OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2023-03-31-accounts

CHARITY REGISTRATION No: 1139588

COMPANY REGISTRATION No: 06952089

ROYAL SCOT LOCOMOTIVE AND GENERAL TRUST

FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2023

ROYAL SCOT LOCOMOTIVE AND GENERAL TRUST

CONTENTS

YEAR ENDED 31 MARCH 2023

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 2023

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 2023.

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

- 1 -

ROYAL SCOT LOCOMOTIVE AND GENERAL TRUST

TRUSTEES’ REPORT

YEAR ENDED 31 MARCH 2023

The Trustees submit their report and the Financial Statements for the year ended 31 March 2023. 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 R W Abbey Mr P Adds Mr R Drury Mr D J C Dunstone Mr P N Greenwood

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

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 widest group of the public is reached by running steam tours on mainline charters. In the year to March 2023 Royal Scot operated 9 times on the mainline for Saphos Trains, whereas Britannia operated 14 times for Saphos and once for Steam Dreams, a company brought into the wider group of companies in June 2022. In addition the rake of Mark 1 carriages, purchased by the Trust in December 2021, were used by Saphos on each of its 25 trips in the year, and by Steam Dreams for 6 trips. In this way, 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.

Britannia was used by for a private charter run by the charity, the Railway Benefit Fund, in August 2022.

- 2 -

ROYAL SCOT LOCOMOTIVE AND GENERAL TRUST

TRUSTEES’ REPORT

YEAR ENDED 31 MARCH 2023

OBJECTIVES AND PERFORMANCE (continued)

In November 2022 a ten-year agreement commenced for the lease and operation of 60007 “Sir Nigel Gresley”. The locomotive was subsequently hired to Steam Dreams four times in the year.

It is the Trustees’ intention to make each locomotive available to preserved lines whenever possible to bring them to as wide an audience as possible. When permissible footplate experience is 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. With the opening up post COVID the Trust’s engines have started to visit galas on preserved lines again this year. Sir Nigel Gresley was a star attraction at the Severn Valley Railway Gala in April 2022, and Britannia appeared at the Swanage Railway Gala in March 2023, which included five Driver Experience Days.

BBC’s Blue Peter continued their interest in the progress of the engineering work on the locomotive Blue Peter, and are looking forward to its completion in the early part of 2024.

The Trustees give 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.

The 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. Follower numbers are steadily increasing, and posts are always well received.

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 Grey’ numbered 55022, 60532 ‘Blue Peter and 6024 ‘King Edward 1’.

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.

- 3 -

ROYAL SCOT LOCOMOTIVE AND GENERAL TRUST

TRUSTEES’ REPORT

YEAR ENDED 31 MARCH 2023

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 2023 was £2,502,968 (2022: £3,545,089). Charitable activities for the year are set out in note 3 to the accounts.

Net profit for the year in the subsidiary companies totalled £257,955 (2022: £163,412), and the net assets of the Trust decreased to £29,489,850 from £34,119,957 during the year largely due to the fixed asset impairment and investment losses 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 £28,862,764 (2022: £33,492,871) of which £26,782,463 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

21[st] December 2023

- 4 -

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 2023

Opinion

We have audited the financial statements of Royal Scot Locomotive and General Trust for the year ended 31 March 2023 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).

In our opinion, the accounts:

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:

- 5 -

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 2023

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.

- 6 -

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 2023

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.

- 7 -

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 2023

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

21[st] December 2023

- 8 -

ROYAL SCOT LOCOMOTIVE AND GENERAL TRUST

GROUP STATEMENT OF FINANCIAL ACTIVITIES

YEAR ENDED 31 MARCH 2023

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 losses/(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		 2023
Unrestricted
Fund
£
1,295,568
489,519
4,289,493
6,074,580
(31,496)
(7,862,932)
-
(7,894,428)
(3,299,319)
(5,119,167)
-
(5,119,167)
32,812,297
27,693,130		 2023
Restricted
Fund
£
-
-
-
-
-
-
-
-
-
-
-
-
244,127
244,127		 2023
Total
£
1,295,568
489,519
4,289,493
6,074,580
(31,496)
(7,862,932)
-
(7,894,428)
(3,299,319)
(5,119,167)
-
(5,119,167)
33,056,424
27,937,257		 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

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.

- 9 -

ROYAL SCOT LOCOMOTIVE AND GENERAL TRUST

STATEMENT OF FINANCIAL ACTIVITIES - TRUST

YEAR ENDED 31 MARCH 2023

Note
INCOME AND ENDOWMENTS FROM
Donations and legacies
Investments
TOTAL INCOME AND ENDOWMENTS
EXPENDITURE ON
Raising funds
Charitable activities
3
TOTAL RESOURCES EXPENDED
Net losses/gains on investments
NET OUTGOING RESOURCES
TRANSFER BETWEEN FUNDS
NET MOVEMENT IN FUNDS
2
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD		 2023
Unrestricted
Fund
£
1,445,569
1,057,399
2,502,968
(31,496)
(3,802,260)
(3,833,756)
(3,299,319)
(4,630,107)
-
(4,630,107)
33,492,871
28,862,764
2023

Restricted
Fund
£
-
-
-
-
-
-
-
-
627,086
627,086

2023
Total
£
1,445,569
1,057,399
2,502,968
(31,496)
(3,802,260)
(3,833,756)
(3,299,319)
(4,630,107)
-
(4,630,107)
34,119,957
29,489,850		 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
Funds
£
-
-		 2022
Total
£

2,975,743

569,346
-
-
 3,545,089
(52,079)
(10,423,493)
- (10,475,572)

3,104,428
-
-
627,086		 (3,826,055)
-
(3,826,055)
37,946,013
627,086
34,119,957

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

- 10 -

ROYAL SCOT LOCOMOTIVE AND GENERAL TRUST

BALANCE SHEET

31 MARCH 2023

Notes
FIXED ASSETS
Tangible assets
6
Investments
7
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 23
£
10,619,833
16,162,630
26,782,463
400,033
930,006
1,041,489
2,371,528
(1,216,734)
1,154,794
27,937,257
244,127
27,693,130
27,937,257		 Trust
31 Mar 23
£
11,889,449
17,062,633
28,952,082
-
572,635
875,519
1,448,154
(910,386)
537,768
29,489,850
627,086
28,862,764
29,489,850		 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

These Financial Statements were approved and signed by the Trustees on 21[st] December 2023.

Mr J J Hosking Trustee

- 11 -

ROYAL SCOT LOCOMOTIVE AND GENERAL TRUST

CONSOLIDATED STATEMENT OF CASH FLOWS

YEAR ENDED 31 MARCH 2023

£
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
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		 489,519
2,161,281
-
(3,136,726)		 2023
£
662,166
(485,926)
176,240
1,061,246
1,237,486
2023
£
1,041,489
195,997
1,237,486		 £
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

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

Net expenditure per the SOFA
Adjustment for:
Depreciation
Amortisation
Investment income
(Losses)/gains on investments
Impairment of fixed assets
Increase in stock
Increase in debtors
Increase in creditors		 2023
£
(5,119,167)
711,640
-
(489,519)
3,299,319
2,072,479
(179,620)
(83,559)
450,593
662,166		 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

- 12 -

ROYAL SCOT LOCOMOTIVE AND GENERAL TRUST

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2023

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.

- 13 -

ROYAL SCOT LOCOMOTIVE AND GENERAL TRUST

NOTES TO THE FINANCIAL STATEMENTS (continued)

YEAR ENDED 31 MARCH 2023

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. Depreciation is charged on these assets on separately identifiable components, and on the asset as a whole based on the time since the last overhaul.

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

Heritage assets – straight line over 10 years

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.

- 14 -

ROYAL SCOT LOCOMOTIVE AND GENERAL TRUST

NOTES TO THE FINANCIAL STATEMENTS (continued)

YEAR ENDED 31 MARCH 2023

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
2023
£

12,950
10,996
711,640
735,586		 Trust
2023
£
6,950
1,525

612,789

621,264		 Group
2022
£
11,750
9,669
205,354
226,773		 Trust
2022

£
6,550
1,054
80,554
88,158

3. CHARITABLE ACTIVITIES

Direct charitable expenditure
Commercial trading operations		 Group
2023
£
3,405,568
4,457,364
7,862,932		 Trust
2023
£
3,802,260
-
3,802,260		 Group
2022
£
8,999,135
4,420,029
13,419,164		 Trust
2022

£
10,423,493
-
10,423,493

4. PARTICULARS OF EMPLOYEES

Through London and North Western Railway Heritage Company, the Group now has an average of 50 (2022: 48) 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
2023
£
1,413,897
142,956
62,701
1,619,554		 Trust
2023
£
-
-
-
-		 Group
2022
£
1,313,872
117,148
55,440
1,486,460		 Trust
2022
£
-
-
-
-

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 2023

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 2023.

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
2023
£
284,500
(91,164)
193,336
(167,547)
28,789
28,789
-
28,789
£
22,000
(20,211)
1,789		 Locomotive
6024 Ltd

2023
£
-
-
-
(17,516)
(17,516)
(17,516)
-
(17,516)
£
750

(7,330)
(6,580)		 Locomotive
70000 Ltd
London and
North Western
Railway
Heritage
Company
Limited
2023
2023
£
£
349,900
4,165,254
(74,764)
(2,914,733)
275,136
1,250,521

(68,552)
(1,210,423)


206,584
40,098
206,584
40,098
-
-
206,584
40,098
£
£
20,845
1,389,445

(17,531)
(488,200)

3,314
901,245		 Locomotive
70000 Ltd
London and
North Western
Railway
Heritage
Company
Limited
2023
2023
£
£
349,900
4,165,254
(74,764)
(2,914,733)
275,136
1,250,521

(68,552)
(1,210,423)


206,584
40,098
206,584
40,098
-
-
206,584
40,098
£
£
20,845
1,389,445

(17,531)
(488,200)

3,314
901,245
1,250,521
(1,210,423)
40,098
40,098
-
40,098
£
1,389,445
(488,200)
901,245

- 16 -

ROYAL SCOT LOCOMOTIVE AND GENERAL TRUST

NOTES TO THE FINANCIAL STATEMENTS (continued)

YEAR ENDED 31 MARCH 2023

6.
TANGIBLE FIXED ASSETS - GROUP
COST
At 1 April 2022
Additions
Impairments
At 31 March 2023
DEPRECIATION
At 1 April 2022
Charge for year
At 31 March 2023
NET BOOK VALUE
At 31 March 2023
At 31 March 2022
TANGIBLE FIXED ASSETS - TRUST
COST
At 1 April 2022
Additions
Impairments
At 31 March 2023
DEPRECIATION
At 1 April 2022
Charge for year
At 31 March 2023
NET BOOK VALUE
At 31 March 2023
At 31 March 2022		 Plant and
Machinery
etc
Steam
£
1,852,229
103,355
-
1,955,584
1,127,871
179,405
1,307,276
648,308
724,358
Plant and
Machinery
etc
Steam
£
752,309
82,022
-
834,331
402,771
80,554
483,325
357,006
349,538		 Plant and
Machinery
etc
Steam
£
1,852,229
103,355
-
1,955,584
1,127,871
179,405
1,307,276
648,308
724,358
Plant and
Machinery
etc
Steam
£
752,309
82,022
-
834,331
402,771
80,554
483,325
357,006
349,538		 Locomotives,
Coaches etc
£
9,942,866
3,033,373
(2,072,479)
10,903,760
400,000
532,235
932,235
9,971,525
9,542,866
Locomotives,
Coaches etc
£
11,263,039
3,477,020
(2,269,381)
12,470,678
400.000
532,235
932,235
11,538,443
10,863,039		 Total
£
11,795,095
3,136,728
(2,072,479)
12,859,344
1,527,871
711,640
2,239,511
10,619,833
10,267,224
Total
£
12,015,348
3,559,042
(2,269,381)
13,305,009
802,771
612,789
1,415,560
11,889,449
11,212,577

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 2023

2019 2020 2021 2022
Restoration of heritage assets 935,552 1,046,107 1,852,203 2,668,488
Acquisition of heritage assets - 911,658 540,000 2,525,000

7. INVESTMENTS

Quoted investments – At market value
At 1 April
Additions at cost
Disposals
Net gains/(losses) on revaluations
Profit/(loss) on disposal
At 31 March		 Group
2023
£
21,623,233
-
(2,177,864)
(2,999,029)
(283,710)
16,162,630		 Trust
2023
£
21,623,233
-
(2,177,864)
(2,999,029)
(283,710)
16,162,630		 Group
2022
£
20,072,253
3,250,250
(4,800,067)
2,886,640

214,157
21,623,233
Unquoted investments
At 1 April
Additions
Impairment
At 31 March		 Group
2023
£
-
-
-
-
Trust
2023
£
600,003
317,626
(17,626)
900,003		 Group
2022
£
-
-
-
-		 Trust
2022
£
600,003
14,975
(14,975)
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 2023.

Interest in
ordinary share Country of
Subsidiary undertakings capital incorporation Principal activity
Locomotive 70000 Limited 100% England & Operating the Trust’s coaching
(Company no. 07346193) Wales stock
Locomotive 6100 Limited 100% England & Operating the Trust’s
(Company no. 06958560) Wales locomotives
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
2023
£
270,600
-
659,406		 Trust
2023
£

-

7,783

564,852
572,635		 Group
2022
£
172,821
-
964,587
1,137,408		 Trust
2022
£
96,111
-
820,038
930,006 916,149

- 18 -

ROYAL SCOT LOCOMOTIVE AND GENERAL TRUST

NOTES TO THE FINANCIAL STATEMENTS (continued)

YEAR ENDED 31 MARCH 2023

9. CREDITORS: Amounts falling due within one year

Trade creditors
Taxation and social security
Other creditors
Accruals and deferred income		 Group
2023
£
920,472
42,841
123,983
129,438
1,216,734		 Trust
2023
£
750,561
-
39,112
120,713
910,386		 Group
2022
£
475,077
35,454
167,198
88,413
766,142		 Trust
2022
£
398,178
-
188,469
78,448
665,095

10. CONTINGENT LIABILITY

There were no legal claims outstanding against the Group at the balance sheet date.

11. UNRESTRICTED FUND

Group
2023
£
At 1 April
32,812,297
Net movement in funds for the
year
(5,119,167)
At 31 March
27,693,130
Trust
2023
£
33,492,871
(4,630,107)
28,862,764		 Group
2022
£
36,260,058
(3,447,761)
32,812,297		 Trust
2022
£
37,318,926
(3,826,055)
33,492,871

12. RESTRICTED FUND

Group
2023
£
At 1 April
244,127
Net movement in funds for the
year
-
At 31 March
244,127
Trust
2023
£
627,086
-
627,086		 Group
2022
£
273,910
(29,783)
244,127		 Trust
2022
£
627,086
-
627,086

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 2023

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		 Group
2023
£
200,000
400,000
600,000
Trust
2023
£
200,000
400,000
600,000		 Group
2022
£
200,000
600,000
800,000		 Trust
2022
£
200,000
600,000
800,000

14. RELATED PARTY TRANSACTIONS

No Trustees received reimbursement during the year for travel and subsistence expenses (2022: 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 £380,000 (2022: £230,000). As at 31 March 2023, the Trust owed Locomotive Services Limited £87,897 (2022: £37,401).

During the year, London and North Western Railway Heritage Company Limited earned income totalling £2,780,951 (2022: £1,884,170) from the following companies, all of which are related undertakings:

The transactions were conducted on an arm’s length basis and a total of £221,152 (2022: £375,270) was outstanding in respect of these amounts at the balance sheet date.

During the year to 31 March 2023, Locomotive Storage Limited earned income of £113,266 (2022: £89,444) from services provided to London and North Western Railway Heritage Company Limited. As at 31 March 2023, the amount outstanding was £99,045 (2022: £18,000).

During the year to 31 March 2023, Locomotive Services (TOC) Limited earned income of £61,208 (2022: £96,639) from London and North Western Railway Heritage Company Limited.

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 -