Company registration number. 2023981 Charity registration number: 1186648 EAST LANCASHIRE UGHT RAILWAY COMPANY LIMITED (A COMPANY LIMrrED BY GUARANTEE) ANNUAL REPORT AND CONSOUDATED FINANCIAL STATEMENTS 31 DECEMBER 2023 EAsf LANCASHIRE LIGHT RAILWAY COMPANY UMITED CONTENTS Reference and Administratbve Details Trustees Report 2to8 Independent Auditor5. Report 9t012 Consolidated Ststement of Financial Activities 13trJ14 Consolidated Balance Sheet 15 Balance Sheet 16 Consolidated Statement of Cash Flows 17 Notes to the Financial Statements 18to38 EAST LANCASHIRE UGHT RAILWAY COMPANY UMITED REFERENCE AND ADMINisfRATIVE DETAILS Chalrman M W Kelly M W Kelly R G Chapman CRLaw D S Layland SMLea ALee C Phillips G SThomton K A Whitmore A Thomas M A G3rdiner Charity Registration Number 1186648 Company Regtstration Number 2023981 The charity is incorporated in England and Wales. Botton Street Station Bolton Street Bury Lancashi BL9 OEY Registered Ollke Audftor Horsfield & Smith ToV￿r House 269 Walmersley Road Bury Lanca5hire BL9 6NX EAsf LANCASHIRE UGbrr RAILWAY COMPANY LIMrrED TRUSfEES REPORT The trustees. who are directors for the purposes of company law, present the annual report together with the financial staternents and auditors, report of the charitable company for the year ended 31 December 2023. Trustees and Ollkers The trustees and officers serving durin8 the year and since the year end were as follows: Trustees: MWKelty R G Chapmaft CRLaw D S Layland SMLea C Phillips G Thomas Iresigned 23 February 20231 G SThornton K Awhitmo A Thomas lappointed 7 December 2023) M A Gardiner (appointed 23 September 2023) Chairman: M W Kelly Objective5 and aclivitles Owerts ond Jlm5 The object of the charity is to advance education for the benefft of the public in the history. construrtion. en8ineeriTYd and operation of the East Lancashire Rallway by: a) The acquisition. restoration. preseprfation and operation of heritsge railway locomotives. carriages. wagons. ststion buildings, track between Rawtenstall and Heywood and other associated heritage Infrastrurture: and bl The establishment and rna1ntenan￿ of a museum. Publlc benefft The Charity aims to educate visitors to the herits8e East ianca5hire Raihvay about the different eras and attivilies in the history of the railways. The irustees confimi that they have complied with the requirements of section 17 of the Charities Act 2011 to have due re8ard to the public benefft guidance publlshed by the Charity Commission for England and Wales. Use 0/￿1unteer5 The charity and its subsidiary trading company would not be able to provide the seTrices they do without the dedicated volunteers who give their time to the Railway. The companie5 are committed lo the development of volunteers and improving volunteer recruitrnent. key base skills training and departmental placement sympathetic to specific departmental requirements. EAST LANCASHIRE LIGHT RAILWAY COMPANY UMITED TRUSTEES REPORT Structure. £overnan¢e and management Nature of goveminq d¢xument The organisation is a charitable company. The company was incorporated on 29 May 1986 and ts limtted by guarantee. In the event being wound up each member is required to contribute an amount not exceeding ten pounds. The company was established under a memorandum of as%Kiation which established the objects and powers and is governed under its art•cles of aswciation {last updated November 20191. Orqanlsotlonolrtnxtwe The company operated as a trading company up to December 2019. On l January 2020 the company was granted charitsble status and the trading activities were passed to a new wlK)Ily owned tradiTrg subsidiary company East Lancashire Railway Limited. Recrultment and oppointment OItn￿tees Trustees are appointed by ordinary resolution at a general meeting. There is no maximum number of trustees. the minimum is four. One third are required to retire by rotation at the annual generol meeting of the charity. whe￿ the trustees appoint a person who is willing to art as a trustee either to fill a vacancy or as an addrtional trustee that person must retire and may offer themsefves for re*lection at the next annual general meeting. A person may not serve as a trustee unless they are a mernber of the charity. A person ￿asing to be a member shall automatically cease to be a trustee. Achlevemefits and perfornian 2023 saw the continuation of the 'cost of Ipiin& crTSiS and variable consumer confidence with inevitable consequences for average visitor spend and donations. The railway has continued to experience high energy and fvel charges alon8 With well above inflation increases in the 'Livin¢ and 'Minimum' wages for two consecutive years. Whilst tackling the challenges the Railway ha5 been very creative in generating record revenues by introducing new family friendly and heritage events which provide a more diverse suite of events. galas and histo￿ celebrations, such as the 8rowing weddinls schedule and those linked to heritage milestones. The retum of the Ffyin8 Scotsman was a welcome boost both to visitor numbers and revenues. Following the retum of the Union of South Africa to its permanent home in Flfe, Scotland. The refresh of museum artefacts continued throughout 2023. The 25(Kl Tilbury Tank has been loaned by the National Railway Museum and earfy in the year Wren arrived on loan in conjunction with the Bahamas Locomotive Society. The museum has collaborated with local theatres, lending several item5 to the Royal Exchange. Manchester for their Christm35 production of Brief Encounter and cast members from The Bofton Octagon visited the Museum to film one of thelr productions. There was a 5utte55ful event with 'An evening with Lord Peter Hend( (choir of Network Rall and new Chair of the Heritage Railway Association) which was a major coup for the museum. EAST LANCASHIRE LIGHT RAILWAY COMPANY UMITED TRUSTEES REPORT The museum has also successfultyl hosted a wide rdnge of events supporting and increased number of family based events including new events such as Gruffalo and Peter Rabbit. The trading company ramped-up ivs licensed character events in 2023 following the successful pilot with "Peppa pl￿ in 2022. Events have been added without having to chan8e the train timetable, and a full programme of 13 dates and Six themes operated in 2023. With schools breaking up late at Christmas there were fewer dates available with 102 Santa Special Trains operated. compared to 114 in 2022. The Santa 'SEND' train, introduced in 2023 was a resounding 5UCQss, running at full occupancy. The plan for 2024 is to increase the number of SEND trains. The overall visitors for 2023 was 141,235 compared to 130.847 in 2022. Following the renovation of The Trackside pub in 2022 both Pubs lat Bury and Rawienstalll perfomied stror*fy providi￿d Positive financial contributions wlth revenues up by 20%. Stsff from Network Rail Northwest joined volunteers at the ELR foi a day and Network Rail used the railway to test their experimental railheèd treatment train. It is hoped that a mutually beneficial partnership will continue to develop in 2024. whereby Netrwork Rail will gift the East Lancs Railway. usable and appropriate redundant assets In return for training of Network Rail staff In various operating roles. During 2023 a project started to re-paint the Rawtenstall Station into knyty colours with the outside completed by November. The internal part of the station will be done during 2024. From January to mid March 440 yards lor 22 panels) of track to the north of Stubbins Station was relayed. The permanent way team devoted almost 5(Kl man -days and operated through the very worst of the English winter weather. The maintenance and restoration of herits8e railway rollin8 stod( has continued during the year and a summary is given below of work undertoken on ELR owned and privatety owned but ELR resident locomotrves and rollin8 Stock: • ongoing long-term refurbishment of steam locos 47324 and Ivatt 46428. ongoing boiler overhaul of 8(M)97 and ￿MedIa1 work to the ljoiler of 34092 City of Wells: rectification work was completed on steam loco 47298: repairs to the diesel locos D7076 and 37109. as well as DMU set 5045510517 were completed and these are now back in traffic: • work Is on80ing every week by the D5705 CoBo's dedicated team, and steady progress Is belng made: work progressing behind the scenes on D8233; the refurtiishment of the heavily rotted cabs on 33117 by an outside contractor and the loco has been given a coat of protected 81055 paint: the Rawtenstall café coach which came into the shop for a repaint and bodywork repair,. • a full and exlensNe restoration of coach 14019 has now been completed with some of the repaint Costs kindly sponsored by local company Autosave: and a quick repair to coach 4917 has proved to be more in-depth and is ongoing. Regretfully this is DOW becoming more and more prevalent with the fleet of Mark I coaches which are needing more and more significant repairs, and with limited resources this is an area of concern. As always much of this work has only been possible because of the dedicated support of the volunteers and the Board are thankful to them for the time they give to the Railway. EAST LANCASHIRE UGHT RAILWAY COMPANY UMITED TRUSTEES REPORT Financial review Despite everyone's best efforts EUI returned a net deficit for the year of £375.854. 2023 was a particularly difficult year with utilities costs. including coal. diesel fuel. electric & gas all incurring significant Ima5sNe) additional costs that could not have been foreseen when the bud8et for the year was drawn up. The ELR vms not alone in this drfficulty amongst heritage railways. and these costs had to be absorbed with little or no ability to recoup. Customer confidence was still slow in responding post Covid and this is Still the cose with noticeably later booking of pre-paid events occurring which is not particularty easy to forecast, restritting certainty- In addition to this. it was necessary to spend some £139.(XX) on the roof of the Baron Street building which is not an ELR asset. This has had to continue in 2024 which will adversly affect lagainl the financial result. However agreement has now been forthcomirvd for a significant contribution each year from the local Authority to assist with the costs of thi5 buiklin8 which will reduce the ELR contribution- whilst a longer terni solution 15 50ught. A further cost incurred in 2023 that affected the financial perforrnance vms a late decision to operdte many of the ELR Diniftg with D¢stinctiOn services as 'Standalone' Services. thus incurring Si8nificant additional costs. both in locomotive hire costs, coal arKI the number of volunteer turns required which proved difficult to resource. This wa5 considered necessary after due consideration of customer experience, ease and safety of operation. Some adjustment is intended to be made next year which should have a si8nrfKant cashflow advantsge. A long term utilities contract has been ne8Otiated. which ￿11 provide further security regardin8 in particulèrga5 & electric costs. Pollryon resetves So far as practicable the Trustees intend to reinvest surpluses in projects which will advance the tharitable objects. This has not been possible in 2023 and the charity has needed to draw on its weserves to continue its planned maintenance and restoration project& Investmentpolky ondobjertlves Under the Memorandum and Articles of association. the tharity ha5 the pov￿￿ to make any Investment the Trustees consider will fvrther the objects of the charity. Currently neither the charTty nor its trading subsidiary have excess funds available to invest. When such funds become available the Trustees feel that short term readily available products would be most suited to meet uncertain short temi demands. Mans for future periods The squeeze on finances has prevented the Board adding to the designated locomotive refvrbishment reserve for the refurbishment of locomotives when their tickets expire. Although provision was made in 2021 for the restoratron of the CRAB locomotive. at the moment the fund 15 not sufficieni to complete these work5. The planned overhaul of th¢5 engine has been put on hold for the time being. Following the 8ront of planning perniission for the re-development at Buckley Wells on 22nd February 2022 progressing and completi￿8 the discharge of planning conditions has been tomplicoted by a late addition to the requirements to Upgrade the unadopted section of Baron Street to 'hi8hway standard,. This mutt￿MIllion pound project will take several years to complete and is to be pro8ressed in stages. EAsf LANCASHIRE LIGHT RAILWAY COMPANY UMITED TRUSTEES REPORT There is a COMp￿he￿$1¥e programme for restoration and repair of the Grade 11 Listed wowkshops shed dating from 1857. The buildin8 will continue to be used for the restoration and Tepair of locomotives including workshops and stores. A public viewing Eallery will enable visitors to the Railway to observe the works in operation. An extension on the footprint of the former shed Idemollshed in the 1970'sl will provide new offices. welfare arml training facllities to support enBineerin8 trainin8 and development skills for fvture generations of engineers. The erertion of a new tarriage shed will house, restore and repair the fleet of historic railway coaches. The new facility will be vital for the protection of coache5 from the elements and vandalism. This should exterKI the maintenance cycle to approximatety 12-15 a5 opposed to the current 7 years. Eco friendly and 5UStainable add-ons being considered for this phase of development include installin8 solar panels to reduce the energy costs aNI harvesting raln water to provide water for the steam locomotives. Within the site a new access road and new track will be ￿configured arKI re-laid to ensure access to new facilities and the safe movement of tract￿0 and rolli￿ stock around the site. IVS also proposed to expand the operational capacity of the slte with new areas for ertemal storage facilities for fuel and with ambitions to instsll a trartion and rolling stock tumtable. The roof on the Baron Street works is in need of replacement. The ELR are activety looking for 8rant funding for this project. A grant funding application has been submitted to the Community Ownership Fund for the Higher Woodhill Viadurt. Golng ¢oKern The Company is dependent on a related entity being able to Meet its obligations in respect of the maintenance of key structures along the route of the railway. The impart of any restriciions in the use of the strurtures vffjuld be stgnificant on the operations of the company. The directors have considered the most recent report to the Board of the ￿lated entity. In which there are detailed realistic plans covering the foreseeable f￿Ure that indicate that the obli8ations can be met, and the schedule of planned Maintenan￿ work confinns this position. The directors a￿ concerned by the ongoing economK pressure& The cost of living crisis is impacting on the public donations and income available from the trading company. In order to complete the ambitious plans for the future fundin8 sources need to be i(leniified. Forecasts have been prepared coveri1￿ the period to December 2026 and these have been subjected to sensitivity analysis. The Directors recognise that, in p￿paring the forecasts, there is an inherent risk that the plans may not be achieved. Despite this risk, the Directors believe that the Railway has secured sufficient financial reserves to enable it to Contin￿ as a going concern. EAST LANCASHIRE UGHT RAILWAY COMPANY UMITED TRUSTEES REPORT Relationshlps wlth related parties East ianca5hire Rallway Holdinzs Limlted The charfty is under the conlrol of a charitable holding company East LancaShI￿ Railway Holdin85 Limited. As part of the re-llrurturing of the Railway it is the intention that East Lancashire Railway Holdings Limited will be closed and its charitsble objects carried on by East Lanca5hire Light Railway Company Limited. On l January 2020 the benefft of the funds in East LanCashI￿ Railway Holdings Limited was passed to the charity. Since then any donations re￿Ived by East Lancashire Railway Holdings Limited have been remitted to East Lancashire Light Railway Limited. Rnanclal Instruments Obie¢tfvts ondpoli¢les The group's 3ctNities expose it to a number of financial risks including credit risk, cash flow risk and liquidity risk. The use of financial derivative5 is governed by the 8roup's policies approved by the board of t￿￿tee5, which provide vnitten principles on the use of financial deriYative5 to manage these risk5. The group does not Use derivative financial instruments for speculative purposes. CashJlowri5k The Charity relies on public donations to enable it to provide funds for ihe projects currentfy* being financed. Cashllow can be very much affected by the willingness and ability of the general public to make donation Crnlltrlsk The Choritls principal financial assets are bank balances and cash, and other receivables. The charity's primary credrt risk is attributable to its receNables from the East Lancashire RailvAy Limited. An allowance ft)r impairnienl 15 made where there 15 an identifiable Ioss a5 a result of a 80ing concern risk in that company that would evidence a reduction in the recoverability. Uquldltyrfsk In order to maintsin liquidity to ensure that sufficient funds are available for ongoing operations and future developments, the group uses a mixiure of long-temi and short-temi debt finance. Further details regarding Ibquidtty risk can be found in the Statement of accounting pollcies in the financial statements. Reputatknwirfsk In accordance with current best practi5e. the charity maintains various registers to enable it to monilor performance and complian￿. Dlsclosure of Inforniatloft to audltor Each trustee has taken steps that they ought to have tsken as a trustee in order to make themsefves aware of any relevant audit inforn)ation and to establish that the charity's auditor is aware of that information. The trustees confimi that there is no relevant information that they know of and of which they know the auditor is unaware. Reappolnlment of audltor The auditors Horsfield & Smith are deemed to be reappointed under sertion 487121 of the Companies Art 2￿6. EAST LANCASHIRE UGHT RAILWAY COMPANY LIMITED TRUSTEES REPORT ststement ol ResponsibllltSes The trustees (who are also the direttors of East Lancashtre Light Railway Company 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 Accountin8 Practice). Includi￿ FRS 102 'The Financial Reportin8 Standard applicable in the UK and Republic of Ireland.. Company law require5 the trustees to prepare financial statements for each financial year. Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the parent charitable company and the 8roup and of the incoming resources and application of resource5. induding its incorne and expenditu￿, of the charitable group for that period. In preparin8 these financial statements, the trustees are required to: select Suitable accounting policies and apply them consistentPr, observe the methods and principles in the Chafities SORP: make judgements and estimates that are reasonable and pnmlent; state whether applicable accounting standards, comprisin8 FRS 102 have been foll0v￿d, subject to any rnaterial departures disd05ed arKI explained in the financial Statements; and prepare the financial ￿atements on the going concem basis unless it 15 inappropriate to presume that the parent charitable company will continue In business. The trustees are responsible for keeping proper accounting records that can disclose with reasonabte accuracy at any time the financial position of the parent charitsble company and the group and enable them to ensure thal the financial ststements comply wrth the Companies Act 2006. They are also responsible for safeguarding the assets of the parent charitable company and the group and hence for takire reasonable steps forthe prevention and detertion of fraud and other irregularities. The trustees are responsible for the maintenance and integrity of the corp)rate arKI flnancial information included on the charrtable company's website. Legislation 8ovem(n8 the preporation and dissemination of financial statements may differ from legislation in other jurisdictions. The annual report was approved by the trustees of the charity on 30 August 2024 and stgned on Its behalf by: M W Kelly Chairman and Trustee EAST LANCASHIRE UGHT RAILWAY COMPANY UMITED INDEPENDEKf AUDrroR'S REPORTTOTHE MEMBERS OF EAST LANCASHIRE UGHT RAILWAY COMPANY UMITED Oplnion We have audited the financial statements of East Lancashire l￿ht Railway Company Limrted (the 'charitable parent company'l and its subsidiaries {the 'Broup') for the year ended 31 December 2023, which comprise the Cor￿011d0ted Statement of Financial ActNities, Consolidated Balance Sheet, Balance Sheet. Consolidated Statement of Cash Flows and Notes to the Financlal Statements, induding a summary of significant accountin8 policies. The financial reporting framework that has beeft applied in their preparation is United Ki￿d0M Accounting Stsndards. comprising Charities SORP - FRS 102 The Financial Reporting Stsndard applicable in the UK and Republic of Ireland. Iunited Kin8dom Generally Accepted Accountir8 PractKe) and applicable law. In our oplnion the financial ststements: Blve a true and fair view of the state of the 8roup's and parent chartys affairs as at 31 December 2023 and of its incomin8 resources and application of resources, including its income and expenditure. for the year then erKled: have been properly prepared In accordan￿ with United Kin8dom Generally A￿pted Accountin8 Practice.. and have been prepared in accordan￿ with the requirements of the Companies Act 2(￿. Basls for opinlon We conducted our audlt in accordance with International Stsndards on Auditi￿ IUKI IISAS IUKII and appllcable law. Our responsibilities under those standards are further described in the auditor responslblllties for ihe audit of the financial ststements section of our report. We a￿ independent of the group in accordance with the ethical requirements that are relevant to our audit of the financlal ststements in the UK. including the FRCS Ethical Standard. and we have fiilfilled our other ethical responsibilities in accordan￿ with these requirements. We believe that the audlt evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. C•n¢luslons to golnz Co￿eM In auditing the financial ststernents, we have coKluded that the trustees itse of the going COn￿M basis of accountlng in the preparation of the financial statements15 appropriate. Based on the work we have perfonned. we have not identified any materfal w￿rtaIntleS relating to events or condltions that, individually or collettively. may cast signfficant doubt on the group's ability to contirwe as a going concern for a period of at least twelve months from when the original financial statements We￿ authorised for issue. Our ￿SponSibl11t1eS and the responsibilities of the trustees with respect to goin8 concem are described In the relevant sections of this report. EAST LANCASHIRE UGKf RAILWAY COMPANY UMrrED INDEPENDENT AUDITOR'S REPORTTO THE MEMBERS OF EAST LANCASHIRE UGHT RAILWAY COMPANY UMrrED Other Infomwtlon The other information comprises the inforniation included in the annual report other than the financlal statements and our auditorfs rep)rt thereon. The dirertors are responsible for the other information contained within the aTrnual ￿pOrt. Our opinion on the financial ststements does not cover the other inforniation and, except to the extent otherwise explicitty stated in our report. we do not express any fonn of assurance condusion thereon. Our resp)nsibility is to read the other infomiation and, in doing so, consider whether the other infommtion is materialty inconsistent with the financial statements or our knowledge obtained in the course of the audit. or other4vise appears to be materialty misststed. If we Identify such material inconsistencies or apparent material mi5Statements. we are required to determine whether this give5 rise to a material misstatement in the financial statements themsefves. If. based on the work we have performed. we conclude that there is a material misststement of thls other infonnation. we are required to report that fact. We have nothing to report in thi5 regard. Oplnlon on other matter pre5crfbed bythe Companles Art 2LM16 In our opinion. based on the work undertaken in the course of the audlt: the information given in the Trustees Report for the finanual year for whKh the financial statements are prepared is consistent wtth the financial statements: and Ihe T￿Stee5 Report has been prepared in accordance with applicabk legal requlrement> In the light of our knowled8e and Understandi￿ of the group and the parent chafltabk companv and its environment obtsined in the course of the audiL we have not identified materlal misststements in the Trustees Report. We have nothlng to report in respett of the followiwd matters where the Companies Act 2006 requlres us to report to you rf. in our opinion: • adequate accounting records have not been kept lry the parent tharltsble company, or retums adequate for our audit have not been received frorn branches (￿t visited by us; or the parent charitsble company financlal ststements are not In agreement wTth the accounting records and retum5: or certain disclosures of trustees remuneration specified by law are not made; or we have not ￿￿1Ved all the information and explanations we require for our audiL Re5ponslbllltles of trustees As explained more fijlly in the Statement of Re5ponsibilit• Iset out on page 8). the trustees are responsible for the preparation of the financial statements and for being satisfied that they g￿e tn* and fair view. and for such internal control as the trustees determine is necessary to enable the preparation of financial ststements that are free from matewial missLitement, whether due to fraud or error. io EAST LANCASHIRE UG+rr RAILWAY COMPANY UMITED INDEPENDEKfAUDITOR'S REPORTTOTHE MEMBERS OF EAST LANCASHIRE UGHT RAILWAY COMPANY UMrrED In preparing the financial statements. the trustees are responsible for assessin8 the charitvs ability io continue as a Eoing concem, disdosin& as applicable. matters related to going Con￿rn and usin8 the going con￿rn basis of accounting unless the trustees either Intend to liquidate the charity or to cease operations, or have no realisttc altemative but to do so. Audltor respOr￿1b[lltles forthe audlt of the finandal 51•tements Our objectives are to obtain reasonable assurance about vknether the financial statements as a whole are free from material misstatement whether due to fraud or error, and to ￿ue an auditorfs report that indudes our opinion. Reasonable assurance is a high level of assurance. but is not a 8uarantee that an audit corHlucted in accordan￿ with IS4s (UK) will always detect a materlal misstatement when it exS5ts. Misstatements can arise frorn fra￿1 or error and are considered material if, individualty or in the a88regate, they could reasonabty be exr*rted to Infiuence the economic decisions of users Liken on the basis of these financlal statements. The extent to whith our woce￿res are capable of detect1￿ Irre8u1a￿ IndUd1￿ fraud lffe8ularities. induding fraud. are instances of non These induded UK Companies Act. Charities ACL and do not have a direct effect on the financial statements compliance with which rnay be fvndamentsl to the abllity to operate or to avoid a material penalty. These induded the line operating licence. We ensured that the engagement team collectivety had the appropriate competen￿, capabilities and skllls to identify or recognise non Is EAST LANCASHIRE UGHT RA5LWAY COMPANY UMITED (REGISTRATION NUMBER: 2023981) BALANCE SHEEr ASAT 31 DECEMBER 2023 2023 2022 Flxed assets Tangible assets Investments 15 4,683,463 4.682.186 4.683.464 4,682.187 Current assets Debtors 18 81.291 143,IX 88,732 367,084 Cash at bank and in hand 19 224,291 455.816 CredIto￿. Amounts fallltw due withln one year 20 1545.3241 (303.6011 Net current Illabllltles)las5ets 1321.0331 152,215 Total wets less current Ilabllitles 4.362A31 4,834.402 Creditors: Amounts fallin8 due after more than one year 21 12,994,659) (3,IIXI,4681 Provlslons 22 I460,(￿) 1460.(KXIl 907,772 1.273.934 Funds of the charlty. Restrfrted Income funds Restricted fuThJs 157,884 173,176 Unrestrlded in¢ome funds Desi8nated Funds General Fund5 143,IXK) 606.888 I50,￿) 950,758 Totsl unrestrirted fvnds 749,888 l.l(KJ.758 Total funds 24 907,772 1,273,934 The financial statements on pa8es 13 to 38 were approved by the trustees, and authorised for Issue on 30 August 2024 and si8ned on their behalf by: M W Kelly Chaimian and Trustee DSLayl Tru The notes on pages 18 to 38 fomi an integral part of these financial statemen 16 EAsf LANCASHIRE LIGHT RAILWAY COMPANY LIMITED CONSOUDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2023 2023 202Z Cash flows from operatlng artlvlties Net cash exper￿lture 1375.854) 1115.4981 Aljustments to cash flows from nonthh items Depreciation Investment incorne Loss/{profrtl on dtsposal of tangible fixed assets 15 246,187 12.445) 2.881 233.630 18051 1421 (129,231) 117.285 Worklng caplial adjustments Decrease in stocks Decreasellincreasel in debtors Increase in creditors Decrease in defer￿d income 17 591 134,694 20.359 {10.176) 1,785 (35.1891 2.047 158.4751 18 20. 21 21 Net cash flows from operatin8 activities 16,237 27,453 Cash flows from lrniestlr¥ artivities Interest receNable and similar income Purchase of tangible fixed assets Sale of tangible fued assets 2,445 1248.4751 2,159 805 15 {301.7971 41 Net cash flows from investing activit￿5 1243.8711 I3￿.951} Cash flows Irom financ[￿ actl¥ld Repayment of loans and l)orrowings 20. 21 181,lJJ)I 180.4531 Net decrease in cash and cash equivalents 1308.6341 {353,9511 Cash and cash equivalents at l January 781.406 1.135.357 Cash and cash equivalents at 31 Oecember 472.772 781.406 All of the cash flows are derived from continuin8 operations duri￿ the above two per￿d$. The notes on page5 18 to 38 forni an integral part of these financial statements. 17 EAST LANCASHIRE UGHT RAILWAY COMPANY UMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 I Charfty slatU5 The charity is limited by guarantee. incorporated in England and Wales, and consequentty does not have share capital. Each of the trustees is liable to contribute an amount not exceedin8 £10 towards the assets of the charity in the event of liquidation. The address of its registered office is: Bolton Street Station Bolton Street Bury Lancashire BL9 OEY 2 A¢¢ountir* poli¢les Summary of slgnincant account1￿ polkles and key account[￿ esymates The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistentty applied to all the years presented, unless otherwise Stated. Statement of compllance The financial statement5 have been PrePa￿d in accordance with Accounting and Reporting by Charities: Statement of Recommended Prattice applicable to charitie5 preparing their accounts in ccordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland {FRS 1021 issued in October 2019 . the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 102). They also comply with the Companies Act 21])6 and Charities Act 2011. Basls of preparntlon East Lanca5hire Light Rai5way Company Limited meets the definition of a public benefrt entity under FRS 102. A55ets and liabilities are initially recogni5ed at historical cost or transaclion value unless otherwise stated in the relevant accounting policy notes. The financial statements are presented in £ sterling. Bas15 of consolidation The consolidated financial staternents consolidate the financial statements of the charity and its subsidiary undertakings drawn up to 31 December 2023. No statement of financial activities is presented for the charrty as pemiltted by section 408 of the Companies Act 2CK16. The charty made a loss after tax for the financial year of £366,16012022 - Ioss of £251.1821. 18 EAST LANCASHIRE LIGHT RAILWAY COMPANY UMrrED NOTES TO THE FINANCIAL sfATEMENTS FOR THEYEAR ENDED 31 DECEMBER 2023 The subsidiary East Loncashire Railway Limited {compary number 123817291 15 a wholly owned trading company. The trading activities of East Lancashire kn8ht Railway Company Limited were transferred to the subsidiary on l January 2020. The accounting policies of subsidiary are consistefit with the policies adopted by the group. Golng toncern The director￿ concerns are in respett of the ability of a related entity to meet its obligations to maintain the railway structures. Detailed reports submitted to the Board of that entity have been considered. which indicate over a three year period. the obligations should be met. Ongoing economic pressures have also been considered by the Board of this company. and forecasts have been prepared covering ihe period to December 2026 which have been subjected to sensitivity analysis. The Directors recognise that. in preparing the forecasts, there is an inherent risk that the plans may not be achieved. Despite this risk, the Directors believe that the Railway has secured sufficient financial resenrfes to enable rt to continue as a goin8 concem. Incorne and endowments All income is reco8nised once the chartty has entitlement to the income. it is probable that the income will be received and the amount of the income receNable can be measured reliably. Donations ondlegades Donations ore recognised when the charity has been notified in writing of both the amount and settlement date. In the event that a donation is subject to conditions that require a level of performance by the charity before the charity is entitled to the funds. the income is deferred and not recognised until either those condttions are fulty met. or the fuFfilment of those conditions is wholly within the control of the charity and it is probable that these conditions will be fulfilled in the reporting period. Legacy gifts are recogn15ed on a case by case basis followirE the grant of probate when the administratorlexecutor for the estate has communicated in writing both the amount and settlement date. In the event that the 8ift is in the forni of an a55et other than cash or a financial asset traded on a recognised stock exchange. recognition 15 subiert to the value of the gift being reliably measurable with a degree of reasonable accufacy and the tI￿e to the awt having been transferred to the charity. Gronts receM?ble Grants are recognised when the 8roup has an entitlement to the funds and any condition5 linked to the grants have been met. Where perfomiance conditions are attached to the grant and are yet to be met. the income Is recognised as a liability and Induded on the balance sheet as deferred income to be released. 19 EAST LANCASHIRE LIGHT RAILWAY COMPANY UMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Defrrred Income Deferred income represents amounts receNed for future periods and is released to incoming resources in the period for which. it has been received. Such income is only deferred when.. - The donor specif￿5 that the grant or donation must On￿ be used in future accounting period5: or The donor has imposed conditions which must be met before the charrty has unconditional entitlement. Investment Income Dividends a￿ recognised On￿ the dividend has been declared and notification has been received of the dividend due. Expenditure All expenditure is recognised On￿ there is a leEal or construrtrrfe obligation to that expenditure. it 15 probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. whe￿ costs cannot be directly attributed to partictslar headings they have been allocated on a basis consistent with the use of resources. With central staff costs allO￿ted on the basis of time spent. and depreciation charges allocated on the portion of the asseys use. Other support costs are allocated based on the spread of staff cos Raisinqfvnds These are costs inCUr￿d in attrarting voluntary income, the management of investments and those incurred in tradin8 activities that raise funds. Charftable artlvitles Charitable expenditure comprises tIK*se costs incurred by the charity In the delivery of Its activities and services for its beneficiaries. It includes both costs that (an be allocated directly to wch actNities and those costs of an Indirect nature necessary to support them. Repalts qndmaintenan The day to day maintenance and operational repairs are charged to tradin8 activities and undertaken by the trading Subsidiary. Major refurbishment and cyclical overhaul to maintain the heritage assets is treated as a charitable activity and is undertaken by the charity. Governance costs These include the costs attributable to the charl￿5 Complian￿ with constitutional and statutory requirements, including audit, strategic management and trustees meetings and reimbursed expense5. 20 EAST IANCASHIRE LIGHT RAILWAY COMPANY UMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Grants Government grants are recognised based on the accrual model and are measured at the fair value of the asset received or receivable. Grants are classified as relating either to revenue or to assets. Grants relatibvd to revenue are recognised in income overthe period in which the related costs a￿ reco8nised. Grants relating to assets are recognised over the experted usefvl life of the asset. whe￿ part of a grdnt relating to an asset is deferred. it is recognised as deferred income. Taxatlon The charity Is considered to pass the tests set out in Paragraph I Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charrtable company for UK corporat*)n tax purposes. Accordingly. the charity is potentialty exempt from taxation in respect of income or capital gains ceived within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Att 1992, to the extent that such income or gains are applied exclusive￿ to Charitak￿e purposes. Tanglble r￿ed assets Tangible a55ets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses. The cost of tangible assets includes direct￿ attributable incrementsl costs incurred in their acquisition and in5ts11ation. Depredatlon and amortlsatlon Depreciation is provided on tangible fixed assets so as to write off the cost or valuation. less any estimated residual value. over their expected usefijl economic life as follows: Asset tlass Muse Depreclatlon method and rate 20 to 50 years stravdht line 20 to 50 years straight line 5 tolo years stralght line 10 to 50 years 5trardht line 10 to 50 years straight line Infrastructu￿ and buildings Office fixtures and equipment Rolling Stock Plant and machinery BU￿ne$S combinatSons Business combinations are accounted for under the purchase method. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by the group. All intra-group tfansactions. balances. income and expense5 are eliminated on consolidation. In accordance with Sertion 35 of FRS 102. Sertion 19 of FRS 102 has not been opplied in these financial Statements in re5pecl of business combinations efferted prior to the date of transition. 21 EASf LANCASHIRE LIGHT RAILWAY COMPANY LIMrfED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Stock Stock is valued at the lower of cost and estimated selling price less costs to complete arKI sell. after due regard for obsolete and slow moving stocks. Cost is detern)ined usin8 the first-in, first-out IFIFOI basis. Trade delrtors Short tem debtors are measured at transattion price. less any impaim)ent. Loans receivab￿ are measured initially at fair value. net of transactton costs, and are measured subsequently at mortised cost using the effertive interest method, less any impaiment. Cash and cash equivalents Cash and cash equivalents comprise cash on hand and call deposits. and other short-temi hi8hty liquid investments that a￿ readily convertible to a known amount of cash and are Subject to an insi8nificant risk of change in value. Trade Credltors Creditors are recogni5ed initialfy at the transaction price and subsequently measured at amortised cost using the effective interest method. Accounts payable are classified as current liabilities if the charity does not have an unconditional rvght. at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reportin8 date. tf there is an unconditional ri8ht to defer settlement for at least twelve months after the reporting date. they are presented as n0n-Cur￿nt liabilities. Deferred Incorne Deferred income are monie5 taken in advance for bookings yet to tske place. Once the events have taken place the income is transferred to the profft and loss account. Borrowlngs Interest-bearing borrowings are initially recorded at fair value. net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the dtfference between the proceeds. net of transaction costs. and the amount due on redemption bein8 reco8nised as a charge to the Statement of Financial ActNit*s over the period of the relevant borrowing. Interest expense is reco8nised on the basis of the effective interest method and is included in interest payable and similar charges. Borrowin85 are classified as current liabillties unless the charity has an ur￿0ndItIOnal right to defer settlement of the liability for at least twelve months after the reporting date. Provisions Provisions are recognised when the charity has an obligation at the reporting date as a result of a past event, it is probable that the charity will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation. 22 EASTLANC4SHIRE UGHT RAILWAY COMPANY UMITED NOTES TO THE FINANCIAL sfATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Fund strurture Unrestricted income fvnds are general funds that are available for use at the trustees discretion in furtherance of the objectives of the 8roup. Designated funds are unrestrirted furKls set aside for specffic purposes at the discretion of the trustees. Restrirted income funds are those donated for use in a particular area or for specific purposes. the Use of which is ￿$tritted to that area or purpose. Flnanclal In51rumeTrts Cl0551ficotlon Financial assets and financial liabilities are ￿COgnised when the charity becomes a party to the contractual provisions of the instrument. 8asrc financial assets and liabilitie5 are initially measured at traTr5actioTr price. unle55 the arran8ement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial osset or financial liability is measured at the present value of the fvture ca5hflows discounted at a market rate of interest. Such instruments are subsequently measured at amortised cost usin8 the effective interest method. Olher financial assets and liabilities that are not basic financial instruments are initially measured at fair value, which is nOmial￿ the transaction price. Such instruments ale subsequently carried at fair value and the changes in fair value are ￿CogniSed in profit or loss. except where the fair values cannoi be measured reliab￿ the instrument is measured at cost less impairmenL Financial assets and Ilabillties are only offset in the ststernent of financwl position when. and only when there exists a legally enforceable right to set off the recogni5ed amounts and the chority intends either to settle on a net basis. or to realise the asset and settle the liabilty simuttaneousty. Financial assets are derecognised vthen and only when al the contractual rights to the cash flows from the financial asset expire or are settled, bl the charity transfers to another party substantialfy all of the risk5 and rewaTds of ownership of the financial a$5et. or c} the charity. despite having retained some. but not all, signtficant risks and rewards of ownership, has transfeffed control of the asset to another party. Financial liabilities are derecognised only when the obligatton specified in the contract is discharged, cancelled or expl￿5. Investments Investments in subsidiaries and a550ciates are measured at C05t les5 impaimient. For investments in subsidiaries acquired for consideration including the issue of shares qualifying for merger relief, cost is measured by reference to the nominal value of the shares isstsed plus fair value of other consideration. Any premium is ignored. 23 EAST LANCASHIRE LIGHT RAILWAY COMPANY LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 3 Income from donations and le8a¢les funts General Totsl 2023 Totsl 2022 nds Donations and legacies: Donations from companies. trusts and similar proceeds Donations from individuals 472 6,320 6,792 43.198 8,205 108.264 43.198 Legacies Grants. including capital grants: Govemment grants 213.481 213.481 238.954 257.151 6.320 263.471 361.423 4 Income from charltable arti¥itles Unrestrirted funds Genernl Totsl 2023 Education 34,530 34,530 5 Investrnent Income nds General Total 2023 Totsl 202Z Interest receivable and similar income: Interest receivable on bank deposits 2,445 2.445 805 24 EAST LANCASHIRE UGHT RAILWAY COMPANY LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 6 Other Income Unrestrlcted funds Totsl 2023 Total 2022 Pub sales Refreshments and catering Shops and stslls Fares and charters 1.011,430 1.381.861 91.041 1.320.661 1.106.152 39.101 72,538 43.662 110,612 1,011,430 1,381.861 91,041 1.320,661 1,106.152 39.101 72.538 43.662 110,612 841,611 1.235.432 63,898 1,198,052 1.099.777 7.033 125,400 46.369 92,550 14,7 43,213 Santa events Footplate experience Other rolling stod( income BuryTransport Museum Miscellaneou5 income Hire of locomotNes Rental income 56.863 56.863 5.237,921 5.237.921 4.768,035 7 Expendlture on rnlslr4 funds a) Costs of generating donation5 and legacies Unre5tri¢ted funds General Total 2023 Total Note Wages- generating fund5 Computer software and maintenance costs Printin& postage and stationery Trade subscriptions 70.577 70.577 58.994 iii 153 76 76 4,831 4.831 3,579 75.484 75,484 62.837 25 EAST LANCASHIRE UGHT RAILWAY COMPANY LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 b) Costs of tradlng artivltles Vnrestrlcled funds General Total 2023 Totsl 2022 Opening stock Materials Pub purchases Refreshments and catering Shops and stalls Special events Closing stock Wages and salaries Commissions payable Mis￿lIaneOUS direct costs Line operating char8es Rent and rates 130,238 357.686 434.416 573,477 64.293 528.959 1129,6481 1.099.774 157,263 44.929 358.407 41,271 188.421 190,554 12.345 18.352 130,238 357.686 434,416 S73,477 64.293 528.959 (129.6481 1.099,774 157,263 44.929 358.407 41,271 188,421 190,554 12.345 18,352 64.805 17.536 132.024 387,122 413.902 496.8LKI 46,747 426,428 <130.2381 I,CKJ5,147 143.997 45.187 210,416 35.587 139.639 331,920 22.690 13.608 90.247 14,134 35,912 8.263 11,496 3,208 Light, heat and power Repalrs and maintenance Insurance Telephone and fax Computer software and maintenance costs Printin& postage and Stationery Courier services Trade subscriptions Equipment hi Lease of motor vehicles (Operating lease5) Sundry expenses Laundry and cleaning Health and saftey Travel and subsistence 17.536 12.739 4.226 2.655 8,459 103.269 49.828 50,270 176.661 41,574 11.442 40.287 12.739 4,226 2.655 8,459 103.269 49,828 50.270 176.661 41,574 11.442 40.287 68.461 50,163 36.065 139.291 72,804 9,229 33.190 Promotional expenses Le8al and professional fees Bad debts written off Bank char8es Depreciation. amortisation and other similar costs 19.445 19,445 219,038 4.708.541 4,708.541 4.521,423 26 EAST LANCASHIRE UGHT RAILWAY COMPANY UMITEO NOTES TO THE FINANaAL sfATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 8 Expenditure ¢Jn charitable artl¥l Unrestrfcted Total 2023 Totsl 2022 funds Education Restoration and repair Depreciation, amortisation and other similar costs Slaff costs Governance costs 22,080 22,080 7,720 577,816 7.020 584,836 478.291 215.948 164.$47 9.988 14.592 230,540 164.547 9.988 14,550 32,383 13.194 io 990.379 21.612 1.011,991 546,138 In addition to the expenditure analysed alM)ve. there are also govemance costs of £9,98812022 - £13.1941 which relate directly to charitable activities. See note Iofor further details. 9 Other experKllture funds General Totsl 2023 Total 2022 Ground rent Castlecroft 104 104 104 Insurance Security costs Sundry expenses Promotion and marketin8 BTM Legal and professional fees Bank interest payable Bank loan interest payable 89.513 2.290 89.513 2,2 79,794 3,557 1,522 4.185 8,989 394 16.818 7.910 7,910 17,779 17.779 118,205 118,205 115.363 27 EAsf IANCASHIRE UGHT RAILWAY COMPANY LIMITED NOTES TO THE FINANCIAL sfATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 10 An31ysls of governance and support ￿sts Governance costs fvnds Gemral Total Total 2022 Audit fees Audlt of the financial statements Other fees paid to auditors 6.998 2,990 10,344 2,850 9.988 9.988 13.194 11 Net Incomln8/out8dry resources Net outgoing resources for the year include: 2023 2022 Audit fee5 Loss/lprofrt} on disposal of tsn8ible fixed assets Depreciation of fixed assets 6.998 2,881 227,659 10.344 1421 14,592 28 EAST LANCASHIRE UGHT RAILWAY COMPANY UMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 12 Stsff o>sts The aggregate payroll costs were as follows: 2023 2022 stsff costs durfng the year were= Wages and salaries Social security costs Pension costs 1.469.044 118.201 26,805 638 1.417.682 110.671 24,5C 416 Other staff costs 1.614.688 1.553.273 The monthly average number of persons (including senior management I leadership team) employed by the group during the year expressed as full time equwalents was as follows: 2023 2022 No Administration and support No employee received emoluments of more than £60,(MX) during the year. 13 Trustees remunerntion and expenses No trustees. nor any persons connected with them. have received any remuneration frorn the group during the year. No trustees have receNed any reimbursed expense5 or any other benefits from the charity durin8 the year. 14 Taxation The group is a registered charity and is therefore exempt from taxation. 29 O Ln o m ts) ffi ¢r¥ r4 00 ¢)) r4 O P4 * f4 '111.'4111 frt Lv ¢)) o 4D r4 r4 m Illl 'll11 <