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2022-10-31-accounts

Registered number: 01007871 Charity number: 262481

The Kent and East Sussex Railway Company Limited (A company limited by guarantee)

Trustees' report and financial statements

for the year ended 31 October 2022

The Kent and East Sussex Railway Company Limited (A company limited by guarantee)

Financial Headlines for the year ended 31 October 2022

· The Company’s consolidated income for the year ended 31st October 2022 was £2,018,752 compared with £2,053,086 in 2021.

· The Company recorded a net consolidated deficit of £384,873 in 2022 compared with a surplus of £539,317 in 2021 (page 44).

· Colonel Stephens Railway Enterprises Ltd, the wholly owned trading subsidiary, which includes all the commercial activities, achieved sales of £577,965 compared with £364,645 in the previous year and a loss of £95,180 compared with a profit of £22,285 in 2021 (page 48).

· The total net cash in the balance sheet at the year-end was £505,572 compared with £764,150 in 2021 (see below).

6-Year Net Cash and Debt Profile (year end)

Total Capital
CAF Bank Loan
Other Loans
Cash at Bank and In Hand
Total Net Cash / (Debt)		 2022
2021
2020
2019
2018
2017
(260,749)
(300,518)
(339,936)
(357,008) (390,890)
(424,141)
(36,363)
(55,012)
(79,000)
(34,000)
-
-
(297,112)
(355,530)
(418,936)
(391,008) (390,890)
(424,141)
802,684
1,119,680
495,018
661,831
597,968
793,063
505,572
764,150
76,082
270,823
207,078
368,922

The figures for cash include Advance Bookings.

Visitor Numbers

Service Trains / Admissions
Pullman Dining Trains		 2022
2021
2020
2019
2018
2017
56,664
35,210
30,362
83,907
77,491
85,270
2,937
2,087
647
3,085
3,404
3,091
59,601
37,297
31,009
86,992
80,895
88,361

Platform Tickets = 1,576 in 2022 (2021: 735)

The Kent and East Sussex Railway Company Limited (A company limited by guarantee)

Contents

for the year ended 31 October 2022

Page
Reference and administrative details of the Charity, its Trustees and Advisers 1
Trustees' report 2 - 6
Independent auditor's report on the financial statements 7 - 10
Consolidated statement of financial activities 11
Consolidated balance sheet 12
Company balance sheet 13
Consolidated statement of cash flows 14
Notes to the financial statements 15 - 43
The following pages do not form part of the statutory financial statements:
Appendix I - Consolidated detailed Income and Expenditure Account 44
Appendix II - Detailed Income and Expenditure Account 45
Appendix III - Schedule to the detailed Income and Expenditure Account 46
Appendix IV - Colonel Stephens Railway Enterprises Limited Accounts 47 - 48

The Kent and East Sussex Railway Company Limited (A company limited by guarantee)

Reference and administrative details of the Charity, its Trustees and Advisers for the year ended 31 October 2022

Constitution

The Kent and East Sussex Railway Company Limited is a company limited by guarantee and a registered charity. Charity Number: 262481. Company Number 01007871.

Directors and Trustees

The Directors of the Charitable Company ('the Charity') are its Trustees for the purposes of charity law and throughout this report are collectively referred to as the Trustees.

The Trustees serving during the year and at the date of this report were as follows:

S A Marsh 1 Chairman G A Crouch 1 Finance Director I C Legg 1 M J Hyner D J Nibloe P D Shaw 1 N D Sime P E Vidler R M White A Papworth (appointed 30 April 2022)

1 also directors of Colonel Stephens Railway Enterprises Limited at the date of this report

Registered office

Tenterden Town Station, Station Road, Tenterden, Kent, TN30 6HE

Company Secretary and Assistant Company Secretary

C H Mavor - Company Secretary (resigned 30 November 2021) J Cobbett - Company Secretary (appointed 29 January 2022) R Styles - Assistant Company Secretary (resigned June 2022)

Senior management team

R Coombes (General Manager), A Freeman (Commercial Manager), P Salmon (Operations Manager), B Richards (Infratructure Manager), M Gooch (Pullman Manager), M deCol (Accountant)

Independent auditor

Kreston Reeves LLP, Chartered Accountants, Statutory Auditor, Montague Place, Quayside, Chatham Maritime, Chatham, Kent, ME4 4QU

Bankers

CAF Bank Limited, PO Box 289, West Malling, Kent, ME19 4TA National Westminster Bank plc, 58 High Street, Tenterden, Kent, TN30 6AX

Solicitors

Rix & Kay LLP, The Courtyard, River Way, Uckfield, East Sussex, TN22 1SL

Page 1

The Kent and East Sussex Railway Company Limited (A company limited by guarantee)

Trustees’ report For the year ended 31 October 2022

The Trustees are pleased to present their report together with the financial statements of the Charity for the year ended 31 October 2022. The Trustees have adopted the provisions of the Statement of Recommended Practice (SORP) 'Accounting and Reporting by Charities' (FRS 102) in preparing the annual report and financial statements of the Charitable Company.

Legal and administrative information set out on pages 1 and 2 forms part of this report. The financial statements comply with Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

Our purposes and activities

The purposes of the Charity are to preserve, restore and operate the whole or parts of the railway from Tenterden in Kent to Robertsbridge in Sussex (known as The Kent & East Sussex Railway) as a permanent public exhibition and museum, which includes the preservation, display and operation of steam and other locomotives, rolling stock, equipment, and other relics. The Charity thereby aims to contribute to technical, historical, and general education concerning the operation of a rural light railway.

The Trustees consider that the Charity's objectives are for the public benefit and that its activities, achievements, and performance are consistent with its objectives having had regard to Charity Commission guidance, including the guidance "Public Benefit: running a charity (PB2)".

To achieve its objects the Charity: -

The major area of activity of the Charity continues to be the operation of a heritage railway service as a means of demonstrating and exhibiting steam and other railway locomotives, rolling stock etc., which provides funding for the restoration of engines, carriages and wagons and the railway itself.

The Charity offers people the opportunity to experience the delights of the steam age, and to understand this historic means of travel which changed the face of Britain. For others it offers the opportunity to volunteer their time, helping us maintain and renovate the locomotives, carriages, and other infrastructure and providing a number of well-being benefits for the volunteers themselves.

For many years, the Charity has also run special events including "Santa Specials". While providing a valuable source of income to assist with various preservation and other similar projects, such events are important in encouraging and promoting the interest of young people in the railway. In furtherance of this aim the Charity has close links with the education departments of local authorities, as illustrated by our "Evacuation Experience", now regarded by many schools in Kent and East Sussex as an essential ingredient in their teaching of this aspect of modern history, and by our partnership with The Terrier Trust CIO and Global London Learning to create an immersive educational programme for primary school children in the London Borough of Tower Hamlets.

Page 2

The Kent and East Sussex Railway Company Limited (A company limited by guarantee)

Trustees’ report For the year ended 31 October 2022

Members and volunteers

The Trustees greatly value the support given by the members. At 31 October 2022, the membership stood at 2,726, including approximately 628 active volunteers. The Charity and its wholly owned trading subsidiary is grateful for the continued efforts of their volunteers whose contributions are integral to the growth, development, and operation of activities.

Colonel Stephens Museum

The museum offers free admission to all visitors when the railway is operational.

Financial review

The Company and its subsidiary recorded a deficit of £384,873 for the year. This compares with a surplus of £539,317 in 2021, during which year we received £466,221 Government support in the wake of the Covid crisis. Legacy income, which is always unpredictable, fell from £302,133 in 2021 to £147,898 but was still a valuable source of income.

Passenger numbers rose from 37,297 in 2021 to 59,601 but were significantly lower than the 80,000/90,000 annual totals that we were achieving in the pre Covid era and which we must aim for if we are to achieve a surplus.

Our gross cash at the year-end was £802,684 compared with £1,119,680 at October 2021. These figures Included substantial advance booking income for the 2022 Santa trains. Our CAF loan was reduced during the year from £300,518 to £260,744 in accordance with the Bank agreement.

Outlook for 2023

Following a record Santa season in December, fare revenues at the time of writing (May 2023) are running slightly ahead of last year. Our acclaimed Pullman services continue to run to capacity, and we are seeing a resurgence in demand for booked coach parties, who enjoy refreshment whilst on the train as part of their holiday travel programme.

We continue to invest in our infrastructure and some £80,000 has been expended on renewing the level crossing at Northiam.

We have taken steps which will reduce (or eliminate) our dependence on hired steam engines which have had to resort to in 2022 and 2023.

Fund raising is now a core feature of Board activity in support of capital projects.

Investment powers and policy

Under the memorandum and articles of association, the Charity has the power to make any investment which the Trustees see fit.

Reserves policy

The Trustees have reviewed the reserves of the Charity. The review considered the nature of the income and expenditure streams and the need to match variable income with fixed commitments and the nature of the reserves.

The unrestricted reserves of the Group decreased in the year by £317,013 to £1,559,059 (see Note 22). The unrestricted reserves are maintained to meet the Charity's ongoing unrestricted charitable expenditure as well as the longer-term financing of the Charity.

Restricted reserves have decreased by £67,860 to £1,515,785 and the purpose of these funds is detailed in Note 21 in the financial statements.

Page 3

The Kent and East Sussex Railway Company Limited (A company limited by guarantee)

Trustees’ report For the year ended 31 October 2022

Reserves policy (continued)

The Group normally meets its day to day working capital requirements through internally generated revenues. The nature of the Group’s activities is such that there can be considerable variation in the timing of cash inflows.

At 31 October 2022, the Group had net current assets of £107,550, which include cash at bank and in hand of £802,684. These funds include amounts held to enable the Charity to operate during the winter months when income levels are much reduced; sums received in advance for future bookings; and balances in respect of restricted funds. Further details in respect of the latter are provided in note 21.

Structure, governance, and management

Governing document

The Kent and East Sussex Railway Company Limited is a company limited by guarantee governed by its memorandum and articles of association. It is registered as a charity with the Charity Commission. Anyone can apply to become a member of the Company. At the year-end there were 2,726 members (2021: 2,473) each of whom undertakes to contribute an amount not exceeding £1 in the event of the winding up or dissolution of the Charity.

Recruitment and appointment of Trustees

As set out in the articles of association the Chairman of the Trustees is elected by them. Every Trustee who has served for a term of three years must retire from office. A retiring Trustee is eligible for re-election by the Members. The Trustees have the power at any time to appoint any member to be a Trustee, either to fill a casual vacancy or as an addition to the existing Trustees.

Trustee induction and training

New Trustees are briefed informally on their legal obligations under charity and company law, the content of the memorandum and articles of association, the committee, and decision-making processes, and recent financial performance of the Charity. Trustees are encouraged to attend appropriate external training events where these will facilitate the undertaking of their role.

Organisation

A Board of Trustees of up to ten members, who meet or communicate monthly, administers the Charity. There are subcommittees covering individual areas of activity and individual Trustees have taken responsibility for monitoring the activities in specific operational areas. They report points for action at Trustee meetings. A General Manager is appointed by the Trustees to manage the day-to-day operations of the Charity.

The non-charitable trading activities are conducted through the wholly owned trading subsidiary, Colonel Stephens Railway Enterprises Limited.

A wholly owned subsidiary, Robertsbridge 20/20 Limited, has been incorporated to investigate the longterm objective of operating the railway to Robertsbridge. This Company is dormant.

The Company has 3 subsidiary companies which are listed in Note 15, together with the relevant shareholdings.

Page 4

The Kent and East Sussex Railway Company Limited

(A company limited by guarantee)

Trustees’ report For the year ended 31 October 2022

Key management personnel

The Board of Trustees is responsible for setting Policies and Instructions including those relating to Safety. The Board monitors the performance of the Management team against these Policies and Instructions and directs the General Manager accordingly. Key Management consists of the General Manager who oversees day to day operations, as well as Departmental Managers, some of whom are remunerated. The remuneration of the General Manager and the Employed Departmental Managers is set by the Board.

Related parties

Details of related parties are provided in Note 24 to the accounts.

Principal risks and uncertainties

The Trustees actively review the strategic business and operational risks to which the Charity is exposed and systems have been established to enable regular reports to be submitted to them. Arising from these regular reporting procedures the Trustees can take all necessary steps to lessen any risk to the Charity. The principal risks and uncertainties facing the Charity are as follows:

The Charity also regularly issues policy documents dealing with risk management.

Trustees

The Trustees in office during the year and at the date of this report are set out on page 1. No Trustee is remunerated by the Charity or its trading subsidiary.

Page 5

The Kent and East Sussex Railway Company Limited

(A company limited by guarantee)

Trustees’ report For the year ended 31 October 2022

Trustees' responsibilities in relation to the financial statements

The Trustees as Directors are responsible for preparing the Report of the Trustees and the financial statements in accordance' with applicable law and regulation.

Company law requires the trustees to prepare financial statements for each financial period. Under that law the Trustees have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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 situation of the Charity and of the results of the Charity for that period. In preparing these financial statements, the trustees are required to: -

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Charity's transactions and disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the financial statements comply with Companies Act 2006 and the Charities Act 2011. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In accordance with company law, as the Company's Directors, we confirm that:

All Directors have signed declarations to the effect that they are fit and proper persons to act for the Charity in accordance with the requirements of the Finance Act 2010.

Auditor

The auditor, Kreston Reeves LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

By order of the Trustees:

S A Marsh Chairman

Date: 27/07/2023

Page 6

The Kent & East Sussex Railway Company Limited (a company limited by guarantee)

Independent auditor’s report to the Members of the Kent and East Sussex Railway Company Limited For the year ended 31 October 2022

Opinion

We have audited the financial statements of The Kent and East Sussex Railway Company Limited (the 'Parent Charitable Company') and its subsidiaries (the 'Group') for the year ended 31 October 2022 which comprise the Consolidated statement of financial activities, the Consolidated balance sheet, the Company balance sheet, the Consolidated statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Group and Parent Charitable Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Emphasis of matter

The Group has generated a net deficit of £384,873 during the year ended 31 October 2022. Due to the continued economic difficulties in the Railway Heritage sector we draw attention to note 2.3 in the financial statements where the Trustees have stated the Group has the ability to continue as a going concern. Our opinion is not modified in respect of this matter.

We draw attention to the contingent liabilities note, being note 25 to the financial statements.

We confirm that there are no other matters to which your attention should be drawn to enable a proper understanding of the financial statements to be reached.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the Trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the Annual report other than the financial statements and our Auditor's report thereon. The Trustees are responsible for the other information contained within the Annual report. Our opinion on the financial statements does not cover the other information and,

Page 7

The Kent & East Sussex Railway Company Limited (a company limited by guarantee)

Independent auditor’s report to the Members of the Kent and East Sussex Railway Company Limited For the year ended 31 October 2022

except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements, or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinion on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the Group and Parent Charitable Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' report including the Strategic report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 and the Charities Act 2011 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Trustees' responsibilities statement, the Trustees (who are also the Directors of the Charitable Company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Trustees are responsible for assessing the Group's and Parent Charitable Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the Group or Parent Charitable Company or to cease operations, or have no realistic alternative but to do so.

Page 8

The Kent & East Sussex Railway Company Limited (a company limited by guarantee)

Independent auditor’s report to the Members of the Kent and East Sussex Railway Company Limited For the year ended 31 October 2022

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Capability of the audit in detecting irregularities, including fraud

The objectives of our audit are to identify and assess the risks of material misstatement of the financial statements due to fraud or error; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud or error; and to respond appropriately to those risks.

Based on our understanding of the group and charitable sector generally, and through discussion with the Trustees and other management (as required by auditing standards), we identified that the principal risks of non-compliance with laws and regulations related to health and safety, anti-bribery and employment law. We considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006, taxation and pension legislation. We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to increase revenue or reduce expenditure and management bias in accounting estimates and judgemental areas of the financial statements. Audit procedures performed by the engagement team included:

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

Page 9

The Kent & East Sussex Railway Company Limited (a company limited by guarantee)

Independent auditor’s report to the Members of the Kent and East Sussex Railway Company Limited For the year ended 31 October 2022

As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Use of our report

This report is made solely to the Charitable Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Charitable Company's members those matters we are required to state to them in an Auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Charitable Company and its members, as a body, for our audit work, for this report, or for the opinions we have formed.

Susan Robinson BA FCA FCIE DChA (Senior statutory auditor) for and on behalf of Kreston Reeves LLP

Chartered Accountants Statutory Auditor Chatham Maritime

Date: 28 July 2023

Page 10

The Kent and East Sussex Railway Company Limited (A company limited by guarantee)

Consolidated Statement of financial activities (incorporating income and expenditure account) for the year ended 31 October 2022

Note
Income from:
Donations and legacies
6
Charitable activities
6
Government grants
6
Other grants
6
Other trading activities
6
Total income
Expenditure on:
Raising funds
Charitable activities
7 - 10
Total expenditure
Net income/(expenditure)
Transfers between funds
Net movement in funds
Reconciliation of funds:
Total funds brought forward
22
Total funds
Share of associate net income
Non-controlling interest brought
forward
20
Net movement in funds
attributable to the parent company
Non-controlling interest movement
in the year
20		 Unrestricted
funds
2022
£
249,280
1,106,820
-
20,867
577,965
1,433
1,956,365
350,122
1,997,123
2,347,245
(390,880)
73,867
(317,013)
1,998,624
1,681,605
1,559,059
(122,552)
(317,019)
6		 Restricted
funds
2022
£
62,387
-
-
-
-
-
62,387
-
56,380
56,380
6,007
(73,867)
(67,860)
1,583,645
1,515,785
1,515,785
-
(67,860)
-		 Total
funds
2022
£
311,667
1,106,820
-
20,867
577,965
1,433
2,018,752
350,122
2,053,503
2,403,625
(384,873)
-
(384,873)
3,582,269
3,197,390
3,074,844
(122,552)
(384,879)
6		 Total
funds
2021
£
551,207
600,600
466,221
70,408
364,645
5
2,053,086
182,637
1,331,132
1,513,769
539,317
-
539,317
3,042,975
539,294
3,582,269
(122,575)
23
3,459,717

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

The notes on pages 15 to 43 form part of these financial statements.

Page 11

The Kent and East Sussex Railway Company Limited (A company limited by guarantee) Registered number: 01007871

Consolidated balance sheet as at 31 October 2022

Note
Fixed assets
Intangible assets
13
Tangible assets
14
Heritage assets
14
Investments
15
Current assets
Stocks
16
Debtors
17
Cash at bank and in hand
28
Net current assets
Total assets less current liabilities
Net assets
Charity funds
Restricted funds
21
Unrestricted funds
22
Total funds
Non-controlling interests
20
18
19
Creditors:amounts falling due
within one year
Creditors:amounts falling due
after more than one year		 32,729
134,606
802,684
970,019
(862,469)		 2022
£
1,663
3,307,318
16,511
12,799
3,338,291
107,550
3,445,841
3,197,390
1,515,785
1,559,059
3,074,844
122,546
3,197,390
(248,451)		 22,753
155,664
1,119,680
1,298,097
(709,106)		 2021
£
3,324
3,249,299
16,511
11,366
3,280,500
588,991
3,869,491
(287,222)
3,582,269
1,583,645
1,876,072
3,459,717
122,552
3,582,269

The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

The financial statements were approved and authorised for issue by the Trustees on 27/07/2023 and signed on their behalf by:

S A Marsh G A Crouch Chairman Trustee

The notes on pages 15 to 43 form part of these financial statements.

Page 12

The Kent and East Sussex Railway Company Limited (A company limited by guarantee) Registered number: 01007871

Company balance sheet as at 31 October 2022

Note
Fixed assets
Tangible assets
14
Heritage assets
14
Investments
15
Current assets
Debtors
17
Cash at bank and in hand
Net current assets
Total assets less current liabilities
Net assets
Charity funds
Restricted funds
21
Unrestricted funds
22
Total funds
Creditors:amounts falling due
within one year
18
Creditors:amounts falling due
after more than one year
19		 196,966
703,447
900,413
(778,418)		 2022
£
3,105,918
16,511
148,650
3,271,079
121,995
3,393,074
3,144,623
1,515,785
1,628,838
3,144,623
(248,451)		 232,454
1,027,578
1,260,032
(618,029)		 2021
£
3,049,688
16,511
147,217
3,213,416
642,003
3,855,419
(287,222)
3,568,197
1,583,645
1,984,552
3,568,197

The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

The financial statements were approved and authorised for issue by the Trustees on 27/07/2023 and signed on their behalf by:

S A Marsh G A Crouch Chairman Trustee

The notes on pages 15 to 43 form part of these financial statements.

Page 13

The Kent and East Sussex Railway Company Limited (A company limited by guarantee)

Consolidated statement of cashflows for the year ended 31 October 2022

Cash flows from operating activities
Net cash used in operating activities (note 26)
Cash flows from investing activities
Purchase of tangible fixed assets
Net cash used in investing activities
Cash flows from financing activities
Repayments in borrowing
Net cash provided by / (used in) financing activities
Changes in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year (note 27)		 2022
£
(57,186)
(201,453)
(201,453)
(58,357)
(58,357)
(316,996)
1,119,680
802,684		 2021
£
869,139
(181,882)
(181,882)
(62,595)
(62,595)
624,662
495,018
1,119,680

The notes on pages 15 to 43 form part of these financial statements.

Page 14

The Kent and East Sussex Railway Company Limited (A company limited by guarantee)

Notes to the financial statements for the year ended 31 October 2022

1 General information

The Kent and East Sussex Railway Company Limited is a company limited by guarantee in the United Kingdom. In the event of the Charitable Company being wound up, the liability in respect of the guarantee is limited to £1 per member of the Charitable Company. The address of the registered office is given in the Charity information on page 1 of these financial statements. The nature of the Charitable Company's operations and principal activities are set out on page 2.

2 Accounting policies

2.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), the Charities Act 2011, and the Companies Act 2006.

The Kent and East Sussex Railway Company Limited meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

The consolidated statement of financial activities (SOFA) and consolidated balance sheet consolidate the financial statements of the Company and its subsidiary undertakings Colonel Stephens Railway Enterprises Limited, Robertsbridge 20/20 Limited, and the Company's controlling interest in 6619 Limited. The results of the subsidiaries are consolidated on a line by line basis.

The financial statements are presented in UK pound sterling, which is the Charity's functional currency, and rounded to the nearest pound.

2.2 Group financial statements

The financial statements consolidate the results of the Charity and its wholly-owned subsidiary companies, Colonel Stephens Railway Enterprises Limited, Robertsbridge 20/20 Limited and Tenterden Railway Company Limited, as well as the 51% owned 6619 Limited, on a line by line basis. A separate Statement of Financial Activities, or income and expenditure account, for the Charity itself is not presented because the Charity has taken advantage of exemptions afforded by section 408 of the Companies Act 2006.

2.3 Going concern

Notwithstanding the deficit of £384,873 for the year and the limited net current assets at the balance sheet date the accounts have been prepared on a going concern basis. The justification of this treatment is as follows:

The principal risk the Group faces is the ability to generate sufficient income to cover expenditure. Additional income is being secured post year end.

The Trustees continue to implement a series of cost reduction and income generation measures to mitigate the risks largely generated by the cost of living crisis.

The Trustees have provided assurances to suggest the Group will continue to operate for a period of 12 months from the date of signature of these financial statements.

Page 15

The Kent and East Sussex Railway Company Limited (A company limited by guarantee)

Notes to the financial statements for the year ended 31 October 2022

2 Accounting policies (continued)

2.4 Income

Charitable activities

Income from fares and charter trains is included in income in the period in which the journey is taken.

Donations, Subscriptions, Grants, Legacies and Similar Income

Income from donations, subscriptions (including life), grants, legacies and similar income is included when receivable, except as follows:

Income from commercial trading operations

The trading subsidiary's income is recognised as earned when goods and services are provided, net of value added tax.

2.5 Volunteers and donated services and assets

The value of voluntary services provided by members and others is not incorporated into these financial statements on the basis that no financial cost is borne by a third party.

Where assets are provided to the Charity as a donation that would normally be purchased from a third party, the donated asset is included in the financial statements at an estimated valuation.

2.6 Expenditure

Expenditure is recognised when a liability is incurred on an accruals basis. Costs are classified as follows:-

Page 16

The Kent and East Sussex Railway Company Limited (A company limited by guarantee)

Notes to the financial statements for the year ended 31 October 2022

2 Accounting policies (continued)

2.7 Intangible assets and amortisation

Intangible assets costing £Nil or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Amortisation is provided on intangible assets at rates calculated to write off the cost of each asset on a straight-line basis over its expected useful life.

Amortisation is provided on the following basis:

Goodwill 5 years straight line

2.8 Tangible fixed assets and depreciation

Tangible fixed assets costing £1,000 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.

Depreciation is provided on all tangible fixed assets, other than freehold land and assets in the course of reconstruction, at annual rates calculated to write off the cost, less estimated residual value, of each asset over its expected useful life, as follows:-

Permanent way, bridges and buildings 2% / 10% straight line
Car park 10% straight line
Railway locomotive and rolling stock 2% / 10% straight line
Plant 10% straight line
Furniture and equipment 10% / 25% / 33% straight line

The railway loco stock includes costs associated with work arising from ten year boiler inspections of locomotives on long term loan to the railway from third parties.

At each reporting date, the Charity reviews the carrying amounts of its tangible fixed assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss.

Recoverable amount is the higher of fair value less costs to sell and value in use.

If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in the Statement of Financial Activities.

Recognised impairment losses are reversed if the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised in the Statement of Financial Activities.

Page 17

The Kent and East Sussex Railway Company Limited (A company limited by guarantee)

Notes to the financial statements for the year ended 31 October 2022

2 Accounting policies (continued)

2.9 Heritage assets

Since April 2001 the Charity has held many thousands of papers and artefacts comprising the Colonel Stephens Railway Museum collection. The collection in existence at the date of transfer to the Charity is not recognised in the balance sheet as cost information is not readily available and the Trustees believe that the benefits of obtaining valuations for these items would not justify the cost. The vast majority of items in the collection were acquired by individuals on behalf of, and subsequently donated to, Colonel Stephens Railway Museum over a period of 30 years.

The Charity's management policy in respect of its heritage assets is summarised in Note 14. Individual heritage assets acquired after April 2011 and costing up to £1,000 (up to 31 December 2014 £500) or more have been capitalised. The capitalised cost is not subject to depreciation in view of the nature of the collection.

2.10 Investments

Investments in subsidiary and associate undertakings are recognised at cost less any provisions for impairment.

(i) Subsidiary undertakings

Investments in subsidiaries are valued at cost less provision for impairment.

(ii) Associated undertakings

Investments in associates are stated at the amount of the Company's share of net assets. The Statement of financial activities includes the Company's share of the associated companies' profits after taxation using the equity accounting basis.

2.11 Stocks

Stocks are valued at the lower of cost and net realisable value. Cost comprises direct costs of purchase that have been incurred in bringing the stock to its present location and condition.

2.12 Debtors

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid.

2.13 Cash at bank and in hand

Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

Page 18

The Kent and East Sussex Railway Company Limited (A company limited by guarantee)

Notes to the financial statements for the year ended 31 October 2022

2 Accounting policies (continued)

2.14 Liabilities and provisions

Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Liabilities are recognised at the amount that the Charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide. Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Consolidated statement of financial activities as a finance cost.

2.15 Leasing and hire purchase

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risk and rewards of ownership to the lessees. All other leases are classified as operating leases.

Assets held under finance lease are recognised as assets at the lower of each asset's fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the Balance Sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to the Statement of Financial Activities so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to income on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

The Group has taken advantage of the optional exemption available on transition to FRS 102 which allows lease incentives on leases entered into prior to the date of transition of the standard to continue to be charged over the period to the first market rent review rather than the term of the lease.

Page 19

The Kent and East Sussex Railway Company Limited (A company limited by guarantee)

Notes to the financial statements for the year ended 31 October 2022

2 Accounting policies (continued)

2.16 Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Group and which have not been designated for other purposes.

Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Group for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

2.17 Taxation

The Kent and East Sussex Railway Company Limited is a registered charity and accordingly no provision is considered necessary for taxation.

2.18 Employee benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

The pension scheme cost charged in the period represents contributions payable by the Charity or its trading subsidiaries into individual stakeholder pension schemes.

Page 20

The Kent and East Sussex Railway Company Limited (A company limited by guarantee)

Notes to the financial statements for the year ended 31 October 2022

3 Critical accounting estimates and areas of judgement

In the application of the Charity's accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from their sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised, if the revision affects only that period, or in the period of revision and future periods if the revision affects both current and future periods.

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below.

Critical judgements

The critical judgements that the trustees have made in the process of applying the Charity's policies that have the most significant effect on the amounts recognised in the statutory financial statements are discussed below.

Assessing indicators of impairment

In assessing whether there have been any indicators of impairment of assets, the trustees have considered both external and internal sources of information such as market conditions, counterparty credit ratings and experience of recoverability. There have been no material indicators of impairments identified during the current financial period.

Provision for dilapidations

No provision has been made for dilapidations on hired assets. This is on the basis that at the end of the year trustees had not been notified by any of the owners of the hired assets that they wished to terminate their agreements and, where applicable, therefore require the Charity to undertake repairs to put the hired asset back into its state of repair at the time it was first made available to the Charity.

While it is recognised that during the course of the operation of hired assets, wear and tear will occur, no provision is made because:

Key sources of estimation uncertainty

The key assumptions concerning the future, and other key sources of estimation uncertainty, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.

Estimating value in use

Where an indication of impairment exists the trustees will carry out an impairment review to determine the recoverable amount, which is the higher of fair value less cost to sell and value in use. The value in use calculation requires the trustees to estimate the future cash flows expected to arise from the asset and a suitable discount rate in order to calculate the present value.

Page 21

The Kent & East Sussex Railway Company Limited (A company limited by guarantee)

Notes to the financial statements for the year ended 31 October 2022

3 Critical accounting estimates and areas of judgement (continued)

Determining residual values and useful economic lives of tangible assets (property, plant and equipment)

The Charity depreciates tangible fixed assets over their estimated useful lives. The estimation of the useful lives of assets is based on historic performance as well as expectations about future use and therefore requires estimates and assumptions to be applied by management. The actual lives of these assets can vary depending on a variety of factors, including technological innovation and maintenance programmes.

Judgement is applied by management when determining the residual values for tangible fixed assets. When determining the residual value management aim to assess the amount that the Charity would currently obtain for the disposal of the asset, if it were already of the condition expected at the end of its useful economic life. Where possible this is done with reference to external market prices.

4 Financial activities of the Charity

Gross income
Total expenditure on charitable activities
Cost of raising funds
Interest payable and similar charges (net of interest received)
Net income/(expenditure)
Total funds brought forward
Total funds carried forward
Represented by:
Restricted income funds
Unrestricted income funds		 Year Ended Year Ended
31.10.2022
31.10.2021
£
£
1,763,689
1,848,059
(1,848,488)
(1,187,864)
(193,029)
(132,899)
(11,986)
(10,369)
(289,814)
516,927
3,568,197
3,051,270
3,278,383
3,568,197
1,515,785
1,583,645
1,628,838
1,984,552
3,144,623
3,568,197

Page 22

The Kent and East Sussex Railway Company Limited (A company limited by guarantee)

Notes to the financial statements for the year ended 31 October 2022

5 Raising funds - commercial trading operations

The wholly-owned trading subsidiary, Colonel Stephens Railway Enterprises Limited, pays all of its profits to the Charity under a deed of covenant. A summary of its trading results is shown below:

Summary of profit and loss account
Turnover
Government grants
Net (loss)/profit
Payments to charity - deed of covenant
Retained in subsidiary
Cost of sales and administration expenses
(including group recharges)		 Year Ended Year Ended
31.10.2022
31.10.2021
£
£
577,965
364,645
-
16,392
(539,385)
(358,752)
38,580
22,285
-
-
38,580
22,285

Colonel Stephens Railway Enterprises Limited paid the Charity £189,140 in respect of train charter charges during the year (2021 - £176,010).

The assets and liabilities of the subsidiary were:

Current assets
Creditors: amounts falling due within one year
Aggregate of share capital and reserves		 Year Ended Year Ended
31.10.2022
31.10.2021
£
£
136,078
118,040
(150,572)
(171,114)
(14,494)
(53,074)

Page 23

The Kent and East Sussex Railway Company Limited (A company limited by guarantee)

Notes to the financial statements for the year ended 31 October 2022

6 Income

Income
Unrestricted funds
Income from charitable activities
Donations
Legacies
Gift aid
Membership subscriptions
Government grants
Other grants
Other trading activities
Restricted funds
Donations		 Year Ended Year Ended
31.10.2022
31.10.2021
£
£
1,106,820
600,600
27,360
74,496
147,898
302,133
34,395
32,924
39,627
42,295
-
466,221
20,867
70,408
577,965
364,645
1,954,932
1,953,722
62,387
99,359
2,017,319
2,053,081

Government grants includes £Nil (2021: £56,858) of furlough grants in relation to staff that were furloughed as a result of COVID-19. A further £Nil (2021: £409,363) relates to funding specifically for heritage organisations that have been significantly affected by COVID-19.

Page 24

The Kent and East Sussex Railway Company Limited (A company limited by guarantee)

Notes to the financial statements for the year ended 31 October 2022

7 Analysis of expenditure on charitable activities

Locomotive and rolling stock operating expenses
Permanent way and building upkeep
Insurance costs
Rent and rates
Salaries and wages
Event expenses
Depreciation
Disposal of fixed assets
Museum expenses
Support costs (note 8)
Governance costs (note 9)
Locomotive and rolling stock operating expenses
Permanent way and building upkeep
Insurance costs
Rent and rates
Salaries and wages
Event expenses
Depreciation
Disposal of fixed assets
Museum expenses
Support costs (note 8)
Governance costs (note 9)		 Year Ended
Year Ended Year Ended
31.10.2022
31.10.2022
31.10.2022
Unrestricted
Restricted
Total
funds
funds
funds
£
£
£
709,298
13,371
722,669
73,759
-
73,759
57,410
-
57,410
4,828
-
4,828
497,359
-
497,359
107,154
-
107,154
96,981
43,009
139,990
-
-
-
10,379
-
10,379
198,820
-
198,820
36,120
-
36,120
1,792,108
56,380
1,848,488
Year Ended
Year Ended Year Ended
31.10.2021
31.10.2021
31.10.2021
Unrestricted
Restricted
Total
funds
funds
funds
£
£
£
354,247
4,269
358,516
18,916
-
18,916
41,341
-
41,341
1,023
-
1,023
384,922
-
384,922
76,649
-
76,649
83,351
45,159
128,510
1,123
-
1,123
10,199
-
10,199
140,408
-
140,408
26,257
-
26,257
1,138,436
49,428
1,187,864

Page 25

The Kent and East Sussex Railway Company Limited (A company limited by guarantee)

Notes to the financial statements for the year ended 31 October 2022

8 Allocation of support costs

Administrative salaries etc.
Advertising and publicity
Telephone, postage and stationery
Membership, magazine printing and distribution
Office and other expenses
Training
Depreciation
Provision for doubtful debts
Administrative salaries etc.
Advertising and publicity
Telephone, postage and stationery
Membership, magazine printing and distribution
Office and other expenses
Training
Depreciation		 Year Ended
Year Ended Year Ended
31.10.2022
31.10.2022
31.10.2022
Operation
Costs of
Total
of railway raising funds
funds
£
£
£
80,131
77,316
157,447
39,687
39,687
79,374
6,209
6,209
12,418
-
11,439
11,439
19,010
19,010
38,020
17,940
-
17,940
4,643
590
5,233
31,200
31,200
62,400
198,820
185,451
384,271
Year Ended
Year Ended Year Ended
31.10.2021
31.10.2021
31.10.2021
Operation
Costs of
Total
of railway
raising funds
funds
£
£
£
74,217
71,611
145,828
18,622
18,622
37,244
7,787
7,787
15,574
-
8,321
8,321
16,472
16,472
32,944
18,611
-
18,611
4,699
597
5,296
140,408
123,410
263,818

Page 26

The Kent and East Sussex Railway Company Limited

(A company limited by guarantee)

Notes to the financial statements for the year ended 31 October 2022

9 Governance costs

Year Ended
Year Ended Year Ended
31.10.2022
31.10.2022
31.10.2022
Operation
Costs of
Total
of railway raising funds
funds
£
£
£
Audit fees
4,500
4,500
9,000
Legal and professional fees
1,404
1,404
2,808
Bank, loan and credit card fees and charges
30,216
1,674
31,890
36,120
7,578
43,698
Year Ended
Year Ended Year Ended
31.10.2021
31.10.2021
31.10.2021
Operation
Costs of
Total
of railway
raising funds
funds
£
£
£
Audit fees
4,488
4,488
8,976
Legal and professional fees
3,549
3,549
7,098
Bank, loan and credit card fees and charges
18,220
1,452
19,672
26,257
9,489
35,746
10
Interest payable and similar charges
Year Ended Year Ended
31.10.2022
31.10.2021
£
£
Interest on bank loan repayable after more than five years
11,986
10,369		 Year Ended
Year Ended Year Ended
31.10.2022
31.10.2022
31.10.2022
Operation
Costs of
Total
of railway raising funds
funds
£
£
£
4,500
4,500
9,000
1,404
1,404
2,808
30,216
1,674
31,890		 Year Ended
Year Ended Year Ended
31.10.2022
31.10.2022
31.10.2022
Operation
Costs of
Total
of railway raising funds
funds
£
£
£
4,500
4,500
9,000
1,404
1,404
2,808
30,216
1,674
31,890
36,120
7,578
43,698
Year Ended
Year Ended Year Ended
31.10.2021
31.10.2021
31.10.2021
Operation
Costs of
Total
of railway
raising funds
funds
£
£
£
4,488
4,488
8,976
3,549
3,549
7,098
18,220
1,452
19,672
26,257 9,489
35,746
Year Ended Year Ended
31.10.2022
31.10.2021
£
£
11,986
10,369

Page 27

The Kent and East Sussex Railway Company Limited (A company limited by guarantee)

Notes to the financial statements for the year ended 31 October 2022

11
Staff costs
Wages and salaries
Social security costs
Other pension costs		 Group
Group
Company
Company
2022
2021
2022
2021
£
£
£
£
701,855
539,172
592,453
484,172
60,920
42,293
51,825
37,898
12,630
9,789
10,528
8,680
775,405
591,254
654,806
530,750

The average number of full-time equivalents employed by the Group and Company during the year, excluding the Trustees, was:

Office, management and commercial
Maintenance, restoration and operation		 2022
2021
No.
No.
18
13
9
8
27
21

The corresponding average monthly headcount expressed was:

2022 2021
No. No.
37 51

No employee received remuneration equal to or in excess of the statutory maximum for disclosure of £60,000 in either year.

The Trustees received no remuneration or benefits in kind for the year ended 31 October 2022 (2021 - £Nil).

Expenses of £426 (2021 - £Nil) were reimbursed to 2 Trustees during the year (2021 - None) for the hiring of rooms for Trustee meetings.

The key management personnel of the Charity comprise the Trustees, the General Manager and other Managers. The total employee remuneration of the key management personnel of the Charity, including employer's national insurance contributions, for the year ended 31 October 2022 was £261,867 (2021 - £247,593).

Page 28

The Kent and East Sussex Railway Company Limited (A company limited by guarantee)

Notes to the financial statements for the year ended 31 October 2022

12 Retirement benefit schemes

Defined contribution schemes

The Charity pays into individual pension schemes for the benefit of employees. The assets of the schemes are held separately from those of the Charity in independently administered funds. The pension cost and charge represents contributions payable by the Charity to the funds and amounts to £12,630 (2021 - £9,789). At 31 October 2022 there were outstanding pension contributions of £Nil (2021 - £2,002).

13 Intangible assets

Group

Cost
At 1 November 2021
At 31 October 2022
Amortisation
At 1 November 2021
Charge for the year
At 31 October 2022
Net book value
At 31 October 2022
At 31 October 2021		 Goodwill
£
8,307
8,307
4,983
1,661
6,644
1,663
3,324

Page 29

The Kent and East Sussex Railway Company Limited (A company limited by guarantee)

Notes to the financial statements for the year ended 31 October 2022

14 Tangible fixed assets

Group

Group
Cost or valuation
At 1 November 2021
Additions
Disposals
At 31 October 2022
Depreciation
At 1 November 2021
Charge for the year
Depreciation on disposal
At 31 October 2022
Net book value
At 31 October 2022
At 31 October 2021		 Railway
locomotive and
Freehold land,
rolling stock
permanent
(including)
way, bridges
expenditure on
Furniture &
Motor
& buildings
hired items)
Plant
equipment
vehicles
Total
£
£
£
£
£
£
3,550,884
2,060,235
294,274
196,100
5,370
6,106,863
-
198,181
-
2,171
1,100
201,452
-
(17,031)
-
(2,224)
-
(19,255)
3,550,884
2,241,385
294,274
196,047
6,470
6,289,060
1,459,956
1,013,211
210,000
174,173
224
2,857,564
78,673
46,730
11,317
5,232
1,481
143,433
-
(17,031)
-
(2,224)
-
(19,255)
1,538,629
1,042,910
221,317
177,181
1,705
2,981,742
2,012,255
1,198,475
72,957
18,866
4,765
3,307,318
2,090,928
1,047,024
84,274
21,927
5,146
3,249,299

Page 30

The Kent and East Sussex Railway Company Limited (A company limited by guarantee)

Notes to the financial statements for the year ended 31 October 2022

14 Tangible fixed assets (continued)

Charity

Charity
Cost or valuation
At 1 November 2021
Additions
Disposals
At 31 October 2022
Depreciation
At 1 November 2021
Charge for the year
Depreciation on disposals
At 31 October 2022
Net book value
At 31 October 2022
At 31 October 2021		 Railway
locomotive and
Freehold land,
rolling stock
permanent
(including)
way, bridges expenditure on
Furniture &
Motor
& buildings
hired items)
Plant
equipment
vehicles
Total
£
£
£
£
£
£
3,640,333
1,810,235
294,274
196,100
5,370
5,946,312
-
198,181
-
2,171
1,100
201,452
-
(17,031)
-
(2,224)
-
(19,255)
3,640,333
1,991,385
294,274
196,047
6,470
6,128,509
1,499,016
1,013,211
210,000
174,173
224
2,896,624
80,462
46,730
11,317
5,232
1,481
145,222
-
(17,031)
-
(2,224)
-
(19,255)
1,579,478
1,042,910
221,317
177,181
1,705
3,022,591
2,060,855
948,475
72,957
18,866
4,765
3,105,918
2,141,317
797,024
84,274
21,927
5,146
3,049,688

Page 31

The Kent and East Sussex Railway Company Limited (A company limited by guarantee)

Notes to the financial statements for the year ended 31 October 2022

14 Tangible fixed assets (continued)

Heritage assets

The Charity has, since April 2011, been entrusted with the papers and artefacts comprising the Colonel Stephens Railway Museum collection. No value is, however, recognised in the balance sheet in respect of the collection in existence at the date of transfer to the Charity, as explained in note 2.9. A member of the Board who is appointed by the Board on an annual basis administers this collection. The museum had 11,761 visitors during the year.

Funding for further acquisitions will come from donations. The Museum will continue to dispose of donated goods, which have no relevance to the collection (principally books) to help fund its operations. The Museum committee has delegated powers to use these funds to acquire significant items that will enhance the collection

Cost of the museum collection:

£

At 1 November 2021 and 31 October 2022 16,511

Summary analysis of heritage asset transactions in excess of £1,000 (£500 prior to 1 January 2015):

31.10.2022 31.10.2021 31.10.2020 31.10.2019 31.10.2018 31.10.2017 £ £ £ £ £ Purchases at cost - - - - 2,300 2,300

Page 32

The Kent and East Sussex Railway Company Limited (A company limited by guarantee)

Notes to the financial statements for the year ended 31 October 2022

15 Fixed asset investments

Group
Market value
At 1 November 2021
Share of associates profit /(loss)
At 31 October 2022
Historical cost		 Investments
in associates
£
11,366
1,433
12,799
10,000

The investment costing £12,799 (2021 - £11,366) represents the fair value of the Company's investment in Kent and East Sussex Railway Adventures Company Limited comprising 40 (2021 - 40) ordinary shares. The Company is currently dormant.

Subsidiaries

i). The wholly-owned trading subsidiary, Colonel Stephens Railway Enterprises Limited, which is incorporated in England, pays all its profits to the Charity by deed of covenant. Colonel Stephens Railway Enterprises Limited operates the Wealden Pullman and other dining trains, the buffet and other catering facilities, the book and gift shop, and all commercial trading operations carried on by the group.

ii). Robertsbridge 20/20 Limited, which is incorporated in England, continues to be dormant. The investment cost is shown as £1.

iii). The investment costing £135,843 (2021 - £135,843) represents the Company's investment in 6619 Limited comprising 2,058 (2021 - 2,058) ordinary shares, which represents a 51% (2021 - 51%) interest. This company owns a former GWR locomotive with the same number. G A Crouch is a director of, and has an interest in, the shares of 6619 Limited.

Associates

i). Tenterden Railway Company Limited, the Company formerly known as The Kent & East Sussex Railway Company Limited, a company limited by guarantee and incorporated in England, also continues to be dormant. The investment cost is shown as £7.

Page 33

The Kent and East Sussex Railway Company Limited (A company limited by guarantee)

Notes to the financial statements

for the year ended 31 October 2022

15
Fixed asset investments (continued)
Company
Market value
At 1 November 2021
Share of associates profit /(loss)
At 31 October 2022
Historical cost
16
Stocks
Goods for resale
17
Debtors
Trade debtors
Amounts owed by group undertakings
VAT and gift aid
Prepayments and accrued income		 Investments in
Shares in group
participating
undertakings
interests
Total
£
£
£
135,851
11,366
147,217
-
1,433
1,433
135,851
12,799
148,650
135,851
10,000
145,851
Group
Group
Company
Company
2022
2021
2022
2021
£
£
£
£
32,729
22,753
-
-		 Investments in
Shares in group
participating
undertakings
interests
Total
£
£
£
135,851
11,366
147,217
-
1,433
1,433
135,851
12,799
148,650
135,851
10,000
145,851
Group
Group
Company
Company
2022
2021
2022
2021
£
£
£
£
4,917
50,900
3,940
49,034
-
-
66,521
80,037
23,469
18,397
23,469
18,397
106,220
86,367
103,036
84,986
134,606
155,664
196,966
232,454

Page 34

The Kent and East Sussex Railway Company Limited (A company limited by guarantee)

Notes to the financial statements for the year ended 31 October 2022

18 Creditors: amounts falling due within one year

Bank loans and overdrafts
Other loans
Trade creditors
Other taxation and social security
Other creditors
Accruals and deferred income
Deferred income
Deferred income at 1 November 2021
Resources deferred during the year
Amounts released from previous periods
Deferred income at 31 October 2022		 Group
Group Company Company
2022
2021
2022
2021
£
£
£
£
48,709
59,308
48,709
59,308
-
9,000
-
9,000
155,415
126,854
142,993
111,734
6,021
21,697
-
12,136
-
2,002
-
2,002
652,324
490,245
586,716
423,849
862,469
709,106
778,418
618,029
Group
Group Company Company
2022
2021
2022
2021
£
£
£
£
454,106
369,160
396,685
307,714
624,749
454,106
568,236
396,685
(454,106) (369,160)
(396,685)
(307,714)
624,749
454,106
568,236
396,685

Page 35

The Kent and East Sussex Railway Company Limited (A company limited by guarantee)

Notes to the financial statements for the year ended 31 October 2022

19 Creditors: amounts falling due after more than one year

Group Group Company Company
2022 2021 2022 2021
£ £ £ £
Bank loans 248,451 287,222 248,451 287,222

Included within the above are amounts falling due as follows:

Group Group Company Company
2022 2021 2022 2021
£ £ £ £
Due in two to five years
Bank loans 208,675 234,894 208,675 234,894
Over five years
Bank loans 39,776 52,328 39,776 52,328

The aggregate amount of liabilities payable or repayable wholly or in part more than five years after the reporting date is:

Repayable by instalments Group
Group Company Company
2022
2021
2022
2021
£
£
£
£
39,776
52,328
39,776
52,328

The current portion of the secured loan amounts to £38,809 (2021 - £49,638) and this is included under creditors falling due within one year. The CAF Bank loan is repayable in monthly instalments of £4,478, which commenced in August 2013, and interest is charged at a rate of 3.0% per annum over bank base rate.

All property of the Charity is subject to either a fixed or floating charge in favour of CAF Bank Limited as security for the bank loan.

The Statement of Recommended Practice requires disclosure of the amount of the secured loans as a proportion of the value of the assets charged. However, in the opinion of the Trustees, obtaining an up-to-date version of these assets would not provide benefits commensurate with the costs involved.

20 Non-controlling interests

At 1 November 2021
Non-controlling interests recognised in the year
At 31 October 2022		 2022
£
122,552
(6)
122,546

Page 36

The Kent and East Sussex Railway Company Limited (A company limited by guarantee)

Notes to the financial statements for the year ended 31 October 2022

21 Restricted funds - group and company - 2022

The income funds of the group include restricted funds arising from grants, donations etc. received for specific purposes. The movements during the year were as follows:

Bodiam extension
Rolvenden carriage shed
6619 Limited
Aries Pullman Car
Terrier 150
Other projects		 Balance at
Income
Expenditure
Transfers
Balance at
01.11.2021
in/(out)
31.10.2022
£
£
£
£
£
739,616
-
(26,181)
-
713,435
429,961
-
(9,338)
-
420,623
13,617
-
-
(203)
13,414
76,665
150
-
-
76,815
52,635
11,705
(11,195)
(53,145)
-
271,151
50,532
(9,666)
(20,519)
291,498
1,583,645
62,387
(56,380)
(73,867)
1,515,785

The funds for other projects relate to grants and donations in respect of work for individual projects of restoration and improvement of rolling stock and infrastructure.

Included in other projects is a fund for the Blue RU No. 1987. £Nil (2021 - £9,000) of loans remain owed to individuals in relation to this fund and can be seen in Note 18 under other loans.

The balance at 31 October 2022 amounting to £291,498 (2021 - £271,151) includes unspent cash balances of £184,886 (2021 - £156,423). The movements in the restricted fund cash balances, which form part of the 'other projects' fund, are analysed as follows:

Aries Pullman Car
Balcony Saloon
Bodiam Loco 3
Cavell Van
Funded Expenditure - Signal Frame
GWR Railcar Appeal
Kit Kat Van
Pullman Donations
Ready for Robertsbridge
Staff Accommodation
Museum - Miller legacy and
general		 Cash
Cash
Cash spent
Cash spent
Cash
balance at
received
capital
other
balance at
01.11.2021
expenditure
expenses
31.10.2022
£
£
£
£
£
23,121
150
-
-
23,271
1,690
-
-
-
1,690
500
-
-
-
500
8,812
331
-
-
9,143
1,250
-
-
-
1,250
13,969
16,071
(2,029)
(1,196)
26,815
2,226
-
-
-
2,226
35,615
4,136
-
-
39,751
44,662
10,400
-
-
55,062
24,223
600
-
-
24,823
355
-
-
-
355
156,423
31,688
(2,029)
(1,196)
184,886

Page 37

The Kent and East Sussex Railway Company Limited (A company limited by guarantee)

Notes to the financial statements for the year ended 31 October 2022

Restricted funds - group and company - 2021

The income funds of the group include restricted funds arising from grants, donations etc. received for specific purposes. The movements during the year were as follows:

Bodiam extension
Rolvenden carriage shed
6619 Limited
Aries Pullman Car
Terrier 150
Other projects		 Balance at
Income
Expenditure
Transfers
Balance at
01.11.2020
in/(out)
31.10.2021
£
£
£
£
£
765,797
-
(26,181)
-
739,616
439,299
-
(9,338)
-
429,961
13,617
-
-
-
13,617
78,426
130
(1,891)
-
76,665
33,073
57,172
(180)
(37,430)
52,635
275,575
42,057
(11,838)
(34,643)
271,151
1,605,787
99,359
(49,428)
(72,073)
1,583,645

The funds for other projects relate to grants and donations in respect of work for individual projects of restoration and improvement of rolling stock and infrastructure. The balance at 31 October 2021, amounting to £271,151 includes unspent cash balances of £156,423.

22 Unrestricted funds - 2022

General funds
At 1 November 2021
Surplus for the year
Transfers in
At 31 October 2022
Designated funds
At 1 November 2021
Surplus for the year
At 31 October 2022
Non-controlling interest
At 1 November 2021
Movement in the year
At 31 October 2022
Total		 Group
Company
2022
2022
£
£
1,947,374
1,933,303
(394,481)
(433,176)
73,867
73,867
1,626,760
1,573,994
51,250
51,249
3,595
3,595
54,845
54,844
(122,552)
-
6
-
(122,546)
-
1,559,059
1,628,838

The funds held by non-controlling minority interests, are all in respect of the investment in 6619 Limited.

Page 38

The Kent and East Sussex Railway Company Limited (A company limited by guarantee)

Notes to the financial statements for the year ended 31 October 2022

Unrestricted funds - 2021

General funds
At 1 November 2020
Surplus for the year
Transfers in
At 31 October 2021
Designated funds
At 1 November 2020
Surplus for the year
At 31 October 2021
Non-controlling interest
At 1 November 2020
Movement in the year
At 31 October 2021
Total		 Group
Company
2021
2021
£
£
1,397,235
1,405,531
478,066
455,699
72,073
72,073
1,947,374
1,933,303
39,953
39,952
11,297
11,297
51,250
51,249
(122,575)
-
23
-
(122,552)
-
1,876,072
1,984,552

The movements in the unrestricted designated fund cash balances are analysed as follows:

Museum
C&W extension		 Cash
Cash Cash spent
Cash
balance at
received
other
balance at
01.11.2021
expenses
31.10.2022
£
£
£
£
45,912
4,500
(905)
49,507
5,338
-
-
5,338
51,250
4,500
(905)
54,845

The movements in the 2021 unrestricted designated fund cash balances are analysed as follows:

Museum
C&W extension		 Cash
Cash
Cash spent
Cash
balance at
received
other
balance at
01.11.2020
expenses
31.10.2021
£
£
£
£
34,616
13,043
(1,747)
45,912
5,338
-
-
5,338
39,954
13,043
(1,747)
51,250

Page 39

The Kent and East Sussex Railway Company Limited

(A company limited by guarantee)

Notes to the financial statements for the year ended 31 October 2022

23 Analysis of net assets between funds

Analysis of net assets between funds - current year:

Intangible fixed assets
Tangible fixed assets
Heritage assets
Fixed asset investments
Current assets
Creditors due within one year
Creditors due in more than one year		 Unrestricted
Restricted
Total
funds
funds
funds
2022
2022
2022
£
£
£
1,663
-
1,663
1,951,171
1,356,147
3,307,318
-
16,511
16,511
-
12,799
12,799
839,691
130,328
970,019
(862,469)
-
(862,469)
(248,451)
-
(248,451)
1,681,605
1,515,785
3,197,390

Analysis of net assets between funds - prior year:

Intangible fixed assets
Tangible fixed assets
Heritage assets
Fixed asset investments
Current assets
Creditors due within one year
Creditors due in more than one year		 Unrestricted
Restricted
Total
funds
funds
funds
2021
2021
2021
£
£
£
3,324
-
3,324
1,855,790
1,393,509
3,249,299
-
16,511
16,511
-
11,366
11,366
1,135,838
162,259
1,298,097
(709,106)
-
(709,106)
(287,222)
-
(287,222)
1,998,624
1,583,645
3,582,269

Page 40

The Kent and East Sussex Railway Company Limited (A company limited by guarantee)

Notes to the financial statements for the year ended 31 October 2022

24 Related party transactions

i). The Charity as a mutual body receives annual subscriptions from its members.

ii). G A Crouch and the former Director B R Atkins, have personal interests in certain items of locomotive and rolling stock, which are made available to the Charity and, in consideration, are maintained by the Charity.

iii). G A Crouch, I C Legg, S A Marsh, P D Shaw, N D Sime, C H Mavor, the company secretary, and the former Director B R Atkins are members or shareholders of organisations which own certain items of locomotive, rolling stock and other equipment, which are made available to the Charity, and in consideration, are maintained by the Charity.

This year the Charity made payments of £1,382 to repair the 4253 Locomotive which is owned by 4253 Ltd, an entity controlled by several of the Directors.

iv). The Charity is a member of The Terrier Trust and has a 25% interest in the Terrier locomotive 'Bodiam' owned jointly by the Trust which has been included in fixed assets. D J Nibloe, P E Vidler, R M White and M J Hyner are also members of the Terrier Trust.

v). G A Crouch (resigned 19 October 2022) and M J Hyner are Directors of 6619 Limited, a company that the Charity has a 51% controlling interest of, which owns a locomotive which is made available to the Charity. J Cobbett, the company secretary, is secretary of 6619 Limited.

vi). Due to the close relationship the Charity has with its trading subsidiary, Colonel Stephens Railway Enterprises Limited, there are inter-company transactions undertaken within the ordinary course of business.

vii). Loans made to the Charity by Trustees of £9,000 were repaid in full this year.

viii). The Trustees made donations of £325 to the Charity during the year (2021: £Nil).

25 Operating lease commitments

As at 31 October 2022 the Group and the Charity had commitments to make future minimum lease payments under non-cancellable operating leases as follows:

Not later than 1 year
Later than 1 year and not later than 5 years		 2022
2021
£
£
5,287
9,869
3,494
8,781
8,781
18,650

Page 41

The Kent and East Sussex Railway Company Limited

(A company limited by guarantee)

Notes to the financial statements for the year ended 31 October 2022

26 Reconciliation of net movement in funds to net cash flow from operating activities

Group Group
2022 2021
£ £
Net income/(expenditure) for the year (as per Statement of financial activities (384,879) 539,317
-
Adjustments for:
Depreciation charges 143,433 133,806
Loss on disposal of fixed assets - 372
Amortisation charges 1,661 1,661
Share of associate (profit) / loss (1,433) (5)
(Increase) in stocks (9,976) (1,974)
Decrease in debtors 21,058 102,321
Increase in creditors 172,950 93,641
Net cash provided by operating activities (57,186) 869,139
27 Analysis of cash and cash equivalents
Group Group
2022 2021
£ £
Cash in hand 802,684 1,119,680

28 Contingent liabilities

The Company is grateful to have had the beneficial use of a number of locomotives from private owners, typically over a ten-year period. The Company's obligation has been to restore the locomotives to their pre-agreement condition within a defined period at the end of the agreements. Some of these locomotives remain out of use following the expiry of the agreements without the necessary repairs having been commenced or carried out.

It is the intention of the company to restore all locomotives under hire agreements, to the appropriate condition as soon as facilities and finances permit. Due to the uncertain timing of when works can be done and current supply chain issues , it is not possible to quantify the amounts involved.

Page 42

The Kent and East Sussex Railway Company Limited

(A company limited by guarantee)

Notes to the financial statements for the year ended 31 October 2022

29. Principal subsidiaries and associates

The principal subsidiaries of the Charity were:

Names Company Registered office or Principal activity Class of
Holding		 Included in
number principal place of shares consolidation
business
Colonel Stephens 02668156 Tenterden Town The provision of Ordinary 100% Yes
Railway Enterprises Station, Tenterden, catering services
Limited Kent, TN30 6HE and a small gift
shop, on behalf of
its parent
company.
Robertsbridge 20/20 03838535 Tenterden Town Dormant Ordinary 100% Yes
Limited Station, Station Road,
Tenterden, Kent, TN30
6HE
6619 Limited 08012491 Tenterden Town The restoration of Ordinary 51% Yes
Station, Station Road, the 6619
Tenterden, Kent, TN30
Locomotive
6HE

The financial results of the subsidiaries for the year were:

Names Income Expenditure Profit/(Loss)/ Net assets
£ £ Surplus/ £
(Deficit) for
the year
£
Colonel Stephens Railway 577,965 (539,385) 38,580 (14,494)
Enterprises Limited
Robertsbridge 20/20 Limited - - - 1
6619 Limited - (13) (13) 250,048

The following was an associate of the Charity:

Name Fair value of Registered Class of Holding
investment office or shares
at 31 principal place
October of business
2022
£
Kent and East Sussex Railway Adventures 12,799 Rolvenden Layne, Ordinary 20%
Company Limited TN17 4NL

Page 43

The Kent & East Sussex Railway Company Limited (A company limited by guarantee)

Consolidated detailed Income and Expenditure Account for the year ended 31 October 2022

Income before legacies:
Fares and donations to
travel
Santa Special receipts
Membership subscriptions
Donations
Gift aid
Wealden Pullman
Gift shop takings
Buffet and catering
Railway Experience Days
Hire of locomotive
Rental income
Sundry income
Other grants
Government support
Covenant from subsidiary
Direct operating
expenses
Train charter costs
Administration expenses
Finance charges (net of
interest received)
Depreciation
(Deficit) / surplus before
legacy income
Add: legacy income
Share of associates profit /
(loss)
Total (deficit) / surplus
for the year		 Parent
Company
Designated
Funds
Colonel
Stephens
Intra-Group
Transactions Total 2022
Total 2021
977,967
-
-
(322,900)
655,067
477,046
322,796
-
-
-
322,796
-
39,627
-
-
-
39,627
42,295
85,247
4,500
-
-
89,747
173,855
34,395
-
-
-
34,395
32,924
-
-
288,771
-
288,771
211,225
-
-
66,659
-
66,659
42,257
-
-
212,058
-
212,058
109,015
-
-
10,477
-
10,477
2,148
6,175
-
-
-
6,175
6,050
13,000
13,000
39,000
36,094
-
-
-
36,094
78,504
16,867
16,867
70,408
4,000
-
-
-
4,000
466,221
1,536,168
4,500
577,965
(322,900)
1,795,733
1,750,948
-
-
-
-
-
-
1,536,168
4,500
577,965
(322,900)
1,795,733
1,750,948
1,672,438
905
325,135
-
1,998,478
1,229,555
-
-
189,140
(189,140)
-
-
150,416
-
25,110
27
175,553
133,638
11,986
-
-
-
11,986
10,369
100,553
-
-
(128)
100,425
88,647
1,935,393
905
539,385
189,241
-
2,286,442
1,462,209
(399,225)
3,595
38,580
133,659
-
(490,709)
288,739
147,898
-
-
-
147,898
302,133
5
-
-
-
5
5
(251,322)
3,595
38,580
(133,659)
(342,806)
590,877

Page 44

The Kent & East Sussex Railway Company Limited (A company limited by guarantee)

Detailed Income and Expenditure Account for the year ended 31 October 2022

Rental income
Government support
Other grants
Hire of locomotives
Total surplus/(deficit) for the year
Add: legacy income
Sundry income
Enterprises Limited - covenanted profits
Direct operating expenses
1
Administration expenses
3
Finance charges
4
Depreciation and amortisation
5
Surplus/(deficit) before legacy income
Filming income
Schedules
Income before legacies:
Fares and donations to travel
Santa Special receipts
Membership subscriptions (including life)
Donations
Gift aid		 Total 2022
Total 2021
977,967
653,056
322,796
-
39,627
42,295
85,247
160,812
34,395
32,924
2,042
19,305
34,052
59,199
13,000
39,000
4,000
449,829
16,867
70,408
6,175
6,050
-
-
1,536,168
1,532,878
1,672,438
1,065,621
150,416
114,199
11,986
10,369
100,553
88,775
1,935,393
1,278,964
(399,225)
253,914
147,898
302,133
(251,327)
556,047

Page 45

The Kent & East Sussex Railway Company Limited (A company limited by guarantee)

Schedules to the detailed Income and Expenditure Account for the year ended 31 October 2022

JCB Lease Hire
Wages, national insurance and pension
Advertising and publicity
Event expenses:
Santa and Day Out with Thomas
Other
Museum overheads
Insurance
Hire of locomotives
Operating department expenses
Signals and telegraph expenses
Permanent way and civil engineering expenditure
Forestry and conservation
Loco department costs
Carriage and wagon departments costs
Rent
Repair and maintenance of buildings
Electricity and power
Cleaning
1. Direct operating expenses
Cost, fuel, oil and water		 174,846
133,559
17,215
3,619
70,140
7,211
135,877
63,813
4,828
75,879
16,262
60,830
22,901
57,410
654,806
55,709
87,824
19,330
107,154
10,379
1,672,438
Total 2022		 174,846
133,559
17,215
3,619
70,140
7,211
135,877
63,813
4,828
75,879
16,262
60,830
22,901
57,410
654,806
55,709
87,824
19,330
107,154
10,379
1,672,438
Total 2022		 74,268
34,678
16,726
3,154
14,142
4,179
66,287
25,022
1,023
50,686
10,030
58,465
13,785
41,341
530,750
34,237
58,621
18,028
76,649
10,199
1,065,621
Total 2021		 74,268
34,678
16,726
3,154
14,142
4,179
66,287
25,022
1,023
50,686
10,030
58,465
13,785
41,341
530,750
34,237
58,621
18,028
76,649
10,199
1,065,621
Total 2021
1,672,438 1,065,621

2. Train Charter costs

The Company has reviewed its charter charges to Colonel Stephens Railway Enterprises Ltd. The charge per train is now £2,000 for each of the 105 trains rostered. This is considered to be fair and reasonable.

Goodwill amortisation
5. Depreciation and amortisation
Charge for the period (gross of eliminating adjustment)
Less: amortisation of capital grants and donations received in
Office and other expenses
Computer expenses
Bank charges
Credit card charges
4. Finance charges
Bank loan interest
3. Administration expenses
Audit
Telephone, postage and stationery
Membership, magazine printing and distribution expenses
Legal and professional fees
Training and personnel costs		 9,000
12,418
11,439
2,807
17,940
37,396
27,526
3,348
28,542
150,416
11,986
145,223
(1,661)
(43,009)
100,553		 8,975
15,573
8,321
7,097
18,611
11,410
24,540
2,904
16,768
114,199
10,369
135,595
(1,661)
(45,159)
88,775

Page 46

The Kent & East Sussex Railway Company Limited (A company limited by guarantee)

Colonel Stephens Railway Enterprises Limited

Balance sheet As at 31 October 2022

Colonel Stephens Railway Enterprises Limited
Balance sheet
As at 31 October 2022
Current assets
Stock
Trade debtors
Other debtors
Cash at bank and in hand
Creditors: amounts falling due within one year
Trade creditors
Amounts owed to group undertakings
Other taxation and social security
Accruals and deferred income
Net (liabilities)/assets
Capital and reserves
Called up share capital
Profit and loss account
Shareholders funds		 12,422
200,281
6,021
65,608		 Year ended
31/10/2022
32,729
977
3,184
99,188
136,078
15,120
80,037
9,561
66,396
(284,332)
(148,254)
7
(148,261)
(148,254)		 Year ended
31/10/2021
22,753
1,866
1,381
92,040
118,040
(171,114)
(53,074)
7
(53,081)
(53,074)

Page 47

The Kent & East Sussex Railway Company Limited (A company limited by guarantee)

Colonel Stephens Railway Enterprises Limited Trading and profit and loss account For the year ended 31 October 2022

Sales
1
Less: cost of sales
2
Gross trading profit/(loss)
Less: Overhead expenses
Audit
Repairs and maintenance
Light and heat
Printing, postage and stationery
Credit card charges
Bank charges
Plus: Government grants
Net profit/(loss) before charitable donation
Less: charitable donation
Net profit/(loss)
Schedules to the trading and profit and loss account
For the year ended 31 October 2022
1. Sales
Wealden Pullman and Sunday lunches
Gift shop takings
Buffet and catering
Railway Experience Days
2. Costs of sales
Wealden Pullman purchases and expenses
Gift shop purchases and expenses
Buffet purchases and expenses
Train charter costs and fares
Wages and national insurance
Staff pension scheme costs
Consumable tools		 Year ended
31/10/2022
577,965
514,275
63,690
9,000
5,251
3,144
57
6,898
760
25,110
-
38,580
-
38,580
Year ended
31/10/2022
288,771
66,659
212,058
10,477
577,965
77,615
26,439
99,605
189,140
118,497
2,102
877
514,275		 Year ended
31/10/2021
364,645
338,209
26,436
8,975
3,861
1,180
434
5,623
470
20,543
16,392
(75,366)
-
(75,366)
Year ended
31/10/2021
210,764
42,257
109,476
2,148
364,645
45,516
19,707
36,472
176,010
59,395
1,109
-
338,209

Page 48