*TERcRE&S UNE Watercress Line Herrtage Rallway Trust Umlted (Limited by Guarantee) (Previously Mid-Hants Railway Preservation Society Limitedl Annual Report and Consolidated Statement of Accounts for the period ended 31 March 2022 Company regigtered number 112659(1 Charity registered number: 284406
Watercress Line Heritage Rallway Trust Limited Annual Report and Consolidated Accour For the perlod ended 31 March 2022 Pages Trustees and advisers Chairfs report Tru5tee5' report Ilncludlng Dirertors. and Strate8ic Report) Independent audltors, report Consolldated statement of flnancial artlvitles Consolldated and company balance sheets io Consolldated cash flow statement li Notes to the consolldated financlal rtatements L2-31
Watercress Line Heritage Railway Trust Limited TRUSTEES AND ADVISERS FOR THE PERIOD ENDED 31 MARCH 2022 Trustees David Jones-Chalr- appointed 24 Aprfl 2021 Peter Smlth- Group Secrtary Gregory Watson- Group Treassjrer Rob Latham- fesigned 12 September 2022 Davld Ford- reslgned l Aprfl 2022 Rlchard Hawkins- appointed 24 April 2021 Stephen Evans Rlch3rd Lay- appointed l November 2021,. resigned IZ September 2022 Charles Ackroyd- appolnted ll S¢ptember 2022 Cathy Hakes-appolnted 12 September 2022 Neil Garwood- appointed 12 September 2022 jeremy Small- appolnted 12 September 2022 Secretary and re8lstered offlce Peter Smlth Alreslord Statlon Alresford S024 9JG Chlef Executlve Officer Amanda Squlres Reglstered Audltors Cochrane & Co ACCOUntar Umlted Reglstered Audltor 38 Klngs Road Lee-on-the-solent P013 9NU Bankers BaTdays Bank PIC Natitsnal Westminster 8ank PIC Lloyds Bank PIC Sollcltors Taylor Fordyee 1 & 2 City Business Centre Hyde Street Winchester S023 7FA Parls 5rnh l London Rrjad southampton S015 2AE
Watercress Line Heritage Railway Trust Limited CHAIR'S REPORT FOR THE PERIOD ENDED 31 MARCH 2022 As I Wrote thls, I reflect on how much has happened In Just a year. Two years ago, we started work on a revlew ofthe go¥emance of toth theTrust and the operalinB company and thelr relationship. These new arrangements were endorsed by members and shareholde s at the last AGMS In February and thi5 year has sent the implementatlon and consolidatlon of our plans. The new named Trust- The Watercre55 Llne Herftage Rallway Trust. Is now establlshed and l! responslble for the pollcy. strateglc direction and fundraislng for Mid-Hants Railway Ltd whlch manages and )perate5 the rallway and commercial activlties. We were delighted that Amanda Squlres, previously COO at 8Tooklands Museum, lolned us In ,Iu8USt 2022 as our Chief Executlve of the Watercress Llne. She wlll provlde stron8 leadership at a very impon.ant time for the rallway. We have also conducted an extenslve search and four new Trustees loin the Trust in October 2C 22, brlnglng a Mixture of commerclal business, leisure and herita8e tourism• governance and charlt?ble wperlence to strengthen our board. Our thanks go to Rob Latham for h15 lon8 service as he stsnds down frorr the Trust. We contlnue to face strong financlal headwlnd5 a5 the economy fakers and the impllcations of a war in Europe contlnue to affert ¢onfiden¢e. Costs are risln& not only In coal prices but Inflatlon wlll hive an effect on our operation. We are clear that our major goal must be to embark on a major fundraising (.'ampai8n to mltlgate these increases. The Trust and MHR Boards contlnue to work together to develop the Watercress Llne brand. retyjgnlslngthe Trust's obligatlon a5 a Charitable Trust to ensure allgnment between the Rallway's actlvitie5 and our published educatlonal and heritage aims. I would Ilke to thank my fellow Trustees, our volunteefs and the employees and officers of tht. Mid-Hants Railway Ltd for thelr dedication and hard work over the last 14 months. Our collective 8ratltude goes to the donors. benefartors and grant-awardlng bodies whose generostty helps keep us golng and secuDs the future of the Watercress Une. Wlih a new sirurture and new Trust Board. we have every confldence we can weather the storm and ensure The watere$S Line thrivesl Davld Jones Chalr 17 Ottober 2022
Watercress Line Heritage Railway Trust Limited TRU5fEES' REPORT (INCLUDING DIREcfoRS' REPORT AND sfRATEGIC REPORn FOR THE PERIOD ENDED 31 MARCH 2022 The Trustees pre5enl theif report and audited con5011dated xcountsfrjrthe period ended 31 March 2022 Iri ¢ompllance w4th statutory requirernents and the Societys Memorandum and Articles ofAssociation. These reflect the r,¥ulrements of Accountlng and Reporting by Charlties.. Ststement of Recommended Ptsctke applicable to charities pri.'parlng their acco¢Jnts ir accordance w?th the Flnandal Reporting Stsndard appllcable In the uKar Republic of Ireland IFRS1021 and the Companies Act 26. ObJertlves and actlvltles The Charity's objettive5 are (for publ1¢ benefftl to presery¢ restore. maintain. opernte. exhiblt. educirte. Instru¢t. stlmulate, promote and encourage interèst in heritage railway5. locomotives, rolllng stock, buildin851 ilrtifacts and eguipment and to foster and support railway presefvatlon, Structure, governance and mana8ement rnin The Watercre55 Line HeritaBe Rallway Trust Llmlted 15 a Company Ilmlted by guarantee. The Company a5 granted charltable status in May 1982 and Is gIStered with the Charity Commisslon. Aevlsed Artlcles ol Assoclatlan, effective from l Aprll 2022, ware a8reed and re8i5tered by Companie5 H¢ and the Charities Commlssion. The Trustees Iwho are also Dlrector5 of the Company for the purposes of company lawl who have seryed through the year under review were.. D Jones_ Chalrlappolnted 24 Aprll 20211 SNEvans+ R Latham Iresigned 12 September 20221 P Smith. G H Watson+ R Hawklns. lappolnted 24 Aprll 2021) Davld Ford+ Iresl8ned l Aprll 20221 Rithard Lacey (appointed l November 2021.. resl8ned 12 September 20221 Charles Ackroyd (appointed 12 September 20221 Cathy Hakes (appointed 12 September 20221 Noll Garwood lappointed 12 September 20221 Jeremy Small lappolnted 12 september 20221 * Trusteeswlm) are also raS otthe wb51dlary Company Mld-HaThts RaIa¥ Lt +Tru5tees who •re also Dlrector5 olthe Subsldlary Company W¥debrWy131CQ7) L0¥• Ltd As set out In Note 23. the Ilabllity of Members Is Ilmlted to £1 eath. The TrpJ5tees are subjert to elethon or re-election accordlng to procedures set out In the CompanV5 Arbcles of Assodation whlch 15 its go¥ernln8 document. On appolntment, new Trustees work alongside exist Trustees to 6ahD experience. Tralnin8 15 made avallable for all Trustee5. stee Recruttwnent and Tralnin The Trusvs Articles ofA550ci*IDn pemifcthe appointment of a minimum of the and up to nlneTru5teelDlrectOTS who haveto stand-down afterthreeyears but may be re-elèd(ed for two fvrther periods. All are required to be approprlately skilled accordingto the needs of the Trust to fom an effectlve Board. Trustee5 Teteive èppiopriate indurtion, ongolng tralninB and annual performance appraisal. sation and M ment The Charity opefates through a Board and the Tnjstees are also Directors of the Company. The Trustees determlne the general policy of the Tru5L The Board meets regularty throughout the year and is supported by the Chief Executtve Officer who advises Dn and implements decisions. The Board is responsible for sèrrin8 strate8y and direction with the MSd-Hant5 Rallway Limited la Subsidiary Company) runnin8 railway operation5 and commera31 activities. The Board regulady reviews the flnance5 and rlsks of the Chartty and its 5ub5idiarycomp/ny. Routine admlnlstratfve fvnctions are undertaken by MId-Ha[ Hallway LTrm]ted.
Watercress Line Heritage Railway Trust Limited TRUSTEES, REPORT {INCLUDING DIREcfoRS' REPORT AND STRATEGIC REPORn FOR THE PERIOD ENDED 31 MARCH 2022 (Continued) Related arties The Company has tsvo subsldlary cornpanles- Mid-Hants Railway Llmlted I'MHR Ltd'l which opeTate5the rallway under the brand name The watere$S Lin¥. Shares in MHFi Ltd may only be purchased by the TTUSt with effect from l April 2022. Wadebrldge1340071 Locomotive rnIted Iwadebrldge Ltd) whlch owns the Southem Rallway West Country class locomoUve'Wadebrldge'. which is In the inltlal 5ta8es of restoratlon. Sh?rehoiders of MHR Ltd and Wadebrld8e Ltd are encoura8ed to considertraftsfefrfn8 thelr $hares to the Charlty. er tio The Charlty contlnue5 to achleve Its t)blectfves of supportSn8 heritaBe rallway preservatkin and restoratlon whlch It malnly carrle5 Out through its 5ubsidlary MHR Ltd. The Charity makes grants for spÈ¢lfic prDlects whlch fall wlthin its obiertNes. The Charrty, through MHR Ltd. welcomes VLgrtors and volunteers from all b3ck8rounds. Volunteers are the foundation of the rallway, and are athsed and tralneLI on areas where they ¢an assisL The Watercress Line welcomes young people who wantto leam about and ersloythe complexft6es of runnln8 a herltsge railway. includlng a Mlnlature Rallway at Ropley th pr¢ides • unlque insight. A number ol local Interest Groups enable Member5 to lèarn abo¢Jt the Society and to meet and change vlews and Informatlon. The Trustees take attount of these views when conslderlng future pvojetts. The work of the railway's Marketln8 Oepartmenr also helps inform Trustees about the profile of vtslton and thelr expectatlons. The Trustees gratefulty acknowledge the contlnuln¥ fin•ndal and physlcal involvement Jnd supptsrt of rnembers and volunteers to restoratlon projects and Tunning the railway. WSthout their commitment and enthusiasm the Charityand Rèllway would not be able to operate. RSsk Man emen The Trustees examine the major rfsk5 that the char faces when PfepafinB and updatln8 their plans. In conlunctlon wlth the Dlrector5 of MHR Ltd. the Chadty ha5 developed systems to monitor and control these risks io mana8e any Impatt that they may have in the future. MHR Ltd controls the Safety Management Systems for the operatlon of the rallway and onxolng fevlew4 Includes rlsk analysls and èssessnnt. bl c8en The Trustees have had regard to the guidance on public benefft Issued by the Charitles Commlsslon ond are satt5fled th31 all Chaflty operh)ns and aVItIeS fall wlthln that 8uldance. Fund raisi standard The Charlty Is ie8lStered by and upholds the stsndarth ofthÈ Furhdrai&n8 Regulator. Itappeals forfunds from members and supporters Includin8 in the Wateruess Llne News, and on the website. The Charity doe5 not sell or pass on anv detalls about 5 membeTS and supporter5 tg any otherorganlsatlon and complles wlth data protertion requtrements. Period of accounts The accounts cover the 14 month period from l February 2021 to 31 March 2022. The fi8ures, are therefore. not comparable tothe PTevious accounts which were for the 12 months to 31 January 202L
Watercress Line Heritage Railway Trust Limited TRUSTEES. REPORT IINCLUDING DIRECTORS REPORT AND STRATEGIC REPORT) FOR THE PERIOO ENDED 31 MARCH 2022 (Continued) Strate ic Pian The Boards of the Charity and MHR Ltd routynety meet to conslder and agree strateglc prk)rities and plans. ustainabili and Linnln forthe The Charity Commlsslon encourage5 Trustees to consider the Sustslnablltty of their charity and its future. Current knowledge indicates no current spedfic finandal or operating problems. However, it15 reco8nlsed that member5 and volunteer5 are a8eln8 ond, whlbst younger volunteers are tsking on new responslbilities, the TTU5t re¢o4nlses that SIgnlcant changes ale needed so the CharSty and Its operating 5ubsldlary can thrlve and ¢ontlnuÈ to a¢hleve Its maln obJÈttives in the comin8 dades. In the year under revlew, the Charlty and MHR Limited implemenied the re¢ommendatlons of its Govern8nce Group to change thelr constitutions and ways Df worklng to enable the future achlevement of its objectlve5. Wh115t economic and other challenges remaln. theTrustees are 5atlsfied thatthe successfijl Implementatlon of these than8e5 provldes a secure foundation for the lon8-term sustalnability and vlablllty of the raIay. Flnanclal revlew The year produced a sood result net Income of £869.339 compared to £394,748 last year. The sub51dlary companles, Mld-Hants Rallway Umited repor1 a pmflt of £111.165 (Note 91 and Wadebrid8e134007 omotfve Llmited reported a loss of £13,076 In the perlod year ended 31 Marth 2022. Note 20 to the flnao)cial siatements shows the assets and liabllrties attributablè to the varlous funds by type. Group unrestrlcted funds (Note 191 amount to £4876,437. After allowln8 for fixed assets of £9,154,376 there 15 a deficlt of 'fr8e' reserves of£277,939 compared tothe 2021 deficit figure of £14Z,513.The Trustee stated oblectlve15 to rnalntain level of 'free' reserttes at a level of one yearfs unrestricted expendlture In the Company12022.. £136,422 . 2021.. £228,345). There has been tontlnued to bevery si8nifftcant investment Iri 8roup Fixèd assets thls ¥ear12022'. £1,028,346 - 2021: £345,2801 whlch affects the level of 'free' reserves but contlnues to place the Charfty In an excellent posltlon for the future. The Trustees, poliq Is, therthre, to contlnue bulldln8 up fund5 by means of annual operatlng surpluses. suppltmented by general purpose or speclflc appeals from tlme to tlme. nsforf ure The Covld-19 PandemSc contln4te(I to affect the opeTrtions of t Watercress Line durln¥ the perlod. The Boards of the Charlty and MHR Ltd mèt durlng the period to re¥lew th• financlal posilion of the companie5, develop the fvndralsing rtrategy and 8rant appllcatlon5. The Charltrfs Income Include5 3 lar¥t pmportion of grnnts, donatlons and legacy Irhcome. By Its nature the level of thls Income cannot be assured In any year. The Trustees acknowled8e that they would be able to delay capital prolerts If required to balance (ash flow were there to be a shortfall in expected Income. Lookin8 fr)ard, the Trusteès expett Income to be a contlnulng MLK of grants. subscrfptlon& donalons and legacy income. Short tèrm obje(tive5 tst the Trust include z number of stOration proje¢t5 thè most slgniflcant of whlch Is to ornplete the HLF fun(Jed restoration of lowmotfve 35CK15 and the restoration of locornDtlvÈ 75079.
Watercress Line Heritage Railway Trust Limited TRUSTEES, REPORT (INCLUDING DIREcfoR5' REPORT AND 5TIIATEGIC REPORn FOR THE PERIOD ENDED 31 MARCH 2022 (Continued) Trustees. iesponglbllltles slatemert The Trvstees (who are also Dlrertors of Watercress Lt"ne Heritage Railway Trust Limrted for the purpose5 of company lawl are responsible for preparing the Trustegs. Annual Report, Including the Strate8ic Report and the financSal statements in accordance wth applicable law and Uruted Kingdom Accounting Standards IUnlte(l Klngdom Generally Accepted Accountlng Practlcel. Company law requires the Trustees to prepare finandal statéments for each financlal year, whlch glve a true and falr view of the state olaffairs of the charitsble group and of the Incomin8 resources and appllcatlon of resources, Includlng the Income and expenditure, Df tht charftable group for that pericl. In preparing these ffinancSal statements. the Trustees are requlred to.. selert suitable a¢ountinB polktes and thEn appty them conslstentlyi observe the methods and principle5 in the Charitles SORP 2015 IFRS 1021; make jud8ements and estlmates that are reasonable and prudent,. stète whether appllcable UK kcounting Standards have been followed. subject to any materfal departure$ dlsclosed and explalned in the finan¢i?15tatements,' prepare the financial statements on the golns concem basls unless It Is inappropriateto pUm&that the Company wlll contlnue In buslness. The Trustees are responslble for keeprrt8 proper attountlng records tlththlch dtsdose wtth reasonable accuracy at any tlme the flnan¢lal posltlon of the Charltable Company and the group and enable them to ensure that the financial statements comply wlth thecompanies Act 2. They are also responsibleforsafeguardlng thea$sets ofthecharitable Cornpany and the group and hence foi taking reasonable steps for the prevention and detection of fraud and other Irre8ularltl8s. Dls¢losurn ol Informathn to •udltovs In so far as the Trustees are aware: there Is no relevant atjdlt Informatlon of whlch the Charltable Company's audltor Is unaware,. and the Trustees have taken all steps that they ou8ht to have taken to make themselves aware of any relevant audtt Informatlon and to establSsh that the auditor is èware of that Informatlon. The Trustees are responslble for the malntenance and Inte8rlty of the corporate and financlal inforniatlon Included on the compan(s web$5te. Legislation In the Llnlted Kln8dom govemln8 the preparntlon and dlssemlnatlon of flnart¢lal Statements mèy dtffer from lew'slatlon In othèr jurisdtrtiort5. Audltors Cochrane & Co Accountants Umfted are deemed to be re4ppolDted a5 ?udltors under settion 487121 of the Companles Acr 2C¥J6. In approvlng the Trusteg Annual ReFor¢ also approve Strategic Rwrt induded therein. ikte.. Jil(*> Alresford Station AlresfDrd S024 9JG By Orderofthe Board ae Peter Smfch Group Secretsry
Watercress Line Heritage Railway Trust Limited
INDEPENDENT AUDrfoRS' REPORT TO THE MEMBERS OF
WATERCRESS LINE HERrrAGE RAILWAY TRUS[ UmED
Q4wIW Qpb4oD
We audiied the finandal 5tatemert501 Watercre55 LIMÈ Herittye Ra Trijst i(mrted (tt'parent tharitaL4e o)mpanl and its 5ubsi4varies
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In our opinioh, excw lorthe w&4)k effectson dthe mtrdesthed lrtthe bAslsfw¢W•lffiedoF4¢7Th ofour
rpc¢ ihEffnancial 5ttriements:
a true fair ¥015t1te of ihE grou$ ctynparfsaffair5 as it 31 Marth 2021 ind ofthe irtyjp's theoml
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we were nE+t?ble to attend. Stockwas kn¢ded inthEblnc• $tal a¥401£111,s.Cwth, we Keurto•tD d•t•rm5hewhethr Ihere
Is aw consequtntrèl Ill1pt effert OD the eosi d saS1l¥ the period ed 31 Mlrch 2022. 1)Jr op1nil on fiTh9no•l xtitements for
ye¥r •nthd j1Janry2ol1 was rnadlfled xctrdlrryty. Our on th• financk41 st4t•rn 15 thD¢ldI•I btt•uM of the
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the UK, Includlrff the FRC'¥ ethcal Stsndard, w• h¥% fLthlt•d hr ethlt41 r5p>Wt1lIeS In ou0rdae wlth thv4t r•gulrnments. We
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15 Jppropnate.
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Watercress Line Heritage Railway Trust Limlted INDEPENDENT AuDORs, REPOtrrTO THE MEMBERS OF WATERCRESS UNE HERITAGE RAILWAY TRusf UMITED We hav nuthln8 tt> repryi kn rttyErt rfthe foOoryrq mrtter5 to which the Cwarte5 4•Lt 2Cffi reqwrns u5 to tepurtta ¥ou W, kn lequete and suffideftt account1 rocurds W notl>oqn kept tytrpArurtdwhzWe ahpOnY.0r returr&¥d#Juar• for our wdit have rtoi been reC¥d from brath not¥ited byty5: or the parenlchaFitst4e tyrnnwsfma3ls1ateMwSr5arÈr1Otkn and retwns,. c certain dtselosures otdlrÈcior rneral>1cI1IEd tyl•waTr nm rrrade.or the dIrctr wÈrenoieDiidRd toprepareicctyJDts In accordanreTitt15rnallwnpanie5r4wrte•rd te ithwntsKeofthe 5m4lconbpanlES eXeMptn5 h pfep8ilni1direQrs, and frtyntho rEqutr•eotsto prepare a 5vieKNL Asexplained morefultyinth¢truste25' reswWbllts5t•iqmentset¢Jrtrm pwlth•tyustetslwho4rlththrECtorsofthetharftablocompJny torthe puTrose5 oftthnpanyl8wI lorthe of thefln•nd•l $tatementslforbwwsrtbfRdthèt a tru4 and fair irt, andforsuchlDtrrna5c¢ntrolasthetrnsteesd•teMknphneceswthwabtheprepirtt•offiwd41 #¥¢•wtsth•refreeffomrnat•dal m15Slatern•nt. whwherdueto fr•ud orerror. In Ppa the flrFandil statem•nts, #tiUMsare i•5wbI fty•w•5trirourfs and wrerrt(h¥rtablecompJni •blitytocantlnu •$8 BolnK conLvn, diJd051rf, asap¢4bI8. m•tter5 rtw lo¢t¥eM and theIn&c b•sis ol ècc¢ymUn8 unssthE trustees e5tker Intend to Ilquldat•thE W0UPtpaT¢ thilitaE tryny¢¢tocwopernIb,<¢ hwe no •kernaYve ¢100 so. W•hav• b•en •Prted {Jitor undwih tsnpanie5kt Z(01jth OMI1sAtI 2021 •r4 revt in ¥eeoYd•ncewth th95e Acts. C¥ oblectl¥es aretovbtyn i•asonabIea59Jrarts•t¥ whethw th•fiThJnthl ststementso• w•r•free from materlal m&Jtstemtniwhuiher due t• frnud or etror, Of#1 to $sU •n iwlltyrfs that Indude> R•son•t wJonre 1$ • hh l•¥tl of ¥Irince b¢Jt a iuarants• thèt an ludlt IW IUK) (knEd • matetsl rnb•tun¢rt whoD kol$ts Mlssterneftts<an artse Irom fraud or ¢rror Jnd ¥r• conld¢r•d malw1 N, th• •AlW•. tth t•Jkl r•wnth be tolThfiu•nc• th• eronom do4slons oluserJiik•n ohthtbailsof th•s• fln•Ael•l si•fem¢rrt¥. i¢r¢iul•rlt4es, Indudkns Iraud. lie of nLTrccMthnce wulrtiDn5. WE de pro¢¢dures ID Ihe ¥Ath our respon101, ouylned aboyq to dBtert m•t•rl•l mb¢ments wE5r ol ¥rqylaritse5, Irt1 fr•. Th• •xt•nt to wlmth our wo¢edurw are capats ol d•t•ciln& Irrryularits, Includlw fr8ud bs dttslw b•W. 8Et¥uM olth4 Infrker•ntllmltatloniof ifft •udK thoro k%artslthttwe41not d•aNrl1IjdlthDSel+•dlNt0M1IQr mlsst•t•mEn¢ In flDano•l ststernentsor nOfv¢&ncewlth reoutsllon. The 1rre45¢Sthe or regul•tlon Is rtmoved from the e4•nts and trin5arlioTrs refiocted In the finant5 $tsteMen 8$11 Itss Ilkttyto be((rfne aware tsf )Stances of non4ompninc2. The r15k k5 4150 8reater rarlI regukndtl•s rKcurrlni to rather wru, frnud InitntkJn•l conlMent for8ery, eolhjslon, omlnlonorm15répresentaii¢n. hswt•rn•blEto rt4bewtheeniirnrnI It ltdithir wrth•rKe4yldere¢tirm15 kncrused. A lurther de5ulptkii of ¢)ur respon51Ninie5 for the audlt of ittt lINlI #at4fflenlS Is XIled w Ehv Repxiing websltt 4¢.. www.fr¢w8.UklOur.worklAudftlAud.IDd.wraKistsndbrdfvand.8uInC+1ry-wJbjs4rySIbIIt.tthVDesCr1PII0f. lud0[5-resD5IIes-t0fUdIi.4$PX.. W? wrh th•ryed vAth rDqtt•r4 the lknlrrf ofthe audlt iTra ¥udft ftndlnp, InCdl SI11 1AkndCthjt11enbTr&jIoYrl Uxolour repurt Th15 rtport s nHd• sc4qlytofhe chritlble ¢wip•ni * body. 4¥1thChmtr3 01P 16 Of ¢omF•nlqsAct INJ6 •nd tothè thafitsbl• Lompans IrustW, a53 Wi. In aceDFdarKevthh Part 4 Tr•rttle5 IKctyJnts4nd Reprrtsl Rrfulokns 2rth. Our •udltwork ha5 beèn undertaken so thJtwq mthtststttsthe tharttable£Gwans memberSd ttsTntsttes th)%e matters wear¢ 1r& to stateto them In in au(Itorfs report and for no other purpose. To tho fulbEstthent pffmitted ty , rdo not ceptor85sume re5ponsrt)Illtyto anyffie other IhaD ihe tharItae ¢omp4nynd th£ chth•bk MbSa5 a tsothrf aThJ thEddtth¢ comPan$Ttee$ 45 8 tx)dy.foi our #udlt work. forth15 rekh)¢ orf¢itk oplnlws wt havtlomied. Jo•nne Cothmne BsCFCAISenSutoryAudlEorl Foi and on bÈhalfofCothane & Cop*couni¥Thts Limit AcrDuntanti and StatutoryAudftuts 38 Kln85 Roi& Letr¢trthtrSc4vrt Marnp5hlie P013 9NU
Watercress Line Heritage Railway Trust Limited Consolldated Statement of financlal activitles {includin8 consolidated Income and Expenditure account) For the 14 moftth perlod ended 31 March 2022 Unrestrlrted Restrlrted Funds Funds Totsl Funds 2022 2021 Income Oonatlons and legacles Income from charitable activltles Income from other tradln8 artlvltles Investment income 444.279 48.191 3,741.027 970 4W,661 8.549 354,483 45.959 2.701,660 460 56,740 3,741,027 970 Totsl Income 4.234,467 409210 4,643,677 3,102,$62 E¥p•ndltur• Costs of ralsin8 funds Expendlture Dn charitable attlvltles 3.668.377 106A96 3,668.377 109,734 2,607,922 ioa,818 Totsl exndItur• 3.775,273 2.838 3,778,111 2,708,740 Unreali5edlrea115ed Maln on Snvestments Interest payable 3.773 3.773 1.551 625 Net Incoffle 462.967 406.372 869,339 394,748 Transfers between fund5 19 125,058 1125,0581 Nrt movement In fvndj 588,025 281.314 869,339 394,748 R•conclllatlon af lunth: Total funds broughi forward 8.288.412 386,150 8.674.562 8,279.814 Total funds carrd forw4rd 19 8,876A37 567854 9,543,1 8,674 ContFnulnE operatlons l of the activlttes of the group are classed as contlnuin8. Total let1$*d galns and losses The group has no recognised galns or1055e5 Other than the suWus above.
Watercress Line Herltage Railway Trust Limited io Balance sheets t 31 March 2022 Group Company 2022 2021 2021 Notes Flxed assets: Tanglble assets Investments 12 9.154.376 91,861 ,430.925 2,631,514 918,383 2.333,387 905.465 rotolfixedossets 9.246.237 8519,013 3,549.897 3,238,852 Current assets: Stcik DebtOT5 Cash at bank and In hand 14 270233 57,238 1253,885 211.5 340,535 2.265,09) 23,964 1,449,179 27,519 858,873 Totol¢uffertt(7ssets 2581356 1817.430 1,473,143 886,392 Llabllltle&' Creditors.. 3rnounts frdlling due within one year 16 1971.7931 1944,9911 {215,9941 Net current (wets 1,6LVJ,S63 1.872.439 1,257,149 Totol u55ets less curentliobillties 10.855,800 10.391,452 4,807,046 Credltors: amounts falling due after more than one year Provisions for lbIlItIeS 17 I9383} 1373.0261 11,395,185) 1321,7051 1S(,OC() Totsl net ass8ts 9.543.1 &67462 4x17,046 40I.796 ThÈ Funds of the Charity. Restrlcied income funds 667.464 386.150 667.464 38E,150 Unrestricted income fvnds General fijnds Other reserve Mlnorlty Interests 7,847.808 514,765 7.257,998 514.765 515,649 4.139.582 Total unrestricted hjnds 8.876,437 ,288.412 4.139582 3,6413,646 Total Charfty funds 19&20 9y3Jn 67462 4,807,046 4,031j,796 The financial statements on pages 11 to 32 were approved by the aoanl of Directors and authorised for issue on and were signed on its behalf by-. Dltector- Jon Dlrector- G H Watson
Watercress Line Heritage Railway Trust Limited li Statement of consolidated cash flow For the period ended 31 March Z022 2021 Net cash provlded by Operati actl¥ltl&" 18 L230,986 573.787 Cash flows from Investi% xtivlttt&" Intér25t received Dlvldends reiVed Purchase of tanglblefred assets 970 IL027,381) 1337,8211 Net rash used in investing actt¥itles 204,575 236,755 Cash flows from flnandnK acti¥ltles: Increasellreductlonl of boTrowings 1215,7801 3,852 Change In 5fv and cash equ]valents in the y•ar 111.2051 I,1),(? Cash and osh equtvalents at the start ol the year 2,265,09) 1,164A83 Cash and cash equlvalents at the Ènd ofthe year 18 2,253085 2265.090
Watercress Line Heritage Railway Trust Limited Notes to the consolldated financial strdtemerts For the riod ended 31 March 20Z2 Summary of 5i8nificant accounting policies The principal accountrng pollc1è5 adopÈed.ludgementsand key50urces of e5bmation aNI uncertalnty In the preparation of the financial statement5 are as follows: Sasis of preparation The Company Is a registered tharity and constitutes a public benefft entitv a5 defined by FRS 102. The fSnancl31 statements have been pvepared in aciordancewtth Accountingand Repothng bycharities.. Statement ol Recornmended Practice applicable to charities preparing their3ccounts in accordance with Financial Reporting Stsndard applicable i the UK and Republic ol Ireland IFRS 1021- Charities SORP IFRS 10211. the Firtanclal Reporting standard applicable in the UK and Republic Df Ireland IFRS 1021 and the Companies Att 2fAJ6 and UK Generally Accepted Accounting PracCL The financial statements are prepared on a going £oncern basis unde¥ the historical cost basis of accounting, modified to include the revaluation of freehold land and buildings and certain (rther a55ets. The financial statements are presented in sterling which is the funcbonal currency of the charity nwnded to the nearest £1. Basis of fon501idation The Group accounts consolidate the results of the Charity and its subsidiaries. Mid-Haots Railway Mited and Wadebridge 1340071 LocomotJve rnfted are corsolldated using the purchase method. The net income Irom the subsidiary companies is shown In note 9 of the accoun Intem31 sales and profits are eliminated on con501idation. Going CorIrn The financlal statements have been prepared on a going concern basi5 as the Directors bdieve that no rnaterial uncertainties exist. Duringthe periad, the Watercress Line wa5 forced to close due to Covid-19 Pan(Semic lockdown requlrements, r&opening wtth revised services and meeting Govemment guidelines. The Trustees have consldered the level of funds held hnd the expected level of Intome and expenditure for 12 months from authorSsingthese financial statements. The budÉeted income and expenditu is suffiuent with IEwel of reserves for the Chartiyto be able to continue a5 a goin8 concem. Tanglble fixed a55ets Tangible fixed assets are ststed at C05t, or deemed c05t, bein8 purthase pri or valvatlon. less accumulaied depreciation. No lower limit is applied to individual items that are capitslised. DeprÉo8tion is provlded to wrlte off thÈ cost of fixÈd assets to their rÈshlual ¥UeS lry equal annual Instslments ai: the following rate5'. FehOld land and buildings Plant and machinery Assets ill the course of con5trvctiC•n Nil to 2% per annvm Nil to 25% per ènnum Not dÈpclated until brou8ht into use Locomotlve5 are deprlated over the length of their bOir certificate Ivsualty 10 years) down to their residual value. Where a locomotive, owned by an independent group, is overhauled by the company and a long term hire agreement is in place, the costs incurred are capitslised. Costs are depreciated on a 5tsaight line basis over the expected useful life lusually 10 yearsl. Other than the engineeiing workshops at Ropley, deprecSated at 2% per annum, the freehold land and buildSngs are notdepreciated below theirresidual walue. In the opinion of the Dsrertors, it is the Compan15 purpose to restore, preserve and keep these assets good repair for luture. Freehold prortY conslsts mainly of hlsttsrlc buildtngs which hève long useful etonomit Ilve5 and high residual values. Any depreciation charge would be immaterial. The Dlrectois a of the opinirin that rK) riraJmstatKe5 12U5ing an impaiment of value have occurred. The Group has taken advantage of the transrtson31 prowsions Df FRS102 to rètsin pwously rtrvalued assets attheir book value.
Watercress Line Heritage Railway Trust Limited Notes to the consolldated finandal 5tstements For the perlod ended 31 March 2022 Continued) Prlnclpal accountlng polldes (¢x)ntlnuedJ Fixed asset Investrn¢nts Investments held as fed assets are stated at cosL or valuatbn. less provlsion for any impainnent In value. Income Donatlons 3nd Income from subscriptions. stated net of value added tsx. are credited on the statement of financla activlties In the year to whlch they relate wtth any relatin8 to futu yeats belng shown In creditors. Income reSatlngto restrlcted lunds15 Separately dlsclosed. Income from extended membetship subscrlpuons is reco8nised in the year of re¢elpt in the statement of flnan¢lal actlwties. In accordance wlth Charltles SORP (FR5 1021 no amounts are included in the flnanclal statements for servl¢es donated by volunteer5. The Trustees, annual report acknowledges thelr e55ential wntributlon to the charitVs succe55. Income from le8a¢les Is recognised at the earller of the date on whkh elther the Company Is awafe that probate has been granted, the estate finallsed and notification received by the Company that a dlstribution wlll be made or has been recelved. Recelpt of a le8acy, in wholeor in part, is onlyconsidered probable when the amount can be measured rellably and the Company notlfled of the executorf5 Intentlon to make a distribution. If the Company is aware of the grantin8of probate. but the crlterla for Income reco8nttlon have not been met. the legaqT Is treated as a contlngent asset and disclosed If material. Income from the subsldlary companies represents sale5, excludln8 value added tax, in respect of tickets tor Steam traln experfence5 and rldes, retall and catertng goods supplled during the year. external en8lneerin8 work performed and locamotlve hlre char8e5. Payments received on account are not Includèd wlthln turnover until su¢h tlme as the servicF., 15 rend•red or obll8ation fulfillèd. Income from &overnment and other grants, whether 'capltsl' or 'rÈvenue', Is recognlsed when the Company ha5 entltlement to the funds, any performance condltions have Ien met, It Is probable the Income wlll be recefved awl the amount can be measured rellably and Is not deferred. Interest from funds on deposit is Induded upon notilicatlon of Intsrest payable by the bank. Dlvldend. from shareholding5 are re¢o8nised when the divldend Is recelved. Expendrture Expendlture Is accounted for on an accruals basls and re¢o8nised onthere is a legal or constructive obli83tion to rnake a payment to a thlrd party. probable that sethement wlll be required and the amount of the ublaon can be measured reliably. Cost of ralsing fvnds are those incurred by the subsldiary mPanieS In commerdal trndlng. CharTtable artlvlties include expenditure associated with the mèintenance and preservation of railway transport?tion systems, equipment artd any SUPFKsrt cost5 a550ciatedwith those actiwtles. Support costs include fvnrtions that support the work of the CDmpany. but do not dirprtly undertake choritsble activitle5. Govemance costs Include th05e incurred in the governance of the Company and Its assets and ère prlmarfly ass¢xiated wlth constitutlonal and statutory requiremeTrt5.
Watercress Line Heritage Railway Trust Limlted 14 Note5 to the con501idated financlal statements For the perlod ended 31 March 2022 Contlnued Prlnclpal accounting poliaes {contlnued) Grants payable are payments to thlrd partles for fvrtherance of the Companvs objectives. The grants are accounted for where elther the Dlrectors have a8reed to pay the 8rant wlthout conditign and the reclpient has a reasonable expe¢t3tion that they wlll receive the Brant. or any condltion attathin8 to the 8rant is outslde the control of thè Company. Operntin8 le• Costs In respect of certaln hir1 arrangements are accrued on an annual ba515 and ¢har8ed dlrectiyto the SOFA Som• of the hlre arrangements a open ended and have M fixed date of explry. Stoeks Stocks are valued at the lowei of c05t, belne purthase price and net reallsable value, after maklng due allowance for obsolete and slow movln8 thns. D•btors rrade and other debtors are reco8nSsed at the sèttlement amount due. Cash and c•sh equl¥aleDts Cash and cash equlvalents Include cash In hand, deposits held at call wlth banks, other short temi Investment5 wlth original maturities of three monthsor less, and bankoverdrafts. Bank overdrafts are shown wlthln borrowings in current 118bllltles. Crtdltors •nd provlsloni Credltors and pmi51on5 are recognlsed where the group has a present obll8gtlon resvltjng from a past evènt that Is expetted ro result In the transfer of fvnd5 a thlrd partyènd the amount due can be measured or èstimated reliablv. Credltor5 and prov+slons are ngrmally recognised attheir settlernent amountafter allowln8 foranytrade dls¢ounts due. P•nslons The Group operates a defined contributlon pertSn scheme. Contrlbutlons are ¢h*8ed to the pmfft and loss account as they betome payable in accordance wlth the njles of the scheme. Fund accountl Unre5trirted funds are available for use at the discretlon olihe Dire¢tors in furtheran of the 8erberal Oblve$ of the Company and whlch have not bee¥¥ designated forother purpose5. 8estrScted funds are funds which are to be ysed in accordarKe wh specific trIlon5 imposed by donors or which have been rdised by the Company ftrr particular purposes. The aim and use of each designated fund Is Set out In the notes lo the flnancial statements.
Watercress Line Heritage Railway Trust Llmited 15 Notes to the consolldated financial atements For the period ended 31 March 2022 Icontlnued Principal accountlng policies (continued} Taxatlon The Comparry is an exempt charity within the meanlng of schedule 3 of the Charities Act 2011 and is consldered to pass the tests set out in Paragraph I Sthedule 6 Finance Act 2010 and therefore it meets the definttion of a charitable company for UK corporation tax purposes. WithSn the subsidiary companie5 deferrwl tax is recognised in resp& of all timlng dlfferences beknyeen the reco8nition of incgme and expenses in the financFal 5ternents and their inclusion in tax assessments. Unrelleved tax losses and other deferred tsx J55ets are recogni5ed only to the extent that it is probable that they will be wovered ag31nst the reversal of deferred tax liabiliti or other fLrtLbre taxable profits. Deferred tax is measured usin8 the tax rates and law5 that have been enacted or substantively enacted by the reparting date and that are expected to apply to the reversal of the timin8 difference. except for revalued land aThd investment property where the tax rate that applles to the uf the asset is used. Current and deferred tax assets and liabllTt(es are not discounted. Re8lonal groups A numbei of re-on31 groups of volunteers and supporters hold funds to supporttheir day to dayartr¥iUes. Total income and expenditurE is shown in these accounts whitst specffic donations to the Company are included in donations on a received ba51& Flnandal Instruments The Company only has finanaal assets and financial liabilities of a kind that qualtfy as basic financial instmments. Basic financial instrumerrts are initially recogni5ed at transaction value and subsequently measured at thelr settIement value. with the exieptlon of bank loans which are subsequently measured at arnortised cost using the effective interest method. Donatlons and legacies Totsl 2022 Re5trf¢ted 2021 General donattons and appeal income Restoration of wagonsllug8a6e ratks Wickam Trollev CarrTrage restoration Locomotive Sir Frederick Pile Locomotlve Canadlan Pacific Locomotive 75079 Locomotive Wadebridge Locomotive 08288 Locomotwe 73096 Locomotwe 8015D Black S Leiacy incorne Gift ald 46,714 46.714 74 27,770 74 125 620 377 26,491 2,825 6.633 3,489 351.479 1,375 739 27,872 6,633 3.489 351.479 1,375 739 27,872 5,rxJo 361,776 3S.789 213 7.167 361.776 35.789 281241 7.534 444,279 4.561 354,483
Watercress Line Heritage Railway Trust Limited 16 Notes to the consolidated flnanclal statements For the period ended 31 March 2022 (Continued Income from charltable *lvltles Totsi Unrèstrkted Restrlcted 2021 Subscrfptions Locomottve 35C4)5 raffle proceeds Regional 8rovps and 21)D Club Income 47.5 47,5 8.549 32,08'1 5.31A a,438 &549 48.191 8,549 S6,740 45,lJ59 In¢ome from other tradlng a¢t1vles. Commerclal tradlng operatlons Totsl Re5trkned 2021 Income from tradlne subsldlarfes 3,741.027 3,741,027 2.701,6 Investment Income Total 10 A•3trfrt•d 2021 Dlvldends received Bank Interest recelvable 970 970 970 460 Costs ol ralslng funds: Commerclal tradlng operatlons Total UDrestrkt•d R•strltt•d 2021 ExpendUre by tradlng subsKliaries 3,668,377 3,668.377 2,607,922
Watercress Line Heritage Railway Trust Limited 17 Notes to the consolidated flnandal ststements For the riod ended 31 March 20221Continued) 7 Expenditure on charitable activibes Total 2022 Unrtstrl¢ted Restrkted 2021 Grants payable Locomotive malntenance Watercress knne News 80150 Regional group expenditure Draw costs Hampshlre Unit costs Wagon restoratlon costs Oepreciatioll of tangible fixed assets HLF project Costs Su ort C05ts.' Printin& p05ta8e, IT and stationery Sundries Bark charges Governance c05ts= Auditors remunerairon Professional fees Health and safety Insurance 3,334 4,610 17.273 3,334 4,610 17,273 2,838 4,225 4,010 11.737 2,838 12,173 5,048 7,155 3,307 14,986 12504 3.349 3.349 20,068 20,068 14,815 372 1.836 14,815 372 1,836 5.041 59 1,190 8,700 29.930 8,7rx) 29.930 8,998 7.700 1,410 1,275 1,657 1.657 106,896 2,838 109,734 100,818 Support and governance costs have been alloc*ed whollyto tharitable actlvlties as the costs relate to the fvrtherallce of the CompanV5 Objectives. All charitable artiwtie5 undertaken wholly relate to the single acLNTty of the Companv being the preservation, restoration and opetstion of railway transportation ry51ems.
Watercress Line Heritage Railway Trust Limited 18 Notes to the consolidated financial statements For the perlod ended 31 March 2022 (Continued) Net income of trading subsidiarles The contributions from the subsidrary companie5 for the period ended 31 March 2022 ate as follows.. Totsl WadebrldKe Rallway Ltd I37) Locomotive Ltd 2021 Income Net operating eNpen5e5 3,760,404 13584.5051 7,203 13,3111 3.767,607 13.587,8161 2,829,187 12,517,315) Operatin8 profrt 175*99 3.892 179,791 311,872 Bank Interesi receivable Bank interesl payable 103 130.4891 329 132,1331 {30,4891 145.513 3,897 149.410 280.068 Taxatton and deferred tax 134,3481 116.9731 151,3211 159,8031 Retained proftt in Subsidiary accounts IIL165 113,0761 98.089 220,265 Exdude transartions between 8roup eornpanies: Administrntion charges Grant recVed Shop rent Black 51 Hampshire Unit hire 123.3331 13.3561 1233331 13.3561 1,250 I20,0) 1107,5271 1.000 Total profitllltsssl brought into consolidated accounts 85.726 113.0761 72.650 93,738 The results of the subsidiaries are incoTporated In the Consolidated 5tstement of Finanu31 kbvtties Ipage 111 a5 follows: Incorne from othertrading activlt6es (Note 41 Expet)diture on charitable arti¥itie5 (Nrte 61 3.74L027 1701.660 13.668,3771 16.E117.9221 Total profit brought intu COF75ulidated accourrts 72,650 93.738
Watercress Line Heritage Railway Trust Limited 19 Note5 to the consolidated financial statements For the perlod ended 31 March 2022 (Continued) io Taxation The Company ts a regIsted charity i% exempt from taxatk>n under 15 Taxes Att 1988. The Company registered for Value Added Tax. No provi51on forcorporation tax has beerh madefor Mi&Hants Railway Limited Of Wadebridge134CQ71 Locomotive Limtted following their resu$ for the year. {a} Anatysls ol charse lo the year 2022 2021 UK Corporation tax Ioverl provisKJn in prioryear Ibl Fartors aFFectIn8 current trm char8e 2022 2021 Profr( on ordinary artNities beffft tsxatlon (note 91 149AIo 280,068 Profrt on ordjnary 3rtwitses by rnte of tax 19%.'12021- 19%1 28.388 53.212 Efferts of.. Items rKTrt taxable 701 5,411 Other ti¥nins differen¢es Capital allowances for period In ex5 of depreciation Use of losses brought forward 135.0891 114.465) 144,1581 Totsl currenttax
Watercress Line Herltage Railway Trust Limited Notes to the consolidated financial statement5 For the period ended 31 March 2022 {ContinuedJ li Direttors and employee$ The Chaifjty does not have any dlrect employees. ReasonaEle and neSary out of pocket expense5 can be reirnbursed tLITrustees in ac¢ordante wlth theTrusYs Expenses Pollcy although none were daimed in 202212021 £NIII. 2021 Directors and employees: The average monthly head count was 4512021- 451 as follows: General Man38erlArtln8 ManaWn8 Dlrertor and senior Team. Adminlstratlon Dlre¢t- full time equlvalent 38 45 4$ Staff costs 114 months) 985,525 103,969 22.347 112 monthsl 807,960 69,345 14.742 Wa8es and salailes Social securlty costs Penslon ¢osts ReGhaT8e5 to capital 1.111,811 892,047 Employees of MHR Ltd. a subsldlary company, recelving remunernfjon In excess of £60,tQO per annum weo: 2021122 2020121 114 months) 112 months) E60,OiJ)-E70,000 £90,0(XI4100,C((J £IIo,LK)04120,OC(t The hlghest paid employee was S Ba88Ot. whose remuneratlon IhKludlng natlonal Inwrance In the periods was £119.78312020121 £93,775). MHR Ltd relles heavlly on voluntew staff In all tts oper3tion31 areas. Wadebridge Ltd has no employees and no remuneration Wd$ charyed durfn8 the year. Slnce Au8us¢ 2015, MHR Ltd has operated a pensknn 5ch#me for employeès under the 8overnrnent's auto enrDlrnent stheme. The Charfty and MHR Ltd have establlshed Indemnrty insurance on behalf of the TN5tees and Director5 Costing £331512021- £2.5501. Payments to stsff, including those whose employment Is terminated, 15 In accordance with thelr contracts ond appropriate leg151a0Tr.
Watercress Line Heritage Railway Trust Limited 21 Notes to the consolldated financial statements For the rfod ended 31 March 2022 (Continued} Tangible fixed assets Group Freehold land ar bulldlw4 Assets I course of tonstructlon PIHnt and mach5nery Totsl Cost or valuatlon At l February 2021 Additlons Dlsposals Transfers 3.311.737 9,415 6.247,540 707,019 116,1271 965 L649,940 310,947 11,209.217 1,028.346 116,1271 19651 At 31 March 2022 3,321.152 6,939,397 1,959,922 12,220,471 D•pr•clatlon At l February 2021 Dlsposals Char8e for year 388.127 2,390,165 116,127} 257,771 2,778.292 116,1271 303,930 46.159 At 31 March 2022 434,286 2.631,809 3.066,095 Plet book value At 31 March 2022 2,886.866 4,307.588 1,959,922 9.154,376 At 31 January 2021 2.923.610 3.857,375 1,649,940 8,430,925 An op•n market vacant poss•ssK¢n valuatitsn undertaken by Gdmley. Intematlonal property advisers, In Auqusi 1999 at the request of MHR Ltdi placed a valut of £860.(KQ on the freehold knd and bulldings. The Olrectors considerthat th15 valuatlon supports the exlstlng use value placed on these assets In the financlal statement5. Freehold land and bulldln8s are Included above at thls open market valuation together with the cost of subsequent addttlons and Improvemenis. 20 2021 Cost or valuatSon of freehold lar and bulldlry5 li represented by. Valuatlon In 1999 Costs since 1999 860.LK)O 2,461.152 860.0 2,45l,737 3,321,152 3,311,737 land and bulldIn had not been revalued they would have been Induded at the following amounts 2,8(6,387 2.796,972 Cost
Watercress Line Heritage Railway Trust Limited 22 Notes to the consolidated financial statements For the eriod ended 31 March 2022 Continued 12 Tanglble fixed assets IcofftirtuÈdl Company Freehold land and bulklirrf5 Assèis in COLw3e pt4nt and Machlnery Constructton Totsl Cost At l February 2021 Additions Transfer 494.784 1,016.091 1.255.950 310,548 2,766,825 318,194 At 31 March 2022 494.784 1.023,737 1.566.497 3.085,019 DeprÈtlatFon At l February 2021 Charge for year Disposal 64.0 369.425 17.942 433.438 20.067 At 31 March 2022 66,138 387.367 453,505 Net book value At 31 March 2022 428.647 636,370 L566A97 2,631.514 At31 January 2021 430,772 646.666 1,255,950 2.333,387 The Directors gard all the Companvs fixed assets as belrjg used for dirert charitable purposes. Land and buildings owned by the Company are the Alresford Goods Shed. Included In the Companrfs a55ets in course of construction are locomotlves 75079. 35005. 34058 and 80150. and Bulleld coach S4367. Included In the Grnup disclosure 15 locomotlve 34105. All thesÈ ltscomotives are in the process (Jf restoration and will not be depreciated until the work is completed. Slgnificant balan also induded in the Èroup disdosure include the renovation of Mark I coaches 15939. 25591 and 24808 and the Medstead signalling 5chÈme.
Watercress Line Heritage Railway Trust Limited Notes to the consolldated flnandal statements For the period ended 31 March 2022 (Continued) 13 Fixed asset investments Group Company 2022 2021 2Lbll Market value at l February 2021 Unrealisedlrealised gain in the year on Ilsted Investments Donation of sharu in MHR Ltd Investment in Wadebrid8e Ltd 86,537 1,551 gX15,465 3,773 901,580 1,551 3,T13 1,125 8,020 325 Market value at 31 March 2022 91,861 918.383 905,465 Investments at marketvalue comprise.. Group Company 2022 2021 20ZI Shares In MHR ItrI= Dividend shares of £1 each Ordlnary shares of 25p eath Share5 in Wèdebridge Ltd Ic¥J 413,729 412,604 412.693 404,673 826,522 25,450 817,377 21,377 UK Equities Ilisted lrnvestmenL%I 34105 Light Pacific Group lunlisted investments) 25,450 21,677 66,411 66.411 66.41] 66,411 91,861 918.383 J5.465 The Company own5 all of the Issued Equity Divldend shares in Mid-Hants Railway Llmtted (company regtstered number 11170901 in addltion to 52.77%12021'. 52.49%) of the issued Ordinary non equity 25p shares. MHR Ltd ts an unlisted company reBisiered and operating in England and Wales. and its accounting year*nd 15 Co-terminus wfrth the Company. It Is not possible to quantify the likely market wdlue of the invertment. At 31 March 2022 the net 5sets of MHR Ltd were £4.930.45L The Company also own5 a controlling iftterest of 76.6%of the155ued share capitsl of Wadebridge1340071 Loiomotlvè Lirnited Icompany registered number 016734831. The objectives of this company a to maintain and hlre ex- Southern Railway Locomotlve 34LJ)7 WodebTidge. At 31 March 2022 the netassets of Wadebridge Lttlwere £72L615. The UK equities were received through le8acies. The value induded in the accounts represents the market valuatson of the shares at 31 March 2022. The 34105 Kht Pacffic Group is an unincory)orated or8anisation which owns ex-8Titi5h Railways Southern Region Locomotive 34105 Swanage. The Locomotwe is based on the WateTcres5 Une where it is being o¥erh3uled. The company owns 26.6% of the issue¢J Sha in the locomotive.
Watercress Line Heritage Railway Trust Limited 24 Notes to the rorNilidatsd flnancial sL7tements For the perlod ended 31 March 2022 (Continued) 14 Stocks Group Company 20 Raw materlals Flnlshed goods 59,058 211.175 49,115 162,690 270.233 211,805 15 Debtors Group 2022 Cornp•nv 2022 20U 2021 Trade debtors Other taxatlon and sodal sè¢urlty costs Other debto Re8lonal 8roup balances 7,354 9.673 11,650 80.956 159 9,673 30J183 10,128 237.141 10,788 16,731 10,788 10.128 57.238 340,S3S 23,964 27,519 16 Credltors: amounts falllng due wlthln one year Group Comyny 2022 2Qi 2021 Bbnk loan Payments retelved on account Trade ¢redltors Amounts due to MHR Ltd Other credftors Other taxatlon and soclal securftv A¢¢ruals Other loans 234,526 61,204 264,808 93,994 163.293 303,633 9,187 202,870 3,999 22,020 364.915 40.315 4,425 349,812 19,830 7.579 2.337 6,579 6.85'J 971.793 944.991 215,994 39,LA8 Bank loans and overdrafts The bank loan5 and overdrnft are secured ty a fixed and floatln8 charge over rlte subsidlary companvs freehold railway property arsd other assets. Payments recefved on account Payment5 received on account relate enrety to bookiryfrom Customers ft>revents taklng plate afterthe year end. These amounts wll be released to the Statement of Financial A£tivlrle5 when the event ha5 tsken plKe. Other Foans Other loans represent loans received froFn supporter5. The103Ds are interestfree and payable on demaiid.
Watercress Line Heritage Railway Trust Llmlted 25 Notes to the consolldated flnancial statements For the erlod ended 31 March 2022 Icontlnued 17 Credltors: anUnts falllng due after more than one year Group 1(tt2 Company 2022 2021 Bank Ioaft5 Trode credito 838,873 L195,185 2(KJ,C 50,000 938,873 1395.185 SO,)0 The bat)k loans are secured by a fixed and flo?n8 char8e over the subsldlary companvs freehold property and other assets. 01 the amount due by Instalments after more than one year £201,85012021- E232,7441 1$ due In more than flve year5. Note$ to the statement of cash Ilow Il•conClFEi0n of n•t Income to net cash Infiowfrom opff•tl actlvltles 2021 Net In¢om• for th• year Ipg8a 91 AdJustments for: Depreciation ¢har8es Unreallsed Ioss18alnl on Investmewrts Interest recelved Decreaselllncreasel In debtors Increase/lOecreasel In credltors Decrease Ilncreasel In stock Movement In deferred taKatlon 869,339 394,748 12 13 303,930 13,7ni 250,709 11,5511 17891 1,688.281 11.782.723> 134,6911 59,803 283,297 I213.7f)I 15&4281 51.321 Net ush Prov[d by operthu •ctl¥ltles 11) L230.986 573,787
Watercress Line Heritage Railway Trust Limited Notes to the consolldated ftnanclal statements For the eriod ended 31 March 2022 (Conllnuedl 18 Notes to the statement of ush flow (contlnued) Reconclliatlon of net cashflow to movement In net fund5 Grol 1022 2021 Changes during theyear At l February 2021 Net cash InHow/loufflowl 2.265. 111.2051 1,164.483 1.100,607 At 31 March 2022 2,253,885 2,265.090 Group 20U122 C•sh 2022 2021 Analysls of th•n8•s In n•t Fund5 Cash at bank 1253,885 111,2051 2,265,090 2,253,885 111,2051 2,265,090
Watercress Line Heritsge Rallway Trust Limited 27 Notes to the consolidated financlal statements For the period ended 31 March 2022 (Continued) 19 Group: Fund Balances Totsl Re5cted Funds Genernl Fun Other Mknow Unrestrfrted Funds Totsl Balance at l February 2021 Total Income less total eypendlture for year UnrealSsed/rea115ed galn on Ilsted investment5 Transfer between general and restricted 7.257.998 514.765 515.649 ,288.412 386,150 8,674,56': 459,194 459,194 406,372 865.56f, 3.773 3.773 3,7-'3 12S,058 125,058 112S,0581 7,846,023 514.765 515,649 8.876,437 667.464 9,S43,901 Movement in mlnodty Interest 1,785 11.785) Balance at 31 March 2022 7,847,808 514,765 513,864 8.876,437 667,464 9.543,9Jl The other reserve of £514,765 relates to the valuation of land and bulldlngs which took place In 1999 and detslled In Note 12, and Is the dlfference between the orsglnal valuation and 1999 revaluatlon. The level ot the Group's Yree, reserves may be calculated by deducting the 7Alue of fixed assets Inote 12} Irom the balance of unrestricted funds at 31 Marth 20221£8,876,437 less £9,154.37618iwn8 a negatfve balance of £277.939. The comparatlve figure at 31 January 2021 was negative £142.5131£8.288,412 less £8,430.9251.
Watercress Line Heritage Railway Trust Llmited Notes to the consolidated financlal statements For the perlod ended 31 March 2022 Icontinued) Fund Balances (contlnued) Analys15 of restrlcted fund movements: 8alance Atl Febru•ry 2021 Incomfv Expendlture Net of ¢aphal Resources (Revenue) expenditure nd trnn5fer Bolance At31 Mar¢h 2023. funds Fund name: Aestorntion of wagons Canadian Pa¢ific 35005 Bulleld Coach Iug8a8e racks Walk the Line- Ballast Appeal Re5toratlon of locornotive 34058 Restoratlon of locomotlye 75079 Restoratlon of locomotlve 80150 Restoration of locomotlve 73096 RestoratSon of Hayling coèches Restoratlon of locomot• 34(#17 Mlnlature Rallwav Dlesel 08288 Wickham Trolley Black S 3,995 19.371 17.987 3,355 202,850 73,344 26,114 7,120 21, 4.617 3.576 1.796 125 3,Ci95 15.182 74 134.5S31 18,061 3,355 20E,269 15811 176,8331 12,8441 27,872 739 12,838) 4',1,304 ,859 21.9 34>,425 351.479 16,6711 13.576 L375 3,171 125 s,000 386.150 409.210 12,8381 1125,0581 667,4r>4 Company: Totsl Tot•1 Rostrlit•d Funds Totsl Balance it l February 2021 Net Income for the year Unrealised losses on Investment assets Transfer 3.649.646 364,878 386.150 406,372 4.035,796 771,150 125.058 1125,0581 8alan¢e at 31 March 2022 4.139.582 667.464 4,807,046
Watercress Llne Heritage Railway Trust Limited 29 Notes to the consolidated financial statements For the period ended 31 March 2022 (Continued) 19 Fund Balances (contlnued) Desuiption of Funds: Unrestrlcted Funds These funds are for general vse in the fvrtherance of the Companvs oblectives. There are no fvnds deslgnated for specrfic purp95es. Restrlrtèd Funds Lo¢ornotlve 35005'C•wdTan Pxifid (Projett Engirnn8 a Fuitsre from the Ibast) Locomotive 35005 Is owned by the Company. Thts fund represents giving as50Ciattd with the appeal to overhaul the locomotive and the restoration oftwo Bulleid coathes, S1456S and S4367S. The exce55 costs have tjeen taken frorn the unrestricted fund5. Restoratlon of Locomotlve 34058 Sir Frederick Pild - LocomotNe i% ovmed by the CDmp3ny. This fund represents donations received 5pecifitslly to assist the restoration. Restoration of Locornotive 75079 - Locomotive is owned by the Company. Thls fund represents donation5 recewed specifically to assist the restoration. Some of the fsJnd5 have been spent and the balance is carried forward. Re5torron of LC00t1ye 80150- Locomotive is owned by the Company. This fund represents donations recelved specificalfy to assist the restoration. Son)e funds have been 5pert and the balance carried fornard. Restoradon ol Lo¢omtttivè n096 - Locomotive 15 owned by MHR Ltd. This fund represents donSons recelved speciflcally to assist the restoration. Some funds have been spent and the balance carried forward. Restoration of Locomotive 34007 Wadebrldge.. Locomotrye Is owned by Wadebrid8e Ltd, which is undertaking the restoration. Some funds have been spent and the balance carried fornièrd. Diesel shunter 08288- Locomotive 15 owned by MHR Ltd. This fund repSentS donations e1ved specfft¢ally to a5&St the re5toratlon. At the year the funds have not been spertt and are orried forward. Restoration ol wagons- This fund repreSer donations recefved specifically to assKst with the restoration of wa8oni. Some of the funds have been spent and the balance carried forward. Bulleld Luggage racks- Thls fvnd is to restore and repla tk racks in two Bulleid coaches. S14565 and S4367S. At tle year thè funds have not been spent and a carried forward. Hestoratlon olHayling coaches- This fijnd represents donatlons recelved towards the restorarion of four IW ntury coachés built by the London Brighton and South Co3st Railway. At the year the funds have not been spent and a carried forward. Mlnlature Railway- ThTrs fun(J represents rnonies rered to support the expansion of the minlature railway. At the yeaithefunds have not been spent and a carried forward.
Watercre55 Line Heritage Railway Trust Limited 30 Notes to the consolldated financial ststements For the period ended 31 March 2022 ((ontlnued 20 Analysis of net assets between fvnds At 31 March 2022 fund balances are represented by: Group Total Fund5 Fund5 Total Fixed assets Current assets Current liabilities Long term liabilities Provisio lor liabilities 8578.7n 2,1,356 1971.7931 1938,8731 1373,0261 9,246,237 2,581,356 1971.7931 1938.8731 1373,0261 Total Net Assets 8,876,437 667.464 9,543,901 Company Totsl Unrestr1¢ Funds Total Funds Total xed assets Current a55ets Current liabilitbes 2,882,433 L473.143 1215,9941 667.464 3,S49,897 L473.143 1215,9941 Total Net knets 4.139,582 4,807,046 21 Auditors. remunerdtion The auditors, remuneration In re5pert of non4udit fees, Tended to the grnup. is £8,91012021: £8,734).
Watercress Line Heritage Railway Trust Limited 31 Notes to the consolidated financial ststements For eriod ended 31 March 2022 Continued 22 Capltal and flnandal commltments Total future mlnlmum lease paymèrtts under non-cancemable operating lease5: 2021 L•nd and 8uildSn Lind and Bulldingj Other Falllng due.. Within l year Wlthln 2 to S years After more thon 5 years 87.871 39.452 307.720 75.2 319.OCLI 94,OCO 307,720 127,323 319.OCK) 133,452 As at 31 March 2022. the GmLbP had capit41 comm6tments totallln8 £NII12021: £NITr. 23 Constltutlon The Company has no share capital and Is Ilmfted by 8uarydntee. In the Lwent of a wlndlnrf up, eath member of the Company Is Ilable to contribute an amouni not èxceedln8 El. A5 permkted by sertlon 408 of the Companles Act 2006, thè holdlng Companrfs Income and expendlture account has not been sepafately Included In these finandal statements, The holdlng Company's surplus for the hnanclal year wa5 £771,25012021.. £174,483). 24 Related party transactlons The Company has transattlons wlth Its subsldlarfje5, Mld-Hants Rallway Llmit•d and W3dèbrldg•134LK)71 Lo¢omotlve Llmlt¢d. T*ose transact6ons arn d•talled In Not& g. As at 31 March 2022, the followlng indlvkiual$ held shares In Mld-Hants Rallway Limlted.. R Latham sharès and R Lacey 400 shares. Z5 Control The Company is under the contml of the Board of Trustees.
Watercress Line Heritage Railway Trust Limited 32 Company statement of flnancial actlvities {including Income and Expendlture account) For the period ended 31 March 2022 Unrestrirted Funds Re5trirted Funds Total Funds 2022 20ZI Income Oonztions and legacies Income from charitable activities Investment income 444,280 49.439 970 4).661 8.549 844.941 57,988 970 354,483 46,959 460 Total inwme 494.689 409,210 903.899 401.902 Expendbture Costs of raislng funds Expenditure on charitable actmties 21.567 112,017 21,567 114,855 28,997 199,348 2.838 Total resources empended 133.584 2A38 136,422 228,345 Unreali5edlrealised 8ainllhxsl on investrnent5 3.773 3,773 1.551 Net income 364,878 406.372 771,250 174,483 Transfe¥s btheen fund5 1125.0581 Net movement in Funds 489336 281,314 771,250 174,483 Reconclliation of Funds: Total funds broughtforward 3.649.646 386,150 4,035,796 3.861,313 Total funds ¢arried lorwanl 4.139.582 667,464 4.807,046 4,035,796 Thi5 statement does not fr)Tm part of the audTted accourrt5.