*￿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 La￿y- 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 5rn￿h 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 wate￿re$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 2￿6. 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 ￿r￿a￿S otthe wb51dlary Company Mld-HaThts RaI￿a¥ Lt +Tru5tees who •re also Dlrector5 olthe Subsldlary Company W¥debrWy131CQ7) L￿0￿￿￿¥• 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 th￿e 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 wate￿re$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 èssessn*nt. bl c8en The Trustees have had regard to the guidance on public benefft Issued by the Charitles Commlsslon ond are satt5fled th31 all Chaflty oper*h)ns and a￿VItIeS 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 SIgn￿lcant changes ale needed so the CharSty and Its operating 5ubsldlary can thrlve and ¢ontlnuÈ to a¢hleve Its maln obJÈttives in the comin8 d￿ades. 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 raI￿ay. 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 repor￿1 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 peric*l. 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 p￿Um&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$5te. Legislation In the Llnlted Kln8dom govemln8 the preparntlon and dlssemlnatlon of flnart¢lal Statements mèy dtffer from lew'slatlon In othèr jurisdtrtiort5. Audltors Cochrane & Co Accountants Umfted are deemed to be re4ppolDted a5 ?udltors under settion 487121 of the Companles Acr 2C¥J6. In approvlng the Trusteg Annual ReFor¢ also approve Strategic Rwrt induded therein. ikte.. *Jil(*> Alresford Station AlresfDrd S024 9JG By Orderofthe Board ae Peter Smfch Group Secretsry Watercress Line Heritage Railway Trust Limited INDEPENDENT AUDrfoRS' REPORT TO THE MEMBERS OF WATERCRESS LINE HERrrAGE RAILWAY TRUS[ Um￿ED Q4wIW Qpb4oD We audiied the finandal 5tatemert501 Watercre55 LIMÈ Herittye Ra￿ Trijst i(mrted (tt*'parent tharitaL4e o)mpan*l and its 5ubsi4varies lthp'8murflforthepe￿jj¢nded 3tM#ch2022 whthcryisÈtheCons(4idawsiatem•tofFlrrdThd*AttMtie¥fvGroJpènd P•reniChirftible Company8alanceSheets. ThqCODsdldatE#C3thFkywSrai¢menta￿ the relat￿￿testJthefinaThQ￿ 5t8t8nents. In¢hjdi￿85UmMary0fwlfk￿nl accounbTr4 FY)IIDe5 ThE fin•nEiJl rEp¢ytlr* fvarnew(#*th?tlws teen apph'ed in their preparat*Jn isappluble law ind United Klngdrm Auoun¥n8 st3Ddards, Includin&Finanaaiiieporth)i St•￿dI02 FlnvthlRePtvttyst¢￿dQrdU•kn theUKDnd RewblkttJlYelondlUnltod Klr4dom General￿ Accèpted Attountlr4Ptstheel. In our opinioh, excw lorthe w&4)k effectson dthe mtrdesth*ed lrtthe bAslsfw¢W•lffiedoF4￿¢7Th ofour r*pc¢ ihEffnancial 5ttriements: a true fair ¥￿01￿￿5t1te of ihE grou￿$ ctynparfsaffair5 as it 31 Marth 2021 ind ofthe irtyjp's theoml resources ard •p￿d￿t￿n ofr¢sourc¢5. Ir*LTh•Tr6 V4wthwr￿1orth•1￿arthm bew propOrl¥pr•￿red In aceNd￿e￿¥th Unhd Kh￿n fxnprnMy•w•dkCowJn￿nl Prxtie•', Ind h•vè prepOr￿1n fKcv&nr4 Wthth• rwuirTm•ntsoftr*Cc•ip•¥es*£t 2((*andIhtftharlti￿ArtIo?2. Due to COWD 19, the c¢untryw•s kxwdown ai th• 31 Jwiuary 202J. Th¢ d*ni no¢JN• towyout 5tccktake Bt th4t ye•rend Ind we were nE+t?ble to attend. Stockwas kn¢￿ded inthEbl*nc• $￿tal a¥4￿01£111,￿s.C￿wth, we Keurto￿•tD d•t•rm5hewheth*r Ihere Is aw consequtntrèl Ill￿1p￿t effert OD the eosi d sa￿S1l¥ the period ￿ed 31 Mlrch 2022. 1)Jr op1nil￿ on fiTh9no•l xtitements for ye¥r •nthd j1Jan￿ry2ol1 was rnadlfled xctrdlrryty. Our on th• financk41 st4t•rn￿ 15 thD¢l￿dI*•I btt•uM of the POSsIUe eftertofthlsmltthf wMpbrn￿1￿Q1tr￿￿mI p¢rfo¢fs fiiures ind th•eNr•spMthr* IW•k W• con&Jtted oui aud* Ini¢wthrt*wlth IrrtuMWM•l stsnd4rthOnP￿th1 IUKI (￿4$(1jX)IIThj •plk•bkn la*. c1Krn$p￿￿b[IIII•s undv t￿$• St￿￿11d$ ere fvrther ¢$•jcrl￿ In thp Audltofs rtsportsba*tesfof the ￿d￿ofthE￿￿￿1I$￿eMQftts se£tknn of w rwrt W4 ore kndependent ofthe iroup and parwK charftsbhcoryiffrf In KryJrthncewlthth• •thkal rwulremeRts t￿tIre rtl*8htto ourjudh of thefin•nclèlst•temtnts in the UK, Includlrff the FRC'¥ ethcal Stsndard, w• h¥%* fLthlt•d ￿h￿r ethlt41 r*5p>Wt￿1lIeS In ou0rda￿e wlth thv4t r•gulrnments. We le¥e th8L the *¥¢it we L*tshed b wfficknt apwowiate to prt*th 4 basts forour quglfftld Onion. Except for the matter Inthe baS￿l0r qu•lltsd oplnknn 5•CtM w• h•NYl•t•rmW wj kry•udt m•tt•r5to b•wrTrMur4¢￿ kn our rtprt In audI￿nI the flnancbal ststtmtnts. wolthi Oobw corrnn ol pwJr•ikn fln•nd•l ¥tst•ntnts 15 Jppropnate. B85ed on ihe wotk we howd wformtd. we not kkntifiEd arty m•i•rf* unt*tslntye¥ to ev￿15 Dr cond￿onI th•L gr collecii¥ely, nwy ca* 516nlfl<¥nt doubt on the 8nwp'% or parnnt lorm•tknn InelL￿ed In the trustee< innu41 repcri otherthan the flnandal 5tatEm•nts•rNJwr •wlltorfs r*wt thweon. Owoplnion DnthellnaThEtslsrirthnenrs does not cover theothffti. InforTratlun •nd, eKept rotha •*entot1W￿S2 È4)IlrJtly knwrwrt. we do￿ wre5$ in¥lomiof 45sur*￿ tonLIu5ionthereon In connethLm wfth Ouf JLYJli Oft￿ ￿n•T*JaI statemerty, wrfejprrt4l￿ Li th re•d the+Jthw ¥n4 In 9), cun51dBr vlhether the otherlnfDrrn4tknn ￿ matfrt•lYlncon51stert+h4tht￿Ikn¥r￿d #at•n￿￿LVth￿kfth¥￿ObtsIned1n Il*aUdlta¥￿hwWA$E¥pp2?r￿tr$bemxt￿r￿1ly rnb5tattd Ww* b¥*Wfysuch matothl knmnsi5ter**s wapp•rert rnatw1￿ Mltstlt￿￿wewr•Iequ￿d to det1rrrHnE*t￿htrth¢re k a materfal mtsststementln lmfina￿lal Stat•Tr*rtstyaM#￿r￿l mluiatejnentofthe0therrfonn•￿01Tr. ￿.b￿edcffjthe￿￿JrkWe haveperfthTnrt ￿&tortIjd thattherq Isi materi41 mtssL4lemeni o1th15 rther Inlrmitkn. wÈ*re rewind to reFfflthat faa. We have nDthlni lo report In thi5 r*ewd. Oplntons oh rrther byth* Art21kil In ouroplnlon. based oi the WOrk￿ndertaken intt*cour5e olthe aLAIIt Informatbn the trusLees' rowrt tho 5trat¥e repNt the ￿p￿tI ftythp lknanual yearfor whkh the financial 5tdternents ire rye￿1¢d L5 coTh4sttnt %￿ththe￿ryI￿Ll1lSttfftrnents.. thesrroteBl¢ rep0rt•nd The rqpw hMbEen prepwred IDK4ythnre*Tth •ppl*•t4e Iwlrewlrem*Dts. E￿ptfart￿¢ matterde5cribedinthe bas&for¢wlnknisÈdithofour reprKL kth4eOee and uTrJer5trndlr¥oftheqrwp and parBnt tha1ltablEt(￿￿a￿y and iu ￿￿ron￿￿￿Obi8lned Dithe CoV￿e d the4vd￿ vje have nLrt vjelltffied m8reTial thsststements In the trL4Stees' report. Ari*ngSo￿lY Irom thB lirnit*bJn refErtsJ t• abr*v. we have n￿reteNti$ anthe A4uitt f repryi kn rttyErt rfthe foOo*ryrq mrtter5 to which the Cwarte5 4•Lt 2Cffi reqwrns u5 to tepurtta ¥ou W, kn *lequete and suffideftt account1￿ rocurds W notl>oqn kept tytr*pArurtdwhzWe ah￿pOnY.0r returr&¥d#Juar• for our wdit have rtoi been reC￿¥*d from brath not¥￿ited byty5: or the parenlchaFitst4e tyrnnwsfma￿3ls1ateMwSr5arÈr1Otkn and retwns,. c certain dtselosures otdlrÈcior￿ r￿￿neral￿￿>1cI1IEd tyl•waTr nm rrrade.or the dIr*ctr￿ wÈrenoieDiidRd toprepareicctyJDts In accordanreTit*t1*5rnallwnpanie5r4wrte•rd t*e ithwntsKeofthe 5m4lconbpanlES eXeMpt￿n5 h pfep8ilni1￿dire￿Qrs, and frtyntho rEqutr•*eotsto prepare a 5v*ieK*NL Asexplained morefultyinth¢truste25' reswWbllt*s5t•iqmentset¢Jrtrm pwlth•tyustetslwho4r*l*ththrECtorsofthetharftablocompJny torthe puTrose5 oftthnpanyl8wI lorthe of thefln•nd•l $tatements*lforbwwsrtbfRdthèt a tru4 and fair i*rt, andforsuchlDtrrna5c¢ntrolasthetrnsteesd•teMknphneceswthwab*theprepir*tt•offiwd41 #¥¢•wtsth*•refreeffomrnat•dal m15Slatern•nt. whwherdueto fr•ud orerror. In P￿pa￿￿ the flrFandil statem•nts, #*tiU*Msare i•5w￿bI* fty•w•5*tr*irourfs and wrerrt(h¥rtablecompJn*i •blitytocantlnu* •$8 BolnK conLvn, diJd051rf, asap¢4￿*bI8. m•tter5 rtw lo￿¢t¥￿eM and ￿*￿the￿In&￿￿c￿ b•sis ol ècc¢ymUn8 un*ssthE trustees e5tker Intend to Ilquldat•thE W0UP￿t￿paT￿¢ thilita￿E tryny¢¢tocwopernIb￿,<¢ hwe no •kernaYve ￿¢10￿0 so. W•hav• b•en •P￿rted {￿Jitor undwih tsnpanie5kt Z(￿01*jth OMI1￿sAtI 2021 •r4 revt in ¥eeoYd•ncewth th95e Acts. C￿¥ oblectl¥es aretovbtyn i•asonabIea59Jrarts•t¥￿ whethw th•fiThJnthl ststementso• w￿*•r•free from materlal m&Jtstemtniwhuiher due t• frnud or etror, Of#1 to ￿$sU* •n iwlltyrfs that Indude> R•son•￿t wJonre 1$ • h*h l•¥tl of ¥I￿rince b¢Jt a iuarants• thèt an ludlt IW IUK) (knEd • matetsl rnb*•tun¢rt whoD kol$ts Mlsst*ernefttsn under ￿15 Taxes Att 1988. The Company registered for Value Added Tax. No provi51on forcorporation tax has beerh madefor Mi&Hants Railway Limited Of Wadebridge134CQ71 Locomotive Limtted following their resu￿$ 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 ex￿5 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 ne￿Sary 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 leg151a￿0Tr. 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 en￿rety 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: an￿Unts 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•conClFEi￿0n 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 Re5￿cted 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 Engir￿nn8 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. Re5tor*ron of LC￿0￿0t1ye 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 don*Sons 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 rep￿SentS 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 re￿r￿ed 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, Tende￿d 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.