**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. - 1 - ## **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. - 2 - ## **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: - select suitable accounting policies and then apply them consistently; - observe the methods and principles in the Charities SORP; - make judgements and estimates that are reasonable and prudent; - state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation. 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:......................... - 3 - ## **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: - 1 accounting records were not kept in respect of the charity 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 applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). 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: ......................... - 4 - ## **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. - 5 - ## **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| - 6 - ## **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** - 7 - ## **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. - 8 - ## **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: - Fees are received in advance of the event to which they relate; - The donor specifies that the grant or donation must only be used in future accounting periods; and - - The donor has imposed conditions which must be met before the charity has unconditional entitlement. 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. - 9 - ## **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. - 10 - ## **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. - 11 - ## **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| - 12 - ## **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** - 13 - ## **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. - 14 - ## **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. - 15 - ## **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. - 16 - ## **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| - 17 - ## **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| - 18 - ## **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. - 19 - ## **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. - 20 - ## **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||||| - 21 -