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2020-12-31-accounts

THE SOMERSET & DORSET RAILWAY TRUST LTD

(A company limited by guarantee)

REPORT & FINANCIAL STATEMENTS

Year ending 31st December 2020

Charity number 1158865

Company number 8945535

Registered address:

The Railway Station, Washford, Watchet, Somerset TA23 0PP

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Report of the Directors for the year ending 31 December 2020

The Trustees are pleased to present their annual Directors’ report together with the financial statements of the charity for the year ending 31 December 2020 which are also prepared to meet the requirements for a Directors’ report and accounts for Companies Act purposes.

The report of the directors has been prepared taking advantage of the small companies’ exemption of section 415A of the Companies Act 2006.

Chairman’s review

The Trust has completed one of the most extraordinary and challenging years in its history. The nearest comparison would be the move from Radstock in 1974 to the then fledgling West Somerset Railway plc. It has been the relationship between the Trust and its landlord which has dominated the activities of the Trustees. Receiving a notice to quit rented premises is never going to be a welcome experience. This was especially the case for the S&DRT, an established charity which had invested so much time, energy, and resources over forty years. The amount of disruption to the routine management of the Trust was considerable. Development plans were halted. Then came the COVID-19 pandemic, eventually stopping all activities though Washford volunteers were able carry out some activities during the summer. More detail of the Trust’s responses to both challenges will be found on page 4.

Out of adversity came unexpected support. This came from the existing membership and it soon became apparent that many new applications were being received. Many of these new members brought skills and offers of help. Others just wanted to show solidarity and did so from near and far. As unexpected and reassuring were the approaches and enquiries from other heritage railways. Of the discussions which ensued, some are still ongoing. The most significant of them was with The Mid-Hants Railway which has developed very successfully, extending to a much-needed period of hire of 53808. The relationship promises to be an enduring one.

The past year has involved hard work and difficult decisions by the Trustees. The circumstances exposed the risks to the Trust but, at the same time, sufficient resilience was available on the Board or recruited from the membership. This has included strategy, secretarial and health and safety.

Inevitably, each year marks the passing of familiar or notable people. I would like to mention here a few of them. Roy Larcombe was an ex-S&D fireman at Bath who never missed a reunion until he became ill. Roger Newman was lost to COVID-19. His extensive knowledge and dry wit will be missed. Brian Parnell was a previous organiser of the Hampshire Area Group. Also of Hampshire, and Board member was Rosie Jacob who passed away somewhat unexpectedly having given many years of loyal service.

The Trust will continue to face challenges and risks during the coming year. However, it is much better placed to deal with these than it was twelve months ago.

Ian Young (Chairman)

Purposes and activities

The charity’s objects are specifically restricted to the following:

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In shaping its objectives for the year and planning its activities the Trustees have considered the Charity Commission’s guidance on public benefit, including the guidance ‘public benefit: running a charity (PB2)’.

In planning the programme for 2020, the Trustees paid particular attention to activities involving public benefit, including introducing interactive displays and extending video facilities at Washford. Unfortunately, these plans were soon overtaken by events, notably the Covid-19 pandemic and the receipt in February of notice from West Somerset Railway plc to leave the Washford site. These events fundamentally changed what the Trust was able to do in 2020 and how it went about it. Fuller details are incorporated into ”Activities, Achievements and Performance” on page 4.

As a result of the exceptional events in early 2020 the Trustees refined their strategic vision:

In order to do this the Trust will attract, encourage and support members and volunteers; secure financial resilience for the Trust; and build positive relationships and partnerships with related organisations.

The Trustees will develop and adopt a forward action plan during 2021 and will continue to evolve the established organisational structure with clear accountabilities and engage the membership in the development of the Trust.

Members and volunteers

With a 50% increase in membership over the last two years the Trustees have increased the frequency of member communications via the website and Facebook, and by post in addition to the quarterly magazine, “Pines Express”. The Board continues working to strengthen the Trust’s volunteer management. Continued attention has been given to the Trust’s membership database as a resource to identify and nurture future volunteers, particularly as the Trust will be operating over a wider geographical footprint than in recent years. During 2020 it has been particularly pleasing to welcome new volunteers in such diverse roles as Strategic Adviser, Health & Safety Manager, Raffle Promoter, 200 Club Organiser and Company Secretary. This provides a real level of support to the Trustees at a time of heightened activity and responsibility. During 2021 the Trust is looking for volunteers within sensible travelling distance of its new museum locations to assist in a variety of roles. The Trustees have also identified a particular need to supplement its existing heritage, conservation and history volunteer base. Once the future at Washford is clearly defined, Trustees are keen to reaffirm support and encouragement for the volunteers based there so that full advantage can be taken of the facilities available to us.

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Activities, achievements and performance

January – February 2020

The Annual Model Railway Exhibition was held successfully at Edington in January. The Washford volunteers completed refurbishment of the museum room, ladies WC and station shop in anticipation of what would turn out to be a non operational season.

Impact of Covid-19

At the end of March the Washford site was closed and remained so until July. Most of the workshop volunteers returned, observing social distancing and hygiene protocols, from July but the site was closed again just before Christmas with the advent of the latest lockdown. Whilst limited working on the site was possible, the West Somerset Railway was unable to run a train service at any time during the regular season and it was not feasible for the Trust to open the Washford shop or museum. The volunteers managed to put on an Open Weekend at the end of August.

All the previous annual fund raising events were cancelled, including the Special Train, Washford open weekends during WSR Galas and it was not possible to take the sales stall to a number of steam rallies, model railway exhibitions and similar.

The Trustees were unable to meet as usual bi-monthly on a Saturday, and have met by Zoom video conference on 33 occasions. It was not possible to hold a physical Annual General Meeting and a Zoom meeting was held on 25 July. This was attended by 40 members from a much wider catchment area than has been the case in recent years.

Whilst Washford shop sales were negligible and stall sales dramatically reduced much of the shortfall has been made up with a 170% increase in online sales. The Trust benefitted, especially during the first lockdown, by having a fully functioning online shop with a wide range of items for sale, and selling not just to members but to railway enthusiasts all over the country.

Financially, the Trust has not been hit as hard as many charities as many of its income streams were unaffected by the lockdown. Other than site costs much expenditure that had been planned has simply been deferred. Site costs for the period of the first lockdown, totalling £4,300 were paid from the National Lottery Heritage Emergency Funding programme.

Washford: Notice to leave Washford Site & Subsequent Events

On 11 February 2020 the Trust received notice via solicitors acting for West Somerset Railway plc to vacate Washford by February 2021 citing WSR’s wish to use the site for their own purposes. This came without warning and a mere 22 months after signing a 50 year lease extension which had been due to come into effect on 1 May 2020. This formal notice was followed up by a number of public statements by members of the WSR board. These were largely unhelpful and indicated quite clearly that there was no intention on WSR’s part at that time to back down or negotiate.

As a result the Trustees set about an urgent review of activities, took appropriate legal and professional advice and started to draw up plans to vacate the site, recognising that a huge proportion of the Trust’s resources would have to be diverted from its core functions to protect its legacy. It was quite clear that alternative locations, permanent or temporary, had to be identified and discussions entered into with multiple parties.

At the same time news of WSR’s action generated a large amount of goodwill towards the Trust from across the Heritage Railway Movement and further afield, and the Trustees were heartened by the volume of offers of assistance both financial and in kind. It gave the Trustees hope that out of this unexpected crisis a new and stronger future might emerge. This coloured the activities and events for the remainder of 2020.

Trustees had been concerned that the relationship with WSR had declined and this was borne out by the events of early 2020 where not only had WSR given notice to leave Washford but had then declined the Trust’s approaches to discuss the position. The Trustees called in the Heritage Railway Association to assist, as laid out in the agreement, and they put

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forward John Bailey, the highly respected Chairman of the North Yorkshire Moors Railway, to act as an independent facilitator to bring the two parties together and identify common ground.

Since that point there has been regular dialogue between senior representatives of WSR and the Trust, utilising the services of John Bailey as and when required.

There were several months of discussions with WSR as to when and how the Trust would exit the Washford site. These discussions needed to take account of Covid related delays and the level of investment the Trust had made to improve the site over 45 years.

In late October, WSR made a fundamental change in their approach. WSR admitted that it would not be in a position to make use of the site nor to pay compensation for the Trust owned infrastructure assets, and, as a consequence, offered the Trust an opportunity to stay at Washford on a 10 year lease. Given the advanced nature of collaboration plans (see below) the Trust subsequently requested that the new lease be for the yard only and that the station be handed back to WSR. There were a number of differences in requirements which are taking longer than anticipated to resolve. Discussions were ongoing at the end of 2020.

Trustees believe that by retaining a facility at Washford, covered accommodation for the vintage coaches can be assured, a continuing base for the existing volunteer restoration team can be maintained and the intrinsic value of the infrastructure improvements can be preserved.

Whilst matters have improved, and some progress has been achieved, Trustees have concluded that it is in the best interests of the Trust to loosen its ties with WSR wherever this is practicable, but to seek to remain on as good terms as possible with WSR for the foreseeable future.

Locomotive 53808

Before formal dialogue with WSR had commenced, WSR deepened the crisis in early May by issuing a public statement to the effect that they would not be in a position to meet their contractual liability to overhaul locomotive 53808 in 2023. Hitherto, Trustees regarded the two agreements with WSR to be separate, but this brought the future of the locomotive into the scope of the discussions facilitated by John Bailey.

As a result it was agreed that the current agreement with WSR to hire the locomotive for 10 years until 2030 in return for maintaining and overhauling it free of charge, would be suspended with immediate effect for the duration of the current boiler certificate, currently expected to expire in Winter 2022/23. This would enable the Trust to enter into an external hire agreement on a daily steaming fee basis for this period and for the Trust to retain the cash on the strict understanding that it be made available for the overhaul of the locomotive. The suspension agreement clarifies WSR’s requirement to provide funding which will reflect WSR’s usage since the previous overhaul. Crucially, the original agreement remains in place and WSR’s contractual commitment to carry out the overhaul is unaffected.

The Trust was already in discussions with the Mid-Hants Railway regarding wider collaboration (see below) and MHR offered to hire the locomotive for the period to the end of the current boiler certificate on a daily steaming fee basis. The locomotive moved to Alresford by road on 26 August, and took its bow on the MHR during their Steam Gala in October. Although restricted by the latest Covid lockdown, 53808 played a major part in MHR’s innovative and highly regarded Christmas “Steam Illuminations” event which generated much welcome good publicity and income for MHR and a high profile for the Trust.

Collaboration with new partners

It became clear early in the year that there was a number of options opening up for the Trust with regard to its museum collection and rolling stock. After a refreshing of the Trust’s strategic intentions, Trustees concluded that irrespective of the outcome of discussions with WSR, it was in the Trust’s best interests to move the museum and the majority of the rolling stock away from Washford and to seek collaborative agreements rather than formal leases with other heritage

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railways. This would enable the collection to be appreciated and bring the “S&D Story” to the attention of a larger and wider audience, without the physical restrictions of the Washford site.

In November, the Trust announced that it was entering a collaboration agreement with the Mid Hants Railway with the intention of moving museum artefacts to the MHR, some vans and wagons and to work towards creating a joint museum highlighting railway issues of common interest, such as SR Secondary Main Lines. In advance of the bulk move, the SR Parcels & Miscellaneous Vehicle (PMV), currently set up as a museum display vehicle, transferred to MHR by road in November and after upgrading at MHR’s cost acted as a “Steam Illuminations” generator vehicle.

The Trust has also been in discussions with another heritage railway regarding a similar collaboration to create a museum utilising two of the Trust’s display vehicles, and moving some vans and wagons there. It is hoped that this can be announced early in 2021.

The Trust has agreed to loan the Peat Railway exhibits to the Westonzoyland Pumping Museum.

“Progressing Our Future” Appeal

Soon after the news of the notice to leave Washford became public, the Trust received a number of donations. Once Trustees received details of the likely range of costs of moving, a fund raising appeal, “Safeguarding Our Future”, was launched to raise funds to meet the expected considerable costs of moving and potential legal fees, together with making good any deficit arising from the Covid disruption. As soon as the Trustees were assured that progress towards entering into new arrangements was underway the title of the appeal was amended to “Progressing Our Future”.

Trustees have been encouraged by and are immensely grateful to the large number of members and well wishers who have donated to the appeal. As at 31 December 2020 £29,450 including Gift Aid, had been pledged of which £28,646 had been received in cash.

Membership

As a result of the increased public profile in 2020, membership of the Trust has increased significantly. The figure of 170 new memberships in the year is exceptional, of which many are younger members and more geographically spread than the longer-standing members. Many of the new members have offered their support and skills over a wide range of interests and these are being followed up. The total number of members at 31 December 2020 was 755.

Locomotive ‘Kilmersdon’

Kilmersdon’s 10 year boiler certificate expired in January 2020 coinciding with the end of its hire period at the Helston Railway. Due to the Covid restrictions and closure of Helston Railway in 2020, the locomotive has remained in safe keeping at Helston, pending transfer by road to be overhauled in 2021.

Regulatory Inspection

Following a request from the Office of Road and Rail, ORR inspectors visited the site in December and carried out a full and successful inspection. The Trust has agreed with ORR on a way forward for operations on the site on the basis that the new lease with WSR is signed.

Pines Express’ and website

The ‘Pines Express’ magazine continues to go from strength to strength. A high standard of articles and member research during the lockdown led to an increase in magazine size to 48 pages for the Autumn issue and 44 pages for the Winter issue. The website and Facebook page have proved invaluable in keeping members and others up to date with news during a year when the Trust was in the spotlight rather more than usual.

Sales Developments

Despite losing a large volume of sales with the closure of the Washford shop and many cancelled events, the online ecommerce site had yet another record year with sales more than doubling. The overall impact on Trust finances was therefore minimal. In the Spring a reprint of Donald Beale’s “Southbound with the Pines” booklet was produced in

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house. Dapol produced limited runs in “O” and “OO” gauge of private owner wagons in the “Mendip Mountain Quarries” livery. These initiatives have been very successful, not only increasing sales but attracting a wider clientele to the website.

Photographic Collection

Progress has continued in digitising and cataloguing the Trust’s photographic collection. The number of images available for purchase via the website is now over 750, including the Casserley images acquired in 2019.

65 non S&D negatives from the Casserley collection were sold to a third party for £300, in accordance with the Trust’s collections policy.

Deferred and cancelled activities

As a result of the pandemic and uncertainty regarding Washford a number of activities planned were deferred. In particular carriage and wagon restoration work was put back by c9 months, the launch of the Coach Restoration Appeal fund was deferred until finances for moving and refocusing the museum are secured and Kilmersdon’s overhaul. Planned projects to upgrade the Washford site were aborted in February and are unlikely to occur in the foreseeable future.

Organisation structure

The Trust adopted an organisation structure which is reviewed regularly. In 2020 it has evolved to encompass new and revised roles which are and will be required as a result of new collaborations and revised methods of operating in the future. In 2020 the Board assigned a new portfolio to be responsible for moving the collection and planning new arrangements with future partners to Roger Hardingham. David Meaden took on the new role of Strategic Adviser and has also played a key role in negotiations with West Somerset Railway. In November the Trust was pleased to welcome Abbie Onibonoje to the vacant role of Secretary to the Board and Mark Stanistreet to the newly created specific role of Health & Safety Officer. The Trustees identified the need to recruit volunteers at its new sites during 2021 particularly on the museum side and continue to welcome offers to volunteer from members and others to assist the Trust as it enters a new phase of its existence.

Current board responsibilities are shown on page 9.

Financial review

There was a net inflow of £46,747 in the year boosted by Appeal donations, locomotive hire fees, NLHF Covid Emergency Funding and a much reduced level of spending as a result of Covid restrictions. Of the closing unrestricted funds balance, £42,523 is in the General fund with the remainder designated (see note 16 for details). Restricted funds increased from £931 to £28,941 primarily as a result of Appeal funds held which will be utilised in 2021.

The financial impact of Covid lockdowns and restricted activity has not had a major impact on the Trust’s finances in 2020. Income from Sales held up well with reductions in shop and event sales being offset by a large increase in online sales. Income from events was well down but was more than matched by deferred project costs which were unable to be carried out due to lockdown. The site costs for the period of the first lockdown were covered in full by NLHF Emergency Funding. The Trust has been fortunate that no single income or expenditure stream is dominant, and much of its activity was not impacted by the pandemic. Unless the pandemic restrictions are escalated dramatically the Trust will not be unduly affected financially for a period of at least two years.

In 2016, the Trustees determined that a minimum of 4 months of unrestricted general expenditure should be held in reserves. At the end of 2020 this threshold was comfortably exceeded, but the ratio was distorted by the exceptional activities during the year. It is anticipated that the future position will exceed the 4 month threshold.

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It is policy to invest funds at United Trust Bank and CCLA. At December 31 2020, £58,000 was held at CCLA in a no notice deposit, and £15,787 was held at United Trust Bank in a 12 month charity bond maturing in June 2021 earning interest at a fixed rate of 1.35%. Cash balances at HSBC were higher than normal due to the exceptionally low interest achievable on no notice deposit accounts.

The Trustees have concluded from their review of financial activities and forward expenditure requirements, including the likelihood of longer than anticipated Covid restrictions and the various impacts of moving the museum collection and rolling stock, that the charity is a going concern and accounts have been prepared on this basis. Review of financial performance is an important agenda item at Trustees’ meetings.

Plans for future periods

Plans for 2021 include:

Locomotives

53808 is expected to be in service as a mainstay of Mid-Hants Railway fleet throughout the 2021 operating season.

Following the expiry of Kilmersdon’s 10 year boiler ticket in January 2020 it is expected that the locomotive will be transported by road from Helston to the Mid-Hants Railway for overhaul. Funds set aside for this purpose are expected to be utilised in full. Trustees will consider hiring opportunities post overhaul.

Museum Collection and Collaboration Arrangements

Discussions are underway with Mid-Hants Railway to transfer further vehicles and some museum artefacts, on a long term loan basis, with the intention of creating a joint museum at MHR. This will be based in museum display vehicles and a new joint museum room. Discussions are also expected as to potential opportunities for a signalling display and the transfer of one or more of the S&D buildings from Washford.

In parallel with this, discussions are expected with another heritage railway to transfer some vehicles and some museum artefacts, on a long term loan basis, with the intention of creating a joint museum based principally in museum display vehicles.

Trustees remain open to other collaborative opportunities.

Washford

Negotiations with West Somerset Railway for a new lease for Washford yard are a priority for completion early in 2021.

Once concluded, satisfactorily revised working arrangements at Washford will need to be finalised and a comprehensive work programme drawn up for the Washford volunteer team once Covid restrictions are eased.

Safe and secure transfer of assets to new locations as dictated by agreements will be a priority including remedial work to some vehicles. Operation of the site, and in particular the movement of stock, will be strictly in accordance with the requirements of the Office of Road and Rail and prevailing Health & Safety legislation.

Fund Raising and Sales Income

Fund Raising Events will be reinstated as soon as Covid restrictions are eased although events in the early part of 2021, including the Model Railway Exhibition, have been cancelled. The Annual Raffle is being reinstated with a new promoter, Brian Read. It is hoped to run a Special train later in the year and to hold some events at Washford, albeit on a more limited scale than previously. Trustees will also seek to maximise fund raising opportunities at MHR and elsewhere.

Sales income will again be reliant on a strong online presence. Further in house publishing and limited edition wagon opportunities will be worked on. It is hoped that the Trust’s sales stall can be present at more widely spread events, once events restart.

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Volunteer Management, Communications and Website

Identification of volunteers to assist with moving to and operating at its new museum sites is a priority. Work will continue to strengthen the resilience of the Trust and to ensure an appropriate range of skills and interests is represented in the management of the Trust.

Communications to members and the wider heritage railway movement will be important during this period of change and work will continue to improve the methods of keeping in touch with members and publishing information in a timely and accurate manner.

The ecommerce site will migrate to an updated platform, Woocommerce, in early 2021 and advantages to be gained from this change will be fully utilised across the whole website.

Digitisation of records

The digitisation and availability of the Trust’s photo library will continue to be worked on through 2021.

Resilience and Governance

Once the peak workload of moving the collection has passed, Trustees will resume their work on the structure and governance of the Trust. The events of 2020 have brought about an increased resilience and Trustees will seek to build on this in future planning work. Trustees will also work to take account of the increased locomotive hire activity, larger online sales activity and the new challenges of working on multiple sites.

Funding and Appeals

Trustees will consider the future of the successful “Progressing Our Future” Appeal, taking into consideration the large volume of costs to be incurred in moving and renegotiating to stay at Washford. Trustees will also consider the funding requirements of future projects, most importantly restoration of Coaches 98 and 114, and assuring the future of both locomotives as well as any project expenditure with collaboration partners.

Administrative details

Charity number 1158865 Company number 8945535 Registered Office The Railway Station, Washford, Watchet, Somerset TA23 0PP Advisers Independent examiner Martin & Co Bridport Bankers HSBC Bank plc Yeovil Solicitors Nantes Weymouth

Directors and Trustees

The Directors of the charitable company (the charity) are its Trustees for the purpose of charity law. The Trustees and principal officers serving during the year and since the year end, together with the portfolios currently held, are as follows:

Elected Directors and Trustees:

I M Young Chairman
(Governance, Volunteers)
M Atkins (resigned 31 January 2020)
A N Davies (Sales, Washford Site)
R Hardingham (Locomotives, Site Moves, Promotions)
R Jacob (retired 25 July 2020)
R D W Ormston (Communications)
R S Pope (resigned 30 January 2020)
M J Rice (Finance)
J Rodney-Jones (resigned 18 January 2020)
P J C Trenchard (Partnerships, Heritage)

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Secretary A Onibonoje (from 1 November 2020)
Principal Officers:
Health & Safety Officer M Stanistreet (from 1 November 2020)
Magazine Editor R D W Ormston
Membership Secretary A J M Young
Museum Collections Assistant S R Gillett
Strategic Adviser D Meaden (from 5 June 2020)
Treasurer M J Rice
Webmaster A Beale
Washford Site:
Manager P Cracknell
Restoration Team Leader E L Lambe
Museum Displays Coordinator D Temple

Structure, Governance and Management

Governing Document

The Somerset & Dorset Railway Trust Ltd is a company limited by guarantee governed by its Memorandum and Articles of Association dated 14 August 2014. It is registered with the Charity Commission. Existing members of the Somerset & Dorset Railway Trust transferred to the present Trust when the charities were listed on the Register of Mergers on 4 March 2015. New members apply for membership. In the event of the charity’s dissolution, members resolve that any net assets will be passed directly for the objects, or any charity for purposes similar to the objects or to any charity for use for particular purposes that fall within the objects. Members are liable up to £10 per member for any debts remaining after dissolution.

Appointment of Trustees

As set out in the Articles of Association the Chairman of Trustees is appointed by the Trustees. Trustees are elected in rotation for three years by members either in person at the AGM or by proxy vote. The Trustees have the power to coopt Trustees who stand until the following AGM.

All members are circulated with invitations to nominate Trustees prior to the AGM advising them of the retiring Trustees and requesting nominations for the AGM. When considering appointing Trustees the Board has regard to the requirement for any specialist skills needed.

Trustee induction and training

New Trustees are briefed on: their legal obligations under charity and company law, the Charity Commission guidance on public benefit, and informed of the content of the Memorandum and Articles of Association, the committee and decision making processes, the business plan and recent financial performance of the charity. Trustees attend appropriate external training events where these will facilitate the undertaking of their role.

Organisation

The Board of Trustees administers the charity. To facilitate effective operations, the Board has authority to delegate certain operational matters to working groups and volunteer officers. During the pandemic the Board has met online on an almost weekly basis. During 2021 it is expected that the Board will transition back to fewer regular face to face meetings, whilst retaining the option for online meetings as and when required. The Board may establish subcommittees and time-limited working groups. Other officers attend Board meetings as required.

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Related parties and co-operation with other organisations

None of the Trustees receive remuneration or other benefit from their work with the charity. Any connection between a Trustee or senior officer of the charity with a related party must be disclosed to the full Board of Trustees in the same way as any other contractual relationship with a related party. Details of related party transactions are disclosed in note 17 to the accounts. In accordance with Trust policy Trustees withdraw from decisions where conflicts of interest arise.

Risk management

The Trust has identified a number of risks which are more numerous than has been the case in past years. Trustees address these risks regularly and ensure that adequate monitoring and mitigation is in place to deal with them.

Short term heightened level of risk:

Medium term risk:

Impact of macro risks on Trust:

Other risks are being addressed by maintaining up to date risk assessments of Trust activities, contingency planning where appropriate, emphasis of safe working practices and the development of, maintenance of, adherence to and monitoring of robust policies and regular training.

Trustees’ responsibilities in relation to the financial statements

The charity Trustees (who are also Directors of The Somerset & Dorset Railway Trust Ltd for the purposes of company law) are responsible for preparing a Trustees’ annual report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the charity Trustees to prepare financial statements for each year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including income and expenditure, of the charity for the period. In preparing the financial statements, the Trustees are required to:

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Select suitable accounting policies and then apply them consistently,. Observe the methods and principles in the Charities SORP., Makg jiJdgpmgnt£ and p<timatp% that arp rp.asnnahlp Anrl pnjflpnt.. State whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial stateFTrents', Prepare the financial statements on the going concem basi5 unle55 it is inappropriate to presume that th¢ charity will continue in businèss. The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time thp finanrial pn<itinn nf thp rhar+ty and to gnable thom to 8n5Lir8 that the financial statements comply with the Companies Act 2W6. They are also ￿sponsIble for safeguarding the assets of the charity and hence taking reasonable steps for the prevention and detection of fraud and other irregularitie& The Trusiees are responslble for the malntenance and iniegrfry of Ihe corporaie and financial infom)aiion included on the charity's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdiction ststement as disclosure to the independent examiner In so far a5 the Trustees are aware at the time of approving the Trustees, annual report: There is no rdevant information, being information needed by the independent examiner in connection with preparing thar reporL of which the independent èKaminer is unaware, and., The Trustees. having made enquiries of fellow Directors and the independent examiner that they ought to have individually taken, have each taken all steps that he/she is obliged to take as a Uirector In order to make themselves awa￿ of any ￿levant infomation and to establish that the independent examiner is aware of that infomiation. By order of the Board of Trustees l M Young (Chairman) 26 March 2021 12

lartin & Company Chartered Tax Advisers & Accountants 2 Victoria Grovo. Brldport, Dorset DT6 JAA Te1.. 01308 422131 Email". Info(amarlinand¢omp•ny.uk.com Web. www.martinandcompany.uk.com INDEPENDENT EXAMINER'S REPORT I'o thc Metnbers of The Somerset & Dorset Railway Trust Ltd on the accounts for Ihe year ended 31 st December 2020. This report is made solelv to the society's members. as a body. M}, examination work has been undertaken SO thai I might state to the societ) s Enembers those matters l am required to stale to them in an exatniners, report and for no other purpose. To the fullest extent permitted by. law, I do not accepl or assiime responsibility to Mnyone other than the socie1> and the society s members as a body, for m). work, for this report, or for the opinions I have fomied. Respective responsibilities of Society Board Members and the examiner The Society Board Members consider thai an audit is not required this year as an appropriate resolution was approved by members at the last AGM and that an independent examination is therefore appropriate. It is my responsibility; to.. examine the accounts stal¢ i¥hether particular matt¢rs have come to my attention. Basis of Independent Examiner's Statement An exaillinalion includes a review of the accounling records kept by the Company and a comparison of the accounts presented ivith those records. It algo includes consideration of any unusual items or disclosures in the accounts. and seeking explanations from the Board Members conceming any such Inattcrs. The procedures undertaken do not provide all the evidence thal would be required in an audit. and consequ¢ntly I do not ¢xpr¢ss an audil opinion on the accounts. Independent examiner's statement In the course of my examination, no matter has come to my attention which gives me reasonable cause to believe that, in any material respect, the Board Members have not met the requirements to ensure that proper accounting records are kept accounts are prepared whicli agree with th¢ accounting records and comply with generally accepted a¢¢ounting requiremenis; or b) to which. in wny opiiiion. attention should be drawn in order lo enable a proper understanding of ihe accoui)ts to be reached. Signed Dale 25th March 2021 Name nway Qualification FCCA Address 2, VICTORA GROVE. BRIDPORT, DORSET, DT6 3AA CELEBRATING DirÈrtors." Ilodn¢yVarndell crA l Bruc¢ Kenway FCCA Manag¢rs'. JJ¢ky Hornlblow 8AFCA l Alexandra CoddyATT Martln&Corwnylsatradlng natnÈof MartlnoTrdCompanylBridportl Ltd. R8gisterEd Office.. 2 ViCtori4Grov8. BridpDrt, Dorset DT63AA keglst•redin EnglandOr￿ W4les no. 5555048 7•01 YEAR5

THE SOMERSET & DORSET RAILWAY TRUST LTD

STATEMENT OF FINANCIAL ACTIVITIES

for year ending 31st December 2020

Notes
INCOMING RESOURCES
Subscriptions
Donations and grants
3
Charitable activities
4
Other activities
5
Investment income
6
Total incoming resources
RESOURCES EXPENDED
Expenditure on charitable activities
7
Cost of generating funds
8
Governance and support costs
9
Total resources expended
Transfers between funds
Accumulated fund brought forward
16
Accumulated fund carried forward
16
Net incoming resources for the year
before transfers
Net incoming resources for the year		 2020
2020
2020
Unrestricted
Funds
Restricted
Funds
Total Funds
£
£
£
12,055
12,055
13,685
35,396
49,081
3,871
0
3,871
16,374
16,374
381
381
46,366
35,396
81,762
23,420
3,250
26,670
1,126
0
1,126
3,083
4,136
7,219
27,629
7,386
35,015
18,737
28,010
46,747
0
0
0
18,737
28,010
46,747
84,746
931
85,677
103,483
28,941
132,424		 2019
Total
Funds
£
9,998
14,750
14,462
19,076
514
58,800
35,183
3,003
12,899
51,085
7,715
0
7,715
77,962
85,677

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

All income and expenditure derive from continuing activities.

14

THE SOMERSET & DORSET RAILWAY TRUST LTD BALANCE SHEEr as at 31st Dècember 2020 Ngt9S 2020 2019 FIXED ASSETS Tangible Assets Investments 11,993 13,498 . 12 CURRENT ASSETS Retail stock Debtors and prgpayments diik dewbil)" Bank & cash in hand 3.387 11.602 73.780 13 10,080 51,984 15 744 81288 128439 l F.%. GURRENT UABIUTIES Falling due bvtthin one ye8r Creditors and accruals Deferred income 14 15 2.652 3,457 IIET CURRENT ASSETS 120.430 72,178 NET ASSETS REPRESENTED B Y.. UnrèstrtdÈd fund Restricted lunds 1R 1G 103.a83 28.941 84.74R 931 ACCUMULATED FUNDS 85 677 The nnt￿ at pages 16 to 22 fom part of thége accounts These financial statements have been prepaTed &n accordaKe with the provisions applicable to companies subject to the small companies. regime. For the year ending 31 December 2020 the company was entided to exemption from audit under Sertlon 477 of the Companies Act 2(X)6 relatiTrg to small companies. Dirertors. respDnsib?Iitses-. The members have not required the company to obtain an audit of its accounts for t1￿ year in question in accordance wth Section 476,. The ￿1￿CtorS acknowledge their iesponsibilities for compknng with the requirements of the Act with respect to accounting ords and the preparation of accounts. The fi7ancial statements were approved and aUt￿$r15ed fof issue by the 8oèTd on 26 March 2021 Signed on behalf of the board of diroctors l M Young, Chairman 26 March 2021 15

THE SOMERSET & DORSET RAILWAY TRUST LTD

NOTES ON THE ACCOUNTS

1. Accounting Policies

Asset Category Annual Rate
Land Nil
Buildings & Trackwork 10%
Rolling Stock 5 %
Engineering Equipment 10 – 20%
Office & Other Equipment 10 – 20%

Steam locomotives owned by the charity are not capitalised and details by individual asset are found at Note 11.

16

2. Legal Status of the Charity

The charity is a company limited by guarantee and has no share capital. In the event of the charity being wound up, the liability in respect of the guarantee is restricted to a maximum of £10 per Trustee.

3. Income from donations and grants

Notes
General donations
Grants and specific donations
16
Gift Aid
Legacies
16		 2020
2020
2020
2019
Unrestricted
Funds
Restricted
Funds
Total Funds
Total
Funds
£
£
£
£
3,830
3,830
3,226
4,900
33,635
38,535
0
4,955
1,761
6,716
1,524
0
0
10,000
13,685
35,396
49,081
14,750

Details of the income into specific restricted funds can be found in Note 16.

The charity greatly benefits from the involvement and enthusiastic support of its many volunteers, details of which are given in the annual report. In accordance with accounting standards, the economic contribution of volunteers is not measured in the accounts.

4. Income from charitable activities

Museum entrance
Raffle
Model railway display
Special train
Other events
S&D 200 Club		 2020
2020
2020
2019
Unrestricted
Funds
Restricted
Funds
Total Funds
Total
Funds
£
£
£
£
0
0
1,499
0
0
5,222
2,666
2,666
2,354
0
0
2,153
0
0
1,234
1,205
1,205
2,000
3,871
0
3,871
14,462

17

5. Income from other activities

Notes
Retail Sales
Less : Cost of Sales:
Stock 1 January
_Add:_Purchases
_Less:_Stock 31 December
Gross Profit
_Less:_Post, packing and sundry costs
Retail sales contribution
Photo collection income
Loco hire and other income
11, 16		 2020
2020
2020
2019
Unrestricted
Funds
Restricted
Funds
Total Funds
Total
Funds
£
£
£
£
20,226
20,226
19,441
3,460
3,460
3,763
9,990
9,990
9,989
(3,387)
(3,387)
(3,460)
10,063
0
10,063
10,292
10,163
0
10,163
9,149
2,699
2,699
1,385
7,464
0
7,464
7,764
249
249
162
8,661
8,661
11,150
16,374
0
16,374
19,076

6. Investment income

All investment income arises from money held in interest bearing deposit accounts.

7. Expenditure on charitable activities

f generating funds
Notes
Magazines
Insurance
Museum electricity
Museum rent, water, phone etc.
Museum safety and security
Museum maintenance
Shed, track, equipment maintenance
16
Locomotives expenditure
Carriage maintenance
Wagons maintenance
Website, publicity, other events
13
Museum purchase
10
Museum displays and administration
Depreciation
11
Cost of generating funds -
- Raffle
- Model Railway Display
- Special train
- Washford events		 2020
2020
2020
Unrestricted
Funds
Restricted
Funds
Total Funds
£
£
£
7,873
7,873
3,904
3,904
2,218
2,218
1,473
1,473
1,911
1,911
2,053
2,053
631
631
138
2,970
3,108
481
481
0
0
823
823
0
0
411
280
691
1,504
1,504
23,420
3,250
26,670
2020
2020
2020
Unrestricted
Funds
Restricted
Funds
Total Funds
£
£
£
0
0
1,126
1,126
0
0
0
0
1,126
0
1,126		 2019
Total Funds
£
6,633
5,130
2,796
1,868
1,816
4,500
1,110
528
323
43
1,138
425
1,093
7,780
35,183
2019
Total Funds
£
1,495
907
378
223
3,003

8. Cost of generating funds

18

9. Governance and support costs

AGM and board meetings
HRA subs, travel, stationery, postage
Trustees' travel expenses
Legal and Professional fees
Consultancy
Volunteer Management expenses
Membership administration
Examiner's fee and expenses		 2020
2020
2020
Unrestricted
Funds
Restricted
Funds
Total Funds
£
£
£
703
703
701
169
869
323
323
3,968
3,968
0
0
0
0
978
978
378
378
3,083
4,136
7,219		 2019
Total Funds
£
647
395
209
0
10,840
36
412
360
12,899

The charity has no paid employees (2019: None).

The charity Trustees were not paid nor received any other benefits from the charity (2019: None). No Trustee were reimbursed expenses in attending Trustees’ meetings (2019: None) in accordance with procedures laid down by the Trustees. No charity Trustee received payment for professional or other services supplied to the charity (2019: None)

10. Heritage assets

In 1988 all items then classified as museum items were written off as an expense in order to comply with museum regulations prevailing at that time. This amounted to £2,940 historical cost, £2,581 net book value. Since then the cost of additional museum items has been written off as an expense against income when incurred, totalling £20,800 to the end of 2020. No asset value is carried in the accounts for heritage assets held by the charity, whether obtained by purchase or donation.

The charity’s collection of museum exhibits also includes donated items. The charity has a museum collection acquisitions and disposals policy, adopted by the Trustees in July 2015. Detailed records of the collection are kept.

11. Tangible fixed assets

Cost
Brought forward
Additions in the year
Carried forward
Depreciation
Brought forward
Charge for the year
Carried forward
Net Book Value
31st December 2019
31st December 2020		 Buildings,
Rolling
Engineering
Office
Totals
Land &
stock
equipment
& other
Trackwork
equipment
£
£
£
£
£
152,089
91,503
13,375
15,124
32,087
0
0
0
0
0
152,089
91,503
13,375
15,124
32,087
138,591
87,789
10,492
14,937
25,374
1,505
44
157
90
1,213
140,096
87,833
10,649
15,027
26,587
13,498
3,714
2,883
187
6,713
11,993
3,670
2,726
97
5,500

The charity owns two steam locomotives. Both locomotives are operational and do not qualify to be treated as heritage assets.

Locomotive 53808 had a book cost of £42,635 in 1988 when it was written out of the accounts, along with the heritage assets. It is subject to a long term hire agreement with West Somerset Railway plc whereby the hirer is responsible for all

19

maintenance and overhaul costs. The current agreement expires on 30 April 2030. In 2020 the West Somerset Railway agreed to suspend the agreement for a period up until the boiler certificate runs out, currently expected to be at the end of 2022. The Trust has entered into a short term agreement with Mid-Hants Railway Ltd to hire the locomotive for this period, and is responsible for invoicing and collecting steaming fees from Mid-Hants Railway. In 2020 income includes £7,920 in respect of hiring fees for 53808 (see note 5) (2019: Nil).

Locomotive ‘Kilmersdon’ was acquired in 2010 at nil cost after many years on loan. Overhaul costs in 2011-2012 (£37,000) and minor costs since then were treated as an expense. In 2020 income includes £200 in respect of hiring fees for ‘Kilmersdon’ (see note 5) (2019: £9,000).

12. Investments

The charity holds 5,150 shares in West Somerset Railway plc which were donated in previous years. These shares are considered to have no marketable value.

13. Debtors

Prepaid website costs
Prepaid insurance
Other prepaid expenses
Accrued income		 2020
2019
£
£
1,110
0
3,019
3,192
1,569
2,109
5,904
4,779
11,602
10,080

14. Creditors: amounts falling due within one year

Creditors
Accruals		 2020
2019
£
£
1,043
1,896
1,509
1,561
2,552
3,457

15. Deferred income

Deferred income comprises subscriptions received in advance for the following year, and for payment received in respect of security deposit received from Helston Railway Preservation Company Ltd in respect of hire of ‘Kilmersdon’.

20

16. Analysis of charitable funds

Movements in restricted funds

Restricted Funds
HLF Resilience Project
Museum Collection
Kilmersdon Tyres
Coach Restoration
Progressing Our Future Appeal
Total Restricted Funds		 Opening
Incoming
Resources
Transfers
Closing
Balance
Resources
Expended
in year
Balance
01/01/2020
31/12/2020
£
£
£
£
£
(6,750)
6,750
0
0
900
0
(280)
620
3,053
0
3,053
3,727
0
0
3,727
28,646
(7,106)
21,540
931
35,396
(7,386)
0
28,941

Movements in unrestricted funds

Unrestricted Funds
General Fund
Designated Funds:
Coach Restoration (including coaches 98/114)
53808 Overhaul
Kilmersdon Overhaul
Legacies
Baker Memorial
Total Unrestricted Funds		 Opening
Incoming
Resources
Transfers
Closing
Balance
Resources
Expended
in year
Balance
01/01/2020
31/12/2020
£
£
£
£
£
31,906
38,246
(27,629)
42,523
12,628
12,628
7,920
7,920
26,863
200
27,063
12,945
0
12,945
404
404
84,746
46,366
(27,629)
0
103,483

21

following the expiry of the 10 year boiler ticket currently expected to be at the end of 2022. Fees designated in 2020 amount to £7,920.

17. Related party transaction

Mr Roger Hardingham is the owner of Kingfisher Productions, a supplier of railway books and DVDs. During 2020 the Trust purchased goods to the value of £528 from, and sold goods to the value of £Nil to Kingfisher Productions (2019: £539 and £210 respectively). At 31 December 2020 £Nil was owing to Kingfisher Productions (2019: £Nil), and £Nil was owing to the Trust (2019: £Nil)

Cover picture:

The Trust’s 7F, 53808, awaiting its train at Ropley on the last day of the Watercress Line Autumn Steam Gala – Sunday 16 October 2020. Picture: Jason Baker

22