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2025-03-31-accounts

The 2874 Trust Limited

(A company limited by guarantee)

Report and Financial Statements

For the year ended

31st March 2025

Company Number: 9190414 ( England and Wales)

Registered Charity Number 1166258

The 2874 Trust Limited

Registered Office

Churchward House Winchcombe Railway Station Winchombe, Gloucs GL54 5LD Email: enquiries@2874trust.org Website: www.2874trust.org

Independent Examiner David R Johnson & Co

Chartered Certified Accountants 110A Cher Minehead Somerset TA24 5EW

Solicitors Stanchion Ltd The Old Stables Stare Lane Claverdon Warwickshire CV35 8LS

Bankers Lloyds Bank plc 31 Fore Street Taunton Somerset TA1 1HN

The 2874 Trust Limited

Trustees Report for the year to 31[st] March 2025

The Trustees are pleased to present their report together with the financial statements of The 2874 Trust Limited (Trust) for the year ending 31[st] March 2025.

Objectives overview

The Trust was formed on 28[th] August 2014 as a Private Company limited by Guarantee and commenced trading on 1[st] March 2015. It has been established to acquire, restore and ensure the operation of heritage railway locomotives and ancillary equipment – initially and specifically a 1918 built Great Western Heavy Freight locomotive Number 2874, previously owned by Dinmore Manor Locomotive Ltd (DML) which has a unique (for its class) system of delivering steam to the cylinders. This locomotive was scrapped by BR in 1963, it has received minimal attention since that time having been stored in the open. It is now based on the Gloucestershire Warwickshire Steam Railway plc (GWSR) at their engineering base at Toddington.

The process of restoration will provide opportunities for training in traditional engineering, ensuring the skills of a generation involved with these heritage artefacts are passed on and not lost. We will also provide opportunities for the already experienced to further develop their skills and extend into areas previously only covered by outside contractors and so enhance the resilience of the sector.

A top priority is education, working with DML a volunteer based company that has practical experience of restoring and operating heritage locomotives, we intend to extend the volunteer base by:

Once restoration is complete, the locomotive will be hired to Heritage Railway lines (an option to hire the loco by the GWSR is included in the Restoration agreement), which are themselves living museums, and thus promote public knowledge, appreciation and understanding of the historical, scientific and cultural aspects and the significance of the engineering and design of the locomotive.

The Heritage Railways themselves play a significant role in the local economy of the areas in which they operate both in terms of the revenue they generate and as attractions which combine enjoyment with the opportunity to learn about our history and the role that steam power played in the industrial revolution.

Working with DML, a company that has fully restored two ex Great Western Railway (GWR) locomotives from scrap condition and successfully operated them (including carrying out two heavy overhauls) on a number of Heritage lines, we are confident we can achieve the same result with 2874 and ensure a viable future for the benefit of generations to come.

The efforts of last year continue to be directed towards putting in place the structures and agreements that will enable the restoration of locomotive 2874 to proceed as well as sourcing missing components when opportunities arise.

In the last year we have concentrated on building on the legacy from our first National Lottery Heritage Fund grant by continuing the training and development in heritage mechanical engineering skills and progressing the ring fenced projects for which we have raised funds. In addition, we continue to source missing components whenever opportunities arise.

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Achievements in the year to 31 March 2025

During the year the following have occurred:

The training and work is lead by 2 professional engineers who are members of the 2874 Trust under the diection

of the Trust chairman. It is recognised that the need to spend the total of the grant and Trust contribution of

Future Developments

progresses. This is a necessity and also required as part of the agreement with GWSR.

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Members of the Board

The Board members of the Trust are its Trustees and throughout this report are collectively referred to as the trustees. The Board can have up to 10 members.

The trustees and officers, all volunteers, during the year were as follows:

David Foster Hon. Chairman and Joint Secretary Keith Smith Hon. Joint Secretary John Sampson Hon. Treasurer Ian Shapter Retired 7th November 2024 David Holmes Martin Ginger Daniel Wigg Tracy Hallett Roger Tipton Co-opted 3rd February 2025

Financial Report

The results for the year show unrestricted net income of £ 10,561 compared to net income of £ 3,303 in 2024. Restricted net income of £ 41,179 occurred in 2025 compared to net income of £ 2,091 in 2024.

The major impacts in 2025 were the first tranche of the National Heritage lottery Fund of £ 75,600 and the associated boiler expenses of £ 34,723.

The Trust has in place a Reserves Policy that ensures there are sufficient funds to cover 6 monthes of administrative costs. All restoration sub-projects are only started when there are sufficient funds available to complete the project

The Trust is confident that its financial structure and commitments will enable it to manage its activities for the foreseeable future.

Trustee responsibilities.

The trustees (who are also directors of The 2874 Trust Limited for the purposes of company law) are responsible for preparing the Trustees Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

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

presume that the Trust will continue in business.

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The trustees are responsible for maintaining proper accounting records that comply with Sections 386 and 387 of the Companies Act 2006 which disclose with reasonable accuracy, at any time, the financial position of the Trust and enable them to ensure that the financial statements comply with Sections 394 and 395 of the UK Companies Act 2006. The Trustees have prepared the financial statements in accordance ‘Accounting and Reporting by Charities’ produced by the Charities Commission, SORP (FRS 102) (Statement of Recommended Practice) and Companies Act 2006.

The trustees are also responsible for safeguarding the assets of the Trust and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the Trust's website.

Structure, governance and management

The 2874 Trust Ltd, formed on 28[th] August 2014, is a private company limited by guarantee, as defined by the Companies Act 2006 , and is controlled by its Articles of Association.

Under its Articles any person or corporation may become a member of the Trust and each person or corporation is entitled to a single vote on each matter at formal meetings. There are currently 148 voting members.

Trustee induction and training

All new trustees are required to study ‘The essential trustee: what you need to know’ as published by the Charity Commission and to sign a declaration of their willingness to act as a charity trustee, full awareness of the Trust’s purpose, eligibility to act and understanding the responsibilities of running a charity.

President

In April 2016 Lady Judy McAlpine agreed to be President of the Trust. The President is not a trustee, nor does Lady Judy have any specific duties or responsibilities other than the right to address the members at meetings and represent the Trust at external meetings. In November 2024 Ian Shapter a Founding Trustee retired and agreed to become the Vice President of the Trust

Patrons

These persons are elected by the members and are not trustees, nor do they have any specific duties or responsibilities. They have a right to address the members at meetings and represent the Trust at external meetings.

Currently there 3 patrons:- Wendy Temple, Henry Howard and Christopher Vine.

Sadly Hein Berger, Patron and one of the first Trustees, died in December 2024.

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Related Parties

The Trust will conclude a 2874 Restoration and Operating Agreement with Dinmore Manor Locomotive Ltd (DML) where DML will bring the locomotive into operational service utilising its pool of volunteers and external contractors. The loco will then join the DML group of locomotives with cross support for future repair and renewal, integral to the agreement are the education and training opportunities that will be offered during all engineering work, operation and display.

The restoration will take place primarily at the Toddington facilities of the Gloucestershire Warwickshire Steam Railway plc (GWSR) and such an arrangement requires a Restoration agreement between the Trust and GWSR which has been signed.

The Chairman of DML, currently Kenneth Sims, can attend Board meetings and contribute to all discussions but has no responsibility for the Trust, nor vote on any matter. Also the Trust chairman may attend DML Board meetings in a similar capacity.

Ian Shapter, Martin Ginger and David Foster are Directors of DML.

Trustees may also be shareholders or members of DML, GWSR or Gloucestershire Warwickshire Railway Trust (GWRT).

Health & Safety and Safeguarding

The Trustees expect that volunteers are surrounded by a safe environment with the risk of their coming to harm, or harm coming to others from volunteers' activities fully minimised and expect all volunteers to make every effort to ensure no harm comes to young persons or vunerable adults from any of the Trust activities.

The GWSR, GWRT and DML have published policies on Health & Safety and Safeguarding. Volunteers must undertake operations in a safe manner without putting others at risk and must comply with the GWSR, GWRT, and DML rules and procedures. These policies provide a robust framework and the Trust has adopted them to guide all our activities. Volunteers must adhere to these policies, so far as is practicable, when undertaking any activity at any location including other than the GWSR as well as complying with any specific site rules and procedures. The Trust will work closely with the Health & Safety and Safeguarding Officers of the GWSR/GWRT to ensure all our activities are compliant with their policies.

Volunteers working on site at Toddington are required to be members of the GWRT and hold a Work Permit issued by the GWSR, contractors working on site are required to sign that they will comply with all site rules and procedures.

Any complaint made by or to a volunteer or contractor must be communicated to the Trust chairman or company secretary at the earliest opportunity, initially verbally then confirmed in writing. The chairman, together with other Trustees will investigate every complaint and determine if regulatory authorities need be notified. The secretary will maintain a record of all complaints and actions of the Trustees in these matters.

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Risk Management

The trustees have a risk management strategy that comprises:

and to put in place an annual review of the risks the Trust faces.

The following have been identified as areas of potential risk;

Charitable purposes

The Trust's focus is for the restoration of locomotive 2874, a project that will take a number years and require substantial funding from grant giving institutions and other donors. At the same time there will be education of the young and not so young to generate future interest and skills to achieve continued knowledge and contribution to engineering in the steam heritage enviroment.

Vision

Our vision is for locomotive 2874 to be restored and operating on Heritage Railway lines as soon as possible.

Approved by the Board and signed on their behalf

…………………………………………….

David Foster - Chairman and Trustee 19 May 2025

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Independent Examiner's Report to the Trustees of The 2874 Trust Limited

I report to the charity trustees on my examination of the accounts of the company for the year ended 31 March 2025 set out on pages eight to thirteen.

Responsibilities and basis of report

As the charity's trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').

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

Independent examiner's statement

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

  1. accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or 2. the accounts do not accord with those records; or

  2. the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or

  3. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities [applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)]

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

David R Johnson & Co Chartered Certified Accountants 110A Cher

Minehead Somerset TA24 5EW

19 May 2025

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The 2874 Trust Limited

Statement of Financial Activities (incl. Income & Expenditure Account) for the year ended 31st March 2025

2025 2024
Unrestricted
Restricted

Total
Total
Notes Funds Funds Funds Funds
£ £ £ £
Income and Endowments from
Donations and legacies 2 & 4 28,465 85,900 114,365 20,956
Other Trading activities 2 & 5 2,746 0 2,746 3,319
Bank interest income 1,389 0 1,389 377
Total income 32,600 85,900 118,500 24,652
Expenditure on
Trading activities 5 1,908 0 1,908 2,065
Charitable activites 6 18,525 41,362 59,887 15,355
Other costs 7 1,606 1,359 2,965 1,838
Total resources expended 22,039 42,721 64,760 19,258
Net income/ (expenditure) and
net movement in funds 10,561 43,179 53,740 5,394
Reconciliation of funds
Total funds brought forward 25,024 8,841 33,865 28,471
Unrestricted funds tranfers
to Restricted Funds -20,104 20,104 0
from Restricted Funds 5,150 -5,150 0
Total funds carried forward 20,631 66,974 87,605 33,865

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The notes form part of these financial statements

The 2874 Trust Limited Statement of Financial Position as at 31st March 2025

Notes 2025 2024
Fixed Assets £ £
Intangible assets - Investments 3 1 1
Heritage Asset - Locomotive 2874 3 3,950 3,950
Total fixed assets 3,951 3,951
Current Assets
Debtors 9 4,741 614
Retail shop stock 932 1,436
Cash at bank 92,476 40,882
Total current assets 98,149 42,932
Liabilities
Creditors falling due within one year 10 (7,478 ) (5,114 )
Net current assets 90,671 37,818
Total assets less current liabilities 94,622 41,769
Creditors: falling due after more than one year 11 (7,017 ) (7,905 )
Net assets 87,605 33,865
The funds of the charity:
Unrestricted income funds 12 20,631 25,024
Restricted income funds 12 66,974 8,841
Total charity funds 87,605 33,865

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2025.

The members have not required the charitable company to obtain an audit of its financial statements for the year ended 31 March 2025 in accordance with Section 476 of the Companies Act 2006. The trustees acknowledge their responsibilities for

(a) ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and

(b) preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.

These financial statements have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small charitable companies and with the Financial Reporting Standard 102

The financial statements were approved by the Board of Trustees on 19 May 2025 and were signed on its behalf by:

David Foster Chairman and Trustee

John Sampson Treasurer and Trustee

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The 2874 Trust Limited Notes to the Financial Statements for the Year Ended 31 March 2025

1 Accounting Policies

A

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Financial reporting standard 102 - reduced disclosure exemptions

The charity has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland': - the requirements of Section 7 Statement of Cash Flows

B Actions taken to continue to be a going concern

The Trust has sufficient cash reserves for its current level of operations and maintains strict measures of income and expense control.

C

Income

Income has been taken to the credit of the Income & Expenditure Account on an accruals basis. Voluntary income includes donations, grants, membership income and gift aid.

Annual membership income is taken to the credit of the Income and Expediture Account on a cash basis, Five year memberships are credited to Sundry Creditors and written off over five

years to income. Both types of Life memberships are credited to Sundry Creditors and written off over ten years to income.

Income from trading activities is recognised as earned.

Legacy donations of shares in Dinmore Manor Locomotive Ltd (DML) are included when received at a nominal value of £0.01 as DML is a company for which there is no recognised market for these shares.

D

Volunteers and donated services and facilities

The value of services and goods provided by volunteers without charge is not incorporated into these financial statements. Although it is considerable, it has been excluded due to the difficulty of determining when volunteers are working for the benefit of the Trust.

E

Expenditure

Expenditure is recorded when a liability is incurred on an accrual basis and includes VAT costs except where VAT is recoverable.

Costs of generating funds are those costs incurred in attracting voluntary income or trading activities. Charitable activities include costs associated with the maintenance, parts, skills training and restoration of the locomotive 2874

Other costs included those incurred in the governance of the charity and are primarily associated with constitutional and statutory requirements, insurance cover for third party claims against the Trustees and promotional costs.

F

Fixed Assets

Legacy shares in DML are included at a nominal value of £1 Heritage locomotive 2874 is included at cost of acquisition. Expenditure excludes restoration costs of locomotive 2874 which is included in Statement of Financial Activities

G

Retail stocks

Stocks are valued at the lower of cost or net realisable value.

H Funds Structure

Unrestricted funds includes monies raised for the restoration of locomotive 2874.

Restricted funds are monies where the donor/grantor requires that that they be spent on a particular purpose and may be returnable if unspent after a period of time.

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2 Turnover

Turnover from trading activities and membership income totalled £7,835 in the year (£7,324 in 2024).

3 Fixed Assets

Legacy donations of 1781 ordinary shares of £10 each in Dinmore Manor Locomotive Ltd -representing 2.50 % of the ordinary shares issued at 31st March 2025 by DML ( 1,420 shares and 2.02% at 31st March 2024) are included at a nominal £1 as DML is a company which has not paid dividends, is not expected to do so in the future and there is no recognised market for these shares.

Heritage asset of locomotive 2874 was purchased 'as seen' in December 2016 for £ 3,950 + VAT and is included at cost ( £ 3,950 at 31st March 2024)

2025 2024
Unrestricted Restricted Total Total
Funds Funds Funds Funds
4 Donations and legacies £ £ £ £
Donations and grants 17,914 85,900 103,814 13,605
Membership income 3,700 0 3,700 3,628
Gift Aid receivable from HMRC 6,851 0 6,851 3,723
Legacy donations ( nominal) 0 0 0 0
Total 28,465 85,900 114,365 20,956

A grant of £152,600 was been awarded to the Trust by the National Heritage Lottery Fund , for Heritage Engineering - Skills from the past preserved and developed for the future.

The first tranche of £75,600 was received in the year ended 31 March 2025.

5 Fundraising income and other Income £ £ £ £
Sales, commissions , other income 2,746 0 2,746 3,319
Associated costs - purchases and prizes 1,908 0 1,908 2,065
Net fundraising income 838
0
838 1,254
6 Charitable expenditure £ £ £ £
Springs 7,655 7,655 0
Steels, plates and parts 1,142 4,113 5,255 906
Safety Valve casting 2,500 2,500 0
Cylinder cover repair 0 0 1,010
Axle box, reversing gear 1,061 339 1,400 5,900
Smoke box 0 330 330 855
Sprinkler Valve 275 275 0
Cladding 25 50 75 0
Chimney 371 2,129 2,500 0
Collett Tender 0 5,000 5,000 1,950
BES Group Boiler inspections 0 4,519 4,519 0
Tube Plate prep and weldind 0 3,950 3,950 0
Boiler lift and turn 0 1,850 1,850 0
Mudhole door covers 0 0 0 764
Contractors and training of volunteers 2,402 13,492 15,894 1,058
Volunteers travel and subsistence 313 4,203 4,516 0
Other costs 581 1,179 1,760 504
Locomotive insurance 0 208 208 208
Restoration facility 2,200 0 2,200 2,200
Total 18,525 41,362 59,887 15,355

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2024 2023
Unrestricted Restricted Total Total
Funds Funds Funds Funds
7 Other costs £ £ £ £
Independent Examination fee 126 0 126 126
Filing fees 34 0 34 13
Trustees Liability Insurance 475 0 475 475
Stationary, printing and web site 736 1,209 1,945 1,062
Heritage Railway Association membership 33 150 183 0
Other 202 0 202 162
Total 1,606 1,359 2,965 1,838
All costs are towards the restoration of locomotive 2874
At At
8 Members at 31 March 31/03/2025 31/03/2024
Number of Honorary Life memberships 8 9
Number of Honorary 5 Year memberships 1 1
Number of Honorary 5 Year corporate memberships 1 1
Number of Life subscriptions 26 25
Number of 25 year subscriptions (available to those over 70 years) 31 29
Number of 5 year subscriptions 34 29
Number of annual subscriptions 50 55
Number of 2 year subscriptions 0 0
Number of corporate annual subscriptions 1 1
Number of Junior 5 year subscriptions 0 0
Number of Junior 1 year subscriptions 0 0
Total 152 150
The 2874 Trust Ltd is a company limited by guarantee and has no share capital.
The liability of each member in the event of winding-up is limited to £10.
9 Debtors £ £
HMRC - Gift Aid 2,182 485
HMRC - VAT 2,530 100
Customer sale invoice 29 29
Total 4,741 614
10 Creditors: amounts falling due within one year £ £
Deferred income from five year subscriptions 480 416
Deferred income from life subscriptions 1,273 1,223
Deferred income from over 70 subscriptions 775 725
Accrual for Restoration facility costs 4,950 2,750
Total 7,478 5,114
11 Creditors: amounts falling due after more than one year. £ £
Deferred income from five year subscriptions 800 704
Deferred income from life subscriptions 3,392 4,215
Deferred income from over 70 subscriptions 2,825 2,985
Total 7,017 7,904

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At Income & Expense & At
12 Movement in Funds 31/03/24 Transfers In Transfers Out 31/03/25
£ £ £ £
Restricted income funds
Boiler cladding 50 0
Cladding Expense 50 0
Smoke Box 1,427 0
Smoke box door 330 1,097
Timing, reversing gear 339 0
Rocker brackets refurbishment 339 0
Buffers, chimney, safety valve 2,129 0
Chimney Expense 2,129 0
Boiler match funding 4,896 0
Transfer Balance To NHLF 4,896 0
National Heritage Lottery Fund - Boiler 0
1st Tranche received 75,600
Transfer Balance from boiler fund 4,896
Transfer from Unrestricted Funds 20,104
Boiler Expenses 15,820
Contractor costs 13,492
Volunteer costs 4,203
Publicity, website and other costs 1,208 65,877
Collett Tender Purchase 0
Donations received 10,150
Tender purchase 5,000
Transfer to Unrestricted Funds 5,150 0
Heritage Railway Assocition Membership 0
Donations received 150
Membership Expense 150 0
Total Restricted income funds 8,841 110,900 52,767 66,974
Unrestricted income fund 25,024
Transfer to Unrestricted Funds - Boiler 20,104
Transfer from Unrestricted Funds - Tender 5,150
Unresticted Income and Expense 32,600 22,039 20,631
Total Funds 33,865 110,900 52,767 66,974

13 Taxation

The Trust is exempt from corporation tax on its charitable activities and no provision is considered necessary.

14 Trustees

No pecuniary or other benefit was received from the Trust by any Trustee in respect of period reported other than reimbursement of agreed and approved expenses wholly, exclusively and necessarily incurred for the benefit of the Trust.

Some Trustees hold positions in DML, GWSR and GWRT and could be involved in transactions between the Trust and those organisations.

An insurance policy has been initiated to protect the Trustees or any one of them against personal liability arising from their actions as Trustees of the Trust.

15 Contingent Liability The Trust has an agreement with GWSR for shed and facilities rental as do other engine groups engaged in restoration or overhauls. These agreements are different with each group and GWSR is in the process of putting together a standard agreement suitable to all groups. As the outcome is uncertain the Trust has maintained rental accruals at the last level charged by GWSR. Any increases that might occur may be offset by free rental periods during restoration and through inclusion in the HNLF grant budget. From its current understanding the Trustees remain confident that they can manage the financial issues when the agreement is concluded.

(There were no contingent liabilities at 31st March 2024)

16 Commitments

The Trust has a commitment of £2,395 for a blower ring as part the HNLF grant costs at 31 March 2025 ( £2,004 for various items at 31 March 2024 )

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