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2020-12-31-accounts

WEST SOMERSET STEAM RAILWAY TRUST LIMITED

REPORT OF THE TRUSTEES AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

Company Registration Number 1079916 Registered Charity Number 265564

WEST SOMERSET STEAM RAILWAY TRUST LIMTED (THE)

INDEX TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

Page No. Page No.
Report of the Trustees (including the Chairman’s 1
report)
Independent Examiner’s Report 13
Statement of Financial Activities 14
Balance Sheet 15
Notes to the Financial Statements 17

The following pages do not form part of the Statutory Accounts:

Analysis of Funds 25

WEST SOMERSET STEAM RAILWAY TRUST LIMITED (THE)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020

Chairman’s Report for 2020

This Chairman’s Report is in two parts of this occasion reflecting the change in Chairmanship that took place prior to the 2020 AGM.

From Chris Austin

This is my last report as Trust Chairman and covers the first part of the year until my resignation on 23 October 2020 after almost ten years. So, this is a time to reflect on the period during which the Trust has overcome formidable difficulties and gone from strength to strength. The Trust has been a steady influence during a turbulent period in the railway’s history and has just got on with the job of restoring and displaying heritage carriages, and creating an exceptional museum at Bishops Lydeard which, with the Blue Anchor Railway Museum, provides museums worthy of a railway of the calibre of the WSR. For the first time, we have been able to provide a proper outreach programme for schools and museum-based events for children and families. We have been able to encourage young volunteers, particularly through the Model Railway Group at the Gauge Museum.

Most importantly, we were able to establish a proper structure and governance for the Trust to restore its finances and play a role in helping the PLC through difficult financial times. Thanks to the efforts of Steve Williams and Don Fraser, we have been able to benefit from several local and UK Government Grants to help us survive and prepare for reopening.

Whilst the Chairman has to provide leadership and direction, the actual work is done by trustees and volunteers. I pay tribute to the excellent group of trustees with whom I have worked over the last ten years, some, sadly, no longer with us. I would thank in particular the team that supported me last year during the abortive attempt to take over the Trust without whom I could not have survived. I am grateful too to volunteers who have done so much to create and sustain the work of the Trust and who, again were wonderfully supportive when the future of the Trust was threatened. Members too have been very generous and supportive during a difficult period and I am grateful for their help and financial support too. Thanks in particular, to everyone who has stuck with us despite the upheavals and our inability to operate for so much of the year.

Indeed, every aspect of our work was held up for months by Covid 19 and the consequent lockdown. Both last year until the summer, and again during the first part of 2021. Not just disappointing, but hugely frustrating, as the museum was within a few days of opening when the first lockdown came on 23 March 2020, and coach 6705 was completed and awaiting its Fitness to Run exam before entering passenger service.

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WEST SOMERSET STEAM RAILWAY TRUST LIMITED (THE)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020 (continued)

And then the threatened takeover of the Trust which was roundly defeated at the AGM last November. This was a hostile attack designed to secure control of the Trust’s shareholding in the PLC with rancour and threats that were quite unacceptable. However, two good things came out of this period – a significant increase in membership and a clear mandate for the future activities of the Trust. This has meant that we can now get back to delivering on our commitments to the museums, carriage restoration, the education programme and archiving where there is so much to do without being inhibited by the uncertainty of structural alterations to the Trust which would have prevented us from doing this.

The inflow of items for preservation and of book collections has continued at pace, which will allow us in future years to vary the displays in the museums and to offer a reference library service for serious students of railway history related to the line and to the Great Western Railway.

Whist I was sad to step down as Chairman last October, I am hugely grateful to Steve Williams who stepped into the breach and continued the work of the Trust seamlessly. I am deeply grateful to him both for his support during the dark days and for taking over so quickly and effectively when required.

Whilst my time as Chairman and as a trustee is done, I am enjoying my continuing role as a volunteer both with the museums and carriage restoration and in a number of other project roles where I can make myself useful. My good wishes to all Trust members for the future go with this report.

I now hand over the report to Steve to complete the year’s events.

Chris Austin OBE MA FCILT

From Steve Williams

It was with great reluctance that I stepped into the role of Acting Chairman in October 2020. The loss of Chris Austin and David Baker as Trustees was a sad and unnecessary event stemming from the actions of a small number of misguided individuals whose agenda was roundly and effectively defeated by a clear majority of members at the 2020 AGM last November.

Chris has been chairman of the Trust for around 10 years and has served the WSR in a number of different capacities including that of Chair of the PLC for much longer. His contribution to the Trust has been immeasurable and his value to the whole railway is widely recognised by all those who have the best interests of the WSR truly at heart.

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WEST SOMERSET STEAM RAILWAY TRUST LIMITED (THE)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020 (continued)

Although David has had to step down from volunteering on health grounds, we were delighted to retain Chris as an active volunteer and contributor to the Trust and long may that continue!

The other big issue of course was the Covid 19 pandemic which effectively stopped most of the on site activities of the Trust around the railway and has continued to do up until May 2021. Nonetheless, it is extremely pleasing to be able to report what has been achieved in during 2020 and like Chris, I pay tribute to both Trustees and our volunteers for enabling this to happen in very different circumstances to those we anticipated the beginning of the year.

We completed the Gauge Museum Project which has seen £60,000 invested over 2 ½ years in a major reinterpretation of our display, artefacts and materials at Bishops Lydeard. The volunteer work gangs under the leadership of Geoff Evens have also made a wonderful job of improving the internal condition of the Goods Shed and that work has continued into 2021.

Matt Jackson became the Manager of the Model Railway Group who have continued to maintain and restore the layout, add to the rolling stock collection and implemented new arrangements for supervising and supporting operatives of all ages.

Although the Learning and Education Programme was forced to cease visits to the Museum from March 2020, Helen Anson has nonetheless been equally effective in supporting the development of policies and procedures that underpinned the way which we will manage the Gauge Museum in future. This has coincided with the further development of our application for accreditation for the Gauge Museum which Geoff Evens has undertaken sterling work on.

Despite being a Heritage Trust, we are not afraid to use new technology when the opportunity presents and the introduction of the new MODES software for archiving, collections management, research and other uses represents a step change in our ability to codify and update all of our assets starting with the Gauge Museum. We have a small team of volunteers dedicated this work which is being coordinated by Ian Coleby and Geoff Evens.

The Trust finances continue to be in a healthy state and are well managed by Don Fraser who has been instrumental in ensuring that we have taken every sensible advantage of Government grants during restriction periods and lockdown. This coupled with the success of the Heritage Recovery Emergency Fund has allowed the Trust to obtain the necessary preventative and precautionary equipment and materials associated with Covid 19 that will allow us to reopen with confidence from May 2021 onwards. This includes a new one way system around the museum and improved pathway and access road at the rear of the Gauge Museum.

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WEST SOMERSET STEAM RAILWAY TRUST LIMITED (THE)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020 (continued)

Notwithstanding the unexpected surge in membership associated with the attempted coup in 2020, the Trust has benefited from a significant increase in the number of Members which can only be a good thing in the longer term both in terms of a potential pool of volunteers and a steady uplift in income. There is no doubt in my mind that the contribution of the Heritage Trust to the sustainability of the railway has bought the work of the Trust to a wider range of WSR supporters and stakeholders.

So, with the railway reopening in May 2021, we both have much to be thankful for and to look forward to. The Trust is in a good position to both resume its own programme of work together with supporting the PLC in ensuring the long-term sustainability of the railway.

Steve Williams

16 August 2021

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WEST SOMERSET STEAM RAILWAY TRUST LIMITED (THE)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020 (continued)

The Board of Trustees present their report together with the financial statements for the year ended 31st December 2020.

Charity Details

The full name of the charity was West Somerset Steam Railway Trust Limited. At the Trust AGM on 14th November 2020, Members voted to change this to West Somerset Railway Heritage Trust. The change of name came into effect from 12th January 2021. The Charity number 265564 and the Company number 1079916 remain the same.

The Trust was incorporated on 2 November 1972 as a company limited by guarantee and as a registered charity. It is governed by its Memorandum and Articles of Association. Revised Articles, reflecting the latest model wording published by the Charities Commission, were approved at the General Meeting held on 25 May 2014. Proposals to further amend the Articles were approved by Members at the Trust AGM on 14 November 2020. The revised Articles will be put to Members to approve at an EGM on Thursday, 22 July 2021.

The registered office is The Railway Station, Bishops Lydeard, Taunton, Somerset TA4 3BX.

Directors and Trustees

The Trustees at the date of this report were as follows:

SV Williams (Vice-Chairman and Company Secretary) Acting Chairman from 23 October 2020

DH Fraser (Treasurer) HE Anson I K Coleby G W Evens M Jackson MH Thompson A Smithers

Changes during the reporting year were as follows:

AR Meade-resigned 20th May 2020 C A Austin-resigned 23rd October 2020 DE Baker-resigned 23rd October 2020 HE Anson-co-opted 22nd October 2020 M Jackson-co-opted 22nd October 2020 MH Thompson-co-opted 22nd October 2020

The election of Trustees, who are Directors of the Charity, takes place at the Annual General Meeting of the Members held each year to consider the annual report and accounts. The Trustees have the ability to co-opt new Trustees

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WEST SOMERSET STEAM RAILWAY TRUST LIMITED (THE)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020 (continued)

between Annual General Meetings. At the AGM on 14th November 2020, HE Anson, M Jackson and MH Thompson were all formally elected as Trustees and Directors.

Objectives and Activities

Up to 14th November 2020, the Trust's Objects were "to promote education by furthering interest in and appreciation of railway lines, equipment, buildings, and construction and steam or other traction engines of historical engineering or scientific importance particularly by preserving and displaying the same.”

At the Trust AGM on 14 November 2020, Members gave their approval to a revision of the Trust Objects which are now:

In addition, Members voted to support further changes to the Articles of Association which were put forward at the 2020 AGM to enable the Trust to apply for formal accreditation of the Gauge Museum from the Arts Council. These changes were a condition of accreditation.

Finally in relation to constitutional changes, as previously indicated, the Board of Trustees recommended the change of name to more appropriately reflect the current focus and work of the Trust on the WSR. This was also linked to a closer association with heritage activities on the railway in response to feedback from the Arts Council on accreditation.

In 2020 therefore, the Trust was intending to focus on four main areas of activity:

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WEST SOMERSET STEAM RAILWAY TRUST LIMITED (THE)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020 (continued)

Members will recall that the Trust's activities on the WSR are carried out in accordance with an agreement with the West Somerset Railway PLC which came into effect on 1 January 2017. This agreement includes sub-leases on the Blue Anchor museum building and the Goods Shed/Gauge Museum at Bishops Lydeard, and provides assurance about future access by the Trust to the railway both for the restoration of heritage carriages and the operation of restored carriages. The agreement with the West Somerset Railway Association for the use of facilities at Williton was terminated on 20th January 2020 and replaced by a new agreement with the PLC initially on a 12 month rolling basis.

However, the arrangements that Trustees and volunteers had put in place to take forward the 2020 work programme were brought to an abrupt halt by the impact of the Covid 19 and its consequences for the WSR. All Trust workplace activities were temporarily suspended in March 2020 as a result of the imposition of the Government programme of restrictions designed to manage the pandemic and to halt the spread of infection.

Throughout 2020 and as Government instruction and PLC guidance has allowed, Trust volunteers have undertaken a limited number of activities at Bishop Lydeard, Williton and Blue Anchor. However these have been of necessity intermittent and often pursued at short notice in line with changes in Government guidance and PLC instructions for working on the railway.

Nonetheless, despite the major reduction in physical workplace opportunities, the Trust has nevertheless continued to make significant progress in other areas in line with the Business Plan and these are summarised below.

Trust Governance

It is now well known across the WSR and more widely that there was an attempt to mount a takeover of the Trust in autumn 2020 with the aim of securing the Trust shareholding in the PLC as a mechanism for undermining and replacing the latter with a new organisation. This unwanted and totally inappropriate action was successfully repelled by the Board of Trustees with the help and support of Members loyal to the Trust and the Board at the 2020 AGM.

However, the resignations of Chris Austin as Chairman and Trustee and David Baker as a Trustee and lead at Blue Anchor Museum were a major loss to the organisation and both long serving and well-respected individuals will be sorely missed. As a result, Steve Williams stepped up to become Acting Chairman and the Board of Trustees were successful in securing the services of Helen Anson, Matt Jackson and Matt Thompson as new Trustees with the portfolio responsibilities in education and learning, Model Railway Group management and communications respectively.

These events led to a review of Trust Articles and membership arrangements by the Board, proposals which are coming to Members in 2021.

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WEST SOMERSET STEAM RAILWAY TRUST LIMITED (THE)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020 (continued)

Gauge Museum Project

Covid 19 has inevitably had a major impact on how the Gauge Museum Project was taken forward during 2020 with a finish date of 28 February 2021. The Project Group was forced to take advantage of the “windows of opportunity” to physically work in the Museum both in terms of working with the external consultant on the reinterpretation programme but also undertaking renewal and restoration work with our volunteers. The Project has been completed and the National Heritage Lottery Fund have made available all the funding agreed in July 2018 as part of the original scheme.

What has been delivered by the Trust as a result is as close to the original objectives as could possibly be achieved in the circumstances. The Trust Board is grateful to the Lottery Fund for acknowledging and accepting that some of the objectives of the project were not possible e.g. public engagement and feedback on reinterpretation. Key achievements include:

Developing the Model Railway Group

Following the retirement of Alan Meade in May 2020, the opportunity was taken to review the management and organisation of the Model Railway Group. Following an internal recruitment process, Matt Jackson was appointed as the new Manager. With the support of his team, he has, in addition to regular working sessions to maintain, restore and improve the model railway, reviewed the way the Group works and identified new ways of rostering volunteers, skills development, communications and rolling stock acquisition. The Team has also been able to install new Main and Shunting Yard control panels together with some undertaking major track replacement work.All this placed the Group in a good position to enjoy operating again from May 2021.

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WEST SOMERSET STEAM RAILWAY TRUST LIMITED (THE)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020 (continued)

Fundraising

The Trust has had another good fundraising year in 2020 despite the impact of the pandemic. In addition to the ongoing funding of the Gauge Museum Project, the Trust bid for business continuity funds from the National Heritage Lottery and was fortunate in being awarded just under £29,000 in October 2020 which has enabled Trustees and volunteers to make significant progress in establishing precautions and preventative measures in relation to Covid 19 across its three sites on the railway. Included in the programme was the opportunity to create a one-way system in the Gauge Museum and to make significant improvements to the path and roadway at the south-western exit and rear of the building. Together with government grants for operational resilience during lockdown and reflecting loss of donations, total income from these sources in 2020 was in excess of £37,000.

Individual donations and legacies continued to be received. The Trust also received donations specifically related to the WSR wide Covid 19 Appeal. As a consequence, the Trust was able to provide the PLC with a further £62,500 in 2020 toward heritage infrastructure renewal and restoration. Further details are available in the Trust Annual Accounts. Additional donations continue to be received in 2021 with others expected later in the year and these will be reported in the 2021 Annual Report. Going forward into early 2021, the Trust was also successful in bidding for funds (just over £13,000) from the Cultural Heritage Recovery Fund made available by the Department of Media Culture and Sports. These monies are intended to further support the Trust operational activities in light of the inability to secure income from visitors.

WSR wide Activities

The pandemic had an obvious and wide-ranging impact on the scale of developmental activities across the WSR during 2020. Nonetheless, progress has been made in a number of areas where work could be undertaken using homebased technology and in which the Trust has played a full part. These included:

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WEST SOMERSET STEAM RAILWAY TRUST LIMITED (THE)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020 (continued)

Development of Blue Anchor Museum

In 2020, Trustees undertook a review of the content, focus and role of Blue Anchor Museum with the intention of following a similar path to that of the Gauge Museum in developing a plan which would then be subject to a formal bid to the Heritage Lottery Fund. Although the review was completed and the conclusions approved by Trustees, Covid 19 has prevented any serious additional work in the latter part of 2020 and into 2021 because of the difficulties in accessing the Museum and the need to complete outstanding infrastructure work on the exterior of the building.

Nonetheless, Trustees concluded that:

How our activities deliver the public benefit

The Trustees confirm that they have referred to the Charity Commission general guidance on public benefit when reviewing the Trust’s objectives and activities, and will continue to do so in planning the Trust’s future activities.

Factors which will influence the Trustees' decisions on priority activities include the heritage value of the carriages under restoration and of artefacts acquired for display in the Museums, and the need to ensure that there are sufficient opportunities for the public to view both the Museums and carriages under restoration.

Financial review

The Trust’s main income source of income is from regular donations by members. Any person donating £12 a year or more is eligible to become a member of the Trust and at the time of this report the Trust had 247 members, compared to 83 at the end of 2019. This large increase was due to the large amount of interest generated by the Bailey Report into the future organisation of the WSR Plc and efforts of a number of individuals who sought to gain control of the WSR PLC Shares owned by the Trust and others who wished the Trust to be unaffected by this. This large increase in membership led to a rise in member donations which unfortunately was used in covering legal expenses and other costs generated by these actions.

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WEST SOMERSET STEAM RAILWAY TRUST LIMITED (THE)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020 (continued)

As a result of Trust activities being curtailed due to the Covid pandemic and subsequent regulations imposed the 2 museums, carriage restoration and educational activities ceased. Normal operating expenses had to be met and the Trust took advantage of Grants offered and successfully obtained firstly one to prepare for opening after regulations allowed and to protect our Assets from the National Heritage Lottery Fund (£28,700) and another from Somerset West and Taunton Council (£8,500) to cover our operating costs due to enforced closure. It was pleasing to see that we also continued to receive donations in relation to the support of the WSR Infrastructure Appeal which enabled the Trust to provide £62,500 towards work at Blue Anchor. A further amount of Gift Aid was received on donations totaling £10,655 (2019: £9,763). Work continued on the Gauge Museum Project to which the Trust provided £20,000 towards which was part of the amount approved in the Grant Application.

Overall the Trusts Net Assets increased by £1,276 which is an excellent performance given the circumstances of 2020. The Trust’s financial reserves remained untouched. No Grants were made during the year (2019: £0).

The Trustees reviewed the policy on reserves during the year, to ensure that the Trust had sufficient funds to cover major cyclical and unanticipated expenditure. For the reporting year, the minimum level of reserves under this policy remained at £5,000 in the General Fund and £10,000 in the Museums Fund. The Trustees are satisfied that plans for future years will be consistent with maintaining appropriate, but not excessive, reserves.

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WEST SOMERSET STEAM RAILWAY TRUST LIMITED (THE)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020 (continued)

Statement of Trustees’ responsibilities

Company and charity law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the surplus or deficit of the charitable company for that period. In preparing these financial statements the Trustees are required to:

The Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

By Order of the Board

SV Williams Secretary

16 August 2021

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WEST SOMERSET STEAM RAILWAY TRUST LIMITED (THE)

INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES OF WEST SOMERSET STEAM RAILWAY TRUST LIMITED

I report on the accounts of the company for the year ended 31 December 2020, which are set out on pages 14 to 24.

Respective responsibilities of Trustees and examiner

Responsibilities and basis of report

As the charity’s trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’). Having satisfied myself that the financial statements of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity’s financial statements as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act.

Independent examiner’s statement

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

  1. accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or

  2. the financial statements do not accord with those records; or

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

  4. the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities.

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

Fiona Westwood FCA DChA MHA Monahans Chartered Accountants Rumwell Hall Rumwell Taunton, Somerset TA4 1EL Date: 16 August 2021

Signed: . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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WEST SOMERSET STEAM RAILWAY TRUST LIMITED (THE)

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING THE INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 DECEMBER 2020

Statement of Financial activities Statement of Financial activities Statement of Financial activities
Note Unrestricted Restricted Total Funds Total
Funds Funds 2020 Funds for
the 15
month
period
2019
£ £ £ £
Income from:
Donations and legacies 2 20,852 41,844 62,696 51,405
Grants 37,200 0 37,200 16,000
Income tax recoverable on 2,611 8,044 10,655 9,763
donations
Investments 190 0 190 208
Other trading activities 1262 1,262 4,471
Total income 62,115 49,888 112,003 81,847
Expenditure on:
Charitable activities 4
16,466		 94,261 110,727 45,525
Total expenditure 16,466 94,261 110,727 45,525
Net movement of funds 45,649 (44,373) 1,276 36,322
Brought forward 231,688 165,151 396,839 360,517
Transfers (22,088) 22,088 0 0
Carried forward 255,249 142,866 398,115 396,839

All income and expenditure derive from continuing activities.

The statement of financial activities includes all gains and losses recognised during the year.

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WEST SOMERSET STEAM RAILWAY TRUST LIMITED (THE)

BALANCE SHEET FOR THE YEAR ENDED 31 DECEMBER 2020

Balance sheet
Note 2020 2019
£ £ £ £
Fixed assets
Tangible assets 6 293,231 289,309
Investments 7 5,500 5,750
Current assets
Stock 8
1,413		 194
Debtors 9
157		 358
Cash at bank 107,526 112,442
109,096 112,994
Creditors
Amount falling due within
10
9,712		 11,214
oneyear
Net current assets 99,384 101,780
Net assets 398,115 396,839
Represented by:
Capital and reserves
Unrestricted Funds 255,249 231,688
Restricted Funds 142,866 165,151
Reserve Fund 12 398,115 396,839

The company is entitled to exemption from audit under section 477 of the Companies Act 2006 for the period ended 31 December 2020.

The members have not required the company to obtain an audit of its financial statements for the period ended 31 December 2020 in accordance with Section 476 of the Companies Act 2006.

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WEST SOMERSET STEAM RAILWAY TRUST LIMITED (THE)

BALANCE SHEET

FOR THE YEAR ENDED 31 DECEMBER 2020 (continued)

The Trustees acknowledge their responsibility for:

The notes form part of these financial statements.

These accounts have been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

ON BEHALF OF THE BOARD:

D H Fraser

S Williams

Approved by the Board on 16 August 2021

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WEST SOMERSET STEAM RAILWAY TRUST LIMITED (THE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2020

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(a) General information and basis of preparation

West Somerset Steam Railway Trust Limited is private company limited by guarantee, registered in England & Wales. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £10 per member of the charity. The address of the registered office and the nature of the charity’s operations and principal activities are given in the Trustees’ report on pages 1 to 12 of these financial statements.

The charity constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared in accordance with 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) issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Practice.

The charity has applied Update Bulletin 1 as published on 2 February 2016 and does not include a cash flow statement on the grounds that it is applying FRS 102 Section 1A.

The financial statements are prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are presented in sterling which is the functional currency of the charity and rounded to the nearest £1.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

(b) Fund accounting

The unrestricted general funds represent the accumulation of the charity’s income and expenditure that has not been earmarked for specific projects and is not considered by Trustees to be for restricted purposes. To the extent that the fund is represented by readily realisable assets it provides a means of financing the day-to-day operations.

Restricted funds represent the funds received by the charity for particular purpose as directed by the donors. More detail is provided in note 12.

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WEST SOMERSET STEAM RAILWAY TRUST LIMITED (THE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (continued)

(c) Income recognition

All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the monetary value can be measured with sufficient reliability.

(d) Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to the expenditure. All expenditure is accounted for on the accruals basis and has been classified under headings that aggregate all costs related to that category. Expenditure includes any VAT which cannot be fully recovered, and is reported as part of costs.

(e) Support costs allocation

Support costs are those that assist the work of the charity but do not directly represent charitable activities and include office costs and governance costs. They are incurred directly in support of expenditure on the objects of the charity. Where support costs cannot be directly attributed to particular headings they have been allocated to expenditure on charitable activities on a basis consistent with use of the resources. The analysis of these costs is included in note 4.

(f) Donated heritage assets

It is the policy of the charity not to capitalise donated heritage assets in the collection. The charity considers that financial valuations of heritage assets would be misleading to the value and significance of the material culture involved. In many cases reliable cost information is not available or there are significant costs involved in obtaining a valuation that would outweigh any benefits. However, it is very important for the charity to account to the public and members for the management and care for the heritage assets entrusted to it. High standards are applied in order to preserve and manage these assets on behalf of, and to make them available to, the public. Full records are kept on the assets, their provenance, and donors. These are made available for all enquiries and requests, subject to appropriate security and

data protection guidelines. Conservation expenditure incurred on heritage assets, has been written off to the Statement of Financial Activities.

(g) Purchased heritage assets

Heritage assets purchased by the charity including costs directly attributable to making the asset capable of operating as intended are record at cost. These assets are not depreciated as they are deemed to have indefinite lives and are reviewed annually for impairment. They are intended to be held as permanent additions to the collections

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WEST SOMERSET STEAM RAILWAY TRUST LIMITED (THE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (continued)

(h) Investments

Investments are stated at cost less provision for permanent diminution in value.

(i) Stocks

Stocks are stated at the lower of cost and net realisable value.

(j) Cash at bank

Cash at bank comprises instants access bank accounts and short term highly liquid investments with a maturity of 12 months or less from the date of opening the deposit account.

(k) Debtors and creditors receivable / payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure.

(l) Tax

The charity is an exempt charity within the meaning of schedule 3 of the Charities Act 2011 and is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes.

(m) Going concern

The financial statements have been prepared on a going concern basis as the Trustees believe that no material uncertainties exist. The Trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern.

2. INCOME FROM DONATIONS AND LEGACIES

Grants
Donations
Legacies
Total		 Unrestricted
Restricted
2020
Total
2019
£
£
£
£
37,200
-
37,200
16,000
19,852
41,844
61,696
32,593
1,000
-
1,000
2,812
58,052
41,844
99,896
51,405

Grants included £28,700 (£16,000) from the Heritage lottery. During the period to 31[st] December 2019, donations and legacies received totalling £33,348 were restricted.

19

WEST SOMERSET STEAM RAILWAY TRUST LIMITED (THE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (continued)

3. TRUSTEES AND OTHER EMPLOYEES

No remuneration or expenses have been paid to or for the Trustees or any persons connected with them in the period ended 31 December 2020 (2019: £Nil). The company has no employees (2019: None).

4. ANALYSIS OF EXPENDITURE ON CHARITABLE ACTIVITIES

Activities
undertaken directly:
HLF project
Donation to PLC
Investment Write off
Support costs:
Insurance
Rent
Salaries
Administration -
- Independent
Examiner’s fees
- Other
Other
Total support costs
Total		 Unrestricted
Restricted
Total
2019
£
£
£
£
-
25,472
25,472
23,906
-
62,500
62,500
-
250
-
250
-
596
623
1,219
1,790
4,543
370
781
-
5,324
370
5,105
-
654
-
654
585
3,921
-
3,921
4,552
6,132
4,885
11,017
9,587
16,466
6,289
22,755
21,619
16,466
94,261
110,727
45,525

During the period to 31[st] December 2019, charitable activities included £30,373 of restricted expenditure.

5. INDEPENDENT EXAMINERS REMUNERATION

The independent examiners remuneration amounts to an independent examination fee of £654 (2019 - £585).

20

WEST SOMERSET STEAM RAILWAY TRUST LIMITED (THE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (continued)

6. TANGIBLE FIXED ASSETS – PURCHASED HERITAGE ASSETS

Cost
As at 31 December 2019
Additions
6705
3639
As at 31 December 2020
Depreciation
As at 31 December 2019
Provision
As at 31 December 2020
Net Book Value
As at 31 December 2020
As at 31 December 2019		 £
289,309
1,096
2,826
293,231
-
-
-
293,231
289,309

7. INVESTMENTS

Cost
As at 31 December 2019
As at 31 December 2020
Impairment Provision
As at 31 December 2019
Charge for the year
As at 31 December 2020
Net Book Value
As at 31 December 2019
As at 31 December 2020		 £
118,250
118,250
112,500
250
112,750
5,750
5,500

The Cost of Investments consists of:

Four One Six O Limited £5,500 £1 ordinary shares. West Somerset Railway PLC 2,067,317 (2019 1,999,117) 10p ordinary shares.

21

WEST SOMERSET STEAM RAILWAY TRUST LIMITED (THE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (continued)

Impairment Provision

The shareholding in West Somerset Railway PLC has been acquired over a number of years and consists both of shares subscribed for and shares acquired by bequest and donation. All shares acquired in the period were through bequests and donations.

The Trustees have re-considered the carrying value of the investment and concluded that the Articles of WSR PLC are such that the investment is of negligible material value and therefore full provision has been made.

Whilst WSR PLC and WSSRT Ltd are separate legal entities and each conducts its own activities, the nature of these activities is such that the two entities maintain cooperation. The Trustees consider that continued investment in WSR PLC is of direct benefit to WSSRT Ltd in pursuing its charitable objectives.

No impairment provision has been made in respect of the holdings in Four One Six O Ltd but the Festiniog Railway Ltd investment (£250) has been written off as the Debenture has expired.

8. STOCK

Goods for resale
9. DEBTORS

Trade Debtors

Gift Aid income due

 2020
£1,413
2020
£21
£136
£157		 2019
£194
2019
£210
£148
£358





10. CREDITORS: Amounts falling due within one year


Other creditors
 2020
£9,712		 2019
£11,214

11. COMPANY LIMITED BY GUARANTEE

The company is limited by guarantee and does not have a Share Capital. In the event of the company being wound up, each member, or person who has ceased to be a member within twelve months of winding up, undertakes to contribute the sum of £10 to the winding up, if the company is insolvent.

22

WEST SOMERSET STEAM RAILWAY TRUST LIMITED (THE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (continued)

12. FUND RECONCILIATION

Unrestricted Funds
General Fund
Heritage Carriages
Project (HCP)
6705
Restricted Funds
3639
9038
Horse Box
Signal Box Heritage
Museums
HLF
WSR Support		 Balance at
1.10.2019
Income
Expenditure
Transfers
Balance at
31.12.2020		 Balance at
1.10.2019
Income
Expenditure
Transfers
Balance at
31.12.2020		 Balance at
1.10.2019
Income
Expenditure
Transfers
Balance at
31.12.2020		 Balance at
1.10.2019
Income
Expenditure
Transfers
Balance at
31.12.2020		 Balance at
1.10.2019
Income
Expenditure
Transfers
Balance at
31.12.2020
£
£
£
£
£
28,046
62,115
(10,373)
(28,181)
51,607
32,329
0
(4,713)
4,713
32,329
171,313
0
(1,380)
1,380
171,313
231,688
62,115
(16,466)		 (22,088) 255,249
Balance at
1.10.2019		 Income Balance at
31.12.2020
Expenditure
Transfers
£
£
£
£
£
15,578
1001
(2826)
1,824
15,577
78,865
0
(189)		 189
78,865
2,861
0
0
0
2,861
465
188
0
0
653
21,017
195
(3,274)
0
17,938
12,094
0
(25,472)		 20,075
6,697
34,271
48,504
(62,500)		 0
20,275
165,151
49,888
(94,261)		 22,088
142,866

13. ANALYSIS OF ASSETS BETWEEN FUNDS

Fixed assets
Current assets
Current liabilities		 Unrestricted Funds
Restricted Funds
Total		 Unrestricted Funds
Restricted Funds
Total		 Unrestricted Funds
Restricted Funds
Total
£
£
£
208,728
90,003
298,731
47,821
61,275
109,096
(1,300)
(8,412)
(9,712)
255,249
142,866
398,115

23

WEST SOMERSET STEAM RAILWAY TRUST LIMITED (THE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (continued)

14. TRANSACTIONS WITH DIRECTORS

None in the current or prior period.

15. COMPARATIVE STATEMENT OF FINANCIAL ACTIVITIES

Unrestricted
Funds
Restricted
Funds		 Total Funds
for the 15
month
period
2019
£
£		 £
Income from:
Donations and legacies 18,057
33,348		 51,405
Grants 0
16,000		 16,000
Income tax recoverable on
donations		 2,896
6,867		 9,763
Investments 208
0		 208
Other trading activities 0
4,471		 4,471
Total income 21,161
60,686		 81,847
Expenditure on:
Charitable activities 15,152
30,373		 45,525
Total expenditure 15,152
30,373		 45,525
Net movement of funds 6,009
30,313		 36,322
Brought forward 225,679
134,838		 360,517
Carried forward 231,688
165,151		 396,839

24

WEST SOMERSET STEAM RAILWAY TRUST LIMITED (THE)

The following pages do not form part of the statutory financial statements

25

WEST SOMERSET STEAM RAILWAY TRUST LIMITED (THE)

ANALYSIS OF FUNDS FOR THE YEAR ENDED 31 DECEMBER 2020

Income From
Donations and Legacies
Grants
Income Tax Recoverable on Donations
Investments
Other Trading Activities
Total Income
Transfers
Expenditure On
EXPENDITURE ON CHARITABLE
ACTIVITIES
Investment Write-down
Grants
Acquisitions
Insurance
Rent
Salaries
Consultants
Administration
Independent Examiners Fee
Other
Other Support Costs
Total Expenditure
Net
Net after transfers
Additions to Fixed Assets
Net including CAPEX
Balances at 31st December 2020
Fixed Assets
Current Assets
Current Liabilities
Total		 Un -
GENERAL
HCP
6705
restricted
FUND
Funds
20852
20852
37200
37200
2611
2611
190
190
1262
1262
62115
0
0
62115
-28181
4713
1380
-22088
250
0
0
250
0
0
0
0
0
0
0
0
142
170
284
596
4543
4543
370
370
0
654
654
913
913
8294
8294
10373
4713
284
15370
51742
-4713
-284
46745
23561
0
1096
24657
1096
1096
23561
0
0
23561
5660
30658
172410
208728
47123
1714
-1016
47821
1176
43
81
1300
51607
32329
171313
255249

26

WEST SOMERSET STEAM RAILWAY TRUST LIMITED (THE)

ANALYSIS OF FUNDS FOR THE YEAR ENDED 31 DECEMBER 2020 (contd)

3639 9038 Horse SBHF Box

Income From
Donations and Legacies
Grants
Income Tax Recoverable on
Donations
Investments
Other Trading Activities
Total Income
Transfers
Expenditure On
EXPENDITURE ON CHARITABLE
ACTIVITIES
Raising Funds
Grants
Acquisitions
Insurance
Rent
Salaries
Consultants
Administration
Independent Examiners Fee
Other
Other Support Costs
Total Expenditure
Net
Net after transfers
Additions to Fixed Assets
Net including CAPEX
Balances at 31st December 2020
Fixed Assets
Current Assets
Current Liabilities
Total		 870
150
131
38
1001
0
0
188
1824
189
0
189
0
189
0
0
1001
-189
0
188
0
0
0
0
2826
0
0
0
188
11567
76843
1593
0
4016
2076
1268
653
5
54
0
0
15578
78865
2861
653

27

WEST SOMERSET STEAM RAILWAY TRUST LIMITED (THE)

ANALYSIS OF FUNDS FOR THE YEAR ENDED 31 DECEMBER 2020 (contd)

Income From
Donations and Legacies
Grants
Income Tax Recoverable on Donations
Investments
Other Trading Activities
Total Income
Transfers
Expenditure On
EXPENDITURE ON CHARITABLE
ACTIVITIES
Raising Funds
Grants
Acquisitions
Insurance
Rent
Salaries
Consultants
Administration
Independent Examiners Fee
Other
Other Support Costs
Net
Net after transfers
Additions to Fixed Assets
Net including CAPEX
Balances at 31st December 2049
Fixed Assets
Current Assets
Current Liabilities
Total		 Museums
------ Comprising -------
BA
BL
Mod.Rwy
172
0
172
0
23
0
23
0
0
0
0
195
0
195
0
434
154
280
781
0
781
0
0
0
0
0
0
2060
1307
174 578
3274
1461
1235
578
-3079
-1461
-1040
-578
-3079
-1461
-1040
-578
-3079
-1461
-1040
-578
0
0
0
0
18615
14517
2158
1940
678
602
76
0
17937
13915
2082
1940

28

WEST SOMERSET STEAM RAILWAY TRUST LIMITED (THE)

ANALYSIS OF FUNDS FOR THE YEAR ENDED 31 DECEMBER 2020 (contd)

Income From
Donations and Legacies
Grants
Income Tax Recoverable on Donations
Investments
Other Trading Activities
Total Income
Transfers
Expenditure On
EXPENDITURE ON CHARITABLE
ACTIVITIES
Investment Write-down
Grants
Acquisitions
Insurance
Rent
Salaries
Consultants
Administration
Independent Examiners Fee
Other
Other Support Costs
Total Expenditure
Net
Net after transfers
Additions to Fixed Assets
Net including CAPEX
Balances at 31st December 2020
Fixed Assets
Current Assets
Current Liabilities
Total		 HLF
WSR
Total
Restricted
40652
41844
0
0
7852
8044
0
0		 TOTAL
62696
37200
10655
190
1262
0
48504
49888		 112003
20075
22088
0
623
781
6720
6720
15000
15000
0
0
3752 62500
63278
25472
62500
91435
-25472
-13994
-41547
-5397
0
-19459
2826		 0
250
1219
5324
7090
15000
654
4592
76598
106805
5198
5198
3922
-5472
-13996
-22285		 1276
0
0
90003
14372
20275
61275
7675
0
8412
6697
20275
142866		 298731
109096
9712
398115

29