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2021-03-31-accounts

Charity Registration No. 1139786

Company Registration No. 06999964 (England and Wales)

CAMBRIAN HERITAGE RAILWAYS LIMITED ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

CAMBRIAN HERITAGE RAILWAYS LIMITED

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Mrs J M Owen
Mr R Date
Mr R Williams
Mr R M O Jones
Mr M Davidson
Mr G Evans
Mr P Bradley
Mr J Oliver
Mr D L Jones
Mr A Rudd
Mr T Sanderson
Mr P J McCracken (Appointed 4 June 2020)
Mr A C Green (Appointed 9 February
2021)
Charity number 1139786
Company number 06999964
Registered office Suite 1 Old Station Building
Oswald Road
Oswestry
Shropshire
United Kingdom
SY11 1RE
Independent examiner Azets Audit Services
5 - 7 Beatrice Street
Oswestry
Shropshire
United Kingdom
SY11 1QE

CAMBRIAN HERITAGE RAILWAYS 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

CAMBRIAN HERITAGE RAILWAYS LIMITED

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MARCH 2021

The Trustees present their report and financial statements for the year ended 31 March 2021.

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 memorandum of association , 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 charity's objectives are :

-The advancement of the education of the public in the history and heritage of the railway by such means as the trustees may determine.

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

Achievements and performance

During the year the charity has continued to run trains in line with its objectives.

Work has continued on extending the line from Oswestry to Weston.

Financial review

It is the trustees' policy to secure funds prior to making any financial commitments. The current level of reserves is in line with the requirements of the charity in light of the additional works being undertaken.

The Trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error.

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:

Mrs J M Owen

Mr R Date Mr R Williams Mr R M O Jones Mr M Davidson Mr G Evans Mr P Bradley Mr J Oliver Mr D L Jones

CAMBRIAN HERITAGE RAILWAYS LIMITED

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Mr A Rudd Mr T Sanderson Mr P J McCracken (Appointed 4 June 2020) Mr A C Green (Appointed 9 February 2021)

None of the Trustees has any beneficial interest in the company. All of the Trustees are members of the company and guarantee to contribute £1 in the event of a winding up.

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

.............................. Mr R Date Trustee Dated: .........................

CAMBRIAN HERITAGE RAILWAYS LIMITED

INDEPENDENT EXAMINER'S REPORT

TO THE TRUSTEES OF CAMBRIAN HERITAGE RAILWAYS LIMITED

I report to the Trustees on my examination of the financial statements of Cambrian Heritage Railways Limited (the charity) for the year ended 31 March 2021.

Responsibilities and basis of report

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

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

Independent examiner's statement

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

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

Azets Audit Services

5 - 7 Beatrice Street Oswestry Shropshire SY11 1QE United Kingdom

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

CAMBRIAN HERITAGE RAILWAYS LIMITED

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2021

Unrestricted
Restricted
funds
funds
2021
2021
Notes
£
£
Income from:
Donations and legacies
3
60,770
66,740
Charitable activities
4
22,408
-
Investments
5
1
-
Total income
83,179
66,740
Expenditure on:
Raising funds
6
1,814
-
Charitable activities
7
35,727
24,404
Total resources
expended
37,541
24,404
Net income for the year/
Net movement in funds
45,638
42,336
Fund balances at 1
April 2020
21,255
151,064
Fund balances at 31
March 2021
66,893
193,400
TotalUnrestricted
Restricted
funds
funds
2021
2020
2020
£
£
£
127,510
25,698
140,280
22,408
35,130
-
1
33
-
149,919
60,861
140,280
1,814
3,614
-
60,131
54,107
12,513
61,945
57,721
12,513
87,974
3,140
127,767
172,319
18,115
23,297
260,293
21,255
151,064
Total
2020
£
165,978
35,130
33
201,141
3,614
66,620
70,234
130,907
41,412
172,319

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.

CAMBRIAN HERITAGE RAILWAYS LIMITED

BALANCE SHEET

AS AT 31 MARCH 2021

Notes
Fixed assets
Tangible assets
11
Current assets
Stocks
12
Debtors
13
Cash at bank and in hand
Creditors: amounts falling due within
one year
15
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after
more than one year
16
Net assets
Income funds
Restricted funds
17
Unrestricted funds
2021
£
2,514
9,657
102,978
115,149
(52,337)
£
232,718
62,812
295,530
(35,237)
260,293
193,400
66,893
260,293
2020
£
2,514
9,177
68,270
79,961
(47,397)
£
145,155
32,564
177,719
(5,400)
172,319
151,064
21,255
172,319

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 March 2021.

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.

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 .........................

..............................

Mr R Date Trustee

Company Registration No. 06999964

CAMBRIAN HERITAGE RAILWAYS LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

1 Accounting policies

Charity information

Cambrian Heritage Railways Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is Suite 1 Old Station Building, Oswald Road, Oswestry, Shropshire, SY11 1RE, United Kingdom.

1.1 Accounting convention

The accounts have been prepared in accordance with the charity's Memorandum and Articles of Association, 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 in the notes to the financial statements.

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

1.4 Income

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

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

1.5 Expenditure

CAMBRIAN HERITAGE RAILWAYS LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

1 Accounting policies

(Continued)

Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

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:

Land and buildings None Plant and machinery 15% 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 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 ) .

1.8 Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell . Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. Items held for distribution at no or nominal consideration are measured the lower of replacement cost and cost.

Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.

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.

CAMBRIAN HERITAGE RAILWAYS LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

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 Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

1.12 Hire purchase and leasing commitments

Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight line basis over the period of the lease.

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.

CAMBRIAN HERITAGE RAILWAYS LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

3 Donations and legacies

Unrestricted
Restricted
funds
funds
2021
2021
£
£
Donations and gifts
40,770
5,340
Grants
20,000
61,400
60,770
66,740
TotalUnrestricted
Restricted
funds
funds
2021
2020
2020
£
£
£
46,110
25,698
7,627
81,400
-
132,653
127,510
25,698
140,280
Total
2020
£
33,325
132,653
165,978

Donated goods and services

Included within donations is £5,000 representing an estimate of the value attached to donated assets from the National Railway Museum. The value has been arrived at by reference to similar assets being sold on the open market.

4 Charitable activities

Activities Activities for
for generating funds
generating
funds
2021 2020
£ £
Fundraising 4,405 2,371
Membership fees 4,968 4,711
Ancillary trading income - 7,688
Charitable rental income 13,035 20,360
22,408 35,130

5 Investments

Unrestricted Unrestricted
funds funds
2021 2020
£ £
Interest receivable 1 33

CAMBRIAN HERITAGE RAILWAYS LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

6 Raising funds

Unrestricted Unrestricted
funds funds
2021 2020
£ £
Trading costs
Other trading activities 1,814 3,614
1,814 3,614

7 Charitable activities

Restoration Restoration
2021
2020
£
£
Depreciation and impairment 7,886
2,068
Rent 16,901
16,898
Operational costs 12,361
16,413
Insurance 9,604
8,577
Light and heat 1,983
2,428
Rates 210
385
Postage and stationery 1,317
1,407
Advertising -
984
Repairs and renewals 3,321
13,057
Accountancy 2,022
1,868
Sundries 3,864
785
Professional fees 100
1,095
Other charitable expenditure 562
655
60,131
66,620
60,131
66,620
Analysis by fund
Unrestricted funds 35,727
54,107
Restricted funds 24,404
12,513
60,131
66,620
For the year ended 31 March 2020
Unrestricted funds 54,107
Restricted funds 12,513
66,620

CAMBRIAN HERITAGE RAILWAYS LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

8 Trustees

None of the Trustees (or any persons connected with them) received any remuneration during the year , nor for the year ended 31 March 2020.

No trustees were reimbursed travelling expenses during the year, nor for the year ended 31 March 2020.

9 Employees

The average monthly number of employees during the year was:


Total
10
Taxation
The charity is exempt from corporation tax on its charitable activities.
11
Tangible fixed assets
Land and
buildings

£
Cost
At 1 April 2020
109,046
Additions
38,916
At 31 March 2021
147,962
Depreciation and impairment
At 1 April 2020
-
Depreciation charged in the year
-
At 31 March 2021
-
Carrying amount
At 31 March 2021
147,962
At 31 March 2020
109,046
Included in cost or valuation of tangible fixed assets is freehold land of £4,108.
12
Stocks
Finished goods and goods for resale
2021
Number
-
Plant and
machinery
£
41,549
56,532
98,081
5,440
7,885
13,325
84,756
36,109
2021
£
2,514
2020
Number
-
Total
£
150,595
95,448
246,043
5,440
7,885
13,325
232,718
145,155
2020
£
2,514

CAMBRIAN HERITAGE RAILWAYS LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

13
Debtors
Amounts falling due within one year:
Other debtors
14
Loans and overdrafts
Bank loans
Loans from related parties
Payable within one year
Payable after one year
2021
£
9,657
2021
£
20,000
45,000
65,000
48,163
16,837
2020
£
9,177
2020
£
-
45,000
45,000
45,000
-

No security has been offered for the borrowings.

The loan from related parties relates to a loan received from Cambrian Railways Trust, a charity that has Trustees in common with Cambrian Heritage Railway. The loan is repayable upon demand and carries no interest charge.

15 Creditors: amounts falling due within one year

Notes
Bank loans
14
Other borrowings
Trade creditors
Accruals and deferred income
2021
£
3,163
45,000
824
3,350
52,337
2020
£
-
45,000
847
1,550
47,397

16 Creditors: amounts falling due after more than one year

Notes
Bank loans
14
Other creditors
2021
£
16,837
18,400
35,237
2020
£
-
5,400
5,400

CAMBRIAN HERITAGE RAILWAYS LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

17 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 Movement in funds
Balance at Incoming Resources Balance at Incoming Resources Balance at
1 April 2019 resources expended 1 April 2020 resources expended
31
March 2021
£ £ £ £ £ £ £
Community
Orchard 8,030 438 (510) 7,958 115 (696) 7,377
Weston Line 15,267 132,653 (11,543) 136,377 41,425 (2,745) 175,057
08 Fund - 6,994 (460) 6,534 225 (238) 6,521
Norma - 195 - 195 - - 195
Lottery - - - - 19,975 (19,975) -
NRM Coach - - - - 5,000 (750) 4,250
23,297 140,280 (12,513) 151,064 66,740 (24,404) 193,400

Community Orchard fund

The incoming resources in this fund are to be used to create, plant and maintain an orchard within the grounds maintained by Cambrian Heritage Railways.

Weston Line

The incoming resources in this fund are to be used extending the line through Gas Works Bridge to Weston Wharf.

08 Fund

The resources in this fund are used to purchase, bring into use and maintain the 08 Loco.

Norma

The resources in this fund are restricted for use on the Norma engine.

Lottery

This funding was to support the charity during the Covid restrictions.

NRM Coach

This fund represents the donation of a coach from the National Railway Museum.

CAMBRIAN HERITAGE RAILWAYS LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

18
Analysis of net assets between funds
Unrestricted
Restricted
2021
2021
£
£
Fund balances at 31
March 2021 are
represented by:
Tangible assets
48,178
184,540
Current assets/
(liabilities)
53,952
8,860
Long term liabilities
(35,237)
-
66,893
193,400
TotalUnrestricted
Restricted
2021
2020
2020
£
£
£
232,718
14,757
130,398
62,812
12,093
20,471
(35,237)
(5,400)
-
260,293
21,450
150,869
Total
2020
£
145,155
32,564
(5,400)
172,319

19 Related party transactions

During the prior year a loan of £45,000 was received from Cambrian Railways Trust, a charity that has Trustees in common with Cambrian Heritage Railways.

The building at Weston Wharf is being built on land owned by Cambrian Railway Society, a charity that has Trustees in common with Cambrian Heritage Railways. There is a memorandum of understanding in place between the charities that they will work towards common goals. As such, Cambrian Heritage Railways uses the land with no rent being chargeable.