The 762 Club
Charity No. 1139839
Company No. 07401325
Trustees' Report and Unaudited Accounts
31 December 2021
The 762 Club Contents
| Pages | ||
|---|---|---|
| Trustees' Annual Report | 2 to 4 | |
| Independent Examiner's Report | 5 | |
| Statement of Financial Activities | 6 | |
| Summary Income and Expenditure Account | 7 | |
| Balance Sheet | 8 | |
| Notes to the Accounts | 9 to | 15 |
| Detailed Statement of Financial Activities | 16 to | 17 |
Page 1
The 762 Club Trustees Annual Report
The trustees, who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the unaudited financial statements of the charity for the year ended 31 December 2021.
REFERENCE AND ADMINISTRATIVE DETAILS
Company No. 07401325
Charity No. 1139839
Principal Office
26 Oaklands Bideford Devon EX39 3HW
Registered Office
c/o Accountancy Edge Ltd 12 Culm Close Bideford Devon EX39 4AX
Directors and Trustees
The Directors of the charitable company are its Trustees for the purposes of charity law. The following Directors and Trustees served during the year:
P. Miles J.H. Pain M.E.G. Swainson
Company Secretary
J.H. Pain
Accountants
Accountancy Edge Limited 12 Culm Close Bideford Devon EX39 4AX
Bankers
Lloyds Bank plc 5 High Street Bideford Devon EX39 2AD
Page 2
The 762 Club Trustees Annual Report
OBJECTIVES AND ACTIVITIES
The charity's objects are specifically restricted to the following: to build, preserve, operate and exhibit for the public benefit, for educational benefit and instructional purposes locomotives of historical or scientific interest.
In particular this related to a Baldwin 2-4-2 steam locomotive named LYN which was designed and built by the charity and now operates on the nascent Lynton & Barnstaple Railway modelled on the historic locomotive LYN, but engineered using modern designs and technology to provide an efficient, easy-to-maintain and powerful engine that is fit for very many years service in the 21st Century.
The 762 Club has set itself a new challenge - to eventually recreate all four of the Manning Wardle locomotives which operated the original railway. Commencing with YEO and EXE, whilst at the same time manufacturing specific additional components for both TAW and LEW.
The Lynton & Barnstaple Railway Trust owns the original Manning Wardle Trademark, consequently the 762 Club will use the Manning Wardle name.
The locomotives will be designed and manufactured using "known technology". We have substantial support from the team that designed and built LYD the Ffestiniog Railway's L&B new-build locomotive as well as our own experiences creating and operating LYN.
The 762 Club will now build two new locomotives which will have all the appearance of the originals in recognition of the railway's heritage.
As Trustees of the charity we have have given due consideration to the Charity Commission’s published guidance on the Public Benefit requirement under the Charities Act 2011. The charity benefits the public through the advancement of scientific and technical knowledge involved in the design and construction of iconic steam locomotives. When the locomotives are completed they will be available to the public and will assist in educating them about steam locomotion and narrow gauge railways.
ACHIEVEMENTS AND PERFORMANCE
LYN continues in regular revenue earning services to the Lynton & Barnstaple Railway CIC at Woody Bay in North Devon.
Fundraising continues for Project YEO and EXE. This year progress was made on the wheel castings and machinery.
FINANCIAL REVIEW
The Trustees consider the performance of the charity in the year to be satisfactory.
LYN is now earning the charity a return through commercial steamings, which is anticipated to be sufficient to fund future maintenance of the locomotive.
The charity is now seeking to raise funds to construct sister locomotives. As each locomotive is estimated to cost up to £500,000 the charity's free cash reserves are currently insufficient to allow the completion of the either project. The Trustees are optimistic that further fundraising will continue to be successful.
The charity aims to keep sufficient free reserves to cover the ongoing maintenance costs of LYN.
PLANS FOR FUTURE PERIODS
Page 3
The 762 Club Trustees Annual Report
As noted, the charity is now steaming LYN and is managing the construction of two additional locomotives.
STRUCTURE, GOVERNANCE AND MANAGEMENT
The charity is governed by its Memorandum and Articles of Association incorporated on 8 October 2010 as amended 1 November 2010.
In addition to the power of the charity to appoint trustees at a general meeting, the Board of Trustees have power to appoint an eligible person as a trustee to fill a vacancy or act as an additional trustee.
The procedures adopted for the induction and training of trustees involve access to minutes of previous trustees' meetings, the advice of existing trustees, and the Charity Commission publication "The Essential Trustee".
The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Companies Act 2006. The Trustees are also responsible for safeguarding the assets of the charity and hence taking reasonable steps for the prevention and detection of fraud and other irregularities.
The above report has been prepared in accordance with the provisions applicable to companies subject to the small companies regime as set out in Part 15 of the Companies Act 2006 and in accordance with the Charities SORP (FRS 102).
Signed on behalf of the board
J.H. Pain Company Secretary 21 September 2022
Page 4
The 762 Club Independent Examiners Report
Independent Examiner's Report to the trustees of The 762 Club
I report to the charity trustees on my examination of the financial statements of The 762 Club for the year ended 31 December 2021 which comprise the Statement of Financial Activities, the Summary Income and Expenditure Account, the Balance Sheet and the related notes.
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 your charity's financial statements as carried out under section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the 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 can confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that:
-
accounting records were not kept in accordance with section 386 of the 2006 Act ; or
-
the financial statements do not accord with those records; or
-
the financial statements do not comply with the accounting requirements under section 396 of the 2006 Act other than any requirement that the financial statements give a 'true and fair' view which is not a matter considered as part of an independent examination; or
-
the financial statements have not been prepared in accordance with the Charities SORP (FRS 102).
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.
James Hellyer MA (Cantab.) FCA Chartered Accountant Accountancy Edge Limited 12 Culm Close Bideford Devon
EX39 4AX 21 September 2022
Page 5
The 762 Club Statement of Financial Activities
for the year ended 31 December 2021
| Notes Income and endowments from: Donations and legacies 4 Other trading activities 5 Other 6 Total Expenditure on: Raising funds 7 Charitable activities 8 Other 9 Total Net gains on investments Net income 10 Transfers between funds Net income before other gains/(losses) Other gains and losses Net movement in funds Reconciliation of funds: Total funds brought forward Total funds carried forward |
Unrestricted funds 2021 £ 57,668 12,600 - |
Total funds 2021 £ 57,668 12,600 - |
Total funds 2020 £ 37,336 11,106 35 |
|---|---|---|---|
| 70,268 - 1,678 1,196 |
70,268 - 1,678 1,196 |
48,477 430 1,543 838 |
|
| 2,874 - |
2,874 - |
2,811 - |
|
| 67,394 - |
67,394 - |
45,666 - |
|
| 67,394 | 67,394 | 45,666 | |
| 67,394 880,231 |
67,394 880,231 |
45,666 834,565 |
|
| 947,625 | 947,625 | 880,231 |
Page 6
The 762 Club Summary Income and Expenditure Account
for the year ended 31 December 2021
| Income Gross income for the year Expenditure Total expenditure for the year Net income before tax for the year Net income for the year |
2021 £ 70,268 70,268 2,874 2,874 67,394 67,394 |
2020 £ 48,477 |
|---|---|---|
| 48,477 | ||
| 2,811 | ||
| 2,811 | ||
| 45,666 | ||
| 45,666 |
Page 7
The 762 Club Balance Sheet
at 31 December 2021
| Company No. 07401325 Notes 2021 £ Fixed assets Tangible assets 12 739,067 739,067 Current assets Debtors 13 8,142 Cash at bank and in hand 201,317 209,459 Creditors:Amount falling due within one year 14 (901) Net current assets 208,558 Total assets less current liabilities 947,625 Net assets excluding pension asset or liability 947,625 Total net assets 947,625 The funds of the charity Restricted funds 15 Unrestricted funds 15 General funds 843,302 Designated funds 104,323 947,625 Total funds 947,625 |
2020 £ 706,637 |
|---|---|
| 706,637 1,860 172,533 |
|
| 174,393 (799) |
|
| 173,594 880,231 |
|
| 880,231 | |
| 880,231 | |
| 764,531 115,700 |
|
| 880,231 | |
| 880,231 |
These accounts have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.
For the year ended 31 December 2021 the company was entitled to exemption under section 477 of the Companies Act 2006 relating to small companies.
The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of accounts.
Approved by the board on 21 September 2022
And signed on its behalf by:
J.H. Pain Trustee 21 September 2022
Page 8
The 762 Club Notes to the Accounts
for the year ended 31 December 2021
- 1 Accounting policies
Basis of preparation
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 Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
Change in basis of accounting or to previous accounts
There has been no change to the accounting policies (valuation rules and method of accounting) since last year and no changes have been made to accounts for previous years.
Fund accounting
-
Unrestricted funds These are available for use at the discretion of the trustees in furtherance of the general objects of the charity.
-
Designated funds These are unrestricted funds earmarked by the trustees for particular purposes. Revaluation funds These are unrestricted funds which include a revaluation reserve representing the restatement of investment assets at their market values.
-
Restricted funds These are available for use subject to restrictions imposed by the donor or through terms of an appeal.
Income
-
Recognition of Income is included in the Statement of Financial Activities (SoFA) when the charity income becomes entitled to, and virtually certain to receive, the income and the amount of the income can be measured with sufficient reliability.
-
Income with related Where income has related expenditure the income and related expenditure is expenditure reported gross in the SoFA.
-
Donations and Voluntary income received by way of grants, donations and gifts is included in the legacies the SoFA when receivable and only when the Charity has unconditional entitlement to the income.
-
Tax reclaims on Income from tax reclaims is included in the SoFA at the same time as the donations and gifts gift/donation to which it relates. Donated services These are only included in income (with an equivalent amount in expenditure) and facilities where the benefit to the Charity is reasonably quantifiable, measurable and material.
Volunteer help The value of any volunteer help received is not included in the accounts. Investment income This is included in the accounts when receivable. Gains/(losses) on This includes any gain or loss resulting from revaluing investments to market value revaluation of fixed at the end of the year. assets Gains/(losses) on This includes any gain or loss on the sale of investments. investment assets
Page 9
The 762 Club Notes to the Accounts
Expenditure
-
Recognition of Expenditure is recognised on an accruals basis. Expenditure includes any VAT which expenditure cannot be fully recovered, and is reported as part of the expenditure to which it relates.
-
Expenditure on These comprise the costs associated with attracting voluntary income, fundraising raising funds trading costs and investment management costs. Expenditure on These comprise the costs incurred by the Charity in the delivery of its activities and charitable activities services in the furtherance of its objects, including the making of grants and governance costs.
-
Grants payable All grant expenditure is accounted for on an actual paid basis plus an accrual for grants that have been approved by the trustees at the end of the year but not yet paid.
-
Governance costs These include those costs associated with meeting the constitutional and statutory requirements of the Charity, including any audit/independent examination fees, costs linked to the strategic management of the Charity, together with a share of other administration costs.
-
Other expenditure These are support costs not allocated to a particular activity.
Taxation
The charity is exempt from corporation tax on its charitable activities.
Tangible fixed assets and depreciation
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life:
Plant & machinery 0% straight line
The residual value of the locomotive is equal to or higher than its historical cost. Therefore no depreciation is provided.
Freehold investment property
Investment properties are measured initially at cost and subsequently at fair value at each balance sheet date and are not depreciated. All gains or losses are taken to the Statement of Financial Activities as they arise.
Stocks
Stock is included at the lower of cost or net realisable value. Donated items of stock are recognised at fair value which is the amount the charity would have been willing to pay for the items on the open market.
Trade and other debtors
Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
Cash and cash equivalents
Cash and cash equivalents comprise cash at bank and on hand, demand deposits with banks and other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. In the statement of financial position, bank overdrafts are shown within borrowings or current liabilities. In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the company's cash management.
Page 10
The 762 Club Notes to the Accounts
Trade and other creditors
Short term creditors are measured at the transaction price. Other creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.
Research and development
Expenditure on research and development is written off in the year in which it is incurred.
Foreign currencies
Monetary assets and liabilities denominated in currencies other than the functional currency of the charity are translated at the rates of exchange prevailing at the end of the reporting period. Transactions in currencies other than the functional currency of the charity are recorded at the rate of exchange on the date that the transaction occurred.
All exchange differences are are taken into account in arriving at net income/expenditure.
Leased assets
Where the charity enters into a lease which entails taking substantially all the risks and rewards of ownership of an asset, the lease is treated as a finance lease.
Leases which do not transfer substantially all the risks and rewards of ownership to charity are classified as operating leases.
Assets held under finance leases are initially recognised as assets of the charity at their fair value at the inception of the lease or, if lower, at the present value of the minimum lease payments. The corresponding liability to the lessor is included in the balance sheet date as a finance lease obligation. Lease payments are apportioned between finance expenses and reduction of the lease obligation so as to achieve a constant rate of interest on the remaining balance of the liability. Finance expenses are recognised immediately, unless they are directly attributable to qualifying assets, in which case they are capitalised in accordance with the charity's policy on borrowing costs.
Assets held under finance leases are depreciated in the same way as owned assets.
Operating lease payments are recognised as an expense on a straight-line basis over the lease term. In the event that lease incentives are received to enter into operating leases, such incentives are recognised as a liability. The aggregate benefit of incentives is recognised as a reduction of rental expense on a straight-line basis.
Pension costs
The charity operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payments obligations. The contributions are recognised as expenses when they fall due. Amounts not paid are shown in accruals in the balance sheet. The assets of the plan are held separately from the company in independently administered funds.
Receipt of donated goods, facilities and services
All donated goods, facilities and services received are recognised within incoming resources and expenditure at an estimate of the value to the charity.
Page 11
The 762 Club Notes to the Accounts
2 Company status
The company is a private company limited by guarantee and consequently does not have share capital.
3 Statement of Financial Activities - prior year
| 3 Statement of Financial Activities - prior year |
|||
|---|---|---|---|
| Income and endowments from: Donations and legacies Other trading activities Other Total Expenditure on: Raising funds Charitable activities Other Total Net income Net income before other gains/(losses) Other gains and losses: Net movement in funds Reconciliation of funds: Total funds brought forward Total funds carried forward 4 Income from donations and legacies Donations 5 Income from other trading activities Steaming fees |
Unrestricted £ 57,668 57,668 Unrestricted £ 12,600 12,600 |
Unrestricted funds 2020 £ 37,336 11,106 35 48,477 430 1,543 838 2,811 45,666 45,666 45,666 834,565 880,231 Total 2021 £ 57,668 57,668 Total 2021 £ 12,600 12,600 |
Total funds 2020 £ 37,336 11,106 35 |
| 48,477 430 1,543 838 |
|||
| 2,811 | |||
| 45,666 | |||
| 45,666 | |||
| 45,666 834,565 |
|||
| 880,231 | |||
| Total 2020 £ 37,336 |
|||
| 37,336 | |||
| Total 2020 £ 11,106 |
|||
| 11,106 |
Page 12
The 762 Club Notes to the Accounts
6 Other income
| Advertising 7 Expenditure on raising funds Fundraising trading costs Sale of donated items and memorabilia 8 Expenditure on charitable activities Governance costs Trustees' indemnity insurance 9 Other expenditure General administrative costs Legal and professional costs 10 Net income before transfers This is stated after charging: Independent Examiner's fee 11 Staff costs No employee received emoluments in excess of £60,000. |
Unrestricted £ 1,678 1,678 Unrestricted £ 346 850 1,196 2021 £ 850 |
Total 2021 £ - - |
Total 2020 £ 35 |
|---|---|---|---|
| 35 | |||
| Total 2021 £ - - Total 2021 £ 1,678 1,678 Total 2021 £ 346 850 1,196 |
Total 2020 £ 430 |
||
| 430 | |||
| Total 2020 £ 1,543 |
|||
| 1,543 | |||
| Total 2020 £ 101 737 |
|||
| 838 | |||
| 2020 £ 750 |
Page 13
The 762 Club Notes to the Accounts
12 Tangible fixed assets
| 12 Tangible fixed assets | |||
|---|---|---|---|
| Cost or revaluation At 1 January 2021 Additions At 31 December 2021 Net book values At 31 December 2021 At 31 December 2020 13 Debtors VAT recoverable 14 Creditors: amounts falling due within one year Accruals |
2021 £ 8,142 8,142 2021 £ 901 901 |
Plant & machinery £ 706,637 32,430 739,067 739,067 706,637 |
Total £ 706,637 32,430 |
| 739,067 | |||
| 739,067 | |||
| 706,637 | |||
| 2020 £ 1,860 |
|||
| 1,860 | |||
| 2020 £ 799 |
|||
| 799 |
Page 14
The 762 Club Notes to the Accounts
15 Movement in funds
| 15 Movement in funds | |||||
|---|---|---|---|---|---|
| At 1 January 2021 764,531 67,683 48,017 - 115,700 880,231 |
Incoming resources (including other gains/losses) £ 13,962 - 30,774 25,532 56,306 70,268 |
Resources expended £ (2,874) - - - - (2,874) |
Gross transfers £ 67,683 (67,683) - - (67,683) - |
At 31 December 2021 £ 843,302 - 78,791 25,532 |
|
| Restricted funds: Unrestricted funds: General funds Designated funds: Sponsored parts fund YEO fund EXE fund Total Total funds |
|||||
| 104,323 | |||||
| 947,625 |
| Purposes and restrictions in relation to the funds: | Purposes and restrictions in relation to the funds: |
|---|---|
| Designated funds: | |
| Sponsored parts fund | To finance specified parts of the locomotive. |
| YEO fund | To finance the construction of the locomotive, YEO. |
| EXE fund | To finance the construction of the locomotive, EXE. |
16 Analysis of net assets between funds
| Fixed assets Net current assets Reconciliation of net debt Cash and cash equivalents Net debt |
At 1 January 2021 £ |
Unrestricted funds £ 739,067 208,558 947,625 Cash flows £ |
Total £ 739,067 208,558 |
|---|---|---|---|
| 947,625 | |||
| At 31 December 2021 £ |
|||
| 172,533 | 28,784 | 201,317 | |
| 172,533 172,533 |
28,784 28,784 |
201,317 | |
| 201,317 |
17 Reconciliation of net debt
18 Related party disclosures Controlling party
The company is limited by guarantee and has no share capital; thus no single party controls the company.
Page 15
The 762 Club Detailed Statement of Financial Activities
for the year ended 31 December 2021
| Income and endowments from: Donations and legacies Donations Other trading activities Steaming fees Other Advertising Total income and endowments Expenditure on: Costs of other trading activities Sale of donated items and memorabilia Total of expenditure on raising funds Governance costs Trustees' indemnity insurance Total of expenditure on charitable activities General administrative costs, including depreciation and amortisation Depreciation of Plant & machinery Bank charges Software, IT support and related costs Sundry expenses Legal and professional costs Audit/Independent examination fees Total of expenditure of other costs |
Unrestricted funds 2021 £ 57,668 57,668 12,600 12,600 - - 70,268 - - - 1,678 1,678 1,678 - 93 240 13 346 850 850 1,196 |
Total funds 2021 £ 57,668 57,668 12,600 12,600 - - 70,268 - - - 1,678 1,678 1,678 - 93 240 13 346 850 850 1,196 |
Total funds 2020 £ 37,336 |
|---|---|---|---|
| 37,336 | |||
| 11,106 | |||
| 11,106 | |||
| 35 | |||
| 35 | |||
| 48,477 430 |
|||
| 430 | |||
| 430 1,543 |
|||
| 1,543 | |||
| 1,543 - 88 - 13 |
|||
| 101 | |||
| 737 | |||
| 737 | |||
| 838 |
Page 16
The 762 Club Detailed Statement of Financial Activities
| The 762 Club Detailed Statement of Financial Activities |
|||
|---|---|---|---|
| Total expenditure Net gains on investments Net income Net income before other gains/(losses) Other Gains Net movement in funds Reconciliation of funds: Total funds brought forward Total funds carried forward |
2,874 - 67,394 67,394 - 67,394 880,231 947,625 |
2,874 - 67,394 67,394 - 67,394 880,231 947,625 |
2,811 - |
| 45,666 | |||
| 45,666 - |
|||
| 45,666 | |||
| 834,565 | |||
| 880,231 |
Page 17