERAL TRUST

TRUSTEES’ REPORT

YEAR ENDED 31 MARCH 2022

The Trustees submit their report and the Financial Statements for the year ended 31 March 2022. 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 Standards applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) – Charities SORP (FRS102)), the Financial Reporting Standards applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Companies Act 2006.

The principal activity of the Trust during the year was the restoration and operation of assets belonging to it.

THE TRUSTEES

The Trustees who served the Trust during the year were as follows:

Mr J J Hosking Mr D J C Dunstone Mr P N Greenwood Mr R Drury Mr P Adds Mr R W Abbey

AUDITOR

Arnold Hill & Co LLP are deemed to be re-appointed under section 487(2) of the Companies Act 2006.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Background

The Royal Scot Locomotive and General Trust is a charity established and governed by Memorandum and Articles of Association dated 3 July 2009 as amended by Special Resolution dated 7 November 2009. It was registered with the Charity Commission on 30 December 2010.

Risk Management

The Trustees have considered the major risks to which the charity is exposed and have reviewed those risks and established systems and procedures to manage those risks.

OBJECTIVES AND PERFORMANCE

Objectives

To advance the education of the public by the acquisition, restoration, preservation, exhibition or operation of LMS Steam Locomotive 6100 (“The Royal Scot”) and other steam locomotives, rolling stock, equipment and artefacts, relics, documents and records of historic interest as the Trustees may from time to time decide.

Public Benefit

The year’s operation of the Trust’s locomotives were again curtailed by the impact of the COVID pandemic in 2021. In a reduced year of operating just one of the Trust’s locomotives was in steam from June 2021. Royal Scot operated 21 times on the mainline for Saphos Trains. In addition the rake of Mark 1 carriages, purchased by the Trust in December 2021 were used by Saphos on every trip thereafter. Members of the public were able to view the engines in operation and to travel in the coaches, thereby experiencing rail travel as it would have been in the days prior to 1968 when British Railways withdrew their last steam locomotives from service.

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ROYAL SCOT LOCOMOTIVE AND GENERAL TRUST

TRUSTEES’ REPORT

YEAR ENDED 31 MARCH 2022

OBJECTIVES AND PERFORMANCE (continued)

It was not possible for any of the Trust’s assets to visit galas again this year. It is the Trustees’ intention to make each locomotive so available whenever possible to bring them to as wide an audience as possible. When permissible footplate experience will be given at gala events, which are designed to give members of the public tuition and actual “hands on” experience of driving and firing a full size, main line steam locomotive.

BBC’s Blue Peter continued with their occasional filming of the engineering work on the locomotive Blue Peter for airing when the work is nearing completion.

The Trustees have been used to giving occasional talks and lectures on a range of railway related subjects, as well as assisting in the teaching of the public during footplate experience courses on how to drive and fire a steam locomotive. None of this was possible in this pandemic year.

The newly-formed Locomotive Services Group Facebook and Instagram accounts have been giving regular updates on the Trust’s assets, including in some cases those still under restoration.

Investments

From time to time the Trust has received donations of portfolios of shares which make up the investments held by the Trust. The investments are held within the unrestricted fund, in line with the wishes of the donor. The investments may be used to provide income to further the Trust’s objectives or, if the Trustees consider it appropriate, may be sold.

FINANCIAL REVIEW

Activity during the year

Since establishment, the Trust has acquired several iconic steam locomotives representing the finest examples of British steam locomotive design. The trading subsidiaries, whose results are contained within the Group Financial Statements, operate the locomotives described below.

The Trust also owns two examples of SR 4-6-2 Merchant Navy Class.

Work continued on the restoration of the Class 55 Deltic engine, ‘Royal Scots’, numbered 55022 and 60532 Blue Peter. 70000 Britannia was withdrawn from services for its 10-year overhaul.

Only 6100 Royal Scot was in operation during the year.

London and North Western Railway Heritage Company Limited is the restoration and maintenance business purchased in February 2014. During the year it worked principally on the assets of the Trust and other related undertakings, and had another successful year with turnover of £4.39 million. Of this £1.88 million were sales to entities which are related undertakings (see note 14).

The Trust operates with six Trustees on its Board with a wide range of skills and experience to strengthen its governance and strategic decision making.

The Trust continues to further its public exposure by the use of social media, regular reporting within the Railway Press and Media as well as through journal magazines.

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ROYAL SCOT LOCOMOTIVE AND GENERAL TRUST

TRUSTEES’ REPORT

YEAR ENDED 31 MARCH 2022

FINANCIAL REVIEW (continued)

The Trust has worked with other similar charities to strengthen dialogue between them so that training and knowledge can be more easily shared.

Finance

The income for the Trust for the year ended 31 March 2022 was £3,545,089 (2021: £5,157,810). Charitable activities for the year are set out in note 3 to the accounts.

Net profit for the year in the subsidiary companies totalled £163,412 (2021: £341,854), and the net assets of the Trust decreased to £34,119,957 from £37,946,013 during the year largely due to the fixed asset impairment recognised in the year.

Reserves Policy

The Trustees aim to maintain free reserves at a level which equates to approximately 12 months’ worth of capital and charitable expenditure. The Trustees consider that this level will ensure that there are sufficient funds available to cover support and governance costs. At the year end the unrestricted fund stood at £33,492,871 (2021: £37,318,927) of which £31,890,457 represents long term assets and the balance is expected to be sufficient for the capital expenditure and operating costs for the coming twelve months.

RESPONSIBILITIES OF THE TRUSTEES

Law applicable to charities in England and Wales requires the Trustees to prepare Financial Statements for each financial year. 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 charity and of the surplus or deficit of the charity for that year.

In preparing these 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 charity and which enable them to ensure that the Financial Statements comply with the Charities Act 2011. The Trustees are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the Trustees are aware:

Signed by order of the Trustees

Mr J J Hosking Trustee

25[th] January 2023

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ROYAL SCOT LOCOMOTIVE AND GENERAL TRUST

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF THE ROYAL SCOT LOCOMOTIVE AND GENERAL TRUST

YEAR ENDED 31 MARCH 2022

Opinion

We have audited the financial statements of Royal Scot Locomotive and General Trust for the year ended 31 March 2022 which comprise consolidated statement of financial activities, balance sheets, consolidated statement of cash flows 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 applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

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 Auditors’ responsibilities for the audit of the financial statements section of our report. We are independent of the group and the parent charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

The Trustees have prepared the accounts on the going concern basis as they do not intend to liquidate the Trust or cease operations, and have concluded that the Trust’s financial position means that this is realistic.

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

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ROYAL SCOT LOCOMOTIVE AND GENERAL TRUST

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF THE ROYAL SCOT LOCOMOTIVE AND GENERAL TRUST (continued)

YEAR ENDED 31 MARCH 2022

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 auditors’ 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.

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 that fact.

We have nothing to report in this regard

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Trustees’ Responsibilities Statement set out on page 4, 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 group’s and the parent 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 group or the parent charity or to cease operations, or have no realistic alternative but to do so.

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ROYAL SCOT LOCOMOTIVE AND GENERAL TRUST

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF THE ROYAL SCOT LOCOMOTIVE AND GENERAL TRUST (continued)

YEAR ENDED 31 MARCH 2022

Auditor's responsibilities for the audit of the financial statements

We have been appointed as auditors under the Charities Act 2011 and report in accordance with regulations made under that Act.

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 auditors’ 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,

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Detection of fraud and breaches of laws and regulations

To identify risks of material misstatement due to fraud, we considered events or conditions that could indicate an incentive or pressure to commit fraud or provide an opportunity to do so. Our approach included:

We communicated identified fraud risks throughout our team and remained alert to any indications of fraud throughout the audit.

To identify risks of material misstatement due to non-compliance with laws and regulations, our approach was as follows:

We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit.

Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk. We also performed procedures to address the risk of management override of controls and the risk of fraudulent revenue recognition, in particular the risks that revenue is recorded in the wrong period and that management may be in a position to make inappropriate accounting entries. Our procedures included: testing manual journals; reviewing the financial statement disclosures and testing to supporting documentation; performing analytical procedures; and enquiries of management, and were designed to provide reasonable assurance that the financial statements were free from fraud or error.

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ROYAL SCOT LOCOMOTIVE AND GENERAL TRUST

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF THE ROYAL SCOT LOCOMOTIVE AND GENERAL TRUST (continued)

YEAR ENDED 31 MARCH 2022

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed noncompliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. The risk is also greater regarding non-detection of fraud rather than error, as fraud may involve intentional concealment, forgery, collusion, omission or misrepresentation. Our audit procedures are designed to detect material misstatement. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the trustees those matters we are required to state to them in an auditor’s report and for no other purpose.

Justin Moore BSc ACA (Senior Statutory Auditor)

For and on behalf of

Arnold Hill & Co LLP Chartered Accountants Statutory Auditors Sixth Floor, Capital Tower 91 Waterloo Road London SE1 8RT

31 January 2023

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ROYAL SCOT LOCOMOTIVE AND GENERAL TRUST

GROUP STATEMENT OF FINANCIAL ACTIVITIES

YEAR ENDED 31 MARCH 2022

INCOME AND ENDOWMENTS FROM
Note
Donations and legacies
Investments
Commercial trading operations
5
TOTAL INCOME AND ENDOWMENTS
EXPENDITURE ON
Raising funds
Charitable activities
3
Amortisation
TOTAL RESOURCES EXPENDED
Net gains/(losses) on investments
NET (OUTGOING)/INCOMING
RESOURCES
TRANSFER BETWEEN FUNDS
NET MOVEMENT IN FUNDS
2
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD		 2022
Unrestricted
Fund
£
2,717,786
309,346
3,891,922
6,919,054
(52,079)
(13,419,164)
-
(13,471,243)
3,104,428
(3,447,761)
-
(3,447,761)
36,260,058
32,812,297		 2022
Restricted
Fund
£
-
-
-
-
-
-
(29,783)
(29,783)
-
(29,783)
-
(29,783)
273,910
244,127		 2022
Total
£
2,717,786
309,346
3,891,922
6,919,054
(52,079)
(13,419,164)
(29,783)
(13,501,026)
3,104,428
(3,477,544)
-
(3,477,544)
36,533,968
33,056,424		 2021
Unrestricted
Fund
£
4,835,643
322,167
3,425,448
8,583,258
(34,434)
(4,405,671)
-
(4,440,105)
6,973,418
11,116,571
-
11,116,571
25,143,487
36,260,058		 2021
Restricted
Fund
£
-
-
-
-
-
-
(29,783)
(29,783)
-
(29,783)
-
(29,783)
303,693
273,910		 2021
Total
£
4,835,643
322,167
3,425,448
8,583,258
(34,434)
(4,405,671)
(29,783)
(4,469,888)
6,973,418
11,086,788
-
11,086,788
25,447,180
36,533,968

The statement of financial activities incorporates the income and expenditure account.

The statement of financial activities includes all gains and losses in the year and therefore a statement of other comprehensive income has not been prepared.

The notes on pages 13 to 20 form part of these Financial Statements.

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ROYAL SCOT LOCOMOTIVE AND GENERAL TRUST

STATEMENT OF FINANCIAL ACTIVITIES - TRUST

YEAR ENDED 31 MARCH 2021

Note
INCOME AND ENDOWMENTS FROM
Donations and legacies
Investments
TOTAL INCOME AND ENDOWMENTS
EXPENDITURE ON
Raising funds
Charitable activities
3
TOTAL RESOURCES EXPENDED
Net gains on investments
NET (OUTGOING)/INCOMING
RESOURCES
TRANSFER BETWEEN FUNDS
NET MOVEMENT IN FUNDS
2
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD		 2022
Unrestricted
Fund
£
2,975,743
569,346
3,545,089
(52,079)
(10,423,493)
(10,475,572)
3,104,428
(3,826,055)
-
(3,826,055)
37,318,927
33,492,871		 2022
Restricted
Fund
£
-
-
-
-
-
-
-
-
-
-
627,086
627,086		 2022
Total
£
2,975,743
569,346
3,545,089
(52,079)
(10,423,493)
(10,475,572)
3,104,428
(3,826,055)
-
(3,826,055)
37,946,013
34,119,957		 2021
Unrestricted
Fund
£
4,835,643
322,167
5,157,810
(34,434)
(548,840)
(583,274)
6,938,716
11,513,252
-
11,513,252
25,805,675
37,318,927		 2021
Restricted
Funds
£
-
-		 2021
Total
£
4,835,643
322,167
-
-		 5,157,810
(34,434)
(548,840)
- (583,274)
6,938,716
-
-
627,086		 11,513,252
-
11,513,252
26,432,761
627,086 37,946,013

The statement of financial activities includes all gains and losses in the year, and incorporates the income and expenditure account.

All of the above amounts relate to continuing activities

The notes on pages 13 to 20 form part of these Financial Statements.

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ROYAL SCOT LOCOMOTIVE AND GENERAL TRUST

BALANCE SHEET

31 MARCH 2022

Notes
FIXED ASSETS
Tangible assets
6
Investments
7
Goodwill
CURRENT ASSETS
Stock
Debtors
8
Cash in hand
CREDITORS: Amounts falling due within one
year
9
NET CURRENT ASSETS
NET ASSETS
FUNDS
Restricted fund
12
Unrestricted fund
11
TOTAL FUNDS		 Group
31 Mar 22
£
10,267,224
21,623,233
-
31,890,457
220,413
1,137,408
574,288
1,932,109
(766,142)
1,165,967
33,056,424
244,127
32,812,297
33,056,424		 Trust
31 Mar 22
£
11,212,577
22,223,236
-
33,435,813
-
916,149
433,090
1,349,239
(665,095)
684,144
34,119,957
627,086
33,492,871
34,119,957		 Group
31 Mar 21
£
13,848,811
20,072,253
29,783
33,950,847
99,955
2,548,404
668,450
3,316,809
(733,688)
2,583,121
36,533,968
273,910
36,260,058
36,533,968		 Trust
31 Mar 21
£
15,225,271
20,672,256
-
35,897,527
-
2,280,403
248,634
2,529,037
(480,552)
2,048,485
37,946,012
627,086
37,318,926
37,946,012

These Financial Statements were approved and signed by the Trustees on 25[th] January 2023

Mr J J Hosking Trustee

The notes on pages 13 to 20 form part of these Financial Statements.

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ROYAL SCOT LOCOMOTIVE AND GENERAL TRUST

CONSOLIDATED STATEMENT OF CASH FLOWS

YEAR ENDED 31 MARCH 2022

£
Cash flows from operating activities
Cash flows from investing activities
Investment income
Proceeds of disposal of investments
Purchase of investments
Purchase of property plant and equipment
Foreign exchange gain/(loss)
Change in cash and cash equivalents
in the year
Cash and cash equivalents b/f
Cash and cash equivalents c/f
Analysis of cash and cash equivalents
Cash in hand
Cash held by investment manager
Total cash and cash equivalents		 309,346
4,800,067
(3,246,620)
(5,271,683)		 2022
£
1,861,719
(3,408,890)
-
(1,547,171)
2,608,417
1,061,246
2022
£
574,288
486,959
1,061,246		 £
322,167
2,453,846
(4,368,083)
(2,219,665)		 2021
£
3,802,940
(3,811,735)
-
(8,795)
2,617,212
2,608,417
2021
£
668,450
1,939,967
2,608,417

Reconciliation of net (expenditure)/income per SOFA to net cash flows from operating activities

Net (expenditure)/income per the SOFA
Adjustment for:
Depreciation
Amortisation
Investment income
Losses on investments
Impairment of fixed assets
Decrease in stock
Decrease in debtors
Decrease in creditors		 2022
£
(3,477,544)
205,354
29,783
(309,346)
(3,104,428)
8,647,916
(120,458)
(42,012)
32,454
1,861,719		 2021
£
11,086,788
195,304
47,134
(322,167)
(6,973,418)
-
(99,955)
(91,920)
(38,826)
3,802,940

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ROYAL SCOT LOCOMOTIVE AND GENERAL TRUST

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2022

1. ACCOUNTING POLICIES

Basis of accounting

The Financial Statements have been prepared under the historical cost convention, with the exception of listed investments which are included at their market value. The accounts have been prepared in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), 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 (FRS 102) issued on 16 July 2014, the Charities Act 2011 and UK Generally Accepted Accounting Practice.

Royal Scot Locomotive and General Trust constitutes a public benefit entity as defined by FRS 102.

Basis of preparation

The Financial Statements consolidate the results of the Charity and all group undertakings. These are adjusted, where appropriate, to conform to group accounting policies. Purchases are accounted for under the acquisition accounting method. The results of companies acquired are included in the profit and loss account from the date that they are acquired.

Going concern

At the time of approving the financial statements, the Trustees have a reasonable expectation that the charity will have sufficient funds to meet its liabilities as they fall due for at least 12 months from the date of approval of the financial statements and therefore have prepared the financial statements on the going concern basis.

Incoming resources

Incoming resources are accounted for when the Charity has entitlement to the funds, receipt is probable and the amount is measurable. Where income is received in advance of a specified service it is deferred until the Charity is entitled to that income.

Gross income represents the income derived from the carrying on of the Trust's activities, comprising of donations, investment income and income from commercial trading operations.

Resources expended

All expenditure is accounted for on an accruals basis and is recognised in the period in which it is incurred.

Resources expended comprise expenditure on charitable activities and on the administration of the Charity and the investments it holds, and has been included under expense categories that aggregate all costs for allocation to activities.

Commercial trading operations costs are costs directly attributable to the trading activities of the subsidiaries of the Group.

Fund accounting

Unrestricted funds are available to use to further any of the purposes of the Charity. Restricted funds are to be used for the specific purposes as laid down by the donor. Expenditure which meets these criteria is charged to the respective funds.

Investments - Unquoted

Unquoted investments are stated at cost less provision for diminution in value.

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ROYAL SCOT LOCOMOTIVE AND GENERAL TRUST

NOTES TO THE FINANCIAL STATEMENTS (continued)

YEAR ENDED 31 MARCH 2022

1. ACCOUNTING POLICIES ( continued )

Investments - Quoted

Investments are stated at market value as at the balance sheet date. Gains and losses on this basis are recorded in the statement of financial activities. Gains and losses on disposal are calculated inclusive of related transaction fees and are recorded in the statement of financial activities.

Goodwill

Goodwill is reviewed annually for impairment and is written off over a ten year period.

Tangible fixed assets

Tangible fixed assets are initially recorded at cost, and subsequently held at cost net of depreciation and any impairment losses.

Locomotives and coaches are held as heritage assets. Following an extensive impairment review at the year end, impairments have been recognised in the Statement of Financial Activities on various heritage assets based on their estimated recoverable amounts. No depreciation has been charged on heritage assets but depreciation is charged, where appropriate, on separately identifiable components.

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

Boiler for Locomotive 70000 ‘Britannia’ – straight line over 6 years Leasehold improvements – straight line over remaining lease period Plant and machinery – 15% per year straight line

Financial assets

Financial assets are recognised in the Charity’s balance sheet when the Charity becomes party to the contractual provisions of the instrument.

Basic financial assets, which include trade and other receivables and cash and bank balances, are initially measured at transaction price including transaction costs.

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire, or when the Charity transfers the financial asset and substantially all the risks and rewards of ownership to another entity.

Financial liabilities

Basic financial liabilities are initially measured at transaction price.

Financial liabilities are derecognised when, and only when, the Charity’s obligations are discharged, cancelled, or they expire.

Taxation

No provision is made for corporation taxation in relation to the Trust’s affairs as it is a public benefit entity which is exempt from direct UK taxation on its charitable activities. Corporation taxation is provided in relation to the subsidiary companies’ profit on ordinary activities, and is shown as expenditure on raising funds within the subsidiary.

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ROYAL SCOT LOCOMOTIVE AND GENERAL TRUST

NOTES TO THE FINANCIAL STATEMENTS (continued)

YEAR ENDED 31 MARCH 2022

2. NET MOVEMENT IN FUNDS

Net movement in funds is stated after charging:

Net movement in funds is stated after charging:
Auditor's remuneration
- as auditor
- for other services
Depreciation		 Group
2022
£

11,750
9,669
205,354
226,773		 Trust
2022
£
6,550
1,054
80,554
88,158		 Group
2021
£
10,625
9,480
195,304
215,409		 Trust
2021
£
5,750
1,891
80,554
88,195

3. CHARITABLE ACTIVITIES

Direct charitable expenditure
Commercial trading operations		 Group
2022
£
8,999,135
4,420,029
13,419,164		 Trust
2022
£
10,423,493
-
10,423,493		 Group
2021
£
566,191
3,839,480
4,405,671		 Trust
2021
£
566,191
-
566,191

4. PARTICULARS OF EMPLOYEES

Through London and North Western Railway Heritage Company, the Group now has an average of 42 (2021: 40) employees. Costs are also paid to affiliated entities in relation to staff costs. The aggregate staff cost charge of the Group and the Trust is as set out below:

Wages and salaries
Social security costs
Pension contributions		 Group
2022
£
1,313,872
117,148
55,440
1,486,460		 Trust
2022
£
-
-
-
-		 Group
2021
£
1,200,723
99,036
48,120
1,347,879		 Trust
2021
£
-
-
-
-

These costs are included within the Statement of Financial Activities under the heading ‘Resources expended: Charitable activities’.

No employees earned over £60,000 (excluding employer pension contributions) during the current or prior year.

- 15 -

ROYAL SCOT LOCOMOTIVE AND GENERAL TRUST

NOTES TO THE FINANCIAL STATEMENTS (continued)

YEAR ENDED 31 MARCH 2022

5. COMMERCIAL TRADING OPERATIONS OF SUBSIDIARY UNDERTAKINGS

The Trust has trading subsidiaries as detailed in note 7 to the Financial Statements.

A summary of the most recent results of the trading subsidiaries is shown below for the year ended 31 March 2022.

PROFIT AND LOSS ACCOUNT

TURNOVER
Cost of sales
GROSS PROFIT
Administrative expenses
Other operating income
OPERATING PROFIT/LOSS
PROFIT/LOSS BEFORE TAXATION
Tax on profit on ordinary activities
PROFIT/LOSS AFTER TAXATION
BALANCE SHEET
Total Assets
Total Liabilities
Reserves		 Locomotive
6100 Ltd
2022
£
234,560
(70,983)
163,577
(103,122)
-
60,455
60,455
-
60,455
£
125,488
(9,609)
115,879		 Locomotive
6024 Ltd
2022
£
-
-
-
(17,115)
2,000
(15,115)
(15,115)
-
(15,115)
£
750
(7,740)
(6,690)		 Locomotive
70000 Ltd
London and
North Western
Railway
Heritage
Company
Limited
2022
2022
£
£
-
4,394,889
-
(2,992,507)
-
1,402,382
(2,675)
(1,281,635)
-
-
(2,675)
120,747
(2,675)
120,747
-
-
(2,675)
120,747
£
£
25,580
1,179,122
(3,850)
(467,975)
21,730
711,147		 Locomotive
70000 Ltd
London and
North Western
Railway
Heritage
Company
Limited
2022
2022
£
£
-
4,394,889
-
(2,992,507)
-
1,402,382
(2,675)
(1,281,635)
-
-
(2,675)
120,747
(2,675)
120,747
-
-
(2,675)
120,747
£
£
25,580
1,179,122
(3,850)
(467,975)
21,730
711,147
1,402,382
(1,281,635)
-
120,747
120,747
-
120,747
£
1,179,122
(467,975)
711,147

- 16 -

ROYAL SCOT LOCOMOTIVE AND GENERAL TRUST

NOTES TO THE FINANCIAL STATEMENTS (continued)

YEAR ENDED 31 MARCH 2022

6. TANGIBLE FIXED ASSETS - GROUP

COST
At 1 April 2021
Additions
Disposals
Impairments
At 31 March 2022
DEPRECIATION
At 1 April 2021
Charge for year
At 31 March 2022
NET BOOK VALUE
At 31 March 2022
At 31 March 2021
TANGIBLE FIXED ASSETS - TRUST
COST
At 1 April 2021
Additions
Disposals
Impairments
At 31 March 2022
DEPRECIATION
At 1 April 2021
Charge for year
At 31 March 2022
NET BOOK VALUE
At 31 March 2022
At 31 March 2021		 Plant and
Machinery
etc
Steam
£
1,754,711
97,518
-
-
1,852,229
927,045
200,826
1,127,871
724,358
827,666
Plant and
Machinery
etc
Steam
£
748,309
4,000
-
-
752,309
322,217
80,554
402,771
349,538
426,092		 Plant and
Machinery
etc
Steam
£
1,754,711
97,518
-
-
1,852,229
927,045
200,826
1,127,871
724,358
827,666
Plant and
Machinery
etc
Steam
£
748,309
4,000
-
-
752,309
322,217
80,554
402,771
349,538
426,092		 Locomotives,
Coaches etc
£
13,421,145
5,193,486
(23,849)
(8,647,916)
9,942,866
400,000
-
400,000
9,542,866
13,021,145
Locomotives,
Coaches etc
£
15,199,179
5,906,216
(23,849)
(9,818,507)
11,263,039
400,000
-
400,000
10,863,039
14,799,179		 Total
£
15,175,856
5,291,004
(23,849)
(8,647,916)
11,795,095
1,327,045
200,826
1,527,871
10,267,224
13,848,811
Total
£
15,947,488
5,910,216
(23,849)
(9,818,507)
12,015,348
722,217
80,554
802,771
11,212,577
15,225,271

Capital expenditure on locomotives and coaches in the previous four reporting periods is detailed below.

- 17 -

ROYAL SCOT LOCOMOTIVE AND GENERAL TRUST

NOTES TO THE FINANCIAL STATEMENTS (continued)

YEAR ENDED 31 MARCH 2022

2018
2019
2020
Restoration of heritage assets
818,379
935,552
1,046,107
Acquisition of heritage assets
-
-
911,658
7.
INVESTMENTS
Group
Trust
Group
2022
2022
2021
Quoted investments – At market value
£
£
£
At 1 April
20,072,253
20,072,253
11,201,948
Additions at cost
3,250,250
3,250,250
4,368,083
Disposals
(4,800,067)
(4,800,067)
(2,453,845)
Net gains/(losses) on revaluations
2,886,640
2,886,640
6,898,059
Profit/(loss) on disposal
214,157
214,157
58,008
At 31 March
21,623,233
21,623,233
20,072,253		 2021
1,852,203
540,000
Trust
2021
£
11,201,948
4,368,083
(2,453,845)
6,898,059
58,008
20,072,253
Unquoted investments
At 1 April
Additions
Impairment
At 31 March		 Group
2022
£
-
-
-
-		 Trust
2022
£
600,003
14,975
(14,975)
600,003		 Group
2021
£
-
-
-
-		 Trust
2021
£
600,003
17,351
(17,351)
600,003

The unquoted investments are in subsidiary undertakings, stated at cost less accumulated impairment losses.

The following were investments of the Trust at 31 March 2022.

Interest in
ordinary share Country of
Subsidiary undertakings capital incorporation Principal activity
Locomotive 70000 Limited 100% England & Operating a locomotive
(Company no. 07346193) Wales
Locomotive 6100 Limited 100% England & Operating a locomotive
(Company no. 06958560) Wales
Locomotive 6024 Limited 100% England & Operating a locomotive
(Company no. 07483630) Wales
London & North Western Railway 100% England & Steam locomotive maintenance,
Heritage Company Limited Wales restoration and ancillary
(Company no. 05579807) engineering services

8. DEBTORS

Trade debtors
Amounts owed by group undertakings
Other debtors		 Group
2022
£
172,821
-
964,587		 Trust
2022
£
96,111
-
820,038
916,149		 Group
2021
£
246,210
-
2,302,193
2,548,404		 Trust
2021
£
-
-
2,280,403
1,137,408 2,280,403

- 18 -

ROYAL SCOT LOCOMOTIVE AND GENERAL TRUST

NOTES TO THE FINANCIAL STATEMENTS (continued)

YEAR ENDED 31 MARCH 2022

9. CREDITORS: Amounts falling due within one year

Group
Trust
Group
2022
2022
2021
£
£
£
Trade creditors
475,077
398,178
280,301
Taxation and social security
35,454
-
129,097
Other creditors
167,198
188,469
292,940
Accruals and deferred income
88,413
78,448
31,350
766,142
665,095
733,688
CONTINGENT LIABILITY
In the opinion of the Trustees there were no legal claims of merit outstanding against
the balance sheet date.
UNRESTRICTED FUND
Group
Trust
Group
2022
2022
2021
£
£
£
At 1 April
36,260,058
37,318,926
25,143,487
Net movement in funds for the
year (excluding transfers)
(3,447,761)
(3,826,055)
11,116,571
Transfers between funds
-
-
-
At 31 March
32,812,297
33,492,871
36,260,058
RESTRICTED FUND
Group
Trust
Group
2022
2022
2021
£
£
£
At 1 April
273,910
627,086
303,693
Net movement in funds for the
year (excluding transfers)
(29,783)
-
(29,783)
Transfers between funds
-
-
-
At 31 March
244,127
627,086
273,910		 Trust
2021
£
371,664
-
86,638
22,250
480,552
the Group at
Trust
2021
£
25,805,675
11,513,251
-
37,318,926
Trust
2021
£
627,086
-
-
627,086

10. CONTINGENT LIABILITY

11. UNRESTRICTED FUND

12. RESTRICTED FUND

The restricted fund consists of donations received to fund the purchase of London and North Western Railway Heritage Company Limited.

- 19 -

ROYAL SCOT LOCOMOTIVE AND GENERAL TRUST

NOTES TO THE FINANCIAL STATEMENTS (continued)

YEAR ENDED 31 MARCH 2022

13. FINANCIAL COMMITMENTS

At the reporting end date there were outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:

Within one year
Between two and five years
In over five years		 Group
2022
£
200,000
600,000
-
800,000		 Trust
2022
£
200,000
600,000
-
800,000		 Group
2021
£
165,000
495,000
-
660,000		 Trust
2021
£
-
-
-
-

14. RELATED PARTY TRANSACTIONS

No Trustees received reimbursement during the year for travel and subsistence expenses (2021: none). No Trustee or any persons connected with them received any remuneration during the year.

During the year Locomotive Services Limited, a related undertaking, recharged expenses to the Trust of £230,000 (2021: £250,000). As at 31 March 2022, the Trust owed Locomotive Services Limited £37,401 (2021: £25,000).

During the year, London and North Western Railway Heritage Company Limited earned income totalling £1,884,170 (2021: £2,057,083) from the following companies, all of which are related undertakings:

The transactions were conducted on an arm’s length basis and a total of £375,270 (2021: £216,213) was outstanding in respect of these amounts at the balance sheet date.

During the year to 31 March 2022, Locomotive Storage Limited earned income of £89,444 (2021: £284,633) from services provided to London and North Western Railway Heritage Company Limited. As at 31 March 2022, the amount outstanding was £nil (2021: £nil).

All related party companies identified above are incorporated in England and Wales, and are related as they are under the control of one of the Trustees.

- 20 -