Company registration number. 00519844 Charity regislralK)n number". 1164157 Modern Electric Tramways Ltd IA c(xnpany limited by sharè capital) Annual Report and Finanaal Statements for the Year Ended 31 December 2023 Modern Electric Tramways Ltd Contents Reference and Admlnistrative Oetails Truste85' Report 2to12 Independent Auditors. R8port 13to16 Consolidated Statgment of Financlal Activ￿8$ 17 Con801idated Balancg Sheet 18 Balance Sheet 19 Consolidated Statement of Cash Fk)ws 20 Notes to the Financial Ststemen15 211043 Modern Electric Tramways Ltd Reference and Administrative Detalls Chief Exgcutlve Offic•r Jennifer Mary Nunn Trusto9$ Bruce Charles Wames Dawd William Keay Mark Andrew Horner Nitt*la Elvzabelh Stone Wendy Louise Anita O'N8ill lappoint8d 23 November 2023) Charity R•glstrntlon Number 1164157 Company R8glstratlon Numbèr 00519844 RÈghtsred Office Riverside Depot Harbour Road Sealon Devon EX12 2NQ W8str￿￿$ ISW) LLP rimberly South Street Axminster Devon EX13 SAD Audltor Solicitors Dunn and Baker 21-22 Soulhernhay East Exeter Devon EX1 1QQ Uoyds Bank The Squar8 Seaton Devon EX12 2QH Bankers Page 1 Modern Ele¢tric Tramways Ltd Trustees. Report Th• trust•es, who are directors for thè PUTposes of company law, are please(I lo present thè annual rèport together with the con501id8ted finan¢ial statements and auditors. report of the charity and its Subsidiary for the year ended 31 December 2023 which are a150 pr8pared to meel th8 r8quirements for 8 director5. report and attounls for Companies Act purposes. The finanaal statements cornply wrth the Charities Act 2011. Companies Act 20￿, the Memorandum and Articles of Association, and Accounting and Raporting by Charitses.. Staiement of Recorllmended Practice applicable lo chaiilie5 preparing their accounts in accoidance wilh the Finanaal Reporting Standaid applicable in the UK and Republic of Ireland {FRS1021. Chalrs Rèport 2023 l am delighted to introduce Modèrn Elèctric Tramways Limited's èighth sel of annual accoun15 since the shareholders unanimously votéd for th8 business lo becomè a d)arity in October 2015. Since that conversion, the charity has gone froTn strength lo strength. Developing and diversifying our opèration5'. growing revenue., investing heavily in our infraslructure and strengthening the balance sheet. Al the same time, The Tramway has played an increasingly important role in the local community and economy. 2023 has seen a conscious effort from the board to strengthen our governan¢e, and plan for thè futur6 of the Tramway. We have added a new board member. our second volunteer driver, who brings a weatth of cornmercial and project management experience Its the role. Our new board member's skills and experience add to the operational, règulatory, tourism, tharity sm811 business and education backgrounds of othèr board mernbers. In OLtr financial planning and budgeting for the year. we buitt in a prudent approach wh￿h Tefleded the turbulent wodd in which we live. The Management Team and Board were acutely aware of the potential impact of the continuing cost of living crisis as well as geopolitical events such as th8 continuing war in Ukraine. Prudent and accurat• budgèting is baked into thè DNA of th8 charity. as 15 cleai and unambiguous mana9emenl accounting 8nd reporting. Both of which empower the board to propedy scrutinise the finanrial PO$Ttion and adapt the business accordingty. l am pleased lo report that, despite the challenges, in 2023 The Tramway achieved revenue of £1.955m. over 18% higher than our original budget for the year. 01 this £1.593m was as a direct resu of our charitable activities and trading operations an all-tSme record. Secondary spend, through Seaton Tramway (Enlerprisesl Ltd. our trading subsidiary, performèd partieularly well this year and èxceeded our expectations in a difficult economic climate. Our costs weie also well rn8naged, resulting in a nel surplus for the year of £67k after deprecation. Major maintenance work on our branch lin&era brhlge5. whth are more than 150 years dd, was largely completed In 2D23. This reflects our commitment to an ongoing prtsgramme of Capital Expenditure - we spent £250,000 during th8 yaar on our plant, equipment and fixtures. The board and managèmént are committed to maintaining this approach. ensuring that we remain a safe, modem and reliable attraction. In addilion, we have also identified the need lo increase our flo&t with the addition of three n covered tramcars. A grant from East Devon District Coun¢ll kickstarted Ihls process and the In1￿81 wod¢ started in 2023. In 2023 we havè m8intsined and enhanced our position a5 one ol the South West's leading visitor attract￿n$ - reflected in the addition of 5ever81 awards to our 'Trophy Cabinet,. Our Chiel Executive Officèr will cover these in more detail in her report. Every such accolade that we receive ￿fleetS on, and clearfy illustrates, the tireless work of the whole team in making suiè our visitor èxpérience is the best it can be. Page 2 Modern Electrlc Tramways Ltd Trustees. Report Considèrable management and board time in 2023 has been devoled to negotrations afound the freehold purchase of the adjacent empty. former Seaton jurass￿ Building which ha5 sadly been dosed since 2022. A special mention musl go the Management Team who hava steered a coursg through complex and challenging discussions with East Devon District CoLsnryl, The Heritage Lollery Fijnd. Devon Coiinty eHoiinal and other stakeholders lo ftnsijre that th8 deal will go Ihiough in early 2024. Watch this sp8ce for the next chapter In the Tr8mway's journey that starts in 2024. Our plans will bting another Iruly world class attraction to Sealon and with it, the associ*ed economic. employm&nt and community benefits. I would like to give my hearlfett thanks lo all our wonderfijl stsff and volunteers who go so many extra mlles lo ensure that Sealon Tramway conb'nues lo thrive and exceed the oxpe¢tations of our visitors. They bring professionalism and commitment, along with great skill and gtsod humour lo their jobs, hi9hlightèd in thè comments rèceivèd on rèview sites and elsewhere. Our CEO Jenny Nunn and her management tgam have, once again, proved themselves incredibly adept, innovative and adaptable in meeting a range of challenges and seizing opportunities as they corne alon9. We are iruty privileged to have such a team of leaders in charge of the busine59. l also pay tribute to my fellow MET dire¢tors for giving their lime. expertise and wise counsel. I hope you find the wnlenls of this report inleie51ing, and that it will pèrhaps inspir8 you to pay a visit to see foi yourself why Sealon Tramway holds a special place in so many hearts. SHOP I., Page 3 Modern Electric Tramways Ltd Trusteès. Rèport Chièf Executlv• Offic•r's R•port 2023 Whlst we've had slightly fewèr visitors than 2022. this has nol meant a downtum in revenue, in fact, we've Increased fare spend, and the results from the shops and Gafe5 conlinue tu d¥louiid all èxpèctation. By comparison, wè'vè beaten last year from a surplus point of view which is a fantastic resum glven over £209k of infiastructure projects our engineering team of staff and voluntèers have carried out. Of course. opeTating an asset heavy business like this Comes with a costly price lag b¢Jt I am pleased lo report that once again, Modern Electric Tramways Ltd and rts trading subsidiary. Sealon Tramway Enterprises Ltd. have performed extremely well posting £1.955 million ol income which is +£300k on the 2022 outturn due l¢Tr an excellent tiading year. Together with minimal expenditure increases, Tt has resutted in a positi've surplu5 of £67k and rnuch improved on 2022. As a consequence, and as a first mle of 9ood business practice, we continue lo monitor cash flow on a d8ily basis whilst mainl4ining strict bud9el controls, a pioathvo programme of asset repair & replacement and timely ¢reditor payments. With SQ tnuch going on in the world just now and the dreadful images we see daily on the news from Gaza and Ukraine. the shaky stale of the UK economy. the cost of liwng crisis. climate change worries and no real delivery of tangible benefits from Brexit rnade harder with supply chain issues, it's more important than ever thal we stick to our wsion, and provide a memorable, excellent value for money, acCessi￿e, entertaining day out for all. And that's what we're so good at and especially endorsed wa the Devon Tourism Awards.. Sealon Tramway was the winner 012 silver awards for Large Visitof Atttaclion 8nd The Polar Express tourism event of the year. More than that. we also won o gold 8w8rds for St(Jry Tram Experience of the Year and the Accèssible and Inclusive award which makes us all very proud to be at the forefront of championing so much of this with herttage rail and the tourism industry in general. For the third year in a row, we have received the Visit England Welcome Accolade for excellent customer service. All of that is down to @very single staff member and volunteer who goes that extra mile to maka our visitors Walco￿￿, informed and entertaineil. Building on that succèss, knowledge and in-house skill is Ihe reason, we know we're more than capable of tsking over and operating the Seaton Jurassic building and the transfer wll likely take place by the end of December. Behind the scenes. and as soon as we heard Devon Wildlife Trusl were vacating, we have worked for the past 3 years wrfh EDDC to takè over th& frèehold and start planning an exhibition worthy of ils World Heritage Sile slatU5 and worthy of the comtnunty around us. Having a while ag9 purchased a number of animatronic dinosaurs frorn the Natural History Museum in Londtsn. our engineering team are really looking forward to the logistics of transportin9 numerous life size monster5 including a T-Rex into thè nèw building. Jurassic Diseovery, as it will be rebranded, wil have strong community and educational engagernenl bul m051 of all it will be a fun place to visil, focussing on 9lobal theme5 wf£h link5 to local hol 5po15 where you can see evidenee of the wotld-lamou5 Jur4s5ic Coast up close and personal. It WIN also have a dinosaur themed gift shop. café and soft play area boostsng vital secondary spend. W8 8rè able lo lake on this amazing new project in part ¥wlh a most generous donation from Lyn Shears, a long-lerm friend and supporter of Sealon Tramway and for that we are eternally grateful. I must also thank the board of diredors who have supported me and the team through thick and thin d continue to help infom) our ltsng-tèm wsion. Most of all. none of the rnagic of the past year could happen without everyonè's pa55ion and dedication to the work Ihey do. so I would like lo all thank staff, volunteers, directors, friends, and stakeholders for your continued support, hard work and beliel in Sealon Tramway. Page 4 Modorn Electric Tramways Ltd Trustses. Report Awards Ro¢olved for 2023: DEVON TOURISM AWARDS . GOLD.. Experience ofthe Year- The Story Tram . GOLD.. Accessible & Indusive Tourlsrn . SILVER.. Large Attraction of the Year • SILVER.. Tourism Event of the Year- The Polar Express Tram Ride HERITAGE RAILWAY ASSOCIATION AWARDS • Environmental Innovation Award- The Natural Sealon Festival . R811w8y of the Year. Commendation JURASSIC BUSINESS AWARDS Café. Pub and Casual Dinning Award- The Tramstop Cafè . Tourism Business of the Year- Sealon Tramway Business of the Year- Seaton Tramway SOUTh WEST TOURISN4 EXCELLENCE AWARDS . GOLD.. Experience of the Year . BRONZE.. Large Attraction of tho Year P8gg 5 Modarn Electric Tramways Ltd Trustses. Roport FrydQy5 Frydgys Web81tt New users increased by 6.700 or 3.5% in lh8 yèar. Railcam We hava had Continued succes5 Wlth our liva strèaming 2417 through Yw Tubg from our three mer8s at Riverside Depot. Cdyford Station and a new one 81 Se81on Slalion with 3 lotsl of ca. sm hits in 2023. The Polar Expro8s Tram Ride Th18 continuè8 to be one of our most suc￿55(U1 events wlh passenger levels about the same as 2022. As mentioned lasl year, thè event is restricted in growth due to capacity problems with the type of vehides we operat8 but the plan 15 now a reality with work stsrted to creato three new single deck tram cars which would create a capacty of up lo 10,000 passengers for this event alon& 8s well 8$ being DDA compliant for accessibility on single deck trams, somathing wè already offèr on our double decked open-top trams. As this is a licensed event from RailEvenls Inc. and Warner Bros, we are delighted each year lo welcome represenlalives of both companies from the USA to inspect our event and I'm p￿Sed lo say that we pass vrith fy'ng colours each time. Page 6 Modern Eloctrlc Tramways Ltd Trusteès. Report Communlty Projocts Natuftl Seaton Festlval This is a free festival which takes place in Seaton, now operated by the Tramwavs Leaming & Artiwties team. 11 is free to attend with èv8nts. for that peiiod. In preparing these financial stalemenls. the trustees aTe requiied lo.. select suitable accoLJntlng poliaes and apply them ¢on5151ently', observe the methods and principle5 in the Chaiilies SORP.. make judgements and estirnales that are reasonable and prudent.. slate whether applicable accounting standards, comprising FRS 102 have been followed, subject to any material departures disdosed and explained in the financial stslements., and prepare the financial statèmènts on the going concem basis unless rt is In8ppropriale to presume that tho parent ¢harilable company will continue in business. The Iru5tees are iesponsible for keeping proper accounting records that can disclose wlh reasonable accuracy al any lime the finanLyal position of the parent charitable company and the group and enable them to ensure that thè financial statements comply wrth thè Companies Act 20(￿. They ar& also responsibl6 for safeguarding the 855e15 of the parent chaiitsble company and the group and hence for taking ieasonable steps for Ihe prevention and detection of fraud and other irre9ularilies. The trustees are responsible for the mainterbanrE and inlegrily of the corporate and financAal infomiation induded on the charitable company's websile. Legislation governing the preparation and dissemination of financial statemènts may diffèr from legislation in other jurisdictions. DOsclosur• ol infomiatlon to audltor Each Iruslee has taken slep5 that they ought lo have taken as a trustee in ordei to make themselvès aware of any relevant audit infomiation and to establish that the chaiity's auditor 18 aware ol that information. The trustees confirm that there is no relevant information that they know of and of whi thèy know the aLbditor is unaware. Page 11 Modern Electric Tramways Ltd Trustees. Roport The annual rèport was 8pproved by the trustee8 of the charity on acfv..(L4.. and swned on its behalf by-. Bruce Charfes Warnes Trustee David Willi Trustee Page 12 Modern Elactrlc Tramways Ltd Independent Audltorfs Report to the Members of Modern Electric Tramways Ltd Opinion We havè audited the financial stalernents of Modem Electric Tramway5 Ltd Ilhe 'chariiable pargnt ¢ompanY} and its subsidiaries Ilhe 'group'i for the year ended 31 December 2023, which comprise the Consolidated Statement of Financial Activities. Consolidaled Balance Sheet, Balan￿ Sheet, ConsolidatÉd StatÈmÈnl of Cash Flows and Notes to thè Financial Slalemenls, induding a summary of significant accounting pOI￿leS. The financial reporting framework that has been applied in their prèparation is United Kingdom Accounting Standards, cowprising Charrties SORP - FRS 102 'The Flnancial Reporting Standard applicablè In the UK and Republic of Ireland. and applicable law (United lfjngdom Generally Accepted Accounting Pradice). In our opinion the financial statements.. give a true and fair view of the stat& of the gr(>up's and paienl charity's affairs as at 31 December 2023 and of its incoming resources and application of resources, including ils income and expgrKlilui8. for the year then ended.. have been propeTty prepared in accordance with United Kingdom Generally Accepted Accounting Practice., and have been prepared in accordance with the requirements of the Companies Act 2006. Basis for opinion We conducted our audit in accordance wlh Intemalional Standards on Auditing {UKI IISAS IUK}l and applicAble law. Our responsibilities under those standards are furthÈr dèseribèd in the auditor responsibilities for the audit of the financial statements section of our ieport. We are independent of the group in accordance with the athical rèquirernents that ale re￿vant to our audit of the financial statements in the UK, induding the FRC'S Ethical Standard, and we have fulfilled our other elhical responsibilities in accordance with these requirements. We believe that the audit ewden¢e we have obtained is sufficient and appropriate to provide a basis lor our opinion. Conclusions relating to going concern In auditing the financial statements, we have conduded that the trustees use of the going wncem b8$1s of a¢￿vntIng in the preparation of the financial statemen15 15 appropriate. Based on the work we havè performed, we havo not identified any material uncertainties relating lo events or condrtions that, indNKIu8lly or colleth'vely, may cast signifunt doubt on the group's ability Its Continue as a going concern for a period of at le8St twelve months from when the original financAal statements were authorised for i$sug. Our responsibilities and the responsibilities of the Iru51ee5 wilh respect to going concern are described in the relèvant section5 of this report. Other inlorniation The Iruslees ale responsible for the other informakn"on. The other information tomprises the infotmalion included in the annual report, othèr than the financial statements and our audilor's report Ihereon. Our opinion on the financial 51alemenls does not cover the other infomiation and. except to the extent otherwise explicrtly stsled in our report. we do not express any fomi of assurance conclusion Iheieon. Pagtr 13 Modem Electric Tramwayg Ltd Independent Auditorfs Report to the Members of Modern Eloctrlc Tramways Ltd In connectson with our audit of the financial statements, our responsibility is 10 lead the other information and, in doing so, consider whéthèr thè other information is malerialty inconsislenl wth th8 financial ststernenls or our knowledge oblain8d in the audit or otherwise appears to be materially rnisslated. If we identify such rnaterial inconsistencies or apparent maleiial rnisstalements, we are required to determine whether there is a material mi5slatemenl in the Iin8n¢ial slalements or a material misstalement of the other information. If. b8s8d on th8 work we have perfoimed, we ¢onclude that thèr& is a malgrial tnisstatement of this other inft)rmalion, we ale required to report that fact. We have nothing lo report in this regard. Opinion on other matter prescribed by the Compani•s Act 2006 In our opinK)n, based on th8 work undèrtaken in the course of th8 audit.. Ihe information given In the and Trustees, Report for the financial yeac for wh￿h the financial statements are prepared is consistent the financial slatemenls., and the and Truslee5' Report have been prepared in accordance with applicable legal requirements. Matters on which wè arè rèquired to report by exception In the light of our knowledge and understanding of the group and the parent charitable company and its environment obtained in the course of thè audit, we have not identifiéd matèrial misstatements in the and the Trustees, Report. We have nothing to report in respect of the following matters where the Companies Act 20C6 requires us to report to you rf. in our opinion.. adequate accounting records have not been kept by th• parent Charitab￿ company. or rèturns adequate for our audil have not been received from branches not visited by us.. or the parent ¢harit8ble company finanaal statements are not in agreemènt wilh the accounts'ng records and ielums,. or ¢ert8in disclosures of tmstees remuneration specified by law are not made., or we have not received all the information and explanations we Tequire for our audit. R•sponsibilities of trustges As explained more fvlly In the Statemer)t of trustees. reswnsibilitiès (sèt out on pagè 111, thè tru8t88S are responsiblè for the preparation of th8 financial statements ar￿ for being satisfied that they give a true and fair view. and for such internal conlrol as the trustees delemiine is necessary lo enable the preparation of financ4al statements that are free from material misstatement, whether due to fraud or error. In preparing the financial stslements, the trustees are responsible fof assesslng the charity'8 ability lo continue as a going concern, disclosing, as applie2ble. mattèrs related lo going concern and using the going concem basis of accounting unless the trustees either intend to liquidate the chaiity or to cease operations, or have no realistic ahemativè but to do so. Page 14 Modern Electric Tramways Ltd Independant Auditor's Report to tho Membors of Modern Ele¢tric Tramways Ltd Audltor r•$ponslblllllg8 for thè audlt af th• finan¢l018tstsmonts Our objectives ale to obtain reasonable assurance about whether the financial slalewnents as a whole are free from material misstatement, whether due lo Iraud or error, and to issue an auditor's report that inejudes our opinion. Reasonable assurance 1$ a high levèl of assuranee. but is not a guarant?È that an audit conducted in accordance with ISAS {UK) will always detect a rnatenal misslalemenl when it exisls. Misstatèments can arise from fraud or etror and ar¢ Considered material if, indiwdually or in the aggregate, they could reasonably be expeoted to influence the economic decision5 of users laken on the basis of these financial slalements. As part of an audit in accordance with ISAS IUKI, we exercise professional judgement and maintain professional sceplicism throughoLrt the audit. Wa also.. Identify and ass9$8 Ihe risks of material misstatement of the flnaneial slalemenls, whether due to fraud or error, design and perfom audit procedure5 ie5ponsive to those risks, and obtain audit ewdence that Is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a malerial misstatement resulting from fraud is higher than for one resulting frorn error, as fraud may involvè collusion, forgery, intèntKTrnal omissions. misrep￿SentaIIons. or the override ol inteinal control. Obtain an understanding of internal control relevant to Ihe audit in order to design audit procedures that are appropriate in the circumstsnces, but not for the purpose of exp￿ssIng an opinion on the effactiveness of thè group's or thè parent ch81ity's internal ¢onlrol. Evaluate the appropriateness of accounu'ng poliaes used and the reasonableness of accounting estimates and related disclosures made by the tnjstees. Conclude on the appropriateness ol the trustees. use of the going concem basis of accounting and, basèd on thè audit evidence obtsined, whelhei a material unc8rtainty exists rèlatèd lo èvents or oonditions that may ca51 signilicanl doubl on the group's or the parent charity's ability to continue as a going concern. If we condude that a material uncertainly exists. we are required to draw attention in our audilor's report to the related disdosures in the financial slaternents or, rf such disclosures ar8 inadequate, to modify our opinion. Our conclusions a￿ based on the audit evidence obtained up to the date of our 8udilorfs Teport. How8ver. fijlure evènts or conditions may ¢ause the group 01 the parent charity lo cease lo continue as a going concern. Evalu8le the overall presentation. structure and conlenl of the financial $18fiemenls. in¢luding the disclosures, and whether the finanaal stalem8nts represent the underlying transactions and events in a manner that achieves lair presentation. Obtain sufficient appropriate audrt evidÈnee règarding the finanual inforniation of the entities or business actimties wf(hin the group to expfess an opinion on the group financial slalemenls. We a￿ responsible for the dir8Ction, supèrvision and perfomianc• of the group audit. We remain solely responsiblo for our audll opinion. We communicat& wth Ihtssè charged with govemancè règarding. among other m8tters, the planned scope and liming of the audit and significant audit findings, induding any svJnific8nl deficigncies in inlemal control that we identify durin9 our audit. Use of our report This report is made solely lo the charrtable parent company's Iwstees. 88 a body, in accordan￿ wlh Chapter 3 of Part 16 of Ihe Companies Act 2006. Our audit work has been undertaken $0 that we might state to the group's trustees those maiters we are required lo slate lo them in an auditorfs report and for no other purpose. To the fumest extent ￿Mil￿ed by law, we do not accept or assumè responsibility to anyone other than the charitable parenl Company and its trustsès as a body, foi our audTt work. for this report. or for the opin￿n5 we have lomed. Page15 Modom Electric Tramways Ltd Independent Auditorfs Report to the Members of Modern Electric Tramways Ltd -up: Restricted incom• funds Restri¢1gd funds 556.604 285.531 Unrestricted income funds Called up share capi'tal Unrestricted funds Revaluation reserve 23,781 3,530.499 2,079,204 23,781 3,734.853 2,079,204 Total unrestricted funds 5,633,484 5,837,838 Total lunds 25 6,190,088 6,123.369 The financial slaternents on pagès 17 to 43 We￿ approved by the Iruslees, and authorlseil for issue on &6.l.f/vand signed on thÉiF behalf by.. Mark Andrew Horner Trustee The notes on pagès 21 to 43 foim an integral part of these financial statements. Page 18 Modern Electrlc Tramways Ltd (Registration number: 005198441 Balance Sheet as at 31 December 2023 2023 2022 Note Fixèd 0s8ets TangiblÈ assets Heritage assèts Investments 16 17 4,026,659 2,000,000 50,000 6,076,659 3,947.272 2,000.000 so,000 5.997,272 Current assets Debtor$ Cash al bank and in hand 20 131,253 275.577 249.545 260,319 406,830 509.864 Cradltors: Amounts fallSng due wlthin one year 21 175,141 210.698 Net current assets 231,689 299,166 Total a#sèts l•ss eurr•nt liabilities 6,308,348 6,296,438 Creditors- Amounts falling duè after morè than ono yèar 22 Net assets 153.698 208,5081 6,087.930 6,154,650 Funds ofthe charity: Restricted income funds Restricted fund5 556,604 285,531 UnrastrS¢tgd Income funds Called up share caprtal Unie¥tridgd funds Revaluation reseNe 23,781 3,495,061 2.079,204 23,781 3.699.414 2.079,204 Total unresln.cled funds 5.598.046 5,802,399 Totsl funds 25 6,154.650 6,087.930 The financial statements on pages 17 to 43 were approved by the trustees, and authoriseil for issue and signed on their behalf by.. Mark Andiew Horner Trustee The nolas on pag•s 21 to 43 form an integral part of these financial statements. Page 19 Modern Electric Tramways Ltd Consolidated Slatement of Cash Flows for thè Year Ended 31 December 2023 2023 2022 Nots Cash flows from oper•ting Jctiviii Nel cash in¢omèllexpèndilure} Adju$tmènt8 t(tr ¢a$h flows from nonrfa$h items Depreciation Investment income 66,719 (240,2S7) 174,588 11,765 239,542 183,681 275 156,851) Working capital adlu$tm&nts Decrease in stocks Decreas8llincreasel in debtors Decreasé in crèditors 7,223 38,601 {4,7861 391 137,215) 11.1011 194.7761 20 21 Net ¢8sh Ilows from operating adivities Cash ftows from Invèstlng activitiès Interest receivable and similar income Purchase of tangible fixed assets 280,580 1,765 253.975 275 119.8701 16 Net cash Ilows from investing activilies Ca$h flow$ from finan¢ing actlvities Repayment of loans and borrowngs Net decrease in cash and cash Èquivalents Cash and cash aquivalents al 1 January Cash and ¢a$h equivalents al 31 December 1252,210) 1119,595) 21 54.212 167.850 125,8421 434,212 1282,221) 716,433 408,370 434,212 All of the cash flows are derwed from continuing operations during the above Iwo periods. Th& notes on pages 21 to 43 fomi an intègral part of these finanrial slatemenls. Page 20 Modern Electric Tramways Ltd Notos to the Financial Statements for the Y8ar Ended 31 December 2023 1 Charlty status The charity is limited by share capital. incorporated in England and Wales. The address of rts registered oftice is.. R Thierside Depot Harbour Road Sealon Devon EX12 2NQ 2 Accounting policies Summary of significant accounting policies and key acctsuntlng •stlmat•s The principal ac£ounting policies applied In the preparation ol these financial statements are sel out below. These policies have been consistently applied lo all the years presented, unless othe￿ise slated. ststèmerrt of ¢omplianeo The finanryal statements have been prepared in accordance with Accounting and Reporting by Charities.. Slalement of Recommendod Pra¢ti¢e lappli¢able to charities preparing their accounts in accordance with the Financial Reporting Standard applie2blè in the UK and Republic of I￿land IFRS 10211 (issued in October 20191- Icharities SORP IFRS 1021}, thè Finanaal Reporting Standard applicable in the UK and Republic of Ireland (FRS 1021 and Ihe Companie5 Art 2￿￿. Basi$ of preparation Modern Electric Tramways Ltd meet$ the deffinition of a publbo benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction valug unless otherwise slated in the relevant accounting policy notes. Basis of consolidation These linanryal statements consolidale the re$ull$ of thè charity and its wholly owned subsidiary, Seaton Tramway {Enterpris8sl Limited on a line-by-line basis, in accordance with business Combinations provisions of FRS102. A separate statement of financial actiwties and income and expendiluie account are not present8d for the charity itself following the exemptions afforded by Section 408 of the Companie5 Act 2006. The Chaiily has taken advantage of the exempts.on eonl8ined in Section 33.1A of FRS102, where disdosu￿s need not be given of transactions enterèd inlo between Iwo or more members of a group. Page 21 Modern Electric Tramways Ltd Notes to the Financial Statements for the Year Ended 31 December 2023 A subsidiary is an entity controlled by the Charty. Control is achieved where the ch8rty has the power lo govern the financial and operating policies of an entity so as to obtain benefits from its activtties. Thè results of subsidiariès acquired 01 disposèd of during the year are included in the statement of fin8n¢i81 activilles Irom the &ffective dale of acquisition or up to the effective dale of disposal, 8S appropriate. whe￿ ne¢essary, adjuslmenls are made to the financial sialem6nts of subsidiaries to bn.ng their 8ecounting polic￿$ into line with those used by the group. The purchase method of accounting is used to account for business cornbinalions that ie5uM in the acquisrtion of subsidiaries by the group. Thè eost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed al the date of exchange. plu5 costs directly allributable lo the business combination. IdentifiaNe assets acquired and liabilith'es and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition dale. Any Qxcess of the ¢ost of the business combination over the acquirer's interèst in the net fair value of the identffiable assets, liabil￿￿8 and contingent liabilities reeognisèd is rècorded as goothill. Inler-company transactions, balances and unrealised gains on transactions be￿een the charity and its subsidiaries, which are related parties. are eliminated in full. Inlra-gfoup losses are also ellminaled but may indicate an irnpaimient that requires iecognilion in the consolidated financial stateTllents. Accounting policies of subsidiaries have been changed where necessary lo ensure consistency wblh the policies adopted by the group. Non-controlling interests in the net as5et5 of con501idaled subsidiaries are idenlthed Separately from the group's equity therein. Non.controlling interests consist of the amount of those interests at the date of the original business combination and the non-conlrolling 5hareholderfs share of changès in equity 3inoe the date of the combination. Total mpreher)sive incorne is attributed to non-¢ontrolling inleresls oven rf Ihls resLJlts In the non-controlling interests having a d&fiot balance. Going concern Th8 trustètrs consider that there are no material uncartainlie$ about the group's abilty to continue as a going con¢em nor any significant areas of uncertainty that 8ffe¢t the t8rrying value of assèts held by the group. Judgem•nts and key sources of estimatlon and unc•rtainty Judggmonts Thè preparation of the financial statements r4uires management lo make judgements, estimates and assumptions that affect the arnounls ieported. These estimates and judgements are continually reviewed and aro ba3ed on experience and other factors, including expectalions of future events that are believed lo be reasonable under the circumstances. Income and èndowments All income is recognised oncè the charty has entitlement to the in¢ome, it 1$ probable th* th6 Sncome will be recèivad and the arnount of the income receivable can be measured reliably. Page 22 Modorn Electric Tramways Ltd Note8 to thg Flnancial Statements forthe Year Ended 31 Docember 2023 Donaliorts and legacies Donations are recognised when the charity has been notified Sn writing of both the amount and settlement date. In the event that a donats'on is subject to condition5 that require a ￿Ve1 of performance by the charity before the charily is enlill&d to the funds, the income is dèferred and not recognised until erther those conditions are fully mel, or the fulfilmenl ol those conditions 58 wholly within the control of the charity and it is probab￿ that these ￿ndItionS will be fulfilled in the reporting period. Legacies are included when the charity is advised by the personal representative of an eslale that payrllenl will be made 01 propetty transferrad and the amount involved can be quantified. Grants receivable Grants arè rècognisèd when the group has an entitlement lo the funds and any conditions linked to the grants have been mel. Where perf0rnan￿ condilions are attached lo the grant and are yet to be met, the income is recognised as a liability and included on the balance sheet as def8rred income to be released. Donatedseryices and faeilities Donaled services and facilities are included al the value to thè charity where this can be quanilifed. The value of serwces provided by volunteers has not been included. a5 il is impractical lo measure it reliably. other trnding activities Tfading inwne (including that of the charitys trading subsidiary) comprises of Ihe sale of advertising space, merchandise and catering income nèt of value added tax. In addition. rerrtal income from charty property 15 also included as trading ineomè on the basis that the property is held primarily for fttnctional use by the charity bul temporarily surplus to operational requirements. Inve5tnwnl income Income from investments represents interest arb5ing in the UK on bullding sorAety and bank deposits, held by the group durhng tha p8riod and is induded in the period in which 51 is receivable. Exp•nditur• All expendrture is recognised onctr there is a legal or construclive obligation lo that èxpenditure, it is probable settlement is required and the amount Can be mfrasured reliably. All cos15 are allocated to Ihe appli￿ble expendilure heading that aggregate similar Costs to that category. Where costs cannot be directly attributed lo path'cular headings they have been alocated on a basis consislenl with the use of resources. wilh central stsff costs alloGated on the basis of lime spent, and depreciation tharges allocatad on the portion of the assef s use. Olher support costs are alloc81ed based on the spread of stsff ¢osls. AU resources expended are indusive of irrecoverable VAT. Raising funds Costs of generating lunds comprise the costs assorialèd with altractsng voluntsry Sncome and the costs of trading for fundraising purposes including the charitys trading company. Fundraising costs are those incurred in séeking voluntary contributions and do not include the costs of disseminating infomialion in support of the chaiitable adivities. Page 23 Modern Electric Tramways Ltd Notes to the Finan¢ial Statements for the Year Ended 31 Decembor 2023 Charltaolè aellvltle$ Charitable expenditure comprises thosa costs incurred by Ihe charity in Ihe delivery of its actwities and services for its beneficiaries. 11 Includes both costs that can be allocated directly lo such actwities and those costs of an indirect nature necessary to support Ihem. Irr•cov•rablo VAT IrrÈeover8blè VAT is charge(l against the category of resource5 expended for which it was incurred. Taxatlon The charity is considered to pass the tests Set out in Paragraph 1 S¢hedule 6 of the Finance Act 2010 and therefore rf¢ meets the definition of g charitable Company for UK corporation lax purposes. Accordingly, the charity is potentially exempl from taxation in respect of income or capitsl gains received wilhin categories covered by Chapter 3 Part 11 of the Corporation Tax Acl 2010 or Section 256 of the Taxalion of Chargeable Gains A¢t 1992, to the exlenl that su¢h in¢ome or gains are applied exclusively to charitable purpose5. Tangible fixed assets IndNidual fixed assets are initially recorded at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Heritage assets The charity holds fourteèn narrow gauge trams as heritage assets. These are tangible fued assets of historical Importan￿ that are held to advance the preservation and consetvats'on objeclives of the charity. Newly purchased 01 restored heriiag8 asséts arè initially capilalisèd and included at cost induding any incidental expenses of acquisition and are subsÈquènUy rèvaluèd annu8lly using a method of depreriated replacement valu&. Asse15 are excluded from the balance sheet if reliable cost information is not available and conventional valuation approaches lack sufficient reliability in Ihe reconstruction c*r analysis of past accounting records or in valualM)n if there is deemèd to bè an insignificant benefrt derived by users of the a￿￿￿ts in assessing the Irustees, st8wardship of the assets. Deprèciation and amortisation Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, loss any estimated residual value. over their expected useful economic Itfe as follows.. Asset class Freehold land Short leasehold propetty Freehold propèrty Buildings Plant and machinery Depreciation method and rats No depreaation chargè Slraighl line L)ver the lease term 2% straight line 2.￿ straight line 1 and 20% straight line Page 24 Modern Electric Tramways Ltd Noto$ to the Financial Statements for the Year Ended 31 December 2023 Fixed asset Investments Llsled investments held as fLxed assets a￿ ￿valued al mid-markel value al the balanc8 sheèt dale and the gain or loss taken lo the consolidated statement of financial activities. Investments in subsidiary undertakn'ngs are stated at cost in the charitls balance shael and eliminated on consolHJation in accordance with FRS102. Stock Stock is valued at Ihe lower of cost and net realisable value. Cash and ¢a$h equlvalents Cash and cash equivalents comprise cash on hand and call dep05118, and other short-temi highly liquid inveslrnenls thal are readily conv8rtible lo a known amount of cash and are subièct to an insignth¢anl risk of change in value. Borrowings IntèrÈsl-bèaring borrowings aro inib"3lly recorded al fair value, nel of transaction oosts. Inleres14)earing borrowings are subsequenuy carried at amortised cost, wrth the difference between Ihe proceeds, net of transaction c£Jsls, and the amount due on redemption being recognised as a charge to the Siatement of Financial Aclivits"es over the period of the relevant bo￿owing. Interest expense is re¢ognised on Ihe basis of the effective interest method and is included in Interest payable and similar charge5. Borrowings are ¢las&fth as Current liabilf(E$ unless the charrty has an unconElibonal right to defer setdemenl of the liability for at laast Iwelvè months after the reporting date. Fund Structure Unrestricted income funds are general funds that are available for use at the trustees dtscretion in furtherance oflhe objedives of thè group. Restficted Income funds are those donated for use in a particular area or for specific purposas, tha use of whi¢h is rèstrictéd to that area or purpose. Penslons and other post retitsment obligatlons The pension costs chargèd in thè finanual siatemenls represent the conlrfbulion payable by the charity during the period. Page 25 Modern Electric Tramways Ltd Notes to the Financial Statements for the Year Ended 31 Decembér 2023 3 In¢om• from donotlons and leg•cl•8 Unre$tri¢ted fund6 General Re$trietsd fvnds Total 2023 Donations from indiwduals Gift aid reclairned Govemmenl giants Granls from other organisalions 1,019 63,077 260,000 261,019 63,077 20,000 3,100 347.198 20,000 3,10Q 67,196 280,000 Unrestricted funds Genoral Restrlctsd funds Total 2022 Donations from indiwduals Gift aid reclaimed Government grants Grants from othèr organisalions 540 52.692 5,000 4,000 540 52,692 5,000 46,000 42,000 62,232 42.(X)O 104.232 Gift aid slated above indudes £62,896 {2022: £51,983) daimed in relation lo 'explorerf adrnission tickets. 4 Income from charitable activities Unrèstrictsd funds General Rgstricted funds Total 2023 Admission- tram fares Admission- thetned trarn fares Tours, experience days and othèr 911,193 232,056 16,307 911,193 232,056 16,307 1,159,556 1.159,556 Unr•strlct•d funds G¢neral R•$trf¢ted funds Totsl 2022 Admission- tram fares Admission- themed Irarn faras Touis, experience days and other 843,063 225,291 14.918 843,063 225,291 14,918 1,083.272 1,083.272 Page 26 Modern Electric Tramways Ltd Noteg to tho Financial Statoments for the Year Ended 31 Decembor 2023 5 Income from other tsading *ctivltle8 Unrestricted funds G¢n•r•l Restrbctgd funds Total 2023 Glft shop and cafè {incl. subsidiary) Advertising 428.283 5,163 428,283 5,163 433,446 433,446 Unrestricted fund$ Genoral Restricted lund8 Total 2022 Gift shop and cafe lincl. subsidiary) Rent and service charge5 Advertising 409,913 9,087 5,334 409,913 9.087 5.334 424,334 424,334 6 Inv98tment In¢om• Unrèatrletod funds G•ngral Restricted funds Totsl 2023 Intere51 receivable on bank dep05i15 1.765 1.765 1,765 1.765 Unrestricted fund8 Gèn•rnl Restrlctsd funds Total 2022 Interest receivable on bank deposits 275 275 275 275 Page 27 Modern Electri¢ Tramways Ltd Notos to the Financlal Statements for the Year Ended 31 December 2023 7 Other In¢ome UnrÈ8trletsd fund$ Ggneral Rostrfcted funds Total 2023 Other income 13,3g6 13,396 Unr•$trl¢ted funds Gèneral R•strlcted funds Total 2022 Other income Insurance claims 9,577 9,585 9,58S 8 ExpèThdiiurÈ on rgising funds Unrestricted funds General RestrScted funds Total 2023 Total 2022 Costs of goods sold Direct staff costs Rates and waste disposal Light and heat Mainlenan¢e. repairs and uniforms Bank charges and merchant fees Other sUPPOrt and govemanc8 Costs 156,140 190,732 1,493 28,745 156.140 190.732 1,493 28,745 147,129 167.810 2,142 36,789 1.010 1,010 1,693 6.465 6.465 6,209 7.447 7,447 7,919 392,032 392,032 371,691 Page 28 Modern Electric Tramways Ltd Notss to the Flnancial Statements for th& Year Ended 31 December 2023 9 EX￿nditUA on charltabl• activltl•s Unrestrict funds General Restricted funds Totsl 2023 Total 2022 Depreaation Fleet, track and overhead repairs Audit and accountsncy fees Diiecl staff costs (incl. training) Other support and govèmance costs NLHF activities and related expenses Th8mÈd fare ¢o$ls Consumables and sundries Rent. rates, deaning and waste disposal Lighl, heat and power Insuranco Engineering and equipment costs Property maintenance and repairs Printirig, postage and stationery Professional fe&s and subscriptions Advertising, promotion and web8lte Legal fèÈs Bank charges and merchant fees Interest charges lind. hire purchase) Subcontract cost Staff welfare Communication and IT Office expense5 165.661 58,625 10,802 587,106 247.230 1,755 113,418 15.835 8,927 174,588 58,625 10,802 587,106 247,230 1,755 113,418 15,835 183,680 128.213 12,116 503,334 2QS,597 35.273 109.368 17,605 30,293 19,970 49,562 23,437 24,667 6,736 10,fy)7 54.508 4,814 14,011 12.999 11,555 3,809 18,512 2,369 30,293 19.970 49,562 23,437 24,667 6,736 10,007 54.508 4,814 14,011 12,999 11,555 3.809 18,512 2,369 27,346 36,018 35,966 22,968 34,758 8.598 12.090 43,971 18,293 10.912 11,016 7,784 5,452 17,613 2,293 1.487,681 8,927 1.496.608 1,490,264 Page 29 Modorn Electric Tramways Ltd Notes to the Financial Statements for the Year Ended 31 December 2023 10 Analysis of $upport costs Total Charitsbl• activities 2023 Human resources Admini51ralive and management staff 243,480 243,480 Goveman¢e Directors. meetsngs, travel and subsistence Dir&ciors' and olficers, insuranee 1,043 2,7f17 1,043 2,707 247,230 247,230 Total Charftabl• activitles 2022 Human resources Adrninistralive and management staff Governance Dirèctors. mèetings, travel and sub5iStence Directors. and officers. insurance 202,851 202,851 1,803 943 1,803 943 205,597 205.597 11 Net Incomlnglautgolng rtsour¢es Nèt ineominglloutgoingl resources for the yeai inell￿a-. 2023 2022 Audit fees Other non-audit services Dep￿cIall0n of fixed assets 4,090 8,632 174,588 3.895 8,221 183.680 12 Trustees remuneratlon and •xpon$•$ The aggregate amount of reimbursed trusteeldirector expenses was £363 in rgspecl of trav81. a¢commod8tion. subsi51ence and general admln costs, for one trusleeldirector who seNed during the year (prior period.'£401 of expenses to one dire¢torl. Page 30 Modern Electric Tramways Ltd Notes to tho Flnanclal Statements for the Year Ended 31 December 2023 13 Staff co$ts The aggregate payrdl c051s were as follows.. 2023 2022 Staff costs during the year were: Wage5 and salaries so￿al security costs Pension costs Other slaff costs 938,987 59,460 20,108 10,210 1,028,765 808,902 54,812 13.e77 4,523 881.914 The awrage numbor of Indi￿dy31$ gmployed during the year, was as follows.. 2023 No 38 14 2022 No 37 14 Parent Subsidiary Totsl employees 52 51 One employee recewed emoluments lexcluding amployar pension costs) of morè than £60.CK)O during the year {2022'. one}. No tw$lee or any peisor) connected lo them received ernoluments during the year in respect of their truslee8hip. 14 Auditorn. rfrmuneration 2023 2022 Audit of the finanrjal statements 4.090 3,895 Other fees to audltors All other non-audit services 8,632 8.221 12,722 12,116 15 Taxation The group is a registered charity and is therefore exempl from laxalion. Page 31 Mod6m Electrlc Tramways Ltd Notes to th8 Flnanclal Statements for the Year Ended 31 December 2023 18 Tangible fixed assets Group Short leasghold land and buildings Freehold land and bulldlngs PlanL Èqulpm•nt and Tixtur¢$ Total Cost At l January 2023 Addfjty"ons 1.495.469 2,749.249 1,208,462 5.451,180 253.975 253,975 At 31 December 2023 1,495.469 2.749,249 1,460,437 5,705.155 Depreclalbon At 1 January 2023 Charg8 for thè year At 31 December 2023 364,981 25,030 245,651 54,985 893,276 1,503,908 94,573 174,588 390,011 300,636 987.849 1.678,496 Net book value Al 31 December 2023 1.105.458 2,448,613 472.588 4.026,659 Al 31 December 2022 1.130,488 2.503.598 313,166 3.947,272 The freehold land and buildings held by Modern Electric Tramways Llmiled indudes freehold land valued at £105,0￿ and frèehold buildings valued al £1,390,469, which includes inveslrnenl property th 8 valu8 of £139,000. The historical cost of freehold land is £95,659 and buildings are £1,138,439 of which historical cost of £56,970 is altributed lo investment property. Both land and buiklings have been revalued historically. Tangib￿ fixed assets of thfr charfty: These are the same as the group (the subsidiary has no fixed assets). Page 32 Modern Elèctrlc Tramways Ltd Notes to the Financial Statements for the Year Ended 31 December 2023 17 Hèrltsg• a$$•ts Group Heritag• Trams Total Valuation Al 1 January 2023 Revaluations 2,(KJO,(Y)0 2,000,000 At 31 December 2023 2,000,000 2,000.000 The charrty holds fourteen narrow gauge tiatlls as heritage assets. These ale tangible fixed assels of historical and local cultural importance that are held to advance the preservation and conservation objectives of the charity. In compliance with the Charity SORP IFRS1021 they are recognised as heritage assets. Newly purchased or restored heritage assets are inib.ally capilalised and included at cost induding any incidental Èxpenses of acqui5rtion and are subsequenlty revalued annually using a method of deprèciated replacernent value. The original deemed historical cost pre￿ou$1Y staled was £262.676 before the company was awarded charrtable $lalus. The following revaluations have taken place, 3111212015 revaluation at FRS102 transition £971,178, 3111212017 £366,146, 3111212018 £400,000. 18 Fixed assel inv¢$tm•nts Group D•tall$ of undertak•ngs Details of the investmènts in which the group hokls 20% or more of the nominal valLse of any class of share capital are as follows.. Subsldiary undertaking Country of Incorporatlon Proportion of voting rights and $har•s hgld 2023 2022 Principal activity Holdlng Seaton Tramways England and (Enlerpiisesl Limited Wales Cafe shop and Ordinary 100% 100% Page 33 Modern Electrlc Tramways Ltd Notes to the Flnancial Statements for the Year Ended 31 December 2023 Sub8ldlarl•s The profit for thc finan¢iol period of SeolDn Tramways (EnterpTises) Lirnlted was £30,954 12022 £30,971} and the aggregate amount of capital and rÈsérves at the end ol the period was £85.440 12022- £85.440}. The eharty's fixed asset investments relate to its trading sub5idi8ry. with the historul costs being the nominal share value. Becausè the subsidiary would not be able lo trade without the charity's collaboration, the market value of the investment is deemed to be its retained reserves onty. All fixed asset investments are held within the United Kingdom. Indu(Sed within thè above resèNes is £87.548 12022.. £158.8881 owed lo Modem Elèctrtc Tramways Limrted. The subsidiary's financial slalemenls were approved on behalf of the directors by Jennifer M Nunn and Bruce C Wames (directors). Charlty 2023 Shares In group undertaklngs and partlclpatlng Intern$ts Subsldiary undertaking5 Totsl Cost At 1 January 2023 50,000 50,000 At 31 December 2023 50,000 50.000 Nel book valué At 31 December 2023 50,000 50,000 At 31 Decambèr 2022 50.000 50,000 19 Stock Group 2023 Charity 2023 2022 2022 Finished goods 76,092 83.315 Page 34 Modem Electric Tramways Ltd Notes to the Financial Statsments for the Year Endod 31 December 2023 20 Debtors Group 2023 Charlty 2023 2022 2022 Trade debtors Due from gfOUP un¢Yertakings Prepayments Other debtors 6.199 711 87,548 31,604 11,390 6,199 158,888 73.028 11,430 249,545 31.604 11.392 73.028 3,174 43,800 82,4Q1 131.253 21 Creditors: amounts falllng due wlthln on• y•ar Group 2023 Charfty 2023 2022 2022 Trade créditors Other loans Other laxalion and Social security Accruals 74,837 54,810 53.415 54,212 44,134 54,810 49,556 54,212 12,737 68.751 10,292 97,405 11,649 64,548 175,141 12,974 93,956 211,135 215.324 210,898 22 Cr•dltors: amounts falling du• aft•r onè year Group 2023 Charity 2023 2022 2022 8ank loans 153,698 208.508 153,698 208,508 Of thè above creditors falling du& aftar more than one year are bank loans of £90.365 (2022.. £119,38n secured against the Cotyton freehold land and buildin9S. Pag9 35 Modem Eloctrlc Tramways Ltd Notos to the Financial Statements for the Yèar Endod 31 December 2023 23 Obligations under lease$ The total value of futuro tntnimum lea$8 paym8nts was as follows.. Group 2023 Charlty 2023 2022 2022 Wrthin one year In lo five years In over five years 17,147 63.757 596.249 22,424 60,000 611,250 17.147 63.757 596,249 22,424 60,000 611,250 677,153 693.674 677.153 693,674 As * 31 Decèmber 2023, th8 charitable company had non-cancellable tspeTaling lease Commitments lolalling £5,904 12022.. £7,424). The remaining commitment rèlates lo a 5￿year lease of land which wa5 entered into in 2017. 24 ￿nSIOn and othèr Schèmes Dgfined ¢ontribution pension s¢heme The group opeTate5 a defined contribution pension scheme. The pensiorr cost eJ)arge for the year represents contributions payable by the group to the scheme and amounted lo £20,108 (2022: £13,877). of this £16,035 relating to the parent charity and £4,073 is relatin9 to the trading subsidiary. Page 36 Modem Electric Tramways Ltd Notes to the Financial Statements for the Yèar Ended 31 December 2023 25 Funds Group Balance at 1 January 2023 Balance at 31 December 2023 Incoming rgsoiircg$ R•$our¢•$ expended Unrestrlcted funds Genernl Unrestricted Funds Called Up Share Capllal Revaluation R8serve 3,734.853 23,781 2,079,204 1,674,658 {1.879,0121 3,530,499 23,781 2.079,204 5,837,838 1,674.658 11,879,012 5,633.484 Restricted funds Culture Recovery Fund Travels through Heritage and the Axe Valley Weljand Halt Projèct EDDC AONB Grant EDDC Innovation and Resilience Grant Seaton JurassK Centr8 16,000 12,000) 14,Q)O 170,616 95,995 2,920 13,412) 11,9201 {3651 187.204 94,075 2,555 20.000 280,000 11,2301 18.770 260.000 285,531 280,000 18,9271 556,604 Total funds 6,123,369 1.954.658 1,887,939 6,1&￿,088 Pa9& 37 Modern Electric Tramways Ltd Notes to the Financlal Statèments for the Year Ended 31 Decembèr 2023 Balanc8 at 1 January 2022 8ab#n¢È at I January 2022 Balance at 31 Docgmber 2022 Resources expended Unrgstricted funds G•neral Unieslricted Funds Called Up Share Capital Revaluation Reserve 3.954.825 23.7B1 2,079,204 6,057.810 1.579,6(h8 11,799,578) 3.734,853 23,781 2.079,204 1.579.606 (1,799,578) 5.837.838 R•strlcted funds Culture Recovery Fund Travels through Heritage and the Axe Valley Weuand Hah Projécl Seaton Tram Slalion EDDC AONB Grant 18,000 12.or)01 16,000 199.824 100,143 20.003 3.285 42,000 (71,2081 14,1481 (20,0031 (365) {97,724} 170,616 95,995 2,920 341.255 42.000 285,531 Total fund8 6.399.065 1.621.606 11.897,302 6.123.369 Page 38 Modern Eloctrlc Tramways Ltd Notes to the Financial Statements for tho Yoar Endod 310ecember 2023 Chority 8alane• gt 1 January 2023 Balanc• at 3108Cèm￿r 2023 Ineoming re60urce$ R•$our¢e$ expendcd Unrestricted funds Genernl Unrestricled Funds Called Up Share Capital Revaluation Reserve 3,699,414 23,781 2,079.204 5,802,399 1.283,328 {1,487,681) 3.495.061 23,781 2,079,2(>4 5,$98.046 1,283,328 1,487,681 Restricted funds Culture Recovery Fund Travels through Heritage and the Axe Valley Weuand Hall Project EDDC AONB Grant EDOC Innovation and Resilience Grant Sealon Jurassic Centre 16,000 12,(X)01 14,000 170,616 95,995 2,920 {3,4121 {1,920) 13651 167,204 94,075 2,555 20,000 260,DOO 280.000 11.230) 18,770 260.000 285.531 18,9271 556,6(M Total fund¥ 6,087,930 1,563,328 11,496,608 6,154,650 Balance at 1 January 2022 Balance at 31 December 2022 In¢omlng Rgsourc95 expended resoU￿e5 Unrnstrietèd funds General Unrestricted Funds Called Up Share Capital Revaluab'on Reserve 3,919,385 23,781 2,079,204 1.175.693 11,395,664) 3,699,414 23,781 2.079,204 5.802,399 6,022.370 1,175.693 11.395,6641 Page 39 Modern Electric Tramways Ltd Notes to the Financial Statements for the Year Ended 31 Dèc8mber 2023 Balan¢e at 1 January 2022 Balan¢e at 31 D￿ember 2022 Incomlng rèsoureès Resources exponded Restrictsd funds CLJtturè RÈctsv8ry Fund Travels through Heritage and the Axe Valley Wetland Halt Proje¢t Sealon Tram Station EDDC AONB Grant 18.000 12,0001 16.000 199.824 10D,143 20,003 3,285 42.000 171,2081 14,1481 120,003} 1365) {97:724 170,616 95,995 2.920 341,255 42,000 285.531 Totsl funds 6,363,625 1,217,893 11.493.388} 6.087.930 The spèafic purptssès for which thè hjnds are to bè applied are as follows.. Culture Recovery Fund Coronavirus support grant lo assist the charity8 rècovèry from the pandemic. Travels through Hèritag8 and Ihè Ax• Valléy - This has b8en funded by the National Lottery Heritage Fund and The Garfield Weston Foundation. Vvelland Hall Project - Plan. develop and construct a new Wetland Halt. Part funded by thè Fine Foundation. Seaton Tram Station - This fund represents a proportion of capil8lised costs of the Seaton Tram Station building paid for with resliicled fund5. The restriction is being lifted ovei the useful lifè of the assel in line with deprecAalion. EDDC AONB- This grant was received to fund equipment to be used at the Riversidè Halt sit8. EDDC Innovation and Resilience Grant- This grant was received lo fund a tram chassis build. Seaton Jurrasic Centre- This fund represents 8 proportion of capitalised costs of th8 Seaton Jurassic Centre building paid for with restrictèd funds. The ieslriction is being lifted over the useful Irf& of th• asset in line with depredation. Unrèstricted Funds These are available for use at the discr8tion of the Trustees in furtherance of the objectives of the charity. These include £27,561 and £910,016 whith were the Capitsl redemption reserve and Sharè prèmium account respectively. Given the change in constitution and restrictions on distributions, these stsparate reserves no longer serve any purpose. Page 40 Modern Electric Tramways Ltd Notes to the Financial Statements for the Year Ended 31 December 2023 26 Analysi¥ of net a¥$¢ts belmeen funds Group Totsl funds at31 December 2023 Unre$tri¢tsd fund5 General R•strictsd funds Tangible fixed assets Heritage assets Current assets Currenl liabilities Creditors over 1 year Total nel a55els 3,470,055 2,OOD,000 528.262 1211.135) 1153.698) 5,633,484 556,604 4.026.659 2,000.000 528.262 (211,1351 153,698 556,604 6.190,088 Totsl funds at31 December 2022 Unr•strictèd fundg General Re$tricted funds Tangible ffixed assets Heiilage assets Current assets Current liabilities Creditors over 1 year Total net assels 3,661,742 2.000,000 599,928 1215.3241 1208,5081 5.837,838 285,531 3,947,273 2,OOCI.O(K) 599,928 1215,3241 1208,5081 285,531 6,123,369 Charity Totsl funds at31 De¢ember 2023 Unrestrlcted funds General Re$tri¢ted funds Tangible fixed assets Heritage assets Fixed asset investments CutTent assets Current liabilities Creditors over 1 year Total nel assets 3.470,055 2,000,0 50,000 406.830 1175.1411 1153,698) 5,598.046 556,604 4,026,659 2,000,000 50,000 406.830 1175,1411 1153.6981 6,154,650 556,604 Page 41 Modern Electric Tramways Ltd Notes to the Financial Ststements for thé Year Ended 31 D8cember 2023 Totsl funds at31 December 2022 Unrestrlcl•d lunds Gèneral Rostricted funds Tangible fixed assets Heritage assets Fixed assel invaslments Current assets Current liabilities Creditors over 1 year Total net assels 3,661,741 2,Ot)o,000 so.000 509,864 1210,6981 208,508 285,531 3.947,272 2,OQO.000 50.000 509.864 1210,698) 1208.508) 6.087,930 5,802.399 285,531 27 Analysls of net funds Group At31 Decembèr 2023 At 1 January 2023 Financing Ca8h flows Cash at bank 8nd in hand Debt due within one year Debt due after morè than one year Net debl 434,212 154.2121 1208.508 {25,842) 15981 408,370 154.8101 153,6981 171,492 28,370 199,862 At31 December 2022 At l January 2022 Financing cash flows Cash at bank and in hand Debt due within one year Debt due after more than one year Net debt 716.431 140,0001 276,358 1282,2191 114,2121 67,850 434,212 {54,2121 208,508 400,073 228,581 171.492 Page 42 Modern Electric Tramway5 Ltd Notes to the Flnaneial Statements for the Year Ended 31 December 2023 28 Relatèd paty trnnyactions Related parties compiise trustees land dose members of their families), subsidiaries, key management personnél land close mernbers of their familias) and anyone cairying out businÈs5 in partnershlp with any wrth any of Ihe aforementioned parties. Four indiwduals, who are either 8 trustee of the charitable company or a dir8Ctor of its trading subsidiary. hold shares in the charitable company. These carry voting cights, bul no ability to share in the income or Capital of the charity. In all cases thè shareh(4ding is less than 5% of the total issues sharod eapital. During the year ended 31 Dècèmbèr 2023 the charity paid £25,030 12022.. £24,698) to Kuloko, a business owned by Nicola Stone Ilrusleel, for services rendered. This transaction was on commercial terms and the related party declared their interest and was not invofved in the decision-making process lo engage the seNi¢es of the company. 29 Company Ilmlted by $har•$ Modern Electr￿ Tramways Limiled was a privata ￿MpanY limited by shaTes, originalty incorporalèd in 1953. The company obtained charitable slalus on 28 October 2015 and is now governed as a charitable company by 11$ Afb"cles of Association as amended by special rÈsolLJtion dated 24 September 2015. The control of the company ￿St$ with Mr3 L G Shears by virtue of her majority sharéholding. However, the amended Artides of Association place significant restrictions on this onlrol and Mrs L G Shèars musl act in the interests of the charity. 30 Going concom As at 31 December 2023 the group balanc8 shèet showed nel current assets of £317,127 12022.. £384,604). The Truste8's bèliève the charty lo be able lo meet ils financial obligations as they fall due for the next 12 months. and therefore consider the going concèm basis of acctsunting lo be appropriate. Pag9 43