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2022-12-31-accounts

Charity registration number 271589

Company registration number 01261079 (England and Wales)

EAST SOMERSET RAILWAY COMPANY LIMITED

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

EAST SOMERSET RAILWAY COMPANY LIMITED

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees R C Masters
C R Cooke
C E Hopkins
S J Masters
D R Sharp
E Lavender (Appointed 29 May 2023)
N J Dixon (Appointed 29 May 2023)
Charity number 271589
Company number 01261079
Registered ofce Cranmore Railway Staton
Cranmore
SHEPTON MALLET
Somerset
BA4 4QP
Independent examiner Old Mill Accountancy Limited
Bishopbrook House
Cathedral Avenue
WELLS
Somerset
BA5 1FD
Bankers Lloyds TSB
24 - 26 High Street
WELLS
Somerset
BA5 2SJ
Solicitors Chubb Bulleid Limited
7 Market Place
WELLS
Somerset
BA5 2RJ

EAST SOMERSET RAILWAY COMPANY LIMITED

CONTENTS

Page
Trustees' report 1 - 3
Independent examiner's report 4
Statement of fnancial actvites 5
Balance sheet 6 - 7
Notes to the fnancial statements 8 - 21

EAST SOMERSET RAILWAY COMPANY LIMITED

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)

FOR THE YEAR ENDED 31 DECEMBER 2022

The trustees present their annual report and financial statements for the year ended 31 December 2022.

The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charity's governing document, the Companies Act 2006 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).

Objectives and activities

The principle activities and charitable objectives of the East Somerset Railway Company are to preserve, operate and exhibit for public benefit for educational and instructional purposes and to stimulate and encourage interest in steam and other railway locomotives, rolling stock and other machinery and equipment of historical interest.

The wholly owned subsidiary company, Cranmore Railway Company Limited, operates a retail shop and a restaurant. It also runs a carriage overhaul and repair business, Cranmore Train Maintenance Services.

The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.

The trustees confirm that they have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the charity's aims and objectives in planning future activities.

The directors are very grateful to the many enthusiastic and dedicated volunteers without whom the railway could not operate.

Achievements and performance

The year was the first of full operation after the interruptions caused by the lockdowns. Visitor numbers were good with all events being well attended and dining services remained as popular with nearly all seats sold. On the busiest days in the summer, daily visitor numbers have been such that considerable efforts have been required to manage the flow of passengers and ensure seat availability and safety.

The employment of a Business Manager to oversee the commercial and financial areas of the business has improved the Railway’s services and performance. The first year of operation of the café under a concession arrangement has been very successful. Footfall and turnover have dramatically improved and the Railway has received a significant income. A new more integrated ticketing system has been introduced which will help manage the large numbers of advance ticket sales and gift vouchers which the Railway receives.

Engineering contract work has been successful making a major contribution to the Railway’s profits with a further loco overhaul contract being completed in the year. The next overhaul contract has been started and an agreement has also been signed with the Isle of Wight Railway for the overhaul of a loco starting in 2024 followed by 10 years use of it. Contract carriage overhaul work has been less successful with further losses incurred. Staff reductions have occurred and improvements in the management of the work introduced.

The Railway was profitable last year enabling its investment programme to continue. The largest area of expense was on maintenance of the track and the Railway was able to fund the complete refurbishment of the station toilets.

An influx of volunteers has increased the Railway’s resources and helped with progress. One Trustee left during the year and two new Trustees have been appointed. It is hoped to strengthen the Board and add to its management skills further during the year.

Going concern

After making appropriate enquiries, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. For this reason they continue to adopt the going concern basis in preparing the financial statements. Adoption of the going concern basis can be found in the Accounting Policies.

EAST SOMERSET RAILWAY COMPANY LIMITED

TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT)

FOR THE YEAR ENDED 31 DECEMBER 2022

Financial review

The reserves of the charity that are freely available for the use at the year end are as follows:

2022 2021
£ £
Total funds of the charity 624,664 668,663
Less:
Designated funds (66,000) (66,000)
Unrestricted funds only realisable on disposal of fxed
assets (393,395) (386,529)
165,269 216,134

The East Somerset Railway Board understands the need to improve the financial stability of the charity by building a cash reserve. Whilst the financial performance of the Railway has improved considerably in recent years, the need to fund improvements and a backlog of repairs to infrastructure, track etc, has required most available cash to be used. The Board continues to look for ways to establish a reserve fund.

The trustees have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.

Plans for the future

Although extending the track remains a distant prospect, the Railway has significant development plans in many other areas. This year, with the help of additional volunteer staff it is hoped to make progress on the track, rolling stock, signalling, and infrastructure.

Structure, governance and management

The charity is a company limited by guarantee incorporated and registered as a charity on 2 June 1976. The guarantors are the members to the extent of £1 each. The governing documents of the charity are the Memorandum and Article of Association dated 2 June 1976. As amended by resolution 13 May 2017.

The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were: R C Masters C R Cooke C E Hopkins T Dalton (Resigned 5 November 2022) S J Masters D R Sharp E Lavender (Appointed 29 May 2023) N J Dixon (Appointed 29 May 2023)

The trustees' are appointed at the annual general meeting by the members. The trustees may appoint new trustees between annual general meetings but such appointments must be ratified at the next annual general meeting.

Trustees seek to fill skill gaps as far as possible when looking for new board members.

EAST SOMERSET RAILWAY COMPANY LIMITED

TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT)

FOR THE YEAR ENDED 31 DECEMBER 2022

Statement of trustees' responsibilities

The trustees, who are also the directors of East Somerset Railway Company Limited for the purpose of company law, are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company Law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. 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.

The trustees' report was approved by the Board of Trustees.

.............................. .............................. R C Masters D R Sharp Trustee Trustee Dated: ......................... Dated:.........................

EAST SOMERSET RAILWAY COMPANY LIMITED

INDEPENDENT EXAMINER'S REPORT

TO THE TRUSTEES OF EAST SOMERSET RAILWAY COMPANY LIMITED

I report to the trustees on my examination of the financial statements of East Somerset Railway Company Limited (the charity) for the year ended 31 December 2022.

Responsibilities and basis of report

As the trustees of the charity (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 charity 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 the charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act). In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner's statement

Since the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of , which is one of the listed bodies.

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 that in any material respect:

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 financial statements to be reached.

Tim Lerwill, FCA Old Mill Accountancy Limited Bishopbrook House Cathedral Avenue WELLS Somerset BA5 1FD

Dated: .........................

EAST SOMERSET RAILWAY COMPANY LIMITED

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 DECEMBER 2022

Unrestricted
funds
2022
Notes
£
Income and endowments from:
Donatons and legacies
3
80,412
Charitable actvites
4
326,736
Other trading actvites
5
35,735
Other income
6
37,737
Total income
480,620
Expenditure on:
Raising funds
7
32,820
Charitable actvites
8
491,799
Total resources expended
524,619
Net (expenditure)/income for the year/
Net movement in funds
(43,999)
Fund balances at 1 January 2022
668,663
Fund balances at 31 December 2022
624,664		 Total
2021
£
207,980
277,901
35,468
30,108
551,457
36,491
355,377
391,868
159,589
509,074
668,663

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

EAST SOMERSET RAILWAY COMPANY LIMITED

BALANCE SHEET

AS AT 31 DECEMBER 2022

Notes
Fixed assets
Tangible assets
12
Investments
13
Current assets
Stocks
14
Debtors
15
Cash at bank and in hand
Creditors: amounts falling due within one
year
16
Net current assets
Total assets less current liabilites
Income funds
Unrestricted funds
Designated funds
21
General unrestricted funds
21		 £
7,124
67,083
211,031
285,238
(78,969)
66,000
558,664		 2022
£
393,395
25,000
418,395
206,269
624,664
624,664
624,664		 £
2,497
90,988
236,447
329,932
(72,798)
66,000
602,663		 2021
£
386,529
25,000
411,529
257,134
668,663
668,663
668,663

EAST SOMERSET RAILWAY COMPANY LIMITED

BALANCE SHEET (CONTINUED)

AS AT 31 DECEMBER 2022

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 December 2022.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The accounts were approved by the Trustees on .........................

.............................. ..............................
R C Masters D R Sharp
Trustee Trustee

Company Registration No. 01261079

EAST SOMERSET RAILWAY COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

1 Accounting policies

Charity information

East Somerset Railway Company Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is Cranmore Railway Station, Cranmore, SHEPTON MALLET, Somerset, BA4 4QP.

1.1 Accounting convention

The accounts have been prepared in accordance with the charity's governing document, the Companies Act 2006 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). The charity is a Public Benefit Entity as defined by FRS 102.

The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

The charity has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the charity as an individual entity and not about its group.

1.2 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Designated funds comprise funds which have been set aside at the discretion of the trustees for specific purposes. The purposes and uses of the designated funds are set out in the notes to the financial statements.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

1.4 Incoming resources

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

Grants received to assist with specific expenditure are released to the statement of financial activities as the expenditure is incurred.

EAST SOMERSET RAILWAY COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2022

1 Accounting policies

(Continued)

Income is only deferred when:

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or repayable by the Bank.

Income is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods and services provided in the normal course of business, net of discounts, VAT and other sales related taxes.

1.5 Resources expended

Expenditure is recognised once there is a legal or constructive obligation to make payment to a third party, it is probably that settlement will be required and the amount of the obligation can be measured reliably.

Fundraising costs are those incurred in seeking voluntary contributions and do not include the costs of disseminating information is support of the charitable activities. Support costs are those costs incurred directly in support of expenditure on the objects of the charity. Governance costs are those incurred in connection with the administration of the charity and compliance with constitutional and statutory requirements.

1.6

Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Plant and machinery 15% reducing balance / 10% straight line Fixtures, fittings & equipment 15% reducing balance Rolling stock 0% reducing balance

The depreciation on rolling stock is £nil, this is due to the company's commitment to restore these assets to their original condition and to maintain and preserve them in that state. It is considered that the estimated residual value is at least equal to cost. Rolling stock is introduced at cost and revalued in line with insurance valuations of these assets as this is deemed the most accurate reflection of their value to the charity.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year.

All assets costing more than £750 are capitalised.

1.7 Fixed asset investments

Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.

A subsidiary is an entity controlled by the charity. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

EAST SOMERSET RAILWAY COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2022

1 Accounting policies

(Continued)

1.8 Impairment of fixed assets

At each reporting end date, the charity reviews the carrying amounts of its tangible 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 (if any).

1.9 Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. Items held for distribution at no or nominal consideration are measured the lower of replacement cost and cost.

Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.

1.10 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.11 Financial instruments

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

EAST SOMERSET RAILWAY COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2022

1 Accounting policies

(Continued)

1.12 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.13 Retirement benefits

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

1.14 Leases

Rentals payable under operating leases, including any lease incentives received, are charged as an expense on a straight line basis over the term of the relevant lease.

1.15 Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

Government grants relating to turnover are recognised as income over the periods when the related costs are incurred. Grants relating to an asset are recognised in income systematically over the asset's expected useful life. If part of such a grant is deferred it is recognised as deferred income rather than being deducted from the asset's carrying amount.

2 Critical accounting estimates and judgements

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 other 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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Key sources of estimation uncertainty

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

Estimated useful lives of tangible fixed assets

In determining the estimated useful life the charity considers the expected physical wear and tear of the asset.

EAST SOMERSET RAILWAY COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2022

3 Donations and legacies

Unrestricted
Restricted
funds
funds
£
£
Donatons and gifs
62,342
-
Grant received
-
-
Government grants
11,000
-
Gif Aid from subsidiary
7,070
-
80,412
-
For the year ended 31 December 2021
98,031
109,949
4
Charitable actvites
2022
£
Fares and Admissions
326,736
5
Other trading actvites
Fundraising events
6
Other income
Subscriptons
Booking fees and sundry income
Wine and Dine income		 Total
2022
£
62,342
-
11,000
7,070
80,412
2022
£
35,735
2022
£
7,116
17,310
13,311
37,737		 Total
2021
£
9,669
109,500
62,113
26,698
207,980
207,980
2021
£
277,901
2021
£
35,468
2021
£
6,343
16,801
6,964
30,108

EAST SOMERSET RAILWAY COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2022

7 Raising funds

Fundraising and publicity
Staging fundraising events
Charitable actvites
Motve, Power and Operatons
Civil Engineering
Workshop Consumables
Santa Specials
Freight Charter and Loco Hire
Peppa Pig
The Way We Were
Rent and Rates
Services
Insurance
Repairs and overhaul costs
Paddington
Property Expenses
Peter Rabbit
Share of support costs (see note 9)
Share of governance costs (see note 9)
Analysis by fund
Unrestricted funds
Restricted funds		 2022
£
32,820
2022
£
51,059
78,090
6,411
25,562
39,860
3,205
2,072
23,387
43,591
26,872
14,159
1,350
7,223
1,500
324,341
164,909
2,549
491,799
491,799
-
491,799		 2021
£
36,491
2021
£
23,921
35,042
3,620
18,319
40,677
3,178
-
21,198
27,389
20,435
9,817
-
1,744
-
205,340
147,588
2,449
355,377
241,556
113,821
355,377

8 Charitable activities

EAST SOMERSET RAILWAY COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2022

9 Support costs

Support costs
Governance
costs
£
£
Staf costs
70,423
-
Depreciaton
42,344
-
Advertsing and Marketng
23,885
-
Postage, Statonery and Telephone
16,672
-
Bank Interest and Charges
285
-
Credit Card Charges
5,486
-
Sundry
2,726
-
Legal and Professional
1,288
-
Accountancy Fees
1,800
-
Independent Examiners Fees
-
1,600
Director's insurance
-
949
164,909
2,549
Analysed between
Charitable actvites
164,909
2,549		 2022
£
70,423
42,344
23,885
16,672
285
5,486
2,726
1,288
1,800
1,600
949
167,458
167,458		 2021
£
62,634
41,772
12,661
17,676
281
4,451
2,024
4,539
1,550
1,500
949
150,037
150,037

Support costs includes payments to the independent examiner of £1,800 (2021:£1,550) for accountancy services and £nil (2021:£nil) for other services.

10 Trustees

None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.

EAST SOMERSET RAILWAY COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2022

11 Employees

The average monthly number of employees during the year was:

2022 2021
Number Number
7 7
Employment costs 2022 2021
£ £
Wages and salaries 67,713 60,526
Social security costs 2,170 1,522
Other pension costs 540 586
70,423 62,634

There were no employees who received employee benefits of more than £60,000.

EAST SOMERSET RAILWAY COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2022

12 Tangible fixed assets

Tangible fxed assets
Plant and
machinery
Fixtures,
ftngs &
equipment
Rolling stock
£
£
£
Cost
At 1 January 2022
385,390
55,758
124,000
Additons
48,335
-
875
At 31 December 2022
433,725
55,758
124,875
Depreciaton and impairment
At 1 January 2022
136,681
41,938
-
Depreciaton charged in the year
40,271
2,073
-
At 31 December 2022
176,952
44,011
-
Carrying amount
At 31 December 2022
256,773
11,747
124,875
At 31 December 2021
248,709
13,820
124,000		 Total
£
565,148
49,210
614,358
178,619
42,344
220,963
393,395
386,529

Rolling stock includes trains that are occasionally rented out on an operating lease basis. Such rentals are normally for short periods, and when not being leased the assets are used in the day to day activities of the charity.

Rolling stock has been revalued in line with insurance valuations of these assets as this is deemed the most accurate reflection of their value to the charity. The directors believe that these values are relevant in relation to market value at 31 December 2022. The original cost of these assets is £50,462.

EAST SOMERSET RAILWAY COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2022

13 Fixed asset investments

Other investments
Cost or valuaton
At 1 January 2021 & 1 January 2022 25,000
Carrying amount
At 31 December 2022 25,000
At 31 December 2021 25,000
2022 2021
Other investments comprise: Notes £ £
Investments in subsidiaries 24 25,000 25,000

The charity's investment represents 100% of the ordinary share capital of the subsidiary undertaking Cranmore Railway Company Limited, which carries on the trading activities of the group and is registered in England (Registered Number 01094413).

The aggregate share capital and reserves of the subsidiary at 31 December 2022 amounted to £25,000 (2021:£25,000)

14 Stocks

14
Stocks
Raw materials and consumables
15
Debtors
Amounts falling due within one year:
Trade debtors
Amounts owed by subsidiary undertakings
Other debtors
Prepayments and accrued income		 2022
£
7,124
2022
£
865
35,668
17,881
12,669
67,083		 2021
£
2,497
2021
£
1,989
51,247
25,973
11,779
90,988

EAST SOMERSET RAILWAY COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2022

16 Creditors: amounts falling due within one year

Notes
Borrowings
Other taxaton and social security
Deferred income
17
Trade creditors
Other creditors
Accruals		 2022
£
-
122
7,031
60,536
126
11,154
78,969		 2021
£
2,698
790
9,485
52,941
-
6,884
72,798

17 Deferred income

Other deferred income
Current liabilites
Movement in the year
At 1 January 2022
Amount released to income earned from charitable actvites
Amount deferred in the year
At 31 December 2022
Deferred income relates to vouchers purchased in 2022 to be used in 2023.
18
Loans and overdrafs
Other loans
Payable within one year		 2022
2021
£
£
7,031
9,485
2022
2021
£
£
7,031
9,485
7,031
9,485
2022
2021
£
£
9,485
22,951
(9,485)
(22,951)
7,031
9,485
7,031
9,485
2022
2021
£
£
-
2,698
-
2,698		 2021
£
9,485
2021
£
9,485
9,485
9,485
2021
£
2,698
2022
£
-
-
2,698

EAST SOMERSET RAILWAY COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2022

19 Retirement benefit schemes

Defined contribution schemes

The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund.

The charge to profit or loss in respect of defined contribution schemes was £540 (2021:£586).

At 31 December 2022, the charity had a liability for pension payment owing of £126 (2021:£nil)

20 Restricted funds

The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:

There was no restricted funds movement during the year ended 31 December 2022.

Prior year Movement in funds Movement in funds
Balance at 1 Incoming Resources Balance at 31
January 2021 Resources Expended December 2021
£ £ £ £
Cranmore Loco Fund - 449 (449) -
Cranmore Staton Heritage Fund 3,872 108,000 (111,872) -
Erth Project - 1,500 (1,500) -
3,872 109,949 (113,821) -

The Cranmore Loco Fund is an appeal to raise funds to overhaul locos. The Cranmore Station Heritage fund is a grant to fund the restoration project which includes rebuilding the down platform and waiting room.

The Erth Project is a fund to restore the St Erth Footbridge.

EAST SOMERSET RAILWAY COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2022

21 Unrestricted funds

The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes:

Movement in funds Movement in funds
Balance at 1 Incoming
Resources		 Balance at 31
January 2022 Resources Expended December 2022
£ £ £ £
46447 Fund 62,000 - - 62,000
Lady Nan Fund 4,000 - - 4,000
Designated funds 66,000 - - 66,000
General funds 602,663 480,620 (524,619) 558,664
Total unrestricted funds 668,663 480,620 (524,619) 624,664
Prior year Movement in funds Movement in funds
Balance at 1 Incoming
Resources		 Balance at 31
January 2021 Resources Expended December 2021
£ £ £ £
46447 Fund 62,000 - - 62,000
Lady Nan Fund 3,000 - - 4,000
Designated funds 65,000 - - 66,000
General funds 440,202 441,508 (278,047) 602,663
Total unrestricted funds 505,202 441,508 (278,047) 668,663

The 5637 Fund has been set aside towards the next overhaul. The 46447 Fund has been set aside towards the next overhaul. The Lady Nan Fund has been set aside towards the next overhaul.

EAST SOMERSET RAILWAY COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2022

22 Operating lease commitments

At the reporting end date the charity had outstanding commitments for future minimum lease payments under noncancellable operating leases, which fall due as follows:

Within one year
Between two and fve years
In over fve years		 2022
£
21,016
82,681
425,833
529,530		 2021
£
24,326
73,000
444,083
541,409

23 Related party transactions

During the year there were transactions between East Somerset Railway Company and subsidiary Cranmore Railway Company. Facilities costs recharged of £23,532 (2021:£23,532) were payable by Cranmore Railway Company in the year. At year end, £35,668 (2021:£51,247) was due from subsidiary Cranmore Railway Company.

Trustee S Masters is an employee of the Dartmouth Steam Railway and Riverboat Company. During the year £nil (2021: £nil) was received from Dartmouth Steam Railway and Riverboat Company for services, which was invoiced under normal market conditions.

24 Subsidiaries

These financial statements are separate charity financial statements for East Somerset Railway.

Details of the charity's subsidiaries at 31 December 2022 are as follows:

Name of undertaking Registered Nature of business Class of % Held % Held
ofce shares held Direct Indirect
Cranmore Railway Company Cranmore, Nr Carries on the trading actvites of
Ordinary		 100.00
Limted Shepton Mallet, the group.
Somerset, BA4
4QP