2021-01-31-accounts

LINE Mld-Hants Rallway Preservatlon Society Limlted (Limited by Guarantee) Annual Report and Consolidated Statement of Accounts for the year ended 31 January 2021 Company registered number: 1126590 Charity registered number: 284406

Mid-Hants Railway Preservatlon Society Limited Annual Report and Consolidated Accounts For the year ended 31 January 2021 Pages Trustees and advisers Chair's report Trustees, report (including Directors, and Strate8ic Report) Independent audltors, report Consolidated statement of financial actlvltles Consolidated and company balance sheets io Consolidated cash flow statement li Notes to the consolidated financial statements 12-31

Mid-Hants Railway Preservation Soclety Limited TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 JANUARY2021 Trustees Stephen Evans (Chairl Gregory Watson Rob Latham David Ford Peter Srnith Rlchaid Hawklns David Jones Secretary and reglsterÈd office Peter Srnith Alresford Station Alresford 5024 9JG Reglstered Audltors Cochrane & Co Accountant5 ￿MIte<l Re8lstered Auditor 38 Kln8s Road Lee-on-the-solent P013 9NU Bankers Barclays Bank Pl¢ NatSonal Westminster Bank Pl¢ Lloyds Bank PIC Sollcltors Taylor Fordyce 1 & 2 Clty Business Centre Hyde Street Wlnchester $023 7FA Paris Smith l London Rcsad Southampton 5015 2AE

Mid-Hants Railway Preservation Society Limlted CHAIR'S REPORT FOR THE YEAR ENDED 31 JANUARY 2021 2020 was, of course, the year of Covid. The Mid-Hants Railway Preservation Soclety Limited I'MHRPS'I and its subsidiary. the Mid-Hants Railway Limited {'MHR'I were directly affetted by lockdowns and a range of public health regulations and requirements. For both the MHRPS and the MHR, the overriding priority was the health of our visitors, volunteers and paid staff. We halted services and closed the railway as necessary. re-opened when it was prudent to do so. and took Covid-related precautions includlng social distancing and the enhanced cleaning of carriages and stations. This required strong leadership by the MHRPS and MHR Boards, each of which met very regularly during the crisis. and by the General Manager and his department heads. Even more importantly, r( necessitated an enomous effort by volunteers, paid staff and MHRPS members who rose to the occasion magnifiontly. Their wisdom and experience made it possible for us not only to run safe services but also to introduce the innovatNe and hugely popular Steam Illuminations product a5 2020 drew to a close. This attracted national and international publicity, casting a positlve light on our Railway at an otherwise pretty dark time. The Watercress Line's collectrve reswnse to the Covid cri515 IS something of which all Involved can be enormously proud. Inevitably, lockdowns and restrictlons red￿￿d our revenues frorn tickets and other sales although we did benefit from the Flyln8 Scotsman event, in February 2020, and by the success of Steam Illuminations. Fortunately. our emergency appeal had ralsed over £IcK),c￿ by January 2021 and we were able to secure Covid-relief funding from the National Lottery Heritage Fund, with further assistance coming from the government furlough scheme. As a result, we ended the financlal year in a better financial position than had seemed possible back In March 2020 when we literally locked our locomotives away and turned out the lights. Crucially. this has provided us with the resources to run a full range of services in the 2021 operatlng season. Despite the Covid upheaval, we continued with the National Lottery Heritage Fund grant funded 'En8lneering a Future from the Pasy project, with Its focus on outreach, the major overhaul of very own Merchant Navy. 35005, and the operatlon of newly restored Bulleid coach 1456. Outside this project, 2020 saw progress in restoring 75079, owned by the MHRPS, and on conserving two other ex-Barry locomotives in the Society's posse55ion- 80150 and 34058. Much of this work was carried out by volunteers. whose efforts we warmly acknowledge. Significant fijnds were also raised for the overhaul of 341x17. in which the MHRPS holds a 76% share. The MHRPS and MHR Boards continued to work together to develop the Watercress Line brand. recogni%in8 the MHRPS'S obligation as a Charitable Trust to ensure ali8nment between the Railwaws activlties and our published edLtcational and heritage aims. During 2020, preparations We￿ made for a thorough review of the governance of the Watercress Line, in the context of discharging our key responsibilities as a herita8e railway under the five headin8s of volunteers and members, the visitor experience, infrastructure, locomotives and rolllng stock. and financing the future. The findings of this review will be considered by MHRPS members and MHR shareholders in late-2021 and eady-2022. 15et on record my thanks to my fellow Trustees, our volunteers. and the employees and officers of the Mid- Hants Railway Ltd for their dedication and hard work at a time of crisis. Our collective gratitude goes to the donors. benefactors and grant-awarding bodies whose 8enerosity has kept us going during this most challenglng of years and helped us Secu￿ the future of the Watercress Line. Stephen Evans Chair Il" October2021

Mld-Hants Railway Preservation Society Umlted TRUSTEES, REPORT {INCLUDING DIRE￿oRs. REpoKf AND StRATEGIC REPORT) FOR THE YEAR ENDED 31 JANUARY 2021 The Trustees present their report and audited consolidated accounts for the year ended 31 January 2021 in compliance with statutory req¢Jirements and the SocletW5 Memorandum and Articles of Association. These reflect the requlrements of Accounting and Reportin8 by Charities: Statement of Recornmended Practice applicable to charities preparing their accounts in accordance with the ￿nanCIal Reportin8Stsndard applicable in the UK and Republic of Ireland IFRS1021 and the Companies Act 2006. Objectives and artivitles The principal a¢tlvitles of Mid-Hants Raitway Preservation Society Umlted are to preserve, operate and exhlblt for the public benefit and education and to stimulate and encouTa8e interesi in all kinds of railway transportatlon systems, vehicles and equipment and to foster and stspport raik¥ay preservation. Structure, govemance and management Gov rnlft document Mid-Hants Rallway Preservatlon Society ￿Mited Is a Company limited by Buarantee. The Company was granted charitable status in May 1982 and 15 re8i5tered with the Charity Commisslon. The Trustees (all Directors of the Company for the purposes of company lawl who have served through the year under review were.. S N Evans Ichalrl. S C Crowther Ireslgned 9 December 20201+ R Latham L Kenchenlen Iresi8nÈd 2 September 20201. D Ford+ O Slmmonds liesl8ned 9 December 20201 P Smith. G H Watson+ R Hawkins (appointed 24 April 20211. D Jone5 (appointed 24 Aprll 20211. Trustees who are 4150 Directors of the subsldiary Company Mid-Hants Rallway Ltd. + Trustees who are also Dirertors of the subsidiary Company Wadebrid8e134CK)71 Lotomotfve Ltd As set out In Note 23. the liability of the members 15 limlted to £1 each. The Trustees are subject to electlon or re- election accordin8 to procedures Set out In the Comp8ny's Memorandurn and Artlcles of Association which is its governing document. On appoSntment. new Trustees work alon85ide existSng Trustees to galn experience. Tralnlng Is made available for all Trustees. Or anisation The Charity operates through a Board and the Trustees a￿ also Dlrettors of the Company. The Trustees determine the general polScy of the Society. The Board meets re8ularly throughout the year. Annual finandal budgets are prepared and are compared to actual results monthly. Administration To provide timely and effectsve admbnistration. some functions are outsourced to Mid-Hants Railway Lifflited.

Mid-Hants Rallway Preservation Society Limited TRUSTEES. REPORT (INCLUDING DIRE￿oRs. REPORT AND STRATEGIC REPORT) FOR THE YEAR ENDED 31 JANUARY 2021 {Contlnued) Related arties The Company has two subsidiary companles.. Mid-Hants Railway Limited I'MHR Ltd'l which operates the railway under the brand name The Watercre55 Line,. Wadebridge1340071 Locomotive Limited Iwadebddge Ltd'l which own5 the Southern Railway West Country cla55 lo¢omotive'Wadebrldge'. The locomotive is currently being assessed for overhaul. Shareholders of MHR Ltd and Wadebridge Ltd are encouraged to conslder transferrlng thelr shares to the Charity, thus reducsn8 the administration costs of the subsldiary companies. rations The Charity continues to athieve its oblectlves of supportin8 herStsge rallway PTeser¥ation and restoration whlch It mainly carrles out through MHR Lld. The Charity makes grants for specific projerts whlch fall within its objectives. Its main alms have continued to be xhieved through the ovethauLs of locomotlves and carriage5 and In supporting some herltage railway Snfrastructure developments. The National Lottery HeritaBe Funded 'Engineerlng a Future from the Past, Prolect Includes restoratlon of locomotive 35005 and two Bullei¢J coaches. 1456 and 4367. The locomotlve Is paln5takingly bein8 reassernbled. Its frames are at Eastleigh, and Its boller and the Bulleid coaches in Ropley. The boiler still requires extensive Work whlch Is taking lon8er than Originally planned and further fundraising continues. Restoration of 1456 has been completed and that of 4367 continues. The projects also include work experience and iraining at Ea5tleigh and an oral hlstory exercise InvolvSn8 people not normally be involved in the restoratlon pro￿5$. These aspects have been very successful. The Charliy, through its subsldlary MHR Ltd. welcomes visitors and volunteer5 from all backgrounds. Volunteers are the foundatlon of the railway. Potentlal volunteer5 are advised and tralned on areas where they can asslst. The Watercress Llne welcomes youn8 people who want to learn about and enjoythe complexities of runnln8 a heritage rallway. We have focused on encouragin8 16 to 21 year olds who work alon8side a mentor whllst learnin8 a wealth of operatlonal skills. A Minlature Railway Jt Ropley continue5 to prO￿￿e an insi8ht and inductlon to runnln8 a heritage railwav. A number of local Interest Groups enable Membefs to learn about the Society and to meet and ex¢han8e views and Inforrnatlon. The Trustees take account of these views when considerin8 future projects. The work of the rallway's Marketin8 Department als0 helps inform Trustees about the profile of viJ4tors and thelr expettations. The Trustees Bratefully acknowledge the ￿n￿nUIng financial and physical Involvement and supwrt of Members and volunteers to restoratlon projects and wnning the railway. Without thelr commttment and enthusiasm the Charity and Rallway would not be able to operate. The Trustees examine the major risks that the Charity faces when preparing and updatin8 their plans. In conjunctlon with the Dirertors of MHR Ltd. the Charity has developed s￿temS to monitor and control these risks to manage any impatt that they may have in the future. MHR Ltd controls the Safety Management Systems for the operation of the railway and thelr annual review includes risk analysis and assessment. Public Bènefit The Tru5tee5 have had regard to the guidance on public benefit issued by the Charities Commission and are satisfied that all Charity operations and activities fall within that guidance.

Mid-Hants Railway Preservation Society Limited TRUSTEES. REPORT IINCLUDING DIREcfoRS REPORT AND STRATEGIC REPORT) FOR THE YEAR ENDED 31 JANUARY 20211Continued) Fund raisln tandards The Charity Sends appeal letters to its members and supporters. 8èneralty with Mid-Hants News. and on the Watercress Llne webslte to en¢ourage donations towards ongoing projects. The Charlty does not sell or pass on any details about its members and supporters to any other organisation. It is registered by and upholds the standards of the Fundraising Regulator. Five- The Boards of the Charity and MHR Ltd jointly developed a Fr¥e Year Plan for the period 2018-2022 whlch is regularlv reviewed and updated. Sustalnabili and lannl e future. The Charily Commisslon en¢ouraEes Trustees to consider the sustainability of their charity and its future. Current knowledge indicates no current speafic financial or operatin8 problems. However, It Is recognlsed that enthusiasts who remember the'real, steam railway are a8ein8 and, whitst younger volunteers are taking on new responsibilltles, some significant changes are needed so the Charity and its operatin8 subsidlary Can thrive and continue to achieve its main objectives in the comlng decades. In the year under review, the Society and MHR Limited formed a Governance Group to conslder how its constitution and funttioning might change to enable the future achievement of Its objectlves. Trustees and the Dlrectors of MHR Limited are consSderlnq and ta￿n8 professlonal advo￿ on future optlons. The Trustees are thus satlsfied about the long-term sustalnability and viability of the Charity. Flnanclal revlew The year produced a satlsfactory result with net income of £394.748 compared to E438.683 last year. The subsidiary companles, Mid-Hants Railway Limited reported a profit of £18,728 INote 91 and Wadebrldge1340071 Locomotlve Llmited reported a proflt of £201,751 In the year ended 31 January 2021. rves Note 20 to the financial Statements Sho￿ the a￿et5 and Ilabilities attributable to the varlous funds by type. Group unrestricted funds (Note 191 amount to £8,288,412. After allowin8 for fixed assets of £8.430,925 there is a deflclt of 'free' reserves of £142,513 showin8 a decrease compared to the 2020 negative figure of £419,431. The Trustees, stated objectlve Is to malntaln a level of 'free' reserves at a level of one yearfs unrestricted expenditure in the Company12021'. £228,345 - 2020.. £443,3421. There has been continued to be very 5i8nificant investment in group fixed assets thls year 12021.. £345,280 - 2020.. £804,ICQl which affects the level of 'free' reserves bui continues to place the Charlty In an excellent posltion for the future. The Trustees. pollcy is, therefore. to contlnue building up funds by means of annual operatlng surpluses. supplemented by general purpose or specffic appeals from tlme to time. This will enable the projects In hand to be pro8ressed as quickly as practicable. Plan5 f r future eriods The Covid-19 Pandemic si8nlficanty affected the operations of the Watercress Line durin8 the year. The 8oards of the Charity and MHR Ltd have met durln8 the perlod to review the financlal positlon of the companles. develop the fundralsing strategy and grant applications. Lookin8 forward, the TTUStees expect Income to be a contlnulng mlx of grants, subscriptions, donatlon5 and legacy Income. Whllst the Charltvs subsidiary, MHR Ltd. continues with 3¢tivities that promote the objectives of the Society, the Trustees do not expect a financial contribulion. preferring that any surplus funds are invested in activities which promote our objectives. The short and meilium term objectives of the Society are to progress the projects that are already underway and detailed above. The most significant of these will be continuin8 the HLF funded restoration of locomotive 35005 and restoration of locomotive 75079.

Mid-Hants Railway Preservation Society Limited TRUSTEES, REPORT IINCLUDING DIREcfoRS' REPORT AND STRATEGIC REPORn FOR THE YEAR ENDED 31JANUARY 2021 (Continued The Charivs income Includes alarge prowrtion of grants, donations and legacy income. By its natu￿ the level of thls income cannot be assured in any year. Atthough tt would be unwelcome, the Tru5tee5 acknowledge that they would be able to delay capital projetts rf this was required to balance cash flow were there to be a shortfall in expected income. Trustees, responslbllltles statement The Trustees Iwho are also Dlrectors of Mld-Hants Railway Preservation Society Umlted for the purposes of company lawl are responsible for preparing the Trustee5' Annual Report, including the Strategic Report, and the financial statements in aecordance with appll¢able law and Unhed Klngdom Accountin8 Standards Iunited Kingdom Generally Accepted Accountin8 Practicel. Cornpany law requires the Trustees to prepare financial statements for each financial year. whith give a true and fair view of ihe state of affairs of the charitable group and of the incoming resour￿$ and appllcatlon of resources, Sntluding the income and expenditure, of the chailtable group for that perlod. In preparln8 these financial statements. the Trustee5 are required to.. select sultable accountln8 polldes and then app￿ them consistent￿. observe the methods and principles In the Charities SORP 2015 IFRS 1021; make ludgernents and estimaies that are reasonable and prudent; state whether applicable UX Accounting Standards have been followed, subject to any material departures dlsclosed and explalned In the financial statements: prepare the flnancial statements on the80in8concern basls unless itis inapproprlate to presume that the Company wlll continue in buslness. The Trustees are responslble for keeplng proper accountin8 records which dlsclose wilh reasonable accuracy at any tlme the financial positSon of the Charitable Company and the Broup and enable them to ensure thai the flnanclal statements comply with the Companies A¢1 2006. Theyarealso responsiblefor safeguardingthe assets of the Charltable Company and ihe 8roup and hence for iaklnB reasonable steps for the preventlon and detectbon of fraud and other irregularlties. Dlsclosure of Informatlon to audltors In $0 far as the Trustees are aware.. there Is no relevant audit Inlomlaiion of which the Charitable CoMpan￿S auditor is unaw?re: and the frustees have taken all step5 that they ou8ht to have taken to make themselves aware of any relevant audlt Information and to estab14sh that the auditor is aware of that information. The Trustees are responslble for the malntenance and integrity of the corporate and fin3rt¢ial information ¢n¢luded on the companls webslte. Leglslatlon in the Unlte<l Kingdom go¥ernin8 the preparation and dissemlnation oi financial szaiement5 may differ from legislation in other jurisdictions. Audltors Cochrane & Co Accountants Limited are deemeil to be re-appointed a5 auditors under 5ectlon 487121 of the Companles Act 21)06. In approvlng the Trustee5' Annual Report, we approve the Strate8ic Report included therein. By Order of the Board Alresford Station Alresford S024 9JG Peter Smith Compan retary

Mid-Hants Railway Preservation Soclety Limited INDEPENDEMf AUDITORS, REPORT TO THE MEMBERS OF MID-HANTS RAILWAY PRESERVATION SOCIETY UMrrED (￿lI1￿ed Opknlon We have audited the financr41 statements of M￿Hants Raihvay Pre5er¥thn s￿ iknithd lthe'pbrent thailtable tompJn¥l and it5 gJbstdi•ries Ithe'£roup'lforthe¥eaTended31January2021whkh tompri5e the Consolidatedststementof Fin4nc1AdMt￿5, 7heGrtyJp and Parent Charitable CompanyBalanteSheety TreConsolidatedCashfknwStatementandthe relafednotestothefin3noal s¢atements. incltsdih83 5ummaryof51snif￿nt accountln8 policies. The financkil repotyn8 fvamewcrk that hasbeen appl￿d In theli preparation 15 app1Ka￿e law and Ufjrted Kingdom Accountin8 standard5. includin8 Reportln8siat)dard 102 TheFInontiolRew￿n1StOt10Orf0￿&1KOtye tn the UKund Republk o/JTelondlUnlted ￿￿Kdo￿ Generally Accepted Accountin8PrartKel. Inouropinlon,except forthe PO￿￿Èeffetts0fthemafterdescribed inthe ba￿f0r￿uaIIfie￿ Wnk)n Sect￿ ofourreporn the flnanclal ststemÈnt$.' a trueand fair vlew ofthe stateoFthe8rovp's parenttharikNÈ comwrfsaffaitsas at3lJan￿ry 2021, and ofthe 8roup'% Incomlna resources and applkaih)n ol rtsources. AKJuding it5 ￿rne andexpendilure. fortheyèarthen ended: have been properly prepared in acCorda￿tw￿h unitèd ￿n8d¢M GeneratyAccemed ActtyJntin8 Practke,. and havelxeffl Prepared In ￿rdance the wuirementsofthe C•mpansAa2C¥)6and the Charirs Art 2011. B•sls of quallfied oplnknft Due 10 COVID 19, the cou•tryds In fvll Wdow• atthe 31 January 2021. The d￿nI wa& Doi able lo cary our a full stocktike at the yearend and we We￿ not able to attend. We have alwaysfound the dnts symems ￿ auuratety report stock ouaniiis bui ihls yearre unable to obtain audlt e￿defice a5 re8ards sto¢k quantitles •131 laouary 2021. Stock Lglnchled In the balince sheetata yo￿tof £211,￿5. coD5eqVent￿, wè unab to determlne If 3ny3dlustmeni ts necessary to this amounL wé condurted our audit in a¢c¢danee with Intvn4iw151athdardson Audrtln8 IUKI11Sls IUKI14nd applICab￿ I￿. Our responslbllhiÈ5 underthose standards are further descrlbed in IheAvéiiorfs responsi￿"11esf0r the avdh of ihe finanoal statements sertlon of our report. We are lrtdependent of the 8roup and parent charita￿￿MPanY in atto¥dnrewlth I￿th￿31 requlrementsth4t are rdevinttoouraudiiof the financial statements In ttte UK, includin8 the FRCs Etht41 Standard. and we h¥e our other ethkal resp0nslbl1￿es in Kcord?nce wtth these requlrements. We bellEve that the audlt e¥￿eThe¢ we have obtalned ￿ Suffic￿nI and 3pkwrte to pr+y4ide a basis for our quallfted oplnk)n. Except for the matter descrlbed In the basls for qUalif￿d opIn￿n settk)n. we ha¥e (knimlned that Ihertare no key audlt mattersto be￿MM￿nIcated In our report. In audhin8 the financ￿1 statements, we hm ￿￿tIuded th•t Irust•e< Lwe of the 80kni ¢wcem of of the finandal 5t4tements Is èppropriate. B35ed on the work we have performed, we have ￿ hjerfffled athy matvml uThcertairsties relath¥ to e¥enis or condhlons thai, Ind￿lduallY or Collect￿ely, may t¥5t 518nthcant doubt on th• 8fOUP'5 or parent thartt4bl¢ cofflpanls to contknue as a 8oln4 tartctrn a perK)d of Jt least twefve monthsfrom when the finantial statemonrs ar aulhorlsed lor tssue. Oyr responslbllltitsand ihe resp0nsièilit￿of ¢he ¢rusieeswith respett toWn8ronwn ￿edesertbed th ih• retv4•nt seetkns of th15 report. Othqr Infofmatlon The trusiees are responslbk for the other Inlomiath)n. Tht olher Inlormatk)n eomprhes the Informatk)n kndudtd In the trustees, annuil report. L>ther than the financial statementsand our audltorfs rewt thEreon. O¥rWnkn on the IInanc￿l ststemthts does not cwer the other informatlon and, extept to the exient Olherwlseexpfkttty 51aied In our repo¢ not express anyfomi dassurtnce conclusk)n thereon. In tonnedlon wl¢h our audit cf the Nnancbl staiements. our reSpOn￿￿l￿V Is to read Ihe other Inlormatk)n attd, In dolng so, conskler whet￿r the otherinformation Ks rnater1al￿￿cQnS1SWiLW5￿thet1nan¢tsl stattmthtsorouf kn¢x¥ledBeobtaineOiniheaudttorotherwiseappearstobe matèrially m15Stated. If we klentlfysuch matthal InconsLqten(les Orap￿rent m•terbl mèsstatements. we arerequired todetermlne %Yheiher Ihere Is a mater131 misstatement In thefinancial st3tementsora material mtssutemen1oliheother#)forma￿L￿. If. tsasedon theworweh4¥e pertormed, we condude that there Is a materlal m155t3tement ofthlsoth•rhknaikn. 4r• rport thatf¥L We have nothin8 to reportln this re8ard. Oplnlons on oth•rm•ttts pr•5thb•d byth•CmwknArt2 In ouropln￿n, based onthework undertaken In the course ofthE audlL- the informatlon 8fven in the tru5ttes' report Ilncowratif the stratt8￿ report and the (¥rthrs' iekk¥tl for the financlal ￿ar for whlch the financ+al Statements are prepared i5cons&ttnt thefinanthalrtate￿ r thesttsteBk report and thedirettots. repurt have bEen prewred ￿￿(￿danCe with •pplkabb2 requlrements. Matters ontwhl¢hw• r• r•quk8d ty rwort tyexrptl•th Exceptforthe Matterdeso)t￿ inthe ba￿Slor0pI￿￿)ll seaiwol4*rieporLinthefjRhtafthe krh7wkd8oand¥ndwstsndin8oftha groupand parent Charitab￿ company and ￿eTh￿ronment0bta1ne￿ in the cwrse oftheaudl h￿09t hlentified materfal misstatements the irustee¥ report. Ari%n8 from the IlmitatA)n ofscoFeof our Wa￿[elltingw srockquaniitie4 referrÈdto ab￿.. we have notTeteNedall the Fnformaiwafftl exF4ahatK%)s¥rtfftouwÈlor(wrawl We are una￿et0delem7iTre whetheTadequatsaccounting reLords have been kept.

Mid-Hants Railway Preservation Society Limited INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF MID-HANTS RAILWAY PRESERVATION SOCIEfY UMITED We have nothin8 to rewt in iespert ol the foifowkn8 matters in relatrn w which tht CompanlesAct 2￿6 req￿￿ u5 to report to ff, in our opinkin.. adequate sufficient a¢couDtin8 fEcords ha¥ not been ke0 bythe parerrt company. or rfurns a￿e9￿atE for our audt have bEen re¢¢￿ed from branches notTrAuted byus.. ¢¥ the parent ch4rft8b￿ companrfs Anart￿lIst￿tements3rety0t Inagveemeni with the accoun1 recordsand returns.. certaln d15c105ures oldlTector< remuthemion spEcified tytswarp not made.. L¥ Respon5ibIlldttof¢r￿tses A5explalneiJ rnorefvllyln thètrusiees. responsl>ilIt￿$Stj1efi￿5t1oU1OTr pap8, thefrustee5lwhoarealsothe dlrÉctorsofthecharitablecompany forthe purposes of company lawl are responsib￿ forthe preparaibTh ￿ffvefinanUaI siatement5 and for being satisfiedthat ihey8lvea true and falr view, and forsu¢h intern41control asthetru5teesde¥ermine i5nece55arytoertablethe prep•rotyonolfinancvdlsramenisthata¥efreefrom materlal m155tatement. whether due to fraud orerror. In preparingrhe financ￿11 statements. the Iruslees are reSpOn￿b￿ for asSeS￿n8th@Srovp'sand parent tharitable tompanrfs a￿tty to continue asa goln8 concern. dls¢losin& as applKable, matters rdated tO80knÉ concèrn ond using the concern basis of auountin8 vnless thetru5tees ether Intend to I￿uldate the 8roupor the Pa￿rtt charit3We cw¥Janyortote451 QP•711on¥NhMn0￿#St￿a￿[n4th buttodoso. Audltoei resp0n51bllh1￿ for th•udltoltsfin•KL•l si•tements We have beEn appointed audbtor under theCompaniesAci 2￿6 andUCharWAet 2011 and rerK)rt In ateordarKe wlth theseAtts. Our objeciivesare to Ob￿1n reasonb5p assurnnce about ¥jhetherthefInanc￿II statementsasa whc4eare free from maredal mlsst¥temenL whethe¢ due to fraud or effor, and to Issue an audrto¢5 repNt ihat our opkn¥Jn. Reasrthable assurnnce is a hl8h level of J5surance but 15 not a 8uarantee thai tondLKred In a(cordan¢e whh 1&4s IUKI w411 a￿¥5 detect a ￿TerI mlsststefflent when 1¢ e¥lsts. Mi55tatements can arlst from Iraud or error and art conswered materkl rf, indNhlualty or in the asyeqate, they couk1 reasona￿¥ be expected to Influpnce the economic de¢ision5 of users taken on the basSsolihese nnan¢la15tatements. lrre8u1arlt￿S, Indudln8 Iraud, are iffl5tance5 01 non-Com￿￿￿te wlth re8ul#h)nS. We de5n wocedures in line wlth our respDnslblllries, outllned above, ¢0 dete¢t mateiial m￿latementS in resd of INe8u14rth& IncludlTr8 fvaud. The ertent to whkh our procedures are capable of deie¢tln8 ifre8ularlfles, Includin6 fraud Is¢e￿i￿d below.. There15 a 5tron8 board overstein8 opera¢in8 and mana8ement knformaiknn. Wo Ire ab￿ to rerfiew th Intlre nomlnal led8er ind all transactions. offerlng us theopportunltyio hlentlfylrre6uthrft￿$. Bouuseoftheknhereni limtWb)nsofanèudl¢there 14a rlskthat wewlll noidetect all irreiularilies. includln8 those leadin8 to In3tertsl mwstaiement in the finandal statemefftts or non<omolkante %•ith re8uL4flon. The rKsk increases the mort that compllance with a la¥Y or re8uLAtlon s rem￿￿ from the e¥ents and ti•h￿ct￿￿15 refiected In the financlal statements, as we wlll be less Ilkèty to becorne aware ol in5tJn¢e5 Of non-compl4nce. The Ask 15 8￿ter fe8a¥dln8 Irre8y￿rIt￿s ot¢urrin8 due to fraud rather than the error. ès Iraud InvolveslnteniJon•l conce4knenL for8ery. cdIU￿n, or￿S￿on or MIS￿￿sentatIOn. A further descTIpiion ol oui respon5ib5l5t￿& lor Ihe avdit of the IIMnck4 stateffthts L% tated on F￿￿(111 Report+n8 Coun¢ll's webslte It: Www.fr(.or8.uVOur-WorVAydft/Audlt.¥h&assura￿•/s￿dl1￿￿Inw￿l1NetsIor-4ydItu5/A￿d￿Qrs-r$￿tsnsIbIUEoes.for-a￿dh/Dtscr1p1Qnrf. audirors-responslbllltle5-foi-audit.aSPM.. We ommunlcate wlth those tha￿ed with Bovernante ro8aidkn& amrm8other matter8 the plinned xope and tlmln8 ol the audtt and slsnlft4nt audtt fSndlngs, includin6 anys18nifkafti dehcientles In Intern1 ¢wiiol thatwe klentffy dvrkngourauort. Us• olourrnport Thls iep¢rt Is made SLIe￿I9 rhe Char￿ab* comparfsmembtrs. Is a bth. In aCC￿da￿twrth Chapter 3 of P¥rt 16ofthe Companles Art 2006 and to the charltable . ICJ. 31

Mid-Hants Railway Preservation Society Limited Consolldated Statement of flnandal activitles (Includlng consolldated Income and Expendtture account) For the year ended 31 January 2021 Unrestrfcted Restrkted Fund$ Funds Total Funds 2021 Notes 2020 Income Donations and le8ades Income from charitable activities Income from other trading activities Investment income 316,645 40.575 2,701.6 460 37,838 5,384 354,483 45.959 2.701,660 460 360,986 60,191 4.444,897 1,043 Totsl Income 3.059.340 43,222 3,102,562 4,867,117 Expendlture Costs of ralslng funds Expenditure on chaiitable artlvitles 2.607,922 88,314 2.607,922 100,818 4,209,413 223,317 12.504 Total expendlture 2,696.236 12.504 2,708,740 4,432,730 Unreallseil 8ain11105sI on Investrnents Interest payable 1.551 1,551 4,296 625 625 Net Income 364.030 30,718 394,748 438,683 Transfers beiween funds 19 Net movement In fvnds 364.030 30.718 394.748 438,683 Reconclllatlon of fvnds: Total funds brou8ht forward 7,924.382 355,432 8,279,814 7,841,131 Total funds carrled forward 19 8288AIZ 386,150 8,674,562 8,279.814 Contlnulng operatlons l of the activities of the group a￿ classed as continuin& Total recognlsed 8alns and losses Thè group has no re¢ogni5ed gains or losses other than the surplus above.

Mid-Hants Railway Preservation Society Limited Balance sheets At 31 Janua 2021 io fjroup Compary 2021 2021 2020 2020 Note5 Flxed •$5ets: Tangible assets Investments 12 13 .430.925 8.343.813 86,537 2,333,387 905,465 2,267,925 901,580 Totolfixed ossets 8.519,013 8.430,350 3.238.852 3,169,50S Current ass•t Stock Debtors Cash at bank and In hand 14 15 211,805 340,S35 2.265.090 177,114 2,208.816 1.164.483 27.519 858,873 159,517 665,353 Totol current ossets 2.817,430 3.370,413 886.392 825,052 Llabllltles.. Creditor5.' amounts falling due within one year 16 {1.144,9911 12.874.4511 139.4481 1133,2441 Net current ossets 1.672,439 495,962 846,944 691,808 Totulossets le55 current Ilabilit￿$ 10.191.452 8.926,312 4.085,796 3,861,313 Creditors.. amounts fallln8 due after more than one year Provlslons for liabilitie5 17 11.195,1851 1321.7051 1384.5961 1261,9021 150,OC4)1 Total net ass•ts 8h74.$62 8,279￿14 4,035,796 3,861,313 The Funds of the Charlty: Restricteij Income 386,150 355,432 386.150 355.432 Unrestrlcred income funds General funds Other reserve Minority intere$15 7.257,998 514,765 515,649 6,893,655 514,765 515,962 3,649.646 3,505,881 Total unrestricted funds ,288.412 7.924,382 3,649,646 3,505,881 Total Chaflty fvnd5 19&20 8,674,562 S279￿14 4￿35.796 3,861,313 The financial statements on pages 11 to 33 were approved by the Board of Dlrectors and authorised forlssue on 25th October 2021 and were slgned on Its behalf by- iredor- S Evan5 Director- G H Watson

Mid-Hants Railway Preservation Soclety Limlted Statement of consolidated cash flow For the year ended 31 Janua 2021 li Notes 2021 2020 Net (ash provlded by op•ratln8 artfvltles: 573,787 1,402,825 Cash flows from In¥e*ini actlv5tles: Interest received Divldends received Purchase of tanBlble fixed assets 789 942 loo 1804,1001 1337,8211 Net cash used In Investlng artlvttles 236,755 599,767 Cash flows from flnancln8 Ktl¥5tles: Increasellredurtlonl of borrowin8S 863,852 138,5441 Chan8e In cash and cash egulvalents In the ￿ar 1,100.607 561,233 Cash ond cash equfvalents at the 5t•rt of th• year L164,483 603,260 Cash and ¢a5h equlvalents •t the eftd of the y•ar 1265,090 1,164,483

Mid-Hants Railway Preservation Society Limited 12 Notes to the consolidated flnandal statements For the year ended 31 January 2021 Summary of significant accounting polldes The principal attountin8 policie5 adopted, judgements and k￿soUr￿5 of estimation and Un￿rtaIntY in the preparatlon of the financial statements are as follows: Basls of preparatlon The Company Is a registered charity and constltutes a public benefit erEttty as defined by FRS 102. The financlal statements have been prepared in accordance with Ac¢ountinB and Reporting by Charities-. Statement of Re¢ornmended Practice applS¢able to charitles preparing their a¢¢ounts in accordance with Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021- Charitiès SORP IFRS 10211. Ihe Flnancial Reportln8 Standard applicable in the UK and Republic of Ireland IFRS 1021 and the Companles Act 2LK)6 and UK Generally Accepted A¢¢ountin8 Practice. The financlal staiements ¥re prepared on a goin8 concern basis under the historScal ¢0st basis of accountln& modified to include the revaluation of freehold land and buildlnBS and certain other assets. The finandal statements are presented in sterlin8 whith Is the funrtional currency of the charlty rounded to the nearest £1. Basls of consolldatlon The Group account$ consolidatethe results of thecharityand Its subsldlarles. Mld-Hants Rallway Limlled is Consolidated using the purchase method and Wadebfld8e1340071 Locomotlve Limited Is consolldated usSn8 the purchase method since acquSred In 2008. The net Income from the subsidlary companies1$ shown In note 9 of the accounts. Inteinal sales and proflts are ellminated on consolldaiion. Goln8 Conc•rn The financlal statement5 have been prepared on a 80ing concern basls as the Dlrertors belleve that no materlal uncertainties exist. FollowlnB a successful Te-openlng by the Flylng Scotsman. the Watercress Line was forced to c105e due to the Covid-19 Pandemlc, re-opening in July 2020 with a revised servlce and meeting Government 8uidelines. The Trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorlsln8 these financlal statements. The budgeted Income and expendlture Is sufflclent vAth level of reserwes for the charity to be able to contlnue as a 8OinB cOn￿rA. Tan8lbl• flx•d assets Tanglble fixed assets are stated at cost. or deemed cosL beln8 purchase price or valuation. less accumuloted depreclatlon. No lower1Smlt is applied to individual items that a￿ capitalised. OepreciatSon Is provbded to write off the cost of fixe(l assets to their resldual values by equal annual Snstalments at the followlng rates: Freehold land and buildin8S Plant and machinery Assets in the course of constTUrtion Nil to 2% per annum Nil to 25% per annum Not depreciated until brought into use Locomotives are depreciated over the length of their boiler cerlificate (usually 10 years) down to their residual value. Where a locomotive, owned by an indepenilent group, 15 overhauled by the company and a lon8 term hire agreement is in place, the costs incurred are capil31ised. Costs are depreciated on a straight line basis over the expected useful life (usually 10 years). Other ihan the engineÈrinB workshops at Ropley. dep￿coated at 2% per annum, the freehold land and buildin85 are not depfeclated below their residual value. In the opinion of the Dirertor5, It is the Companvs purpose to restore, preserye and keep these assets in good repair for the future. Freehold property consists mainly of historic buildings which have long useful economic lives and high residual values. Any depreciation charge would be immaterial. The Directors are of the opinion that no Clrcurnstan￿S fdusing an impairment of value have occurred. The Group has taken advantage of the transitional provisions of FRS102 to retsin pwousty re-valued assets at theii book value.

Mid-Hants Railway Preservation Society Limited Notes to the consolidated financlal statements For the year ended 31 Janua 2021 (Contlnued) 13 Principal accountlng policles {contlnued) Flxed asset Investhients Investments held as fixed assets are stated at cost, or valuation, less provision for any impairment in value. Income Oonatbons and income from subscriptions, stated net of value added tax, are credlted on the statement of financlal activities In the year to which they relate with any relating to future years belng shown in creditors. Income relatin8 to restricted funds 15 separately dlsctosed. Income fiom extended membership subscriptlOA5 15 reco8nised in the year of receipt In the statement of flnancial activitles. In accordance wilh Charities SORP IFRS 1021 no amounls are included In the flnancial statements for swvices donated by volunteers. The Trustees, annual report acknowledges thelr e5sentlal contribution to the Charit￿$ success. Income from legades is recognised at the earller of the date on whlch either the Company is aware that piobate has been granted. the estate finalised and notification received by the Company that a dlstrlbutSon wlll be made or has been recelved. Receipt of a legary, in whole or in part, Is only considered probablewhen the amount can be measured reliably and the Company notified of the executo¢s Intention to make a dlstributlon. If the Company is aware of the 8rantin8 of probate, but the crlterla for Income recognltlon have not been met, the le8acy Is treated as a contln8ent asset and dlsclosed If materl31. Incorne from the subsidiary companies represents 5ale5, excludlng value added tax, in respect of tlckets for steam train experlences and rides, retall and caterln8 good5 supplied durlng the year, external engineering work perlormed and locomotive hire charges. Payments recelved on account are not Included withln turnover until such tlme as the servlce Is rendered or obllgatlon fulfilled. Income from government and other 8rants, whether 'capltal' or 'revenue'. Is recognlsed when the Company has entitlement to the funds. any performance conditions h￿e been meL it is probablethe Income wlll be recelved and the amount can be measured reliably and is not deferred. Interest from funds on deposil is included upon notification of interest payable by the bank. Dlvldends from shareholdin85 are re¢o8nised when the dividend Is re￿1Ve{l. Expendlture Expendlture Is accounted for on an accruals basis and re¢o8ni5ed oncetherels a legal or Constructlve obllgatlon to rnake a payment to a third party, it is probable that settlement will be requlred and the amount of the obligation can be measured reliably. Cost of raisSn8 funds are those Incurred by the subsidiary companies in commercial tradin8. Charitable activities include expendr(ure associated wrth the maintenance and preser¥3tion of railway transportation systems, equipment and any support costs assocrated with those activitles. Support costs indude functions that support the work of the Company, but do not directly undertake charitable activities. Governance costs Include those incurred in the governance of the Company and its assets and are primarify associated wlth constitutional and Sta￿tOry requlrements.

Mid-Hants Railway Preservation Society Limited Notes to the consolidated financial statements For the year ended 31 Janua 2021 Icontlnued) 14 Prlncipal accountin8 policies Icontlnued) Grants payable are payments to third parties for fvrtheran￿ of the Companvs objertives. The grants are accounted for where either the Directors have agreed to pay the grant without condition and the reapient has a reasonable expectation that they will receive the grant, or any condition attachlng to the grant ￿ outside the control of the Company. Operatlng leases Costs In respect of certain hiring arranBements are accrued on an annual basis and ¢har8ed dlrectly to the SOFA. Sorne of the hire arrangements ale open ended and have no fixed date of expiry. Stocks Stocks are valued at the lower of cost. bein8 purchase pri￿ and net reallsable value. after maklng due allowance for obsolete and slow movlng items. Debtors Trade and other debtors are Teco8nised at the settlemenl amount due. Cash and cash equlval•nts Cash and cash equlvalents include cash hand. deposits held at call with banks, other short term Investment5 With orlglnal maturltles of three months or less. and bank overdrafts. Bankoverdrafts areshown wlthin borrowlngs in current Credllors and provlslons Creditors and provislons are recognised where the 8roup has a present obli8ation resulting from a past event that ￿$ expected to result In the transfer of funds to a thlrd party ond the amount due can be measured or estimated rellably. Creditors and provisions are normally recognised at thelr settlement amount after allowin8 for any trade discounts due. Penslons Th• Group operates a defln•d eontribution pension schemo. Contribution5 are ch8ryed tc* the profit and los$ 8¢¢gunt as they become payable In accordance with the rules of the scheme. Fund accountln8 Unrestricted fund5 are available for use at the discretion of the Dlrectors In furtherance of the general objectives of the Company and whlch have not been designated for other purposes. Restricted funds are funds which are to be used In accordance with specific restrictions imposed by donors or which have been raised by the Company for particular purpose5. The aim and use of each designated fund is set out in the notes to the financial statements.

Mid-Hants Railway Preservation Society Llmited Notes to the consolidated finanaal statements Forthe ear ended 31 January 2021 (Continued) 15 Princlpal accountlng pollcies (contlnued) Taxatlon The Company is an exempt charity within the meaning of schedule 3 of the Charltles Act 2011 and is considered to pass the tests set out in Paragraph I Schedule 6 Finance Act 2010 and the￿fOre it meets the deflnition of a charitable company for UK corporation tax purposes. Wlthin the subsidiary companles defe￿ed tax 15 recoBnlsed in respect of all tlmifig differences bètween the recognltlon of income and expenses in the financial statements and their indusion in tax assessments. Unrelieved tax losses and oiher deferred tax assets ale recognlsed only to the extent ihat It 15 probable that they will be recovered against the reversal of deferred tax liabilltles or other future taxable proffts. Deferred tax is measured using the tax rate5 and laws that have been enacted or substantively enacteil by the reporting date and that are expected to apply to the reversal of the timing difference, except for r￿alUed land and invesiment property where the tsx rate that applies to the sale of the asset is used. Current and deferred tax assets and Ilabilitie5 are not dls¢ounted. Reilonal groups A number of re8lonal groups of volunteefs and supporters hold funds to support thelr dayto day artlvltles. Total Income and expènditure 15 shown In these accounts whllst specifftc donatlons to the Company are included in donatlons on a r￿e1Ved ba515. Flnan¢lal Instruments The Company only has financlal assets and Ibnanclal Ilabllltles of a kind that quallfy as basic financlal Instruments. Basic flnanclal Instruments ale Inltlalty reco8nlsed at transaction value and subsequently measured at their settlernent value. wlth the exceptlon of bank loarbs which are subsequently measured at amortTrsed ¢ost usin8 the effectlve Interest method. Donatlons and legacles Total 2021 Unrestrlct•d Restrfrted 2020 General donation5 and appeal Income Restoration of wa8OnS 27.770 27.770 36,357 3.555 20 125 620 377 26,491 2,825 Wlckam Trolley Carriage restoratlon Locornotive Sir Frederick Pile Locomotive Canadian Pacific Locomotive 75079 Locomotive Wadebrldge Locomotive 08 288 Locomotive 73096 Locomotive 80150 Miniature Railway Legacy Income Gift aid 125 620 377 26.491 2.825 8,715 2,365 119,915 13,839 25 346 168 11,132 695 155,529 8,345 213 7,167 213 7.167 281.341 7.534 281,341 7,534 316,645 37.838 354.483 360,986

Mid-Hants Railway Preservation Society Limited Notes to the consolidated financial statements Forthe year ended 31 Janua 2021 (Continued 16 Income from charitable actlvltles Total 2021 2020 MHR newsletter sales Subscriptions Locomotive 35005 raffle proceeds Regional groups and 21x1 Club income 266 43,221 6,689 10,015 32.087 32,087 5,384 8.488 40,575 5,384 45,959 60,191 Income from other tradlng artivitles: Commerclal trading operatlons Total 2021 Note Unrestrkted Restrkt•d 2020 Income from tradlng subsldiarles 2,701,660 2.701.660 4,444.897 Investment Income Total 2021 Unr¢strlrted Restrfcted 2020 DlvSdends recelved 8ank Interest receivable loo 943 460 460 460 460 1,043 Costs of ralsln8 funds: Commerclal tradlng operatlons Note Total 2021 Unr•strfct8d R•strkt•d 2020 Expenditure by trading subsidiaries 2.607,922 2,607,922 4,209,413

Mid-Hants Railway Preservation Society Limited 17 Notes to the consolidated financlal statements For the ear ended 31 January 2021 (Continued) 7 Expenditure on charftable artlvlttes Total 2021 Unrestrkted Restrlded 2020 Grants payable Locomotlve maintenan Mld-Hants News Volunteer costs Re8ional 8roup expenditure Draw costs Hampshire Unit costs Wagon restoration costs Depreciatlon of tangible r￿ed assets HLF project costs Su ort cos Printin& postage, IT and statlonery Sundries Bank charges rnan Auditors remuneration Professional fee5 Health and safety Insurance 4.225 4,010 11.737 4,225 4.010 IL737 4,995 4,921 14,053 227 7,479 2,324 2.339 2.911 14,228 155.392 12.173 12.173 5,048 7,155 3.307 14.986 12,504 7,155 3,307 14.986 12.504 5,041 59 1.19) 5,041 59 1,794 1,805 1,260 1,1 8,998 7,7 1.410 1.275 8,998 7,700 1.410 1,275 8,468 13 1,108 88.314 12.504 100,818 223,317 Support and governance ¢osis have been allocated wholly to charitable activltles a5 the Costs relate to the furtherance of the Company's objectives. All charltable aaivities undertaken wholly relate to the slngle artIv￿ of the Company bein8 the preservatlon, restoration and operation of rallway transportation systems.

Mid-Hants Railway Preservation Society Limited Notes to the consolidated financial statement5 Forthe year ended 31 January 2021 (Continued 18 Net Income ot trading subsidiaries The ¢ontrlbutions from the subsidiary companies for the year ended 31January 2021 are as follows: Total Mid-Hants Rallway Ltd Wadebrldgè 1340071 Locomotlve Ltd 2021 2020 In¢ome Net operatln8 expenses 2.579.079 12.S16.1861 250,108 11.1291 2,829,187 12.517,3151 4,664.922 14.051,4741 Operating profil 62.893 248.979 311.872 613,448 Bank Interest recelvable Bank Interest payable 258 132.1331 71 329 132,1331 221 136.4131 31.018 249,050 280,068 577,256 Taxatlon and deferred tax 112,S041 147,2991 159,8031 1130,3471 Retained profft subsldlary accounts 18.S14 201.751 220.265 446,909 Exclude transactlons between group companle5: Administration charges Grant recelved Shop rent Black 51 Hampshire Unlt hlre {20,(bxJI 1107.5271 120,0001 1107,5271 1,000 120.0001 1200,0251 1,000 7,600 Total profitlllossl brought Into consolidated accounts 1108,0131 201,751 93.738 235,484 The results of the subsidlarles are Incorporated In the Consolldated Statement of Financial Activities Ipa8e 111 as follows.. Intome from other trading activitie5 (Note 41 Expendlture on charitable actlvltles (Note 61 2,701,660 4,444.897 12,607,922) 14.209.413) Total proflt brought Into consolldated accounts 93,738 235,484

Mid-Hants Railway Preservation Society Limited 19 Notes to the consolidated financial statements For the ear ended 31 Janua 2021 {Contlnued) io Taxatlon The Company is a re8lStered charlty and is exempt frorn taxatlon under SS05 Taxes Art 1988. The Cornpany Is re8iStered for Value Added Tax. No provlsbon forcorporation tax has been made for Mid-Hants Railway ￿MIted or Wadebridge134(K171 Locomotive Limited following their results for the year. lal Analysls of charge in the ye•r 2021 2020 UK Corporatlon tax (Overl provi51on In prlof year Ibl Fa¢tors affectlng Current tax charge 2021 2020 Proflt on ord5nary artlvltles before taxatlon (note 91 280,068 577,2S6 Profit on ordinary activities by rate of tax 19%,'12020- 19%) 53,212 109.679 Effects of: Items not taxable 5.411 18631 other timing dlffereA¢es Capltal allowances for perlod in èxcèss of depreclatlon Use of1055es brought forward 114.4651 144,1581 113,1781 195,6381 Total current tax

Mid-Hants Railway Preservation Society Limited 20 Notes to the consolldated flnanclal statements For the ear ended 31 January 2021 {Continued) li Dirertors and employees The average weekly number of staff of the Charity during the year wa$ 612020- 61, all of whom were Dire¢tors who are not entitled to receive remuneration in respect of their services. Reasonable and necessary out of pocket expenses are reimbursed where considered appropriate. No out of pocket expenses were relmbursed in 2020 12019- £Nill. ation in res ert of the subsidia Railwa Limited is as follow 2021 2020 Dlreclors and employees.. The average monthly head count was 4512020- 401 as follows.. General Manager and SenlorTeam. Administration Dlrect- full tlme equlvalent 38 33 45 Staff costs Ifor the above personsl.. Wages and salafles Soclal securlty costs Penslon costs 812.945 69.345 14,742 742,873 57,984 13,949 897,032 814,806 Employees of MHR Ltd receSvlng remuneration In excess of £60.Crf)O per annum were.. S 8aB8Ot, whose total r•mun•r•t5on Ilncludin8 nati0fi31 Insuranc•l In th• p•rlod was É93.77S. MHR Ltd relles heavlly on volunteer stsff In all Its operatlonal areas. Wadebrldge Ltd has no employees and no remuneration was charged durin8 the year. Slnce August 2015, MHR Ltd has operated a pension scheme for Its employees undef the governmenys auto enrolmeni scheme. The Charity and MHR Ltd have established indemntty insurance on behalf of the Trustees and D1￿CtorS costinB £2.55012020- £7001.

Mid-Hants Railway Preservation Society Limited Notes to the consolldated financlal statements For the ear ended 31 January 2021 (Continuedl 21 12 Tangible fixed assets Group Freehold land and bulldln Ass•ts In course of construct5on Plant and machlnery Total Cost or valuatlon At l February 2020 Addltions Dlsposals Transfers 3.243,252 75,944 17,4591 5.892,957 147,981 132,1671 238.769 1.767,354 121,355 10,903,S63 345,280 139,6261 1238,7691 At 31 January 2021 3.311.737 6,247.540 1,649,940 11,209,217 DeprecSatlon At l February 2020 Disposals Charge for year 349,555 2,210.195 132,1671 212.137 2,559,750 132,1671 250,709 38,572 At 31 January 2021 388,127 2.390,165 2,778.292 Net book value At 31 January 2021 2.923,610 3,857,375 1.649,940 8,430.925 At 31 January 2020 2,893,697 3.682,762 1,767,354 8,343,813 An open rnarket vacant possession valuation undertaken by Grimley, internatlonal property advlsers, In August 1999 at the request of MHR Ltd, placed a value of £860.0￿ on the freehold land and bulldlngs. The Dlrectors conslder that this valuatlon supports the exlstlng use value placed on ihese assets in the financlal statements. Freehold land and bulldlngs are Incluoed above ai ihls open markw valuation tO8ether wlth the cost of subsequent additlons and Improvements. 2021 2020 Cost or valuatton of freehokl land and bulldSn8s Is represented by: Valuation in 1999 Costs since 1999 860.(M)O 2,451,737 860,000 2.383,252 3,311,737 3,243,252 If land and buildin85 had not been revalued they would have been Included at the following amounts 2,796,972 2,728,487 Cost

Mid-Hants Railway Preservation Society Limited Notes to the consolidated finandal statements Forthe ear ended 31 Janua 2021 Continued 22 12 Tanglble fixed assets Icontlnuedl Company Freehold land and bulldln8s Assets In course of Construrtlon Plant and Machonery Total C05t At l February 2020 Additions Transfer 488,028 6.756 987.950 28,141 1,210.399 68,447 122,8961 2,686.377 103,344 122,8961 At 31 january 2021 494.784 1,016,091 1,255,950 2,766,825 D•pr•clatlon Al l February 2020 Charge for year Disposal 62,811 L202 355,641 13,784 418,452 14,986 At 31 January 2021 64,0 369.425 433,438 Net book value At 31 January 2021 430,771 646.666 1,25S,950 2,333,387 At 31 january 2020 425,217 632,309 1,210,399 2,267,925 The Dlrectors re8ard all the Companvs fixed assets as beln8 used for dirett charttable purposes. Land and bulldln8S owned by the Company are the Alresford Goo(Js Shed. Included In the Compan￿$ assets in course of construction are lo¢omotive5 75079, 35005. 34058 and 80150, and Bulleld coach $4367. Included in the Group disclosure Is locomotive 34105. All these locomotives are in the process of restoration and will not be depreciated until the work is completed. Slgniflcant balances also included In the group disclosure include the renovation of Mark l coaches 15939 and 16083. and the Medstead si8nalling scheme.

Mid-Hants Railway Preservation Society Limited Notes to the con501idated flnanclal statements For the year ended 31 Janua 2021 (Continued) 23 13 Fixed asset investments Group Company 2021 20 2020 2020 Market value at l February 2020 GainllLossl in the year on listed investments Donation of shares in MHR Ltd Investment in Wacfebrid8È Ltd 86.537 1.551 82,241 S￿1,580 1,551 895,602 4,296 772 325 910 Market value at 31 january 2021 88.088 86,537 905,465 901.580 Investments at market value comprlse.. Group Comp•ny 2021 2021 2020 2020 Shares In MHR Ltd: Dividend shares of £1 each Ordlnary shares of 25p each Shares in Wadebridge Ltd 100 412.604 100 410,595 404.673 404,348 817,377 21.677 815,043 20,126 UK Equities Ilisted Investments) 34105 Light Pacific Group lunllsted investments) 21.677 20,126 66,411 66.411 66,411 66,411 88,088 86,537 905,465 901,580 The Company owns all of the issued Eqv5ty Dlvldend sha￿$ in Mid-Hants Rallway Llmited Icompany re8lStered number 11170901 In addition to $2%12020= 52%) of the issued Ordinary non equtty 25p share5. MHR Ltd Is an unlisted company registered and opeiating in England and Wale5, and its accounting year-end is co-terminus with the Company. 11 is not possiblè to quantify the likely market value of the investment. MHR Ltd At 31 january 2021 the net assets of MHR Ltd were £4,818,161. The Company also OW￿ a controlling interest of 76% of the issued share capital of Wadebrldge134CQ71 Locomotlve Lirnited (company registered number 016734831. The objective5 of this company are to maintain and hire ex- Southern Railway Locomotlve 34007 Wadebrid8e. At 31 January 2021 the net assets of Wadebridge Ltd were £726,191. The UK equities were received through le8aue5. The value induded in the accounts represents the market valuallon of the shares at 31 January 2021. The 34105 Light Paciflc Group Is an unInCo￿lr￿te<j organisation which owns ex-8ritish Railways Southern Re8ion Locomotive 34105 Swana8e. The Locomotive 15 based on the Watercre55 Line where it is being overhauled. The company own$ 26.6% of the issued shares in the locomotlve.

Mid-Hants Railway Preservation Soclety Limited Notes to the consolidated financial statements For the year ended 31 January 2021 (Contlnued) 24 14 Stocks Group 1021 Company 2020 2021 2020 Raw materla15 Finlshed 8oods 49,115 162.690 62,548 114.566 211,805 177,114 15 Debtors Gr￿p zozi Companv 2021 2020 2020 Trade debiors Othei taxatlon and soclal security costs Other debtors Re8ional group balances 11,650 80.9S6 15,238 183.869 6,016 237.141 10.788 1.807,965 21,744 16,731 10,788 131,757 21,744 340,535 2,028.816 27,S19 159,517 16 Credltors: amounts falllng due wlthln one year Group Companv 2021 2021 2020 2020 Bank loan Payments received on account Trade creditors Amounts due to MHR Ltd Other credltois Other taxatlon and soclal security Accruals Other loans 93.994 163,293 $03,633 40.731 492,683 1,966,128 3,207 120,448 22,020 349.812 19,830 7.579 6.850 347.S40 16,829 3.690 6.850 6,579 6,850 2,739 6,850 1,144.991 2,874,451 39.448 133,244 Bank loans and overdrafts The bank loans and overdraft a￿ secured by a fixed and floatFn8 charge over the subsidiary CoMpan￿S freehold rallway property and other assets. Payments recelved on a¢¢ount Payments received on account relate entlrely to bookings from customers for events tskin8 place after the year end. These amounts will be released to the Statement of Finanaal Activities when the event has taken place. Other loans Other loans represent loans received from supporters. The loans a￿ interest free and repayable on demand.

Mid-Hants Railway Preservation Society Llmited Notes to the consolidated financlal statements For the ear ended 31 Janua 2021 Contlnued 25 17 Creditors: amounts falllng due after more than one year Group Company 2020 2021 2020 Bank loans 1.195.185 384.596 50,¢)JO 1.19S,185 384.596 50,000 The bank loans are secured by a flxed and floating char8e over the subsldiary companys f￿ehOld raSlway property and other assets. Of the amount due by instalments after more than one year £232.74412020 - £238.6851 is due in more than five yeais, 18 Notes to the statement of cash flow Reconclllatlon Gf net In¢ome to n•t cash Inflow from operatlni artlvltles Notes 2021 2020 Net Income for th• year Ipage 111 AdSustm•nts for: Depreciatlon charges Unreallsed losslgainl on investments Interest received Dividends recelved Decrease/llncreasel In debtors Increase/lDecreasel In creditors Decrease lincreasel in Stock Movement in defèrred taxatlon 394,748 438,683 12 250,709 11,5511 17891 229,993 14,2961 19421 liooi 11,615,959) 2,191,455 33,645 130,347 1.688,281 11,782,723) 134,6911 59,803 Net cash provlded by operatlnB a¢tMt5es {pa8e 13) 573,787 1,402,826

Mid-Hants Rallway Preservation Society Limited 26 Notes to the consolidated financial statements Forthe ear ended 31 January 2021 {Contlnuedl 18 Notes to the statement of cash flow (contlnued) Reconclllatlon of net ¢•5hfiow to movement in net funds Group 2021 2020 Changes durlng the year At l February 2020 Net cash inflowlloutflowl 1,164,483 1,100,607 603,260 561,223 At 31 January 2021 2,265,090 1,164.483 Group 2020121 Cash Flows 20 2020 Analws of chan8es In net Funds Cash at bank 2,265.090 I.IIXI,607 1,164,483 2.265,090 1,100,607 1,164.483

Mid-Hants Railway Preservation Society Limited Notes to the consolidated flnandal statements Forthe year ended 31 January 2021 (Continued) 27 19 Group: Fund Balances Total Unrestrltted Funds Total Restrlcted Funds General Funds Other Mlnorlty Interests Total Balance at l February 2020 Total income le55 total expenditure for year Unrealised galn on Ilsted Investments Transfer between general and restrlcte(I 6,893.655 514.765 515.%2 7.924,382 355,432 8,279,814 362,479 362,479 30,718 393.197 1,551 1,551 1,551 7,257.685 514,765 515.962 8,288,412 386,150 8,674,562 Movement In rnlnority Interest 313 13131 Balance at 31 January 2021 7,257,998 514.765 515,649 8,288,412 386,150 8,674,562 The other reserve of £514,765 relates to the valuation of land and bLtlldings which took place In 1999 and detabled in Note 12, and is the difference between ihe 0ri8inal valuation and 1999 revaluation. The level of the Group's 'free' reserves may be ¢alculaied by deducting the value of fixed assets Inote 121 from the balance of unrestricted funds at 31 January 20211£8,288,412 less £8,430.92518iving a ne8ètive balance of £142,513. The comparative figure at 31 January 2020 was negative £419.4311É7.924.382 less £8,343,8131.

Mid-Hants Railway Preservation Society Limited 28 Notes to the consolidated financial statements For the year ended 31 January 20211CoDtinued) 19 Fund Balances (continued) Analysls of restricted fund movements: Balance Ati February Incomln8 Resource5 ExpendSture Transfer from Unrestrlcted Funds Balance At31 January 2021 Fund name- Restoration of wa8ons Canadlan Paclfl¢ 35005 Bulleid Coach luggage racks Walk the Line- Ballast Appeal Restoratlon of locomotive 34058 Resto¥ation of locomotive 75079 Restoratlon of locomotlve 80150 Restoratlon of locomotlve 73096 Restoration of Haylin8 coaches Restoratlon of locomotive 34CQ7 Miniature Railwav Dlesel 08288 Wlckham Trolley 3,975 20 31.875 620 3,995 19,371 17,987 3,355 202,850 73,344 26.114 7,120 21,900 4,617 3,576 1,796 125 12,504 17.367 3.3S5 202,473 70,519 18.947 6,907 21.￿￿) 4,617 3,576 L796 377 2,825 7,167 213 125 355,432 43,222 12,504 386,150 Company: Totsl Unrestrlcted Funds Total Restrlrted Funds Total Balante at l February 2020 Net Income for the year Unrealised losses on investment assets Transfer 3,505.881 143.765 355,432 30,718 3,861,313 174.483 Balance at 31 January 2021 3,649.646 386,150 4,035,796

Mid-Hants Railway Preservation Society Limited 29 Notes to the consolidated financial statements For the ear ended 31 January 2020 {Contlnued} 19 Fund Balances {contlnued) rjestription of Funds: Unrestrlded Funds These funds are for Befteral use In the furthera￿￿ of the Compan*<s objectives. There are no funds deslgnated for specific purposes. Re5trlcted Funds Locomotlv• 35005'Canadlan Padfle (Prolect Englntefln8 a Future from the Past} Locomotlve 35005 is owned by the Company. This fund represents giving associated with the appeal to overhaul the locomotive and the restoration of two Bulleid coache5. S1456S and S4367S. The excess costs have been taken from the unrestrlrted funds. Restoratlon of Lo¢omotfve 34058 '5ir Frederfck Pile, Locomotive Is owned by the Company. Thls fund represents donations received speclfically to assSst the restorailon. R•storatSon of Locomotlve 75079- Locomotlve Is owned by the Company. This fund represents donatlons re¢elved specifically to asslst the restoratlon. Some of the funds have been spent and the balance is carrled forward. Restoratlon of Locomotlve 80150 - Locomotlve Is owned by the Company. Thls fund represents donations recelved speclflcally to asslst the restoratlon. Some funds have been spent and the balance carried forward. Restor•tlon of Locomotfve 73096 - Locomotive Is owned by MHR Ltd. Thls fund represents donatlons received specifically to ass15t the restoratlon. Some funds have been spent and the balan￿ Carrled forward. Restoratlon of Locomotlve 34007 W•debrfdge'. Locomotlve Is owned by Wadebrid8e Ltd, which is undertakin8 the restoraiion and funds have been transferred to that company. Dlesel shunt•r 08288- Locomotlve Is owned by MHR Ltd. This fund represents dOna￿on$ re￿1Ved speclfically to assist the restorailon. At the year the funds have not been spent and gre cathed forward. Restoratlon of wa8ons- This fund represents donatSons rrfeived specifically to asslst wlth the restoration of waBons. Some of the funds have been spent and the balance c3rriÈd fon¥ard. 8ullekl Luggage racks. Thls fvnd is to restore and replace the racks in Bulleld coaches, S1456S and S4367S. At the vear the funds have not been spent and are cafried forward. th Restoratlon of Hayllng coa¢hes- Th15 fund represents donations recelved towards the restoration of four 19 century coaches built by the London Brlghton and South Coast Railway. At the year the funds have not been spent and are carried forward. Miniature Railway- This fund repfesents monies received to support the expanslon of the miniature rallway. At the vear the funds have not been spent and are carried fon¥ard.

Mid-Hants Railway Preservation Society Limited Notes to the consolidated financial statements For the ear ended 31 January 2021 (Contlnued) 20 Analysls of net assets between funds At 31 January 2021 fund balan￿S are represented by: Group Total UnrestrktÈd Funds Total ReStrI￿ed Funds Totsl Flxed a55ets Current assets Current liabilities Long term liabilities Provisions for liabilitie5 8.132.863 2.817,430 11,144,991) 11,195.1851 1321.7051 386,150 8.519,013 2,817,430 11,144.9911 11.195,1851 1321.70SI Total Net Assets 8.288,412 386,150 8,674,562 Company Total Unr•strlct•d Funds Totsl Restrlcted Funds Total FSxed assets Current assets Current liablllties Long term liabilities 2.852.702 886,392 139,4481 (so,0￿) 386,150 3,238,852 886,392 139,4481 150,0001 Total Net Assets 3,649.646 386,150 4,035.796 21 Audltorg remuneratlon The auditor5, remuneratlon in respect of non-audit fees. rendered to the group. is £8.73412020: £8,480).

Mid-Hants Rallway Preservation Society Limited Notes to the consolidated finanaal statements Forthe ear ended 31 Jan 2021 Contlnued 31 22 Capltal and flnanaal commitments Total future mSnSmum lease payments under non-fdncellèble operating leases: 2021 2020 Lind and Bulldin8s Land and BuSldln85 Oth•r Other Falling due= Wlthln I year Wlthln 2 to 5 years After more than 5 years 39,452 43,925 319.CrfXJ 94.C 331,( 112,8 319.C 133,452 331,000 156,725 As at 31 january 2021, the Group had capital commltments totalling £Nil12020= £Nill. 23 Constltutlon The Company has no Share capltal and Is Ilmlted by guarantee. In the event of a wOndin8 up, each member of the Company Is Ilable lo contribute an amount not exceeding £1. As permltted by section 408 of the Companles Art 2(￿6, the holdln8 Companvs Income and expendlture account has not been separately Included In these flnanclal statements. The holdlng Comp8ny's surplus for the flnancial year was£174.48312020.. deflclt £6.5441. 24 Related party transactlons The Company has transactions with its sub5idiarie5, Mi&Hants Rallway Umited and Wadebrid8e134C¥)71 Locomotive Limited. These transactions are delalle(l in Note 9. As at 31 January 2021. the followlng Indlvidval held shares in Mid-Hants Rallway knmited.. R Latham 900 shares and R Lacey 400 shares. 25 Control The Company Is under the control of the Board of Trustees.

Mid-Hants Railway Preservation Society Limited 32 Company statement of financial activities {including Income and Expenditure account) For the year ended 31 January 2021 Unre#rirted Restrkted Funds Funds Total Funds 2021 2020 Income Donations and leg3ae5 Income from charitable activities Investment income 316.645 41.575 460 37,838 5,384 354.483 46.9S9 460 360,986 68,791 1,043 Total In¢ome 358,680 43,222 401,902 430,820 Expendlture Cost5 of raising funds Expenditure on charitable activtlies 28.997 186,844 28.997 199.348 24,018 419,324 12.504 Total resour￿ expended 215.841 12,504 228.345 443,342 Interest paid Unrealised g3inJllossl on investments 625 1,551 625 1.551 5.978 Net Ideficitllincome 143.765 30.718 174,483 16,5441 Transfers between funds Net movement in Fund5 143.765 30.718 174.483 16,5441 Reconclllatlon of Funds: Total fvnd5 brought forward 3,505,881 355,432 3,861,313 3.867.857 Total funds carrFed forward 3.649.646 386.150 4,035,796 3,861,313 This ststement does not form part of the audited accounts.