## **Middleton Railway Trust Limited Company Limited by Guarantee** **Trustee’s Annual Report: Year Ended 31 December 2023** COMPANY REGISTRATION NUMBER: 1165589 CHARITY REGISTRATION NUMBER: 230387 1 ## **Middleton Railway Trust Limited Company Limited by Guarantee Trustees' Annual Report (Incorporating the Directors' Report) Year ended 31 December 2023** The trustees, who are also the directors for the purposes of company law, present their report and the unaudited financial statements of the charity for the year ended 31 December 2023. Reference and administrative details Registered charity name Middleton Railway Trust Limited Charity registration number 230387 Company registration number 1165589 Principal office and registered office The Station Moor Road Leeds LS10 2JQ The trustees Mr C W Milner (Chairman) Mr J. B. Holmes (Secretary) Mr P Calvert (Treasurer) Mrs J E Auckland Mr M A Calvert Mr C Campbell Mr R. Gunn (appointed 29[th] June 2023, retired 9th November 2023) Mr D J Hebden Mr A. Johnson (appointed 29[th] June 2023) Mr R G Pike Mr S J Roberts Mr R J Taggart (retired 29[th] June 2023) Mr M Whitaker Company Secretary Mr J. B. Holmes Independent Examiner Upton & Co. Accountants Ltd. 2 ## **TRUSTEE’ ANNUAL REPORT (including the director’s report)** ## **Structure, Governance and Management:** The Middleton Railway Trust Ltd is a company limited by guarantee and not having a share capital. It is also a registered charity. As such its operation is governed by its Memorandum and Articles of Association under which the members of its Council are both the directors of the company and the trustees of the charity. Members of the Council are elected annually by the members of the company at its annual general meeting. All policy decisions are made by the Council, although for major issues decisions are, where possible, brought to general meetings for consideration. In particular, the Council sets budgets annually for all of the company’s activities, and monitors these at its monthly meetings. Within this framework many specific areas of responsibility including, where appropriate, control of expenditure within allocated budgets are delegated to heads of department who may be individual members of the Council, or others appointed by the Council, who have relevant expertise. The possession of relevant expertise is one of the primary considerations of the members of the company in determining whom to elect as members of the Council, and hence there is little need for formal induction training for members of the Council. During 2023 the review of the Trust’s Memorandum and Articles of Association was bought to a conclusion. The main change to the Memorandum of Association is to remove the explicit requirement that in the event of the Trust failing the assets would be passed on to the National Trust; instead, Council will be given the discretion to find appropriate future owners for the Trust’s historic collection. The most significant change to the Articles of Association is to move from yearly terms of Office for Council members plus the Chair, Treasurer and Co. Secretary to three yearly terms with effectively one third of Council being elected every year. This change is designed to ensure stability of governance over the medium term and avoid the problems caused by a wholesale replacement of the governing body as has happened on other heritage railways. Other changes include providing explicit grounds for the removal from office of an elected Council members and Trust Officers and changing the wording to make it more inclusive. The revision of the Articles was not completed in time to present to the 2023 AGM and so will be presented to the membership at an EGM scheduled for March 2024. The responsibilities of virtually all trust Officers have been defined and placed on the Member’s Website in the Governance Section. ## **Objectives** The primary objective of the company, as set out in its Memorandum of Association, is to preserve in working condition the historic Middleton Colliery Railway for the benefit of the public. The other seventeen objectives are intended to further this, and as well cover specific activities that contribute to running the Railway and to supporting the company as a charitable organisation. These other objectives include establishing a railway museum, exhibiting locomotives and other items in it, and promoting the study of these artefacts and of rail transport generally. These objectives are therefore deliberately set very broadly, and to help focus on them the Council set a number of strategic goals, which included establishing a museum. Once this had been achieved by registering the whole railway as a museum, the goals were reviewed at the annual general meeting in 2006 and the following were adopted: - to extend the passenger line to Middleton Park; - to increase our passenger figures to 300 per operating day; - to restore all our rolling stock to at least display condition; - to build at least one new steam locomotive boiler every ten years; - to run a daily service during August; - to construct a terminus at Balm Road, so that trains can be operated regularly to it; and - to attract “new blood” to the railway to lower the age profile of the membership. During 2022 the Council completed work on reviewing these, as part of the creation of a new rolling five-year business plan covering initially the period 2023 to 2026. This is supported by a new rolling ten-year plan which is much broader in scope and reflects the long planning cycle dictated by the restoration and operation of historic rolling stock. The Rolling Five- and Ten-Year Plans are reviewed annually by Council and updated and have been reconfigured to make tracking progress against specific objectives. The current versions of the plans are posted in the Governance Section of the Member’s Website. As part of the process of creating the Rolling Five- and Ten-Year Plans, the goal of constructing a terminus at Balm Road and running regularly to it was reviewed and considered to be no longer realistic because of the practicalities of delivering this goal. These include operation over what has become a very busy access route to the M621 plus two other roads and a busy pedestrian crossing and operation in 3 close proximity to housing with the attendant risk of nuisance complaints. Subsequent discussions within Council came to the conclusion that the goal of constructing at least one new locomotive boiler every ten years was too prescriptive and that a more broadly based ambition to maintain the boilers of the Trust’s locomotives in good order by repair or replacement as appropriate would better reflect the practical reality. At the 2023 AGM it was agreed that the Trust’s membership would be asked to approve changes to the Trusts goals at an EGM to be called within the following 12 months. A special meeting of Council was arranged for the 25[th] January 2024 to consider the long term future of the Railway and direction of travel and the conclusions of this meeting will inform future iterations of the rolling Five and ten Year Plans. ## **Public Benefit:** A key element in the objectives defined above is that the historic nature of the Middleton Colliery Railway means that the activities of both preserving it and educating people about it are recognised by the Charity Commission as giving rise to a public benefit. This was the basis for originally registering the company as a charity. The continuance of this public benefit follows from the efforts made by the charity to open its facilities to the public so that they are able to visit the Engine House and be educated by the museum displays, from allowing the public to travel on trains hauled by historic steam and diesel locomotives and so experience operation of this historic machinery doing the task for which it was designed and from the organisation of visits by schools for the purpose of educating their pupils about the historic role of the Middleton Railway. During 2023 the Railway was open to the public for the usual eight months of the year, ran a normal program of events and so provided the expected level of public benefit. During 2023 specific events were held aimed at marking the contribution of the Leeds locomotive building industry to the development of the diesel locomotive and at marking the return to service of one of the characteristic products of the Leeds locomotive building industry, the Contractors Locomotive, in the form of 1890 built Manning Wardle locomotive, ‘Sir Berkeley’. The year also saw the publication of Volume 2 of the new 2 volume history of the Middleton Railway which was authored by Ian Smith and covers the first 6 decades of the Railway’s existence as a volunteer run heritage railway. Volume 1 of the same history, which covers the period from 1758 to 1960, has been written by Sheila Bye and is currently being prepared for publication. This second book will be a significant contribution to the published history of early railways. During 2023 the Council of the Middleton Railway, as trustees of the charity, continued to balance the conflicting requirements of setting fares and other charges at a level that will provide adequate income, while keeping them low enough that they will not discourage members of the public from visiting the Railway and hence will not adversely affect the public benefit that the charity provides. In managing these issues and the long-term impact on the Railway of the CoViD-19 pandemic with regard to visitor habits and volunteering together with the other activities of the charity during 2023, the Council confirms that it has paid due regard to the guidance provided by the Charity Commission on public benefit. ## **Safety Performance:** During the year there were no lost time accidents reportable to the Health & Safety Executive under the Reporting of Injuries, Diseases and Dangerous Occurrences Regulations (RIDDOR) and no environmental incidents. One incident occurred which was reportable to the Office of Rail & Road (ORR) or the Railway Accident Investigation Branch (RAIB); a SPAD when a north bound passenger train driven by a trainee driver under supervision failed to stop by the stop board on the south side of Bannister’s crossing. The incident was properly reported, and the ORR expressed no particular concerns about the incident itself and the Trust’s response to it. Eight minor injuries were reported via the Accident Forms. Fifteen incidents were reported and investigated, and four near misses were reported and followed up as appropriate. The most concerning incidents which occurred in 2023 included: a train stopping at Park Halt with the end door of coach 2084 clear of the platform, a passenger and her daughter being sprayed in hot water and steam when standing beside ‘No. 6’ at Moor Road Station – fortunately without injury – and a visitor trapping a finger between the end gate of the balcony coach and the door frame resulting in injury which required hospital attention. In each case immediate measures were taken to minimise recurrence of such incidents. Changes will be made to the Train Operating Regulations to make permanent the changes needed to minimise recurrence of the first two incidents; the configuration of the balcony doors of coach 2084 will be changed to eliminate potential ‘pinch points’ when the coach is next overhauled. . Following the report to the ORR of a SPAD inspectors from the ORR visited the Railway in November 2023. The main focus of the visit was to review Railway operation across public footpaths and roads. Following the meeting the Trust agreed to upgrade the crossings of Non-Definitive Footpath 205 at the south end of Moor Road Yard and Non-Definitive Footpath 201 near ‘GN Curve’ to current standards before resumption of routine operation in April 2024. This work will involve conducting new risk assessments of both crossings, installing modern signage and in the specific case of Footpath 201 crossing providing a level surface at the crossing plus fencing to direct users to cross the Railway by the most direct route. The ORR inspectors suggested that as part of the risk assessment the Trust should review the current practice of stopping northbound trains on the south side of Footpath 205 4 crossing and then proceeding over the crossing when judged safe to do so; it is foot path user’s responsibility to ensure that it is safe to cross a railway line before doing so. The consensus view following the ORR meeting was that the current practice of using flagmen to flag Balm Road Branch trains across Moor Road Crossing was no longer acceptable; the Trust does not have the legal authority to stop road traffic and sending flagmen into the middle of a busy road puts them at risk of harm. Operation of the Balm Road Branch has been embargoed pending a risk assessment of the Branch Road crossings, agreement with the ORR as to their future management in way which recognises the limited use made of the Branch and implementation of the future management arrangements. For the third year running there have been no nuisance complaints which is very pleasing but this is an area where constant vigilance is required. The Heritage Railway Association regularly reminds its members that the release of dark smoke is a ‘no no’; it can bring adverse publicity onto the whole heritage railway movement. During the year an emergency evacuation exercise was carried out on a train stopped on the main line. This proved very useful and the learning points have been noted and included in the new Guards Handbook Work has continued, albeit at a slower than planned pace, throughout 2023 on the revision of the Trust’ Safety Management System and governance to meet the requirements of the ORR as laid down in The Railways and Other Guided Transport Systems (Safety) Regulations 2006 (ROGS). The Trust’s approach to revising the Safety Management System is in general conformity with guidance for minor and heritage railway safety management systems issued by the ORR in August 2023. The same program of work also includes a review of the Trust’s incident investigation procedure and subsequent follow up and it is now hoped to put proposals for a revisions to these procedures to Council in 2024. No progress has been made with the revision of the first draft of TOP/6, Assessments of Operational Competence, which was issued in September 2021. A further simplification of TOP/5, Procedures for Medical Assessments, was carried out in 2023 with the aim of avoiding the cost of unnecessary medical examinations and reducing the administrative burden placed on the Trust Medical Officer. The revised version will be ready for release at start of 2024. During 2023 it was intended that a particular focus would be on working at heights and a Trust procedure is being developed. The Office of Rail and Road are concerned about the number of falls from heights on heritage railways, some of which have resulted in life changing injuries, and are paying particular attention to this aspect of heritage railway operations. A program of work has been agreed which will involve reviewing existing risk assessments covering working at height and looking specifically at activities such as watering steam locomotives and cleaning steam locomotive smoke boxes and provision of access platforms. Progress has been slower than anticipated During 2024 working at heights will remain a priority area for improvement together with the upgrading of the Trust’s public footpath and road crossings. ## **Environmental Performance.** Use of Fossil Fuels in 2021, 2022 and 2023 and attendant Carbon Dioxide (CO2) release is summarised in the table below. CO2 release is calculated from the carbon content of the fuels which is derived from published information. ||2021||2022||2023|| |---|---|---|---|---|---|---| ||Fuel
Consumed|CO2 release
(tonne)|Fuel
Consumed|CO2 release
(tonne)|Fuel
Consumed|CO2 release
(tonne)| |Coal|22(tonne)|35.9|33.4(tonne)|54.6|38.12(tonne|62.3| |Diesel|4000(litres)|10.5|2200(litres)|5.8|2900(litres)|7.6| |Gas|41000 Units)|7.5|27500
(units)|5.1|20129
(units)|3.7| |TOTAL||53.9||65.5||73.6| The increase in coal consumption in 2023 compared to 2022 & 2021 is due to the increased number of operating days using steam in 2022 as the operating constraints imposed by the CoViD-19 pandemic were significantly reduced and due to the increased number of crew training turns and test runs operated in 2023. The downward trend in gas usage noted in 2022 was been sustained in 2023 and is attributed to both the milder weather and improved control of the Engine House heating system. The system controller was replaced in 2023 by a modern system which controls the temperature within the café from a thermostat located in the ticket office and makes programming shut downs of the system when not required much easier. Electricity consumption in 2023 was approximately 37,341 units excluding the contribution from the solar panels compared to the previous year’s consumption of 41,500 units. The reduction in electricity consumption is due in part to the replacement early in 2023 of the bulk of the fluorescent tubes employed by the Trust by LEDS which use approximately one third as much electricity per lumen. 5 Thanks to the generosity of a Trust member, the Trust’s Solar power generating capacity will be lifted during the first quarter of 2024 to approximately 20% of total usage and internally generated power will be supplied to all three phases. The package will include three phase metering so that electricity usage can be monitored across all phases on an hourly basis. The information supplied by the new metering system will support decisions regarding the future provision of storage batteries to maximise the benefit of site generate solar power. Looking further ahead indicative costs will be obtained for expanding solar power generating capacity to cover 100% of Trust electricity usage. Lump coal suitable for steam locomotives is currently readily available and it is anticipated that cost will fall in 2024. No further trials have been conducted with ‘eco fuels’ which contain a mix of coal dust and biomass: there are no cost advantages for using such fuels and apart from the fact they burn with little smoke there are no environmental benefits. Carbon dioxide release could be significantly reduced by curtailing steam locomotive operation but this would go against one of the principle charitable objectives of the Trust which is to enable the public to experience and travel behind historic machinery operating in the way it was intended. Sequestering the amount of carbon dioxide released by the Trust’s activities would require a forest containing approximately 4,100 trees based on published figures for the average take up of carbon dioxide by mature trees. Other methods of sequestering carbon dioxide are to being explored. ## **Commercial Activities and Marketing:** The Trust cannot discharge is charitable obligations without raising money. The principal source of income for the Trust is its commercial activities: sale of tickets for train rides, sale of refreshments in the Trust café, sale of goods in the Trust shop and charges for the use of Trust facilities. The Trust’s commercial activities were not affected by the CoViD-19 Pandemic and attendant restrictions in 2023. The Railway opened to passengers on the 1st April 2023 with Community Day and ran a normal season until 29th October 2023 followed by Santa Special operations in December. During October trains were only run on Sundays – the evidence of previous years is that Saturday operation in October does not justify the required volunteer input. The table below provides a comparison between 2019 figures, the last year of normal operation prior to the onset of the CoViD-19 pandemic, 2022 and 2023 figures and illustrates the challenge to return to pre-pandemic levels of activity. |ALL Adult & Child|2019|2022|% Change
2019 - 2022|2023|% Change
2019-2023| |---|---|---|---|---|---| |OrdinaryTrain Passengers|10887|6179|-43|6293|-42| |PartyPassengers|707|322|-54|345|-51| |Special Event Passengers|1277|830|-35|1036|-19| |Santa Special Passengers|5262|4607|-12|4929|-6| |School Santa Passengers|511|544|+6|533|+4| |School Education DayPassengers|483|353|-27|394|-18| |Charter Passengers||153||279|| Passenger numbers in 2023 reflect a significant improvement on numbers in 2022 but are still well below those achieved in 2019. This reflects in part the change in visitor habits brought about by the CoVid-19 pandemic which has affected other heritage railways. In addition, there were some particular factors which are likely to have contributed to a slower than expected recovery in passenger numbers: on two and a half running days operations were curtailed by lack of train crew which resulted in reduced visitor numbers (fortunately reputational harm does not appear to have been significant. The Railway did not operate on Coronation Day, Saturday 6th May, and numbers on the following two days were below average despite the good weather which is probably a reflection of Coronation focussed events taking place on the same days.. On the plus side the Railway had another very successful Santa season in terms of both financial return and numbers; revenue was 5.6% ahead of budget. Bookings started slowly and there was a concern that potential customers were being attracted to the expanded Polar Express operation put on by the Embsay and Bolton Abbey Steam Railway. Promoting the event by a combination of adverts in ‘The Yorkshire Reporter’ and a local poster campaign led to a last minute surge in bookings and almost all trains after the first day’s operation were full to capacity. Passenger numbers were slightly lower than in 2019 but an extra day was operated in 2019. In 2023 a new Grotto was built which had good feedback from visitors; in 2024 the decorations in the Display Hall will be upgraded to keep the event looking ‘fresh’. Santa Specials remain the Trust’s single largest source of income and accounted for nearly 35% of total income and 41% of trading income. 6 The major event held in 2023 was ’90+ Years of the Diesel’; a weekend long event carried forward from 2022 which marked over 90 years employment of diesel locomotives on the main line railways of the British Isles. With the support of the Leeds 2023 Organizing Committee an attempt was made to secure funding for this event from the National Lottery Community Fund. This would have enabled the world’s oldest diesel electric locomotive to be added to the line-up and resulted in some specially commissioned art work by local artists to record the event but ultimately the Trust’s application was rejected. The event featured the first diesel locomotive to be successfully employed on the national railway network, Hunslet 1697 from the Trust’s collection plus two other pre Second World War diesels from the collection and, as a guest engine, Ker Stuart 4421 of 1929; the oldest workable diesel locomotive in the British Isles. Sponsorship covered the bulk of the cost of transporting this engine to and from the event. The event included operation on the Balm Road Branch for the first time in over a year. A commemorative booklet featuring the history of the various locomotives involved in the event was produced. Feedback from visitors was very good but unfortunately attendance was less than anticipated and even with sponsorship the event barely broke even. Other significant events included the relaunch by Anthony Coulls of the National Railway Museum of ‘Sir Berkeley’, the Manning Wardle contractor’s locomotive owned by Vintage Carriage Trust and based on the Middleton Railway and a special event to celebrate the Trust’s Young Volunteer Group who were the runners up for the 2022 Heritage Railway Associations ‘Rising Stars’ award. Because of crew shortages the planned two day September gala was reduced to a single day event but overall numbers were little less than might have been expected if it had been a two day event. It featured operation down the Balm Road Branch and three steam locomotives in traffic including Sentinel 8837. The year saw the return, on a trial basis, of Steam Punk Market. This was based on the Mezzanine Floor and the organisers were sufficiently pleased with the results that they are planning to hold a full scale event in July 2024. Consideration was given to running a Halloween Event in 2023 but the costs charged by the children’s entertainers required to make the experience worthwhile from the customer’s view point would have resulted in a loss for the Trust and so it was not taken forward. The same problem affects Children’s Day and unless the cost base can be reduced without significantly compromising quality this event will be suspended for the 2024 season. The café offering and returns were similar to 2023 though margin control improved. The one disappointment were sales of children’s lunch boxes which were smaller than anticipated; the very poor weather during the Bluebell Walks/Teddy Bears Picnic weekend did not help, visitor numbers were below expectations and there was little promotion of the lunch boxes on social media. On a positive note, feedback about the lunch boxes was excellent and they are a valuable part of the Trust’s offering for outdoor events and Bank Holidays. Shop sales were exceeded budget by approximately 11% though this is largely due to sales of Volume 2 of the Railway’s History which is a high price though low margin item. A new stock book will be available in 2024 which will generate an attractive margin and should sell well. Consideration is being given to seeking sponsorship for the publication of Volume 1 of the Railway’s History to make it more affordable. During 2023 a trial was run of the proposed reconfiguration of the Café and Shop area; an idea developed by the Commercial Team and supported by a team from Leeds University Business School who were reviewing the Trusts café and shop offering. This essentially involved moving the shop into the ‘red zone’ in the Engine House. The overall view was that the trial was successful and costs have been obtained for redecorating the entire café and shop area and providing new display shelving and storage cupboards. The installation of the reconfigured shop is planned for completion before the start of the 2024 season. The revamped facility will be fully accessible and will offer more display space than its predecessor thus enabling the range of goods sold by the Trust to be expanded. The contract with Wilson Media, the ticketing agent responsible for on-line sales of Santa Special tickets, is now being run on a year by year basis. Some minor changes have been made to improve the service offered by this company and no significant problems occurred in 2023. It was hoped that the Trust would explore the use of a new Membership Management Facility being developed by Wilson Media during 2023 but currently they have suspended development work. Five complaints were received from visitors during the year; two are covered in ‘Safety Performance’, the others relate to delayed processing of an application to become a Working Volunteer, problems seating together the members of a group who arrived late for a Santa special and intimidation of passengers by quad bike riders in Middleton Park. All complaints have been responded to and no further correspondence received. The reconfigured Trust website was launched in March 2023 and has enjoyed in good reviews – it is easier to navigate than its predecessor, has more contemporary feel and enables tickets and goods to be bought on line. During 2024 it is intended to upgrade the sections of the website covering the Railway’s rolling stock and history. The plan is to keep the new website closely aligned with the Trust’s marketing operations and regularly refreshed with new content. On line booking of tickets is beginning to become a significant part of overall ticket sales. 7 Posting on the Trust’s social media platforms has been more consistent than in 2022 and visitor numbers and engagement are increasing. Regular posting in a disciplined and co-ordinated manner is important to maintain platform visitor engagement and build up numbers which should eventually translate into increased visitors to the Railway. During 2023 the Trust has continued to enjoy good coverage in the Heritage Railway Press which accesses a small but important part of the Trust visitor base. Promotion of the Trust was again aided by the Trust’s success in Yorkshire in Bloom, for the fourth time in succession the Trust received a Gold Award. This is a great tribute to the hard work of Mick Jackson and his team who keep the Moor Road site looking attractive and bright with flowers to the benefit of the Trust’s visitors and neighbours. Although the Middleton Railway did not work with the University of Leeds Business School on any projects during 2023 communications were maintained, the work done by the Business School featured on their website. ## **Engineering Projects:** Whilst the restrictions imposed on the Trust as a result of the CoViD-19 pandemic have disappeared, the break in volunteering habits caused by the pandemic has had a continuing impact on the number of volunteer hours worked in the engineering departments and this has had an impact on the amount of work that could be undertaken. During 2023 decayed sleepers were replaced on the Balm Road Branch by Rail Futures (Training Providers) and it was made serviceable in time for ’90 + Years of the Diesel’. Currently the Balm Road loop is being worked on and is not useable. The training providers have also been carrying out work on the remaining section of the Dartmouth Branch. Routine work including vegetation clearance, weed killing and repacking and realigning has continued on the ‘Main Line’ as needed. Approximately 60 tons of ballast was placed on the Railway in 2023. Without the input from the training providers, who train candidates for permanent way jobs with Network Rail or their sub-contractors, pay the Railway a fee for the use of the track and facilities and provide some materials, the Railway would struggle to maintain the Permanent Way. Plans are being made to try and launch a new ‘in-house’ P.W. team in 2024. The smoke vents for the Running shed have suffered severe corrosion and stainless steel replacements have been obtained. These will be installed in 2024. Work has progressed steadily on the construction of a shelter for the Tamper; frame and folding doors constructed and foundations installed. It is anticipated that the work will be completed in the first half of 2024 – labour permitting. Thanks to the generosity of a Trust member three off replica gas lamps have been secured at a very advantageous cost to the Trust. These will be installed on the Moor Road platform and enhance its visual appearance as well as providing lighting during the Santa Special Season. Installation of these should take place in 2024. Varnishing of the storage units on the Mezzanine Floor and completion of the two off new display cabinets has been delayed to 2024 plus some finishing work in the Conference Room including addressing the noise problem during periods of heavy rain. There are a number of outstanding maintenance tasks on the Engine House – replacing of roof slates, window repairs and roof repairs which should have been completed in 2023 but will be carried forward to 20243 along with gutter repairs to the workshops. The toilet facilities in the workshops were in a very poor state and there was no secure area for female volunteers to wash and change. A project was launched in 2022 to refurbish the workshop toilet to improve the facility and make it easier to keep clean whilst including within it a secure space for volunteers to change. This work was completed apart from some finishing work in 2023. During the year the decision was taken to investigate applying for an Arts Council England MEND4 grant to improve the Trust’s resilience. This grant would be used to enhance the Trust’s solar power generation capability, improve building insulation and heating, and address the deterioration in the Trust’s buildings which has occurred since construction. The application process will involve a survey of all buildings on the Moor Road site by professional surveyors to establish their true ‘condition’. This is planned to take place during the first quarter of 2024. Steam and diesel locomotives were available throughout the year to maintain advertised services as required. During the first half of 2023 ‘1310’, HE 2387 and HL 3860 were the mainstay of the steam fleet and gave relatively little trouble. The injectors of HE 2387 were fitted with stainless steel valve seats to reduce wear, attention was given to the valve linkage of HL 3860 and wooden pads were fitted to the rear buffers to reduce ‘surging’. ‘1310’ was taken out of service at the end of July following the expiry of its ‘boiler ticket’ and it has been placed on display pending a future overhaul. A lot of remedial work was carried out on Sentinel 8837 during the first half of 2023 including grinding in the valves and sorting out a vacuum seat leak and it proved capable of handling a 3 coach train during the Autumn Gala. However, it is not regarded as being suitable for regular service because of its unusual design and operating characteristics. The contract overhaul of Manning Wardle 1210, ‘Sir Berkeley’, on behalf of the Vintage Carriages Trust, was completed during the first quarter of 2023 despite the usual infuriating commissioning problems which included heating of the front right hand side axle box and a leaking joint on the main steam pipe. The locomotive in service looks splendid; a tribute to the quality of both the paint work and the restoration of the brass trim. Running in is effectively complete and the niggling heating problem in the right front 8 axle box appears to have corrected itself. The overhaul of Hudswell Clarke 1544, ‘Slough Estates No. 3’, continued through the year, new axle box liners have been made and fitted together with new cross head slippers and the rolling chassis overhaul is almost complete. New footplate decking has been fitted and the chassis repaint is well underway. Not unexpectedly the cracked cast frame stretcher fell apart on removal. Drawings for a replacement are being prepared and an order for a new fabricated steel stretcher should be placed early in 2024. The boiler has been cleaned out ready for inspection. This work is being supported financially by the Slough and Windsor Railway Society who own the locomotive. The mainstay of the diesel fleet has been Hudswell Clarke D1373 which has run with little attention though the year except for replacement of its brake blocks. Peckett 5003 has had a series of niggling faults, engine stalling when hot, problems with the unloading valve and Brush Beyer Peacock 91/7856 has suffered with persistent electrical problem which are still being worked on at the end of 2023. The refurbishment of the brake gear of Hudswell Clarke D 577 was completed in time for the locomotive to participate in ’90+ Years of the Diesel’. Little work has been done on the overhaul of Hunslet 6981 excepting that the cab windows have been refitted and a new silencer procured. It is hoped to complete the overhaul of this locomotive during 2024. The long standing problem of roof leaks on coach 1074 has been addressed by fitting a new canvas cover over the roof. The coach is scheduled for repainting during the first quarter of 2024. Despite the lack of volunteers the team lead by Roy Gunn have made good progress with the construction of Coach 2223, the external framing and body work is complete, the false ceiling and light fittings installed and the interior panelling completed and a first coat of varnish applied. Work has now advanced to the construction of the doors. During 2023 the opportunity was taken to purchase a set of four little used electric lifting jacks with a capacity of 8 tons each/. The jacks have been tested and put on the Trust lifting gear register. Their acquisition will make lifting coaches and locomotives for maintenance work much quicker and safer. Apart from the replacement of all heavily used fluorescent lamps by LEDS, the major electrical tasks have included fitting new lighting to the running shed pit, replacing a the failed milling machine electrics, correctly mapping the Engine House/Display Hall fire alarm zones and replacing two failed sensors and addressing faults with the emergency lighting system, Towards the end of the year problems with the security lighting on the West and East sides of the Engine House became apparent; repair work was should be completed during the first half of 2024. The majority of the outmoded Trust PCs have been replaced by new machines, plans are being developed to put in a new comms. cable to the Workshops to enable the signing in PC to be reinstated and work has started to provide a Trust server during the first half of 2024. All of this work has been carried out in addition to the routine servicing and maintenance work on rolling stock, buildings and track and testing and maintenance of the Trust’s electrics ## **Museum** At the start of 2023 Council agreed to apply for a grant under the Arts Council England’s ‘Unlocking Collections Scheme’ to support the digitising and indexing of more of the Trust’s collection of images and documents and making these accessible on-line. This would involve taking on a paid researcher for a limited period and providing them with the facilities to carry out the work. No decision had been made about the Trust’s application by the start of 2024. In 2023 the Trust gave a lot of support to a Leeds City Council initiative to redevelop what is now called ‘Little Moor Park’ – the remnant of Middleton Moor to the north of the Balm Road Branch after it has crossed Moor Road. This has primarily consisted of providing text and illustrations for five off history plaques which tell the story of the area as it was fifty or more years ago and are placed so that visitors can contrast scenes of the past with the present day view. Much of the information incorporated in these plaques was developed by Ian Smith, a Vice President of the Trust. The long term aim of the Council is to create an attractive picnic area adjacent to the Moor Road Station During the year negotiations continued with the owner of Peckett built locomotive 2103 and a prospective new owner based on the Ribble Steam Railway regarding its long term future. These were brought to a successful conclusion at the end of the year and the locomotive departed for its new home at the start of January 2024. The long term plan of the new owner is to restore Peckett 2103 to working order. Thanks are due to the former owners of Peckett 2103, Tony and Joyce Bell, who acquired the locomotive for the Railway to avert a potential motive power crisis in 1981 and who have supported the ‘rehoming’ process. Negotiations were undertaken with the Bahamas Locomotive Society (BLS) regarding the future of ‘Hawarden’, an 1899 built four coupled Hudswell Clarke built saddle tank which was part of the National Trust’s collection at Penrhyn Castle. The locomotive had been offered to the BLS with another Hudswell Clarke built locomotive as part of the plan to refocus the Penrhyn Castle collection 9 exclusively on the Penrhyn Railway. ‘Hawarden’ is an important example of a late Victorian Hudswell Clarke design and provides a valuable comparator with the later built four coupled Hudswell Clarke built locomotives in the Trust’s collection; ‘Henry de Lacy II’ of 1917 and ‘Mirvale’ of 1955. These negotiations were also bough to a successful conclusion at the end of 2023 and ‘Hawarden’ has been placed on loan to the Trust with the intention that title will be transferred to the Trust in 2027. The locomotive was delivered to the Trust in January 2024 and is now on display in ‘as received’ condition. Plans are to be drawn up for cosmetic overhaul and repaint of the locomotive once title has passed to the Trust. Particular thanks go to Ian Smith and Keith Whitmore, Chairman of the BLS, for making the transfer of ‘Hawarden’ to the Trust’s collection possible. With the agreement of Andy McKenna and Derek Plummer – the other surviving members of the original ownership group of ‘Mirvale’ along with the Trust - Malcolm Midgely’s shares in the locomotive have been acquired by the Trust. This confirms the Trust’s position as the majority owner. During 2023 the Trust was given the large collection of papers and images amassed by the Sheila Bye, the Trust’s former Chief Historian, and author of both the current and the new histories of the Middleton Railway. Cataloguing of the collection has started and digitizing the slide collection is planned for 2024. During the year the Trust was encouraged to seek funding for the cosmetic restoration of ‘The Greenbat’ and the repaint on original livery of Fowler 4220033 from National Highways Community Fund from Keltbray Engineering who are working on the upgrade of the M621. The Trust’s applications were declined on the basis that the Trust is not a Community based organisation despite support from local Councillors. No work has been done on the cosmetic restoration of ‘Conway’ in the period because of lack of the necessary volunteer resource. Students from University Technical College Leeds started work on the design and construction of some interpretive/educational models for the Museum but as a result of chromic staff shortages nothing was completed and quite a lot of what was done may have to be re-worked. At the end of the year a member of the Trust, David Bushell made a very generous donation which will be specifically employed to fund the restoration of the Trust’s 12 ton GWR open wagon 113084 which was used on passenger trains when he was an active member of the Trust. This work should start in 2024 Further work has been done on the long term development of the Museum to make it more engaging, entertaining and educational for the Trust’s visitors. These ideas have been reviewed by Redman Design, a specialist museum design consultancy, and are considered by them to be realistic and suitable to be put forward for external funding. The long term future of the Museum will be one of the items considered by Council at a review of the long term future of the Trust planned for the 25th January 2024. Little work was done in 2023 on preparing for the re-accreditation of the Museum. This had originally been scheduled for 2020 but was delayed by the CoViD Pandemic and is now expected to take place in 2024 though the Trust has not yet received confirmation of the timing from the Arts Council. ## **Trust Membership and Working Volunteers:** The lifeblood of the Trust are the working volunteers and without their labours nothing would be accomplished. All of the commercial, engineering and other activities of the Railway are critically dependant on having volunteers with the skills and time needed to both maintain the current programme and develop and implement new initiatives aimed at improving the financial performance of the Trust and better discharging the Trust’s charitable objectives. Progress is critically dependant on volunteer hours. Trust membership and numbers of ‘card carrying’ working volunteers for the years ending 31st December 2020 to 31st December 2023 is tabled below. |Year Ending31st December|2020|2021|2022|2023| |---|---|---|---|---| |Trust membership (inc.
Association Members)|241|253|271|258| |Working Volunteers (inc
Association Members).|64|67|71|73| The Youth Team, which is for members under 18, currently has five regular members. Colm Connolly-Taylor , Joe Brewer and John Linkins serve as the team leaders for team sessions held once or twice a month. Unfortunately neither of the two young working volunteers nominated by the Trust for the HRA Lord Faulkner Award for Young Volunteers were successful but the Youth Team 10 was runner up for the Rising Stars award which is a tribute to the hard work put in by John Linkins and others on developing the Youth team. Trust membership has declined slightly during the past year although the number of ‘registered’ working volunteers has increased by two. However, it is noticeable that the actual volunteers hours worked has declined and this has particular affected the amount of work done in the workshop and has also led to trains being cancelled. Currently the number of working volunteers is barely enough to sustain the current level of activity and work which might once have been done by volunteers is having to be contracted out. There was an increase in the number of new members joining the Trust in the third quarter of 2023 and because many of them expressed an interest in train operating duties the experiment was trialled of operating special trains specifically for crew training to maintain their interest during the closed season. The initial results seemed encouraging but progress was not maintained after Christmas and many of those who signed up for the enhanced training program dropped out. The future of this program will be reviewed after the start of the 2024 operating season. A limited trial was carried out during the year of allowing individuals interested in becoming working volunteers to work on the Railway for a short period before being asked to take out Trust membership – the aim was to allow such individuals a zero cost trial of becoming a working volunteer. The results were inconclusive and the administrative problems the trial created meant that it was cancelled. For now the Trust has reverted to the traditional arrangement whereby prospective working volunteers must first become Trust members. It is a particular concern that some new working volunteers who initially seemed very keen and a good fit have dropped out and efforts are being made to find out why this has happened. One possible contributory factor are delays in converting applications to become Trust members into membership and a review will be launched into the way documentation is handled on site to try and avoid documents going astray. The work carried out on the Railway by the working volunteers equates to approximately 12 full time equivalents which is a measure of the value of the work carried out by the volunteers. This figure does not include the time spent on administrative and other tasks by members working off Railway premises. The Trust desperately needs more working volunteers to enable it to fully discharge its five and ten year plans Not only has competition for the time of individual Trust members increased due to family and work demands, which must of course come first, and other opportunities to spend leisure time but competition for volunteers is increasing as the voluntary sector expands. During 2023 the Trust made efforts to work with the Leeds 2023 Organising Committee to promote the wide range of volunteering opportunities the Trust offers to their volunteers. This effort resulted in a very modest number of new members. On-going attempts are also being made to work with South Leeds Community Groups to see if the volunteering opportunities the Trust offers might be of interest to their members. During June 2023 two teams of Community Volunteers helped out on the Railway, one from Keltbray Engineering and the other from Leeds City Council. They carried out a lot of site tidying up work including repainting the railings on the East side of the car park and weeding which would otherwise not have got done and the exercise introduced new individuals to the Railway. It is hoped to repeat this exercise in 2024 The Trust has to put even more effort into attracting and retaining both new members and working volunteers if it is to survive. A critical role which the Trust has to fill is that of Volunteer Co-ordinator; an individual whose primary role is to liaise with the other voluntary groups in the Leeds Metropolitan Area promoting the Trust’s offering and supporting the recruitment and training process for new volunteers. The old days when a volunteer would just turn up to help out and would hang around waiting to do whatever he/she was asked to do or would go and ask for work have gone; the current generation of volunteers expect to be assigned specific tasks from the start and to be trained in them so that their precious free time is not wasted ## **Future Developments:** The 2023 financial outcome, as detailed in the accompanying Financial Report, was much better than budget. The Trust not only covered all direct operating costs but also covered about half the depreciation charge. Apart from capital expenditure which was funded from reserves the Trust was cash positive for the year. This good outcome was due to above budget revenues and significantly below budget maintenance expenditure which was in part due to volunteer shortage. The deferred maintenance expenditure has been carried forward to 2024. The Trust is currently forecasting a net cash outflow for the year 2024 and so there is a particular focus on minimising all expenditure which does not support or promote the long term financial resilience of the Trust and make it a more attractive venue for visitors. This means that events such a Children’s Day which may not be cash generative and show little prospect of ever being significantly cash generative are under particular scrutiny. Council is very aware that funding day to day operation from reserves is a rapid route to failure and so is seeking both new revenue streams and more cost effective ways of doing things with the aim of ensuring that 2024 is at least cash positive with regard to revenue v.s operating expenditure. The biggest external challenge for both the Trust and the Trust's visitor base is the continued increase in costs though the rate of increase is significantly slowing down. This will impact on potential visitors spending power and might deter some visitors from coming to the Railway though other potential visitors may see a visit to the Middleton Railway as being a more affordable option 11 to what they might otherwise have done. Recognising the need to stay price competitive with other family visitor attractions in the Leeds area has meant that fares will be increased in line with general price inflation to cover costs and for the first time in more than five years this increase will include children’s fares. The major event planned for 2024 is ‘A Taste of Yorkshire’; a two day festival of Yorkshire produced ales, ciders and food which was first planned as part of the Trust’s Diamond Jubilee celebrations and was suspended as a consequence of the CoVid Pandemic. The year will also include ‘Classic Car Sunday’ which will focus on the Morris Minor and its contemporaries plus the usual favourites such as The Model Railway Exhibition and Teddy Bear’s Picnic/Bluebell Walks and the welcome return of ‘Steam Punk Market’ and ‘Star Rails’ which 2024 will feature the Mos Eisley Misfits. The hope is that the newer events will encourage new visitors to come to the Railway, have a good time and tell their friends about the Railway. Word of mouth remains the Trust’s most effective marketing tool.. Work will continue on both the short term and long term redevelopment of the Trust’s Museum with the aim of improving the visitor experience and upgrading the way information is presented. During 2024 it is planned to engage teams from the University of Leeds Business School to work on identifying the different market sectors within the Leeds Metropolitan Area and surrounding areas and helping the Trust devise marketing strategies aimed at engaging within these different sectors and at looking at the trust’s offering and how it is valued by visitors including the value visitors place on seeing steam locomotives at work and being hauled by them rather than diesel locomotives. Conversations have also started with the Business School about having a small team critically review the Trust's long term business model with the aim of providing an objective assessment of that model. Work will continue and hopefully be completed on revising the Trust’s governance and upgrading the Trust’s Safety Management System to bring it into complaisance with the ORR’s latest guidance and work will continue to bring the Trust’s footpath and road crossings into compliance with the expectations of the Trust’s regulators. Finally, the long awaited first half of the new two volume history of the Middleton Railway which covers the period 1758 to 1960 should be made ready for launch in 2025 as part of the Trust’s contribution to the Railway 200 celebrations. Charles Milner; Chairman, Middleton Railway Trust. Philip Calvert, Treasurer, Middleton Railway Trust 12 Middleton Railway Trust Limited (Company Ltd by Guarantee Number 01165589) {Registeréd Charity Number 230387) Financial statements for the period ended 31 December 2023 Contents Page Legal Information Examinerfs report Statement of Financial Acttvities Balance Sheet Notes to the accounts 6-10 Middleton Railway Trust Limited Legal Infomiation Trustees J B Holmes l E Auckland M A Calvert P L Calvert C Campbell D l Hèbden A M lohn50n C W Milner RGPike S l Robert5 R W Gunn (Resigned 14.03.20241 R l Taggart (Resigned 29_06.20231 M Whitaker IResigned 14.03.20241 Registered Charity number 230387 Company Ltd by Guarantee number 01165589 Registered office The Station Moor Road Leeds LS10 2JQ Independent examiner Katie Bennett Upton & Co Accountants Ltd 182 Pontefract Road Cudworth Barnsley S72 8BE Allddlettsn Ral￿aYT￿5t Llmlted Indtpendent Exafflinerf5 report ofi thè Accounts of iddleton Raihvay Trusl Limlttd forthe period ended 31 December 2023 I repLYton attounts ofthe wmpany for Ihe perKrfJ end&1 31 Decem￿2023. are sel Lmrt on page$ 4 to 9. Ro$W¢t￿e resp￿sibilit￿$ of truste•s eXam￿•r The tharitys trustee5 are resp)nsible for the weparatson of Ihe accrAJnts_ The th￿il￿S trustte5 Ulns￿Or]hat an Èudil Is not required forthis year under See￿ 144{21 of th8 Chartse5 Act 2011 Ilhe 2011 arwj thai ¥n ind&pendenl examinatson Is r*ad8d. aving Sa￿sfi￿1 myseff that the ¢harity sthied lo3￿rt undèicwy L*v*d forThYepBndent ex¥muialwJn, it 1$ my reswsb4ty 10." examine Ihe accounts under Secti￿ 145 (*lhe 2011 to folbw the prOwJu￿$ in 9enwal Dyectknns gNen byll* I￿rIty¢t￿￿r[¥&￿ undef secth 14515llbl of the 2011 A(£ a lo &tsle thelher p￿￿￿lar matiers have tome to my 8lien1￿. Basi5 of Independ•Thtèxamin•rfs raport MyexaminaipJn was cartied (yJt in At¢0[d￿r￿ Wilh ts gEneral DKecbts)$gNen Charity commiss1￿.An examin31ion indudès a re¥kwof thè accounbrvJ records kept by tht chatity arKJ a I￿nPa￿50n of the accounts presented thos? rtcords. It 8180 inckjdes Con¥derati￿ of any ￿￿u$￿al Items LY(ksch)sur*s in trt aEG(xJnts. and seekin9 explanations from you as trusiees anYS￿ matters. The rKr¢edures undertaken do not provide all the evKlence Ihal V￿Uld be requwed an ￿￿j11 a￿1 cMsequentyTK) Or¥nK￿ is ￿ven as to ￿ther1he unis present a Irue fair arml Ihe repM is Iwniled lo IFK)s* Thatters w tyJt in slate[￿1 Wow. Indep•ndoni examlnrf8 $tat•m•nt In connec￿￿ with mytxamlr￿￿. M rnattv has oxne to my attent1￿ otherthan dtsck)5qd ith¥. 111 gwes me reasmable lo thatin any nweiia re5r*tt the r•W•Wn￿". to weP￿e accounts a¢¢tyd ￿1th Ihe acC￿nting re(xyds, ¢trNplywilh the a￿untr"n9 requirern$nts ol secli)n 396 01 the Companies Act 2(K)6 a)d *ith meknods and Pnna￿e$ oflhe Stater￿1 of Rectyntnerxled PractKe. ACc￿ni￿9 and Repc*iwvJ by Charii*s have rth botn rnel 121 to vhich. in myopinion. attent￿n be11ra￿ in order loenat40 a prop8rwthr*andiThJ oflhe a¢ctyJnts lo be reachèd. K Bennem OW07tt024 14."09".50 Katie Bennett Upton & Co Accwntants Lt 182 Pontefract Rood Cudworth BarnS￿Y S72 8BE Dale.. 8th Jui 2024 Mlddkton Ralhvoy Trust Limited 8taternent of financial activititis lincoiwralng the income and e¥penditure aGcounll for tho poriod ended 31 Déc•mb4r 2023 Totsl fiJnd5 20Z3 Tolal funds 2022 Income from Donations & Lega¢ies Chantable Activi1￿5 Other Trading A¢tlviti4s lTrvesltTb8nts 10.044 91233 31.659 107.515 JS 991 107515 35.931 153.469 4.810 153.469 4.810 1￿.279 132.936 1.145 134.081 Bank Inter8sI Recowed Total kn¢om• 158.279 Expendlture on ¢0st of 9pnq¥aUng funds Don2tK)ns & Legaue$ 4.432 28.768 21.770 75.417 4.432 28.768 21.770 75.417 142.590 12.990 OthèrTradin9 Act￿￿t&S Support Costs Asset Dr6PQs01 Asseiwritè Doym Debts Wiitt*n ori Totsl •xPondI￿rg 11.778 31.638 43.416 142.165 31.638 173.803 155.580 Net In¢omellexpvrwlitutÈl 16.114 31.638 15.5241 21.4991 Tota runth bwhlforward 587.266 1.138.122 1.159.621 Tot4 fundsspenl Total funds carri•d ftbr*ard 566.970 555.628 1.122.598 1.138.122 as8ets 11.712 15.6B5 274.115 B￿n￿*ber￿a￿dI￿th 252xX7 19ts14 C¥*dkor4 I ZOS281 281.162 1.1XI 1Q 1.122.f 1.138.172 Funds 12 t2 58T&6 6Jr2 1.122.f 1.138.lY Middlèton Railway Trust Llmit Not•s to tho financlal statsmènts for tho perbod ended 31 De￿rnber 2023 1 Trustees Report The primary objeclive of the company, as selout ￿ lis memorandutn of association, is to preservè in Kvrking c￿dI110n the hts¢(Kic mIdd￿t0Th Colliery Rarfway for the benefit of the publi¢. To achieve this goal, the C￿n￿l rnust ensu￿ rt generates sufficient incomo to cover bolh its running costs arKJ th8 olher obJ"ectives that support Ihe company as a charitab18 organisation_ Although the Chair presents a dètailed rermylon the company ath"vitses and aims at Ihe AGM specffic financial Info￿Tha1K>n ss s￿)￿7 in this repxt. Financial Review- Overall The result for Ihe year after depreuatK)n has impr￿e￿ shthwThJ a k)ss of £15.525 compared lo a ￿s5 Of £21.499 in the previous year. When dep￿￿allOn of £43.416 Is taken into account. the company has a¢hieved one ol it aims in rwnaining cash p05itNe and not using reserv8S to fund (perating costs. Incom• Income in 2023 has In¢reased to £158.279 from £134.081 in 2022. This ¢Trcr8ase of over £24k or 18¥4 was spread over a number of income types. Th8 main detail of ihis intt8ase i8 shown below. Once again. the Sanla Season ￿d$ successful. wth an irueasè 01 £5k to neaty £55k or 35'h of our toial income. This shows Ihe imp)rtan¢e of thts acbvty. and the (x)un¢il tnust congralulate the volunteers on Ihis achievement. Traffic and event income aL80 In￿ased by £5k mainly due to event income increas8s. whi￿ overall wsitor in¢ome is improving it 1$ a stow process and rnusl be improved in futu￿ yw rfwe are to generale sufficient income lo cover our costs. In addition. the banks started to pay interest on depostb gerErabng £5k. In addl￿"0n. we received Grfi aid of £2k and one off doTrats"¢￿ 01 £6k. No grants were received in Ihe y8ar compared lo the £4k in the wevious year. While lh8 improvement in income is to be wekorned. the c￿ncil r8alise il must b8 strategic aim to maintain this irnprovemenl rfwe are to cover the high ¢ost increase$ that are oc¢urrins now and into nexi ye*r. ¢o$ts As in p￿V￿u5 years the TrLLSt has tnad8 every effThl to keep a very i.ght control on expendituTe. Hijwever. as members ￿11 appreciate costs have increased in 2023 and this trend is like to tonbnue into the future. The Rai￿aY has a sMJnffi¢allt percentage of its costs that are assenlial or fixed if we are to maintain an opera1)￿ raihv3y. it is the￿lOre difficurt to pravant increases. The main increases in i>)sts are shc**m below. Total costs have incr8as8d by over £17k in the year. The main increases are as folows. Utilities cost £3k. This increase was limited due lo a 3 yeaT electric contract wh￿￿ expired i S•pt¢mbw. Our ¢OSts have now 1knub￿d. Coal and Diesel costs have increas8d by £5k mainty du8 to Coal. The other signfficant increase in ¢osts has tEen In$uran(*. Ihis has increased by£6k to £20K. Unfortunately. some Insulan￿ companies have ￿T￿)dra*M Irom the marf(et ￿su￿"ng in less competition, plus railways are seen as a COn￿derable risk even Ih(yJgh our claims record 15 very good. We also had to inGTea5e OUT cover lo refieGt assets costs. espeualty trAJI￿1n9$. Strategic Alms As has been menlioned in previous years whfie the Trust would like to cover all costs Including dewe¢la￿"on. this is proving difrthll in the ¢urrent tradiTrJ c￿ditIOns. Our first must be to tnaintain a poS￿"ve cash pos￿￿ so that we do not use resetwes to fund losses and maintsin our"goiNJ concem" trading staius. To achieve tt)is aim. we are k)oking at all ad¢Yib"onal attr￿￿(￿$ for visitors and e5peualty for younger a9es. We have lo improve our marketing 3kilLs to attrad greater numbers and improve facil￿'e5 that generale Income suth 85 shop atKI café. Non8 of th8se aims are easy io achieve and wll require investrnent. Theyalso depend on volunteers which are proving difficult lo attraet in the current dimate and Ih15 again must bè a stratégic aim. Conclusion The raihway is still financialty in 3 strong tx)5tbon but 2024 V4ill bÈ a dffku# yearand we must be careful to rnantsin OUT aims and controls rf we a￿ to maintain tt)iS KM)sitN)n. Mlddleton Railway Trust Limited Notes to the financial statements for the period ended 31 December 2023 1 Aeeounting Policies lal Basis of prèparation The Financial Statements have been prepared in acc4)rdance vrith the Companies Act 20(O, the Financial Reporting Standard ap￿1¢able in Ihe UK and Republic of Ireland IFRS1021, an the Accounting and Reporting by Charities.. Statement of Recommended Pracb"ce applicable tts Gharilies preparing their accounts in accordance wlh FRS102 lÈffe¢twe from January 2015 and updated wilh &ffe¢t from January 20161- (the CharitEs SORP IFRS102}I, as modtfied for smaller charities. The Charity meets the definIt￿n of a public benefft entty as definep￿d#U in the year{2022 enill 12 An￿yS1$ of netassets byfunth Totsi d5 Tangible 0¥3ets CuThent as$et¥ Debtors Ojrrent Lkbd 829.566 55.955 267 858 741 858.741 Mov4m•nt kn rostrf¢t•d fun Frt Baanc¢ catsièd forward ftryéaid Hentage LoMery FuTrJ Locomotive MaiDlenan¢e Defibnikwr Fund Chi￿ren'5￿C&s% Fthd 583.171 31m8 551.533 2.501 370 1.224 370 1224 $87266 31.638 555.628 oveNnt irb unr•strlcted Income ce wried fL*ward forward Funds 5S).856 158.279 142.165 566.970 s￿.856 t58.279 142.165 566.970 Envelope Detal AUthO En¥dopeCMwtrdoh En¥￿0P•ID Document Dètails Th o￿lt￿l￿r0erprknt Document Signers N*mo stsius MED I4W50￿1￿1L*)) yhatur•FkngqrpDnl Documant History Ilon, OOJUI 2D2414i1&..51 ico. legislation.gov.uk f" 27fyX ## TRUSTEES' REPORT ## FOR THE YEAR ENDED 31 DECEMBER 2023 The primary objective of the company, as set out in its memorandum of association, is to preserve in working condition the historic Middleton Colliery Railway for the benefit of the public. To achieve this goal, the Council must ensure it generates sufficient income to cover both its running costs and the other objectives that support the company as a charitable organisation. Although the Chair presents a detailed report on the company activities and aims at the AGM specific financial information is shown in this report. ## Financial Review- Overall The result for the year after depreciation has improved slightly showing a loss of £15,523 compared to a loss of £21,499 in the previous year. When depreciation of £43,415 is taken into account, the company has achieved one of it aims in remaining cash positive and not using reserves to fund operating costs. ## Income Income in 2023 has increased to £158,280 from £134,081 in 2022. This increase of over £24k or 18% was spread over a number of income types. The main detail of this increase is shown below. Once again, the Santa season was successful, with an increase of £5k to nearly £55k or 35% of our total income. This shows the importance of this activity, and the council must congratulate the volunteers on this achievement. Traffic and event income also increased by £5k mainly due to event income increases. While overall visitor income is improving it is a slow process and must be improved in future years if we are to generate sufficient income to cover our costs. In addition, the banks started to pay interest on deposits generating £5k. In addition, we received Gift aid of £2k and one off donations of £6k. No grants were received in the year compared to the £4k in the previous year. While the improvement in income is to be welcomed, the council realise it must be a strategic aim to maintain this improvement if we are to cover the high cost increases that are occurring now and into next year. ## Costs As in previous years the Trust has made every effort to keep a very tight control on expenditure. However, as members will appreciate costs have increased in 2023 and this trend is likely to continue into the future. The Railway has a significant percentage of its costs that are essential or fixed if we are to maintain an operating railway, it is therefore difficult to prevent increases. The main increases in costs are shown below. Total costs have increased by over £17k in the year. The main increases are as follows, Utilities cost £3k. This increase was limited due to a 3 year electric contract which expired in September. Our electric costs have now doubled. Coal and Diesel costs have increased by £5k mainly due to Coal. The other significant increase in costs has been Insurance, this has increased by £6k to over £20K. Unfortunately, some insurance companies have withdrawn from the market resulting in less competition, plus railways are seen as a considerable risk even though our claims record is very good. We also had to increase our cover to reflect asset costs, especially buildings. ## Strategic Aims As has been mentioned in previous years while the Trust would like to cover all costs including depreciation, this is proving difficult in the current trading conditions. Our first aim must be to maintain a positive cash position so that we do not use reserves to fund losses and maintain our “going concern” trading status. To achieve this aim, we are looking at all areas including additional attractions for visitors especially for younger ages. We have to improve our marketing skills to attract greater numbers and improve facilities that generate income such as shop and café. None of these aims are easy to achieve and will require investment. They also depend on volunteers which are proving difficult to attract in the current climate and this again must be a strategic aim. ## Conclusion The railway is still financially in a strong position but 2024 will be a difficult year and we must be careful to maintain our aims and controls if we are to maintain this position.