# The Isle of Wight Railway Company Limited ## Audited Financial Statements For the Year Ended 31 December 2020 ## THE ISLE OF WIGHT RAILWAY COMPANY LIMITED (Limited by Guarantee and not having any share capital) ## CONTENTS ||Page| |---|---| |Annual General Meeting|2| |Chairman's Report|3 - 4| |General Manager's Report|5 - 6| |Future Vision|7 - 8| |Election of Directors|9 - 10| |Charity Information|11| |Trustees' Report|12 - 14| |Independent Auditors' Report|15 - 17| |Consolidated Statement of Financial Activities|18| |Consolidated Balance Sheet|19| |Holding Company Balance Sheet|20| |Consolidated Cashflow Statement|21 - 22| |Holding Company Cashflow Statement|23 - 24| |Notes to the Accounts|25 - 38| |Detailed Income and Expenditure Account|39| |Schedule of Expenditure|40 - 41| |Trading Company Detailed Income and Expenditure Account|42 - 43| - 1 - ## THE ISLE OF WIGHT RAILWAY COMPANY LIMITED (Limited by Guarantee and not having any share capital) ## CHARITY INFORMATION REGISTERED OFFICE The Railway Station AND PRINCIPAL ADDRESS Havenstreet Isle of Wight PO33 4DS COMPANY NO 1068690 CHARITY NO 280918 ## DIRECTORS AND TRUSTEES The directors of the charitable company ("the charity") are its trustees for the purpose of charity law and throughout this report are collectively referred to as the trustees. The trustees serving during the year and since the year end were as follows: |Anthony Barry|Derek Bishop| |---|---| |Stephen Castle|Peter Conway (Chairman)| |Stuart Duddy|George Felton| |Simon Futcher|James Loe| |Andrew Merritt|Stephen Oates| |Stephen Smart|Malcolm Smith| |John Suggett|Iain Whitlam| |CHANGES IN TRUSTEES DURING THE YEAR|| |Peter Taylor|Appointed 1 January 2020| |SECRETARY|Iain Whitlam| |FORM OF ACCOUNTS|Consolidated accounts of The Isle of Wight Railway| ||Company Limited and IWR Trading Limited.| |CHARITABLE STATUS|The company is a UK Registered Charity No. 280918| |BANKERS|Lloyds Bank PLC| ||22 St Thomas Square| ||Newport| ||Isle of Wight| |SOLICITORS|Eldridges| ||36-37 St James' Street| ||Newport| ||Isle of Wight| |REGISTERED AUDITORS|Bright Brown Limited| ||Exchange House| ||St Cross Lane| ||Newport| ||Isle of Wight| - 11 - THE ISLE OF WIGHT RAILWAY COMPANY LIMITED (Limited by Guarantee and not having any share capital) ## TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2020 The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their annual report with the financial statements of the group, parent company and its subsidiary undertakings for the year ended 31 December 2020 which has been prepared in accordance with statutory requirements (FRS102 and FRS 102 SORP) and the charitable company's governing document. The legal and administrative information set out on page 11 forms part of this report. ## GOVERNANCE The Isle of Wight Railway Company Limited is constituted under its articles and memorandum and is a registered charity no. 280918. It was incorporated on 13th August 1972. Its subsidiary IWR Trading Limited was incorporated 1st December 1992. The Isle of Wight Railway Company Limited is a registered charitable company limited by guarantee, not having any share capital. Members guarantee to pay during their membership and within one year after they cease to be a Member, in the event of a winding-up order, a sum not exceeding five pounds for payment of debts and liabilities contracted by the charitable company before they ceased to be a member. ## APPOINTMENT OF TRUSTEES Any fully paid member of the charitable company may put his name forward for membership of the Board subject to compliance of article 33 (d) (i) of the company's Articles of Association. In addition, the Board has the right to invite fully paid up members to put their names forward. Elections to the Board are subject to a confidential vote of members at the company's Annual General Meeting. Those members unable to attend such meeting may vote by proxy. The Board also has the right to co-opt additional members on to the Board at any time during the year to fill vacancies but these nominees will then be subject to the election process at the subsequent Annual General Meeting. Matters relating to membership of the Board are fully covered in articles 31 - 37 of the charitable company's Articles ## ORGANISATIONAL STRUCTURE The Board has the responsibility for establishing policy. Delivery of these policy decisions is the responsibility of the General Manager who works with the charitable company's Heads of Department who cover the following operations: rolling stock, civil engineering and estates, health and safety, operating, retail and catering, commercial, heritage and learning (formerly museum and archive), finance and administration. All staff and volunteers working within these departments are responsible to their Head of Department. A management structure has been designed whereby all heads of department report to the General Manager, who is responsible to the board. All new Trustees are given induction training, and training during the year, on the work of the charity and on specific issues. The General Manager also oversees the charity's wholly owned UK trading subsidiary, through which the shop and café are operated. ## RISK MANAGEMENT The trustees have examined the major strategic, business and operational risks which the charitable company faces and confirm that systems have been established to enable regular reports to be produced so that the necessary steps can be taken to lessen those risks. ## VOLUNTEERS, DONATIONS & BEQUESTS The charity is very grateful for the work contributed by volunteers and for the donations received both for specific projects and general funds. The trustees also wish to acknowledge with thanks the bequests the charity has received from the wills of members and friends of the railway who have sadly passed away. - 12 - ## THE ISLE OF WIGHT RAILWAY COMPANY LIMITED (Limited by Guarantee and not having any share capital) ## TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2020 - CONTINUED ## OBJECTIVES AND ACTIVITIES The principal activity of the charitable company in the year under review continued to be the retention, preservation, restoration and operation of a portion of the railways in the Isle of Wight as a permanent exhibition and working museum for the advancement of technical, historical and general education. In November 2018 the Railway was awarded Accredited Museum status by the Arts Council England. ## CHARITY'S MAIN OBJECTIVES IN THE YEAR A full report of the charity's activities during the year is included in the preceding annual reviews. The Board published a Strategic Vision Document in June 2009, which was revised in 2013 and again in 2017. ## ACHIEVEMENTS AND PERFORMANCE The achievements and performance of the charity during the year are detailed on pages 3 to 8 of this annual report. The trustees report, that in their opinion, considering the challanges COVID-19 has presented to all charities this has been a successful year for the charity. ## RESULTS FOR THE FINANCIAL YEAR Total income for both the charity and subsidiary for the year amounted to £1,463,691 (2019: £2,423,807). Administration and event costs amounted to £323,019 (2019: £459,083), shop, catering and show expenditure amounted to £282,625 (2019: £496,066), expenditure on running and maintaining the railway amounted to £923,648 (2019: £1,165,378) The overall deficit for the year amounted to £69,288 (2019: surplus £305,353). ## RESERVES POLICY It is the policy of the charitable company to maintain unrestricted funds, which are the free reserves of the charitable company, at a level which equates to approximately four months unrestricted expenditure in order to avoid operating cashflow problems. )The overall reserves of the group held at 31 December 2020 amounted to £4,293,594 of which £124,468 are held for restricted purposes. Reserves of £2,844,836 are held as fixed assets including investments, and £553,092 of reserves relating to legacies received have been designated for specific purposes by trustees. This leaves £771,198 of free unrestricted reserves. This level of free reserves is considered by the Trustees to be sufficient to meet the reserves policy of approximately four months expenditure. ## PRINCIPAL FUNDING SOURCES The charity's principal funding sources continue to be from donations and membership income, shop, catering, ticket sales and other special events income. Once the costs of generating these funds has been deducted, the majority of the remaining funds are used in support of the key objectives of the charity, that is the maintenance and running of the railway. ## INVESTMENT POLICY Under the charity's governing document, the trustees have the power to invest the monies of the charitable company not immediately required, in any such manner as the trustees may from time to time determine. ## FUTURE PLANS Details of the charity's strategy plans are published on the website www.iwsteamrailway.co.uk. This includes the Strategic Vision Document from which detailed plans for the future will be produced. ## PUBLIC BENEFIT The board of Trustees understands the requirements as set out in Section 17(5) of the Charities Act 2011 and takes the view that The Isle of Wight Railway Company completely satisfies all guidance issued by the Charity Commission with regard to public benefit. - 13 - ## THE ISLE OF WIGHT RAILWAY COMPANY LIMITED (Limited by Guarantee and not having any share capital) ## TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2019 - CONTINUED ## TRUSTEES' RESPONSIBILITIES Company law requires the trustees to prepare financial statements for each financial year in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice (UK GAAP). Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the income and expenditure of the company for that period. In preparing those financial statements, the trustees are required to: - select suitable accounting policies and then apply them consistently; - make judgements and estimates that are reasonable and prudent; - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue; - determine how amounts are presented within items in the statement of financial activities and balance sheet, having regard to the substance of the reported transactions or arrangements, in accordance with generally accepted accounting principles or practice. 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 as well as for the maintenance and integrity of the corporate and financial information included on the charity's website. ## STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS So far as the trustees are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information. This report has been prepared in accordance with the special provisions of the Companies Act 2006 relating to small companies. By Order of the Board ……………………………………………………………………………….. PETER CONWAY (CHAIRMAN) 08 April 2020 - 14 - ## THE ISLE OF WIGHT RAILWAY COMPANY LIMITED (Limited by Guarantee and not having any share capital) ## REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF THE ISLE OF WIGHT RAILWAY COMPANY LIMITED ## OPINION We have audited the financial statements of The Isle of Wight Railway Company Limited (the 'parent charitable company' and its subsidiary (the 'charitable group') for the year ended 31 December 2019 which comprise the consolidated statement of financial activities (incorporating an income and expenditure account), consolidated balance sheet, parent charitable company balance sheet, consolidated statement of cashflows, parent charitable company statement of cashflows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion, the financial statements: - Give a true and fair view of the state of the charitable group's and parent company's affairs as at 31 December 2019 and of the charitable groups' incoming resources and application of resources for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice applicable to Smaller Entities; and - have been prepared in accordance with the requirements of the Companies Act 2006. ## BASIS FOR OPINION We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charitable group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. ## CONCLUSIONS RELATING TO GOING CONCERN We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where: - the trustees' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or - the trustees' have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the charitable group's or the parent charitable company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue. ## OTHER INFORMATION The other information comprises the information included in the annual report, other than the financial statements and our auditors report thereon. The trustees are responsible for the other information. Our opinion on the financial statements does not cover the information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to We have nothing to report in this regard. - 15 - ## THE ISLE OF WIGHT RAILWAY COMPANY LIMITED (Limited by Guarantee and not having any share capital) ## REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF THE ISLE OF WIGHT RAILWAY COMPANY LIMITED - CONTINUED ## OPINION ON OTHER MATTERS PRESCRIBED BY THE COMPANIES ACT 2006 In our opinion, based on the work undertaken in the course of the audit: - The information given in the trustees' report, which includes the directors' report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and - the directors' report included within the trustees' report have been prepared in accordance with applicable legal requirements. ## MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION In the light of the knowledge and understanding of the charitable group and the parent charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the director's report included within the trustees report. We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: - adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by; or - the parent charitable company financial statements are not in agreement with the accounting records and returns; or - certain disclosures of trustees' remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit. - The trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the trustees report and from the requirement to prepare a strategic report. ## RESPONSIBILITIES OF TRUSTEES As explained more fully in the trustees' responsibilities statement set out on page 14 in the trustees' report, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees' determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the group's and the parent company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. ## AUDITOR'S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including - 16 - ## THE ISLE OF WIGHT RAILWAY COMPANY LIMITED (Limited by Guarantee and not having any share capital) ## REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF THE ISLE OF WIGHT RAILWAY COMPANY LIMITED - CONTINUED As part of planning our audit we determined materiality and assessed the risks of material misstatement in the financial statements. Based on our understanding of the charitable company and the group we identified the principal risks to both the charitable company and the group as management override of controls, potential for fraud in respect of revenue recognition, particularly in respect of cash income, and the appropriateness of going concern in light of the potential effects of the Covid-19 pandemic. Audit procedures performed by the engagement team included: - A review of journals made in preparing the final results for preparation of the accounts, and a review of accounting estimates made by management. - Review to ensure there are no transactions that have no apparent business or charitable purpose, or that have been processed outside the usual accounting systems. - Extension of the sample sizes for audit testing carried out in relation to cash income, and consideration and testing of controls in place around this income. - Discussions with management in respect of future plans and consideration of the effects of Covid-19 on the financial year, including the expected effects on the twelve months from the anticipated date of this report. - Discussions with management, including consideration of any known or suspected instances of non-compliance with laws and regulations or fraud. There are inherent limitations in the audit procedures described above, and the further removed non-compliance with laws and regulations is from events and transactions reflected in the financial statements, the less likely we are to become aware of it. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment or intentional misrepresentations. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report. ## USE OF OUR REPORT This report is made solely to the company's members, as a body, in accordance with Sections 495 and 496 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. ## GAVIN KELLY, ACA, FCCA (SENIOR STATUTORY AUDITOR) for and on behalf of Bright Brown Limited Chartered Accountants Statutory Auditor Exchange House St Cross Lane Newport Isle of Wight PO30 5BZ Date: - 17 - ## THE ISLE OF WIGHT RAILWAY COMPANY LIMITED (Limited by Guarantee and not having any share capital) ## CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT ## FOR THE YEAR ENDED 31 DECEMBER 2020 |
INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2020||| |---|---|---| |Notes
INCOME AND ENDOWMENTS FROM
Voluntary Income
Donations
Grants
3
Legacies
Charitable activities
Travel tickets
Membership subscriptions
Other trading activities
Special events
Shop, catering and show income
Other income
Investments
Interest received
4
Total
EXPENDITURE ON
Raising Funds
Administration and event costs
5
Shop, catering and show expenditure
5
Charitable activities
Running and maintaining the railway
5
Total
Unrealised gains/(losses) on investments
10
NET INCOME/(EXPENDITURE)
Transfer between funds
15a
Net movement in funds
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD
CONTINUING OPERATIONS|Unrestricted
Restricted
2020
Funds
Funds
Total funds
£
£
£
122,833
120,805
243,638
351,435
-
351,435
11,713
-
11,713
371,947
-
371,947
31,315
6,560
37,875
190,974
-
190,974
253,032
-
253,032
2,215
-
2,215
862
-
862
1,336,326
127,365
1,463,691
289,552
33,467
323,019
282,625
-
282,625
843,053
80,595
923,648
1,415,230
114,062
1,529,292
(3,687)
-
(3,687)
(82,591)
13,303
(69,288)
1,169
(1,169)
-
(81,422)
12,134
(69,288)
4,250,548
112,334
4,362,882
4,169,126
124,468
4,293,594|2019
Total funds
£
208,008
-
344,131
989,369
37,990
245,808
587,971
3,828
6,702| |||2,423,807
459,083
496,066
1,165,378| |||2,120,527
2,073| |||305,353
-| |||305,353
4,057,529| |||4,362,882| |||| All income and expenditure has arisen from continuing activities. The notes on pages 25 to 38 form part of these financial statements. - 18 - Company No: 1068690 Charity No: 280918 ## THE ISLE OF WIGHT RAILWAY COMPANY LIMITED (Limited by Guarantee and not having any share capital) ## CONSOLIDATED BALANCE SHEET FOR THE YEAR ENDED 31 DECEMBER 2020 |THE ISLE OF WIGHT RAILWAY COMPANY
(Limited by Guarantee and not having any share capital)
CONSOLIDATED BALANCE SHEET
FOR THE YEAR ENDED 31 DECEMBER 2020|LIMITED|Company No: 1068690
Charity No: 280918|Company No: 1068690
Charity No: 280918| |---|---|---|---| |Note
FIXED ASSETS
Tangible assets
9a
Heritage assets
9c
Investments
10
CURRENT ASSETS
Stock
11
Debtors
12
Cash at bank and in hand
CREDITORS
Amounts falling due within one year
13
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT LIABILITIES
CREDITORS
Amounts falling due after one year
14
NET ASSETS
FUNDS
Unrestricted funds
15a
Restricted funds
15a|£
£
2,644,555
197,357
2,924
2,844,836
94,527
62,758
1,640,106
1,797,391
(119,466)
1,677,925
4,522,761
(229,167)
4,293,594
4,169,126
124,468
4,293,594
2020|£
£
2,314,641
228,322
6,612
2,549,575
87,727
85,265
1,748,695
1,921,687
(108,380)
1,813,307
4,362,882
-
4,362,882
4,250,548
112,334
4,362,882
2019|| ||||| ||||4,362,882
-| ||||4,362,882| ||||4,250,548
112,334| ||||4,362,882| There are no shareholders' funds as the company is limited by guarantee. These financial statements have been prepared in accordance with the special provisions of part 15 of the Companies Act 2006 relating to small companies. The financial statements were approved by the Board of Trustees on xxxxx and were signed on its behalf by: ……………………………………………………………………………….. PETER CONWAY (CHAIRMAN) The notes on pages 25 to 38 form part of these financial statements. - 19 - THE ISLE OF WIGHT RAILWAY COMPANY LIMITED Company No: 1068690 Charity No: 280918 (Limited by Guarantee and not having any share capital) ## PARENT CHARITABLE COMPANY BALANCE SHEET FOR THE YEAR ENDED 31 DECEMBER 2020 |THE ISLE OF WIGHT RAILWAY COMPANY
(Limited by Guarantee and not having any share capital)
PARENT CHARITABLE COMPANY BALANCE SHEET
FOR THE YEAR ENDED 31 DECEMBER 2020|LIMITED|Company No: 1068690
Charity No: 280918|Company No: 1068690
Charity No: 280918| |---|---|---|---| |Note
FIXED ASSETS
Tangible assets
9b
Heritage assets
9c
Investments
10
CURRENT ASSETS
Stock
11
Debtors
12
Cash at bank and in hand
CREDITORS
Amounts falling due within one year
13
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT LIABILITIES
CREDITORS
Amounts falling due after one year
14
FUNDS
Unrestricted funds
15b
Restricted funds
15b|£
£
2,601,747
197,357
12,924
2,812,028
19,684
134,652
1,608,179
1,762,515
(107,367)
1,655,148
4,467,176
(229,167)
4,238,009
4,113,541
124,468
4,238,009
2020|£
£
2,265,733
228,322
16,612
2,510,667
19,191
168,860
1,610,414
1,798,465
(100,255)
1,698,210
4,208,877
-
4,208,877
4,096,543
112,334
4,208,877
2019|| ||||| ||||4,208,877
-| ||||4,208,877| ||||4,096,543
112,334| ||||4,208,877| There are no shareholders' funds as the company is limited by guarantee. These financial statements have been prepared in accordance with the special provisions of part 15 of the Companies Act 2006 relating to small companies. The financial statements were approved by the Board of Trustees on xxxxx and were signed on its behalf by: ……………………………………………………………………………….. ## PETER CONWAY (CHAIRMAN) The notes on pages 25 to 38 form part of these financial statements. - 20 - ## THE ISLE OF WIGHT RAILWAY COMPANY LIMITED (Limited by Guarantee and not having any share capital) ## CONSOLIDATED CASHFLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2020 |E ISLE OF WIGHT RAILWAY COMPANY LIMITED
ited by Guarantee and not having any share capital)
SOLIDATED CASHFLOW STATEMENT
THE YEAR ENDED 31 DECEMBER 2020|| |---|---| |Note
Cash flows from operating activities
Cash generated from operations
1
Net cash provided by (used in) operating activities
Cash flows from investing activities:
Purchase of tangible fixed assets
Acquisition of fixed assets investments
Interest received
Net cash provided by (used in) investing activities
Net cash provided by (used in) financing activities
Proceeds of borrowing
Net cash provided by (used in) financing activities
Change in cash and cash equivalents in the
reporting period
Cash and cash equivalents at the beginning of the
reporting period
Cash and cash equivalents at the end of the
reporting period|2020
2019
£
£
123,120
504,002| ||123,120
504,002| ||(461,740)
(149,681)
-
-
862
6,702| ||(460,878)
(142,979)| ||229,167
-| ||229,167
-| ||(108,591)
361,023
1,748,695
1,387,672| ||1,640,104
1,748,695| - 21 - ## THE ISLE OF WIGHT RAILWAY COMPANY LIMITED (Limited by Guarantee and not having any share capital) ## NOTES TO THE CONSOLIDATED CASHFLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2020 ## 1 RECONCILIATION OF NET INCOME/(EXPENDITURE) TO NET CASH FLOW FROM OPERATING ACTIVITIES |Net income for the reporting period (as per the statement
of financial activities)
Adjustments for:
Depreciation charges
Loss on disposal of assets
interest received
Losses/(Gain) on investments
Decrease/(increase) in stock
Decrease/(increase) in debtors
Increase/(decrease) in creditors
Net cash provided by (used in) operating activities|2020
2019
£
£
(69,288)
305,353
162,746
169,533
44
204
(862)
(6,702)
3,687
(2,073)
(6,800)
8,946
22,507
33,555
11,086
(4,814)| |---|---| ||123,120
504,002| - 22 - ## THE ISLE OF WIGHT RAILWAY COMPANY LIMITED (Limited by Guarantee and not having any share capital) ## PARENT CHARITABLE COMPANY CASHFLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2020 |E ISLE OF WIGHT RAILWAY COMPANY LIMITED
ited by Guarantee and not having any share capital)
ENT CHARITABLE COMPANY CASHFLOW STATEMENT
THE YEAR ENDED 31 DECEMBER 2020|| |---|---| |Note
Cash flows from operating activities
Cash generated from operations
1
Net cash provided by (used in) operating activities
Cash flows from investing activities:
Purchase of tangible fixed assets
Acquisition of fixed asset investments
Interest received
Net cash provided by (used in) investing activities
Net cash provided by (used in) financing activities
Proceeds of borrowing
Net cash provided by (used in) financing activities
Change in cash and cash equivalents in the
reporting period
Cash and cash equivalents at the beginning of the
reporting period
Cash and cash equivalents at the end of the
reporting period|2020
2019
£
£
207,203
448,934| ||207,203
448,934| ||(460,276)
(146,246)
-
-
836
6,592| ||(459,440)
(139,654)| ||250,000
-| ||250,000
-| ||(2,236)
309,281
1,610,414
1,301,133| ||1,608,178
1,610,414| ## - 23 - ## THE ISLE OF WIGHT RAILWAY COMPANY LIMITED (Limited by Guarantee and not having any share capital) ## NOTES TO THE PARENT CHARITABLE COMPANY CASHFLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2020 1 RECONCILIATION OF NET INCOME/(EXPENDITURE) TO NET CASH FLOW FROM OPERATING ACTIVITIES |Net income for the reporting period (as per the statement
of financial activities)
Adjustments for:
Depreciation charges
Loss on disposal of assets
Interest received
Losses on investments
Decrease/(increase) in stock
Decrease/(increase) in debtors
Increase/(decrease) in creditors
Net cash provided by (used in) operating activities|2020
2019
£
£
29,132
289,392
155,191
160,902
35
204
(836)
(6,592)
3,687
(2,073)
(493)
10,488
34,208
316
(13,721)
(3,703)| |---|---| ||207,203
448,934| ## THE ISLE OF WIGHT RAILWAY COMPANY LIMITED (Limited by Guarantee and not having any share capital) ## NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2020 ## 1 GENERAL INFORMATION The Isle of Wight Railway Company Limited is a private company limited by guarantee and incorporated in England. The financial statements are presented in Sterling, which is the functional currency of the charitable group. There are no material uncertainties about the charity's ability to continue. The Isle of Wight Railway Company constitutes a public benefit entity as defined by FRS 102. ## 2 ACCOUNTING POLICIES ## a Basis of preparing the financial statements - The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', the Companies Act 2006 and the Charities Act 2011. The financial statements have been prepared under the historical cost convention as modified by the revaluation of listed fixed asset investments. ## b Basis of consolidation The consolidated financial statements incorporate the financial statements of the Isle of Wight Railway Company Limited and its subsidiary IWR Trading Limited to 31 December each year. The accounts have been consolidated on a line by line basis and intra group transactions have been eliminated on consolidation. ## c Heritage Assets It is the charity's policy not to capitalise any heritage assets where it is not possible to place any reliable value on them. All heritage assets that can be reliably valued are included on the balance sheet at cost or valuation less accumulated depreciation. The charity has a collection of working steam locomotives and rolling stock, which are held to support their objectives of the education and maintenance of the Isle of Wight Steam Railway. The trustees do not consider that reliable cost or valuation can be obtained for the majority of the locomotives in their collection, due to the rarity and lack of liquid market for them. The charity does not therefore recognise these assets on the balance sheet. ## d Property, Plant and Equipment Property, plant and equipment has been valued at cost less accumulated depreciation. ## e Depreciation Depreciation is provided on the following tangible fixed assets, at rates calculated to write off the cost of each asset over its anticipated useful life using the reducing balance method unless otherwise stated. |Freehold property|3% per annum| |---|---| |Permanent way|5% per annum| |Motor vehicles|25% per annum| |Tools and miscellaneous equipment|25% per annum| |No. 38, Barclay 0-6-0T Ajax|10% per annum on cost from date brought into service| |Ivatt Engines 46447 and 41313|10% per annum on cost from date brought into service| |Office equipment|20% per annum| |Improvements to property|20% per annum| |Fixtures and fittings|15% per annum| - 25 - ## THE ISLE OF WIGHT RAILWAY COMPANY LIMITED (Limited by Guarantee and not having any share capital) ## NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2020 ## 2 ACCOUNTING POLICIES (CONTINUED) ## f Investments Investments in listed entities are initially recognised at cost, or where such assets are donated at the fair value at the date ownership passed to the charity. Subsequently, listed investments are measured at fair value through the profit or loss account. Fair value will be determined by the active market price. Investments in unlisted entities are measured at cost less amortisation as no fair value can be reliably determined. ## g Stocks Stock is valued at the lower of cost and net realisable value. In determining the value, cost is the cost incurred in bringing each product to its present location and condition. Net realisable value is based on estimated selling price less further costs expected to be incurred to completion and disposal. ## h Income ## Voluntary Income Voluntary income is recognised in the Statement of Financial Activities once the charitable company has entitlement to the funds, it is probable that the income will be received and the amount can be measured For donations this is generally upon receipt. In the individual company accounts donations from the trading subsidiary are also recognised on receipt. For legacies this is when the charity is notified of an impending distribution or receipt of a legacy, provided the value of the incoming resources can be measured with sufficient reliability. Grants are recognised when unconditional entitlement to the income is passed to the charitable company. Where there are performance related terms and conditions that must be met before unconditional entitlement passes to the charitable company, the income is recognised once it is highly probable that these will be met. Where no such conditions exist the income is recognised when it is received. ## Charitable and Other Trading Activities Income from trading activities, including travel tickets, special events tickets, shop, catering and shows income, is recognised, net of VAT and all other sales taxes when the goods are delivered or services are provided. Membership income is recognised evenly over the period the membership relates to. ## Investment Income Interest receivable is recognised over the period it is accrued except where there are conditions imposed that must be met before interest is received. Where this is the case the income is recognised once the conditions have been met. ## i Expenditure Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of the resources. - 26 - ## THE ISLE OF WIGHT RAILWAY COMPANY LIMITED (Limited by Guarantee and not having any share capital) ## NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2020 ## 2 ACCOUNTING POLICIES (CONTINUED) ## j Taxation The charity is exempt from corporation tax on its charitable activities. ## k Fund Accounting Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees. Restricted funds can only be used for particular purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes Further explanation of the nature and purpose of each fund is included in the notes to the financial statements. ## l Pension costs and other post-retirement benefits The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which ## m Creditors Short term creditors are measured at transaction (invoice) price. Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method. ## n Going Concern The accounts are prepared on a going concern basis. There are no uncertainties about the charitable company's ability to continue as a going concern. |.
ability to continue as a going concern.|||| |---|---|---|---| |Unrestricted
2020
£
3
GRANTS RECEIVABLE
Coronavirus Job Retention Scheme
178,353
Rural Payments Agency
116,457
Other grants
56,625
351,435
4
INVESTMENT INCOME
Interest from UK bank accounts
862|Restricted
2020
£
-
-
-
-
-|Total funds
2020
£
178,353
116,457
56,625
351,435
862|Total funds
2019
£
-
-
-| ||||-| ||||6,702| - 27 - ## THE ISLE OF WIGHT RAILWAY COMPANY LIMITED (Limited by Guarantee and not having any share capital) ## NOTES TO THE ACCOUNTS ## FOR THE YEAR ENDED 31 DECEMBER 2020 |5 EXPENDITURE
Direct expenditure
Employee costs
Locomotive running costs
Rolling stock refurb
Operating costs
Repairs and maintenance
IRN membership costs
Cleaning
Cost of goods sold
Publicity and advertising
Special events
Printing, post & stationery
Insurance
Sundry expenses
Legal and professional
Audit and accountancy
Bad debts
Financial costs
Depreciation
Loss on disposal of assets|Admin and Trading Catering
event costs
and shows
£
£
82,932
84,698
-
-
-
-
-
-
-
11,325
-
-
-
-
-
118,898
45,394
-
46,499
420
1,110
-
-
5,370
27,127
50
-
-
-
2,750
1,491
-
8,573
5,863
9,969
7,555
35
9
223,130
236,938
Costs of Generating Funds|Charitable
Activities
Railway and
Locomotives
£
448,333
89,742
64,332
2,025
44,621
16,367
5,491
-
-
-
7,194
-
6,116
180
4,100
-
-
145,222
-
833,723|Total
2020
£
615,963
89,742
64,332
2,025
55,946
16,367
5,491
118,898
45,394
46,919
8,304
5,370
33,293
180
6,850
1,491
14,436
162,746
44
1,293,791|Total
2019
£
673,858
168,149
97,021
7,834
103,123
18,931
8,356
293,470
106,948
122,663
6,618
5,470
49,951
911
6,199
-
25,937
169,533
204| |---|---|---|---|---| |||||1,865,176| |
Audit and accountancy
Bad debts
Financial costs
Depreciation
Loss on disposal of assets|-
2,750
1,491
-
8,573
5,863
9,969
7,555
35
9
223,130
236,938|4,100
-
-
145,222
-
833,723|6,850
1,491
14,436
162,746
44
1,293,791|6,199
-
25,937
169,533
204
1,865,176| |---|---|---|---|---| |Support costs
Activity
Salary costs
Premises costs
Employee costs
Insurance
Printing, post & stationery
Heat, light and water
Telephone
Rates
Rent
Health and safety
Total expenditure|Basis of Allocation
Time spent
Floor area used
Admin and Trading Catering
event costs
and shows
£
£
72,392
-
5,862
17,586
4,761
2,040
9,984
14,975
2,537
1,522
223
668
1,800
5,400
2,330
3,496
99,889
45,687
323,019
282,625
Costs of Generating Funds|Charitable
Activities
Railway and
Locomotives
£
10,817
35,173
-
24,959
1,015
1,335
10,800
5,826
89,925
923,648|Total
2020
£
83,209
58,621
6,801
49,918
5,074
2,226
18,000
11,652
235,501
1,529,292|Total
2019
£
80,145
62,630
9,981
51,104
4,396
12,921
18,000
16,174| |||||255,351| |||||| |||||2,120,527| - 28 - ## THE ISLE OF WIGHT RAILWAY COMPANY LIMITED (Limited by Guarantee and not having any share capital) ## NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2020 |THE ISLE OF WIGHT RAILWAY COMPANY LIMITED
(Limited by Guarantee and not having any share capital)
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED 31 DECEMBER 2020||| |---|---|---| |6 GROUP OPERATING SURPLUS
Group operating surplus is stated after charging:
Auditors' remuneration
Auditors' remuneration non-audit fees
Expenditure on operating leases
Depreciation
Loss on disposal of fixed assets
and after crediting:
Interest received
7 EMPLOYEES AND TRUSTEES
Gross salaries
Sub-contractors
Employers national insurance contributions
Pension Costs
Training Costs
Total employee costs|2020
£
4,700
2,150
22,500
162,746
44
862
654,501
-
34,845
9,586
240
699,172|2019
£
4,049
2,150
22,500
169,533
204| |||6,702| |||699,695
6,710
38,797
8,773
27| |||754,002| The average number of employees for the year amounted to 25 full time (2019 - 27), 18 part time (2019 - 16), and 7 seasonal (2019 - 9). Of these a total of 44 employees worked for the charity and 6 for the trading company. No employees received remuneration of £60,000 or higher. Two (2019: Two) members of staff who are connected to Trustees were employed by the charity during the year earning a total of £24,295 (2019: £27,515). This is permissible according to the charity's articles and memorandum. No trustees earned a salary during the year (2019: £NIL). ## 8a PARENT COMPANY INCOME AND EXPENDITURE ACCOUNT No Income and Expenditure Account is presented for the Isle of Wight Railway Company Limited as permitted by section 408 of the Companies Act 2006. The surplus stated in the accounts for the year ended 31 December 2020 was £29,132 (2019: £289,392), comprising unrestricted funds surplus before transfers of £15,829 (2019: £298,896) and restricted funds surplus before transfers of £13,303 (2019 deficit: £9,504). ## 8b SUBSIDIARY COMPANY INCOME AND EXPENDITURE The turnover for IWR Trading Limited for the year ended 31 December 2020 was £253,035 (2019: £587,973). The net surplus after tax and before donations to the charity for the year ended 31 December 2020 was £6,662 (2019: £104,128). Total assets at 31 December 2020 were £149,579 (2019: £256,547), total liabilities were £83,993 (2019: £92,542) and shareholder's funds amounted to £65,586 (2019: £164,005). Its primary activity is trading in support of the Isle of Wight Railway Company Ltd. - 29 - ## THE ISLE OF WIGHT RAILWAY COMPANY LIMITED (Limited by Guarantee and not having any share capital) ## NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2020 ## 9a TANGIBLE FIXED ASSETS - GROUP |Cost
At 1 January 2020
Additions
Disposals
At 31 December 2020
Depreciation
At 1 January 2020
Charge for year
Disposals
At 31 December 2020
Net book value
At 31 December 2020
At 31 December 2019|Permanent
Property
way, tools,
Office
Motor
Fixtures
Freehold
improve -
Total
equipment equipment vehicles
& fittings
property
ments
£
£
£
£
£
£
£
########
96,593
10,750
109,532
2,153,877
746,391
4,175,671
26,323
22,146
-
1,464
393,249
18,558
461,740
(2,000)
-
-
(108)
-
-
(2,108)| |---|---| ||########
118,739
10,750
110,888
2,547,126
764,949
4,635,303
626,672
71,218
8,889
60,624
514,552
579,075
1,861,030
34,670
9,504
465
7,555
42,413
37,175
131,782
(1,965)
-
-
(99)
-
-
(2,064)| ||659,377
80,722
9,354
68,080
556,965
616,250
1,990,748| ||423,474
38,017
1,396
42,808
1,990,161
148,699
2,644,555| ||| ||431,856
25,375
1,861
48,908
1,639,325
167,316
2,314,641| ## 9b TANGIBLE FIXED ASSETS - COMPANY |TANGIBLE FIXED ASSETS - COMPANY|| |---|---| |Cost
At 1 January 2020
Additions
Disposals
At 31 December 2020
Depreciation
At 1 January 2020
Charge for year
Disposals
At 31 December 2020
Net book value
At 31 December 2020
At 31 December 2019|Permanent
Property
way, tools,
Office
Motor
Freehold
improve -
Total
equipment equipment vehicles
property
ments
£
£
£
£
£
£
########
96,593
10,750
2,153,877
746,391
4,066,139
26,323
22,146
-
393,249
18,558
460,276
(2,000)
-
-
-
-
(2,000)| ||########
118,739
10,750
2,547,126
764,949
4,524,415
626,672
71,218
8,889
514,552
579,075
1,800,406
34,670
9,504
465
42,413
37,175
124,227
(1,965)
-
-
-
-
(1,965)| ||659,377
80,722
9,354
556,965
616,250
1,922,668| ||423,474
38,017
1,396
1,990,161
148,699
2,601,747| ||| ||431,856
25,375
1,861
1,639,325
167,316
2,265,733| - 30 - ## THE ISLE OF WIGHT RAILWAY COMPANY LIMITED (Limited by Guarantee and not having any share capital) ## NOTES TO THE ACCOUNTS ## FOR THE YEAR ENDED 31 DECEMBER 2020 ## 9c HERITAGE ASSETS |HERITAGE ASSETS||| |---|---|---| |Cost
At 1 January 2020
Additions
At 31 December 2020
Depreciation
At 1 January 2020
Charge for year
At 31 December 2020
Net book value
At 31 December 2020
At 31 December 2019|Ajax
Ivatts
Total
£
£
£
45,478
309,644
355,122
-
-
-
45,478
309,644
355,122
45,478
81,323
126,801
-
30,964
30,964
45,478
112,287
157,765
-
197,357
197,357
-
228,321
228,321
Group|Ajax
Ivatts
Total
£
£
£
45,478
309,644
355,122
-
-
-
Company| |||45,478
309,644
355,122
45,478
81,323
126,801
-
30,964
30,964| |||45,478
112,287
157,765| |||-
197,357
197,357| |||| |||-
228,321
228,321| The trustees consider Heritage Assets to comprise locomotives, coaches, wagons, infrastructure and artefacts which were or could have been a part of the Isle of Wight railway system and emanating from one or more of the following: (1) the Island's pre-grouping railway companies, (2) The Southern Railway, (3) British Railways Southern Region. The collection consists of fifteen locomotives (12 steam, 3 diesel), details of which can be found on the charity's website: http://www.iwsteamrailway.co.uk/locomotives.aspx. These locomotives are used to transport the public, in furtherance of the charity's objectives. Two locomotives, Ivatt 46447 and Austerity 'Juno' are on contracted loans to the East Somerset Railway and National Railway Museum respectively. Some other locomotive assets are occasionally loaned out on a short term basis to other steam railways or if suitable promotional opportunities arise. The remainder of the collection, when not in use, are maintained and mostly stored in the Train Story facility at the Isle of Wight Steam Railway. It is not possible to get a reliable estimate of the value of the collection. There are three locomotives reported on the balance sheet, 'Ajax', 'Ivatt 41313' and Ivatt '46447'. The remaining locomotives are not reported on the balance sheet as their valuation cannot be readily assessed in accordance with accounting policy 2c. Ajax was purchased and therefore was included in the balance sheet at this cost. Ivatt '46447' and '41313' were donated to the Isle of Wight Steam Railway by the Ivatt Locomotive Trust and the only amounts capitalised are the costs of bringing the assets into working condition as the value of the assets cannot be readily assessed. These costs are considered by the trustees to have a useful life of 10 years, the time until the next overhaul is required. The locomotives are maintained by specialised engineers at the Isle of Wight Steam Railway and the steam locomotives undergo a complete overhaul after not more than 10 years use to ensure they are kept in pristine condition. A register of the repairs completed and required is held by the charity. Costs of these repairs are recognised in the SOFA in the period they are incurred. All acquisitions and disposals of heritage assets must first be approved by the board of Trustees and a register of heritage assets is maintained and held in the museum. This register will be made available to the public on request. Ivatts 46447 and 41313 are now both being depreciated on a straight line basis over a 10 year term from the dates which they entered service. There were no additions of heritage assets in the year (2019: £NIL, 2018: £Nil 2017: £44,014, 2016: £70,646) There were no disposals of any heritage assets, nor any impairments during the year, or any of the last four reporting periods. - 31 - ## THE ISLE OF WIGHT RAILWAY COMPANY LIMITED (Limited by Guarantee and not having any share capital) ## NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2020 |||Group||Company|Company| |---|---|---|---|---|---| |||2020|2019|2020|2019| |||£|£|£|£| |10|FIXED ASSET INVESTMENTS||||| ||LISTED INVESTMENTS||||| ||FAIR VALUE||||| ||At 1 January 2019|6,611|4,539|6,611|4,539| ||Additions|-|-|-|-| ||Revaluations|(3,687)|2,073|(3,687)|2,073| ||At 31 December 2019|2,924|6,612|2,924|6,612| ||UNLISTED INVESTMENTS||||| ||Investment in subsidiary at cost|-|-|10,000|10,000| ||||||| ||Total fixed asset investments|2,924|6,612|12,924|16,612| ||The subsidiary, which is included in the charitable company's accounts, is as follows:||||| ||Name|IWR Trading Limited (Company No. 02769446)|||| ||Registered office|The same as that of The Isle of||Wight Railway|| |||Company Limited as detailed on page 11.|||| ||Principal Activity|Retail services|||| ||Country of Incorporation|England and Wales|||| ||Shares Held|50 ordinary £1|shares||| ||Proportion Held|100%|||| ||Voting Rights|One vote per share|||| |||Group||Company|| |||2020|2019|2020|2019| |||£|£|£|£| |11|STOCK||||| ||Catering|10,376|5,318|-|-| ||Shop|64,467|63,218|-|-| ||Santa stock, coal and other stock|19,684|19,191|19,684|19,191| |||94,527|87,727|19,684|19,191| |12|DEBTORS||||| ||Trade debtors|2,468|17,086|2,468|16,963| ||Amounts owed by group undertakings|-|-|71,347|79,675| ||Other debtors|60,290|68,179|60,837|72,222| |||62,758|85,265|134,652|168,860| - 32 - ## THE ISLE OF WIGHT RAILWAY COMPANY LIMITED (Limited by Guarantee and not having any share capital) ## NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2020 |(Limited by Guarantee and not having any share capital)
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED 31 DECEMBER 2020||| |---|---|---| |13
CREDITORS: AMOUNTS DUE WITHIN 1 YEAR
Bank loans
Trade creditors
Covenanted loan
Taxation and social security
Accruals
Other creditors
14
CREDITORS: AMOUNTS DUE AFTER 1 YEAR
Loan due in more than 1 year|Group
2020
2019
£
£
20,833
-
45,659
45,779
100
100
12,016
11,087
38,233
43,041
2,625
8,373
119,466
108,380
229,167
-|Company
2020
2019
£
£
20,833
-
38,204
42,521
100
100
11,289
10,173
34,534
39,658
2,407
7,803| |||107,367
100,255| |||229,167
-| The bank loan, taken out in July is repayable over 5 years with no penalty for early repayment. The loan is interest free for the first 12 months after which interest is payable at 2.16% above the base rate. - 33 - ## THE ISLE OF WIGHT RAILWAY COMPANY LIMITED (Limited by Guarantee and not having any share capital) ## NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2020 |THE ISLE OF WIGHT RAILWAY COMPANY LIMITED
(Limited by Guarantee and not having any share capital)
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED 31 DECEMBER 2020|| |---|---| |Balance
01/01/2020
Income
Expense
Transfers
£
£
£
£
15a MOVEMENT IN FUNDS - GROUP
Unrestricted funds
General fund
868,917
1,211,843
(1,415,230)
105,668
Fixed asset reserve
2,549,575
-
-
295,261
Designated / legacies fund
832,056
124,483
(3,687)
(399,760)
Total unrestricted funds
4,250,548
1,336,326
(1,418,917)
1,169
Restricted funds
Carriage and wagon restoration
31,890
31,764
(27,097)
6,511
The Museum fund
11,534
4,561
(2,518)
(2,240)
Maycock fund
8,705
311
(1,000)
-
IWSR 200 Club
2,358
6,560
(8,005)
-
Wootton
50,611
7,508
(5,332)
(5,440)
Ryde Tram
226
31,004
(24,612)
-
Calbourne
1,364
44,032
(45,396)
-
The Grand Plan
425
-
-
-
Possible acquisition
3,280
1,475
-
-
Invincible
1,941
150
(102)
-
Total restricted funds
112,334
127,365
(114,062)
(1,169)
Total Funds
4,362,882
1,463,691
(1,532,979)
-
15b MOVEMENT IN FUNDS - COMPANY
Unrestricted funds
General fund
763,820
1,073,325 (1,178,292)
99,568
Fixed asset reserve
2,500,667
-
-
301,361
Designated / legacies fund
832,056
124,483
(3,687)
(399,760)
Total unrestricted funds
4,096,543
1,197,808
(1,181,979)
1,169
Restricted funds
Carriage and wagon restoration
31,890
31,764
(27,097)
6,511
The Museum fund
11,534
4,561
(2,518)
(2,240)
Maycock fund
8,705
311
(1,000)
-
IWSR 200 Club
2,358
6,560
(8,005)
-
Wootton
50,611
7,508
(5,332)
(5,440)
Ryde Tram
226
31,004
(24,612)
-
Calbourne
1,364
44,032
(45,396)
-
The Grand Plan
425
-
-
-
Possible acquisition
3,280
1,475
-
-
Invincible
1,941
150
(102)
-
Total restricted funds
112,334
127,365
(114,062)
(1,169)
Total Funds
4,208,877
1,325,173
(1,296,041)
-|Total funds
31/12/2020
£
771,198
2,844,836
553,092| ||4,169,126
43,068
11,337
8,016
913
47,347
6,618
-
425
4,755
1,989| ||124,468| ||4,293,594| ||758,421
2,802,028
553,092| ||4,113,541
43,068
11,337
8,016
913
47,347
6,618
-
425
4,755
1,989| ||124,468| ||4,238,009| - 34 - ## THE ISLE OF WIGHT RAILWAY COMPANY LIMITED (Limited by Guarantee and not having any share capital) ## NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2020 |NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED 31 DECEMBER 2020||| |---|---|---| |15c ANALYSIS OF NET ASSETS BETWEEN FUNDS
Group
Fixed assets
Current assets
Current liabilities
Long term liabilities
Company
Fixed assets
Current assets
Current liabilities
Long term liabilities|2020
Unrestricted Restricted
Total
Funds
Funds
Funds
£
£
£
2,844,836
-
2,844,836
1,672,923
124,468
1,797,391
(119,466)
-
(119,466)
(229,167)
-
(229,167)
4,169,126
124,468
4,293,594
2,812,028
-
2,812,028
1,638,047
124,468
1,762,515
(107,367)
-
(107,367)
(229,167)
-
(229,167)
4,113,541
124,468
4,238,009|2019
Total
Funds
£
2,549,575
1,921,687
(108,380)
-| |||4,362,882| |||2,510,667
1,798,465
(100,255)
-| |||4,208,877| ## 15d DETAILS OF FUNDS ## Designated / legacies fund The designated / legacies fund consists of income received from legacies where there is a desire for the money to be spent on a particular project but no legal obligation. Legacies have also been received which have no specific direction as to how the funds are spent. ## Fixed asset reserve This fund represents the amount of unrestricted fixed assets held by the charity. ## Restricted funds Carriage and wagon restoration - for the restoration of carriages and wagons including grant income Museum fund - in the furtherance of the development of the museum (heritage and learning) Maycock fund - in coach and wagon restoration IWSR 200 fund - for the provision of volunteer facilities and other designated projects Wootton - restoration/renovation of Wootton Station Ryde Tram - restoration of the Ryde Tram Calbourne - restoration of Calbourne Invincible - restoration of Invincible Possible acquisition - towards the acquisition of a specific locomotive for display should it become available The Grand Plan - New buildings at Havenstreet as described in the strategic vision ## Transfers between funds All transfers made in the year represent the capitalisation of items purchased from other funds being transferred to the fixed asset reserve. - 35 - ## THE ISLE OF WIGHT RAILWAY COMPANY LIMITED (Limited by Guarantee and not having any share capital) ## NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2019 |THE ISLE OF WIGHT RAILWAY COMPANY LIMITED
(Limited by Guarantee and not having any share capital)
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED 31 DECEMBER 2019|| |---|---| |Balance
01/01/2019
Income
Expense
Transfers
£
£
£
£
15e COMPARATIVES FOR THE MOVEMENT IN FUNDS - GROUP
Unrestricted funds
General fund
807,450
1984190
-2013463
90740
Fixed asset reserve
2,563,018
-
-
(13,443)
Designated / legacies fund
553,190
360,229
(16,099)
(65,264)
Total unrestricted funds
3,923,658
2,344,419
(2,029,562)
12,033
Restricted funds
Carriage and wagon restoration
35,422
28,436
(31,968)
-
The Museum fund
12,019
8,308
(6,393)
(2,400)
Maycock fund
9,359
346
(1,000)
-
IWSR 200 Club
2,772
6,425
(2,495)
(4,344)
Wootton
52,087
29,109
(2,394)
(28,191)
Ryde Tram
19,459
3,768
(45,903)
22,902
Calbourne
1,153
1,211
-
(1,000)
The Grand Plan
-
1,220
(795)
-
Possible acquisition
-
2,280
-
1,000
Invincible
1,600
358
(17)
-
Total restricted funds
133,871
81,461
(90,965)
(12,033)
Total Funds
4,057,529
2,425,880
(2,120,527)
-
15f COMPARATIVES FOR THE MOVEMENT IN FUNDS - COMPANY
Unrestricted funds
General fund
713,510
1,519,294
(1,564,528)
95,544
Fixed asset reserve
2,518,914
-
-
(18,247)
Designated / legacies fund
553,190
360,229
(16,099)
(65,264)
Total unrestricted funds
3,785,614
1,879,523
(1,580,627)
12,033
Restricted funds
Carriage and wagon restoration
35,422
28,436
(31,968)
-
The Museum fund
12,019
8,308
(6,393)
(2,400)
Maycock fund
9,359
346
(1,000)
-
IWSR 200 Club
2,772
6,425
(2,495)
(4,344)
Wootton
52,087
29,109
(2,394)
(28,191)
Ryde Tram
19,459
3,768
(45,903)
22,902
Calbourne
1,153
1,211
-
(1,000)
The Grand Plan
-
1,220
(795)
-
Possible acquisition
-
2,280
-
1,000
Invincible
1,600
358
(17)
-
Total restricted funds
133,871
81,461
(90,965)
(12,033)
Total Funds
3,919,485
1,960,984
(1,671,592)
-|Total funds
31/12/2019
£
868917
2,549,575
832,056| ||4,250,548
31,890
11,534
8,705
2,358
50,611
226
1,364
425
3,280
1,941| ||112,334| ||4,362,882| ||763,820
2,500,667
832,056| ||4,096,543
31,890
11,534
8,705
2,358
50,611
226
1,364
425
3,280
1,941| ||112,334| ||4,208,877| - 36 - ## THE ISLE OF WIGHT RAILWAY COMPANY LIMITED (Limited by Guarantee and not having any share capital) ## NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2020 ## 16 RELATED PARTY DISCLOSURES Eight (2019: Seven) trustees received reimbursement for travel, accommodation and small sundry expenses of £531 (2019: £3,418). Total donations received from trustees in the year amounted to £4,515 ## 17 OTHER FINANCIAL COMMITMENTS At 31 December 2020 the charity had commitments under non-cancellable operating leases as follows: |Due within one year
Due after one year but no later than five years|Group
2020
2019
£
£
13,500
18,000
-
13,500
13,500
31,500|Company
2020
2019
£
£
13,500
18,000
-
13,500| |---|---|---| |||13,500
31,500| ## 18 CAPITAL COMMITMENTS Significant capital expenditure contracted for at the end of the reporting period but not recognised as liabilities amounted to £74,000 at the year end (2019: Nil). - 37 - ## THE ISLE OF WIGHT RAILWAY COMPANY LIMITED (Limited by Guarantee and not having any share capital) ## NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2020 |THE ISLE OF WIGHT RAILWAY COMPANY LIMITED
(Limited by Guarantee and not having any share capital)
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED 31 DECEMBER 2020|| |---|---| |Unrestricted Restricted
Funds
Funds
£
£
19
COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
INCOME AND ENDOWMENTS FROM
Voluntary Income
Donations
132,972
75,036
Grants
-
-
Legacies
344,131
-
Charitable Activities
Travel tickets
989,369
-
Membership subscriptions
31,565
6,425
Other Trading Activities
Special events
245,808
-
Shop, catering and show income
587,971
-
Other income
3,828
-
Investments
Interest received
6,702
-
Total
2,342,346
81,461
EXPENDITURE ON
Raising Funds
Administration and event costs
447,882
11,201
Shop, catering and show expenditure
496,066
-
Charitable activities
Running and maintaining the railway
1,085,614
79,764
Total
2,029,562
90,965
Unrealised gains/(losses) on investments
2,073
-
NET INCOME/(EXPENDITURE)
314,857
(9,504)
Transfer between funds
12,033
(12,033)
Net movement in funds
326,890
(21,537)
RECONCILIATION OF FUNDS
Total funds brought forward
3,923,658
133,871
TOTAL FUNDS CARRIED FORWARD
4,250,548
112,334|Total
2019
£
208,008
-
344,131
989,369
37,990
245,808
587,971
3,828
6,702| ||2,423,807
459,083
496,066
1,165,378| ||2,120,527
2,073| ||305,353
-| ||305,353
4,057,529| ||4,362,882| - 38 - ## THE ISLE OF WIGHT RAILWAY COMPANY LIMITED (Limited by Guarantee and not having any share capital) ## DETAILED INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2020 |THE ISLE OF WIGHT RAILWAY COMPANY LIMITED
(Limited by Guarantee and not having any share capital)
DETAILED INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2020||| |---|---|---| |UNRESTRICTED FUNDS
Income
Travel tickets
Platform tickets
Santa specials
Other special events
Membership subscriptions
Bank interest received
Management charge to subsidiary
Rent received
Legacies
Sundry income
Revaluations of listed investments
Donations
General donations
Gift aid donation from subsidiary
Grants
Rural Payments Agency
Coronavirus Job Retention Scheme
Other grants
Total income
Expenditure
Engineering
Marketing and operating
Sites and estates
Heritage and learning
Administration
Membership
Finance costs
Depreciation
Revaluations of listed investments
Surplus of income over expenditure on unrestricted funds|2020
£
367,038
4,909
96,899
94,075
31,315
836
23,000
10,942
11,713
(742)
-
122,833
105,081
116,457
156,827
56,625
1,197,808
400,590
192,487
113,050
1,766
284,642
16,367
14,164
155,226
3,687
1,181,979
15,829|2019
£
974,918
14,451
96,312
149,496
31,565
6,592
27,033
9,115
344,131
2,698
2,073
132,972
88,167
-
-
-| |||1,879,523| |||578,295
360,592
127,888
3,103
309,946
18,931
20,766
161,106
-| |||1,580,627| |||| |||298,896| This page does not form part of the statutory financial statements. - 39 - ## THE ISLE OF WIGHT RAILWAY COMPANY LIMITED (Limited by Guarantee and not having any share capital) ## SCHEDULE OF EXPENDITURE FOR THE YEAR ENDED 31 DECEMBER 2020 |THE ISLE OF WIGHT RAILWAY COMPANY LIMITED
(Limited by Guarantee and not having any share capital)
SCHEDULE OF EXPENDITURE
FOR THE YEAR ENDED 31 DECEMBER 2020|| |---|---| |2020
£
Engineering
Employee costs
295,702
Fuel and coal
31,398
Other locomotive running costs
15,938
Carriage and wagon maintenance
4,135
Permanent way maintenance
9,032
Workshops
6,391
Rolling stock repairs and refurbishment
37,994
(198, W11 and W24, 41298, Carriage 4115 and 4149)
Oldbury Repairs
-
Other designated fund engineering costs
-
400,590
Marketing and operating
Publicity
21,736
Employee costs
99,413
Agency (Solent retainer)
23,544
Operating costs
1,548
Printing and artwork
225
Exhibitions and sundries
5,613
Santa specials
28,219
Other specials
12,189
192,487
Sites and estates
Repair and maintenance
41,103
Cleaning and consumables
5,491
Employee costs
66,456
113,050
Heritage and learning
General daily expenses
1,766
Administration
Employee costs
103,262
Insurance
58,621
Printing, stationery and postage
6,801
Heat, Light and Water charges
49,918
Health and safety and company doctor
11,652
Telephone
5,074
AGM & annual report
1,088
Sundry expenses
24,107
Subscriptions
3,713
Legal and professional fees
180
Rates
2,226
Rent
18,000
284,642|2019
£
352,369
68,192
18,287
25,583
22,221
26,350
47,121
4,691
13,481| ||578,295| ||97,010
128,981
-
4,619
331
14,854
58,347
56,450| ||360,592| ||68,702
8,356
50,830| ||127,888| ||3,103| ||89,608
62,630
9,981
51,104
16,174
4,396
2,408
37,379
4,434
911
12,921
18,000| ||309,946| This page does not form part of the statutory financial statements. - 40 - ## THE ISLE OF WIGHT RAILWAY COMPANY LIMITED (Limited by Guarantee and not having any share capital) ## SCHEDULE OF EXPENDITURE FOR THE YEAR ENDED 31 DECEMBER 2020 |(Limited by Guarantee and not having any share capital)
SCHEDULE OF EXPENDITURE
FOR THE YEAR ENDED 31 DECEMBER 2020||| |---|---|---| |Membership
I.R.N.
Sundry
Finance costs
Audit fees
Bad debts
Bank charges
Credit card charges
Miscellaneous
Other interest
Revaluations of listed investments
Depreciation
Motor vehicles
Track and equipment
Office equipment
Improvements to property
Freehold property
Locomotive
Losses on disposal of assets
Total unrestricted expenditure|2020
£
15,109
1,258
16,367
4,100
1,491
404
7,791
378
-
-
14,164
465
34,670
9,504
37,175
42,413
30,964
35
155,226
1,178,292|2019
£
18,349
582| |||18,931| |||3,700
-
851
15,152
918
145
-| |||20,766| |||620
37,415
6,344
41,829
43,730
30,964
204| |||161,106| |||1,580,627| This page does not form part of the statutory financial statements. - 41 - ## IWR TRADING LIMITED ## DETAILED TRADING AND PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2020 |DETAILED TRADING AND PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2020|||| |---|---|---|---| |Shop
Takings
Cost of sales
Opening stock
Purchases
Wages
Closing Stock
Gross Profit
Credit card charges
Repairs and renewals
Net Profit
Catering
Takings
Calbourne room bookings
Costs of sales
Opening stock
Purchases
Wages
Closing stock
Gross profit
Repairs and renewals
Net profit
Bar
Takings
Costs of sales
Opening stock
Bar purchases
Closing stock
Net profit
Shows
Takings
Direct costs
Site costs and administration
Closing stock
Gross profit/(loss)
Show publicity
Net profit/(loss)
Trading Profit|£
£
116,984
63,218
66,461
3,315
(64,467)
68,527
48,457
4,852
2,781
7,633
40,824
127,593
30
4,723
52,812
72,023
(9,855)
119,703
7,920
8,544
8,544
(624)
8,378
445
4,874
(371)
4,948
3,430
47
1,478
-
1,478
(1,431)
-
-
(1,431)
42,199
2020|£
£
205,261
61,963
115,651
7,026
(63,218)
121,422
83,839
5,712
1,899
7,611
76,228
321,431
3,845
4,368
118,174
97,302
(4,723)
215,121
110,155
11,648
11,648
98,507
42,694
663
20,757
(445)
20,975
21,719
14,740
40,434
(150)
40,284
(25,544)
5,527
5,527
(31,071)
165,383
2019|| ||1,478
-||| ||-|5,527|| ||||(25,544)
5,527| ||||| ||||(31,071)| ||||| ||||165,383| This page does not form part of the statutory financial statements. - 42 - ## IWR TRADING LIMITED DETAILED TRADING AND PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2020 |DETAILED TRADING AND PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2020|||| |---|---|---|---| |Trading profit
Other income
Government grants received
Overheads
Rent
Management charges
Insurance
Audit fees
Bank charges
General Manager
Sundry expenses
Depreciation
Loss on disposal of tangible assets
Total net profit
Bank interest received
Net profit before gift aid donation
Donations to Isle of Wight Railway
Retained profit / (loss)|£
£
42,199
21,526
7,985
23,000
5,370
2,750
1,011
9,360
50
7,555
9
57,090
6,635
26
6,661
(105,081)
(98,420)
2020|£
£
165,383
-
7,985
27,033
5,470
2,499
3,159
6,422
170
8,631
-
61,369
104,014
110
104,124
(88,167)
15,957
2019|| ||||| ||||104,014
110| ||||104,124
(88,167)| ||||15,957| This page does not form part of the statutory financial statements. - 43 -