Charity Registration No. 284406 (England and Wales)
Company Registration No. 01126590 (England and Wales)
WATERCRESS LINE HERITAGE RAILWAY TRUST LIMITED
ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025
WATERCRESS LINE HERITAGE RAILWAY TRUST LIMrrED CONTENTS P•g• L•9al and a(knini8trntiv• Infrmi•tion Chair's r•port Stst•m•nl of truil•M' Ymponsil 10 Ind•p•nd•nt r•FKt St•t•rnt olfin•ncld aGthlb• 14-15 nc• 18-17 18 19-39
WATERCRESS LINE HERITAGE RAILWAY TRUST LIMITED LEGAL AND ADMINISTRATIVE INFORMATION Trustees Stephen Evans Peter Smith Gregory Watson Richard Hawkins Neil Ga00d Jonathan Morrbs Graham Sumner (resigned 07 Jun8 20241 ISIgned 28 February 20251 Secretsry Rachael Sumner {appoinled 26 September 2025) Anc*rew Bearpark lappoinled 12 March 2025, resigned 09 July 20251 Rebecca Oall8y lappointfrd 08 April 2024, resigned 12 March 2025) Peter Smith Ir8signed 08 April 20241 Charity numbgr (England and Wales) 284406 Company numb•r 01126590 Reglstered officg r8sford Station Alr8sford S024 9JG Chlef Exe¢utlve Offl¢•r Rebecca Dalley Group Treasurer Gregory Watson Soll¢ltor$ Taylor Fordyce 1 & 2 Clty Business Centre Hyde Street Winchester S023 7FA Paris Smith 1 London Road Southamplon S015 2AE Banker National Westminster Bank PIC Uoyds Bank P Audltor Alets Audit Services Third Floor, Gateway House Tollgalg Chandlers Ford Hampshire SO53 3TG
WATERCRESS LINE HERITAGE RAILWAY TRUST LIMITED CHAIR'S REPORT FOR THE YEAR ENDED 31 MARCH 2025 Let me start at tho erKI. The closing days of the financial ye8r 20242025 saw thè retum to steam of the Watercress Lino Heritage Railway Trust's Merchant Navy locomotive. 35005 C8nadion Pacrfc. Thls w8s marked by a high profile launch. with the guèsts of honour includlng the Chlef Executlve of Ihe Nabonal Lottery Horitago Fund and the Canadian Deputy High Commissioner. The ev8nl stretched beyond railway boundaries by comm8morating the Canadian marfners who kept Britain supplSed in the dark days of wId WarTwo and by c8lebrating the current cl¢)se rolationshlp bthgon Canada and the Unlted Kingdom. Bringing 'C8n Pa¢. back into serv1¢8 was the centre peca of 8 long-torm project to engage people of all ages, and from all backgrounds, in rallway heI8ge. Thls was the vlsion of those who designed the project. a decade and a half ago. and who SUred the nec88sary fvntling from the National Lottery and other donors. We remain hugely grateful lo all GOnme for thair extraordinary pali•nc8 and generosity. It took a very long lime but we delivered. By delNering, we demonstrated al the national level that the Watercress Line's dedlcatod and skilled volunteers and paid stsff carry out complex engineering tasks to the highest starbdard5. maklng full use of the excellent faclllties at Ropley Including our boiler and machin8 shops. HavSng fabricated the first Innerfire box for a Merchant Navy slnce British Railw8ys days. we've shown that no engirTIng challange is too great. We overhaul8d 35005 for a reawn. That was to posltion us as one of the very fgw heritage railways. perf)aps tho only one, lo offer the opporiunity to travel behind 8 Class 8 Pacific on regular services al a fraclion of the prtco of a main 1Sne rail tour ticket. In tum, that means that we can expect an uptick In visitor numbers and revenues in 202 2026 8nd beyond. Even more importanuy. il allows us lo enthuse a new generation In the wonders of steam locomotive engineering, which r•ached its apogee with the rebullding of the Merchant Navies IL1 a de(de b8fore the end of steam on Brlllsh Railways. Encouragingly the Watercress Llne's ffinanoyal recovery continued through 2024-2025. Thls has enabled tho Trust and Mid Hants Railway Boards to pivot towards a more slructUTed approach to assurtng the W81ercress Line's lon temi fvture. Included th1$ process is a MO rigorous approach lo the valuabon of our rolling stock, prompt8d by our audllors, that has seen us redu¢8 their audit valuo on the books. as you wsll see In the dbtail of our 8ccounts. Thls does not affect our ple8sing cash trading bul 18 8 prudent revaluallon of our assets as advised by the Finanual R8portlng Council. We hav8 Started to dovelop a 'Strat8gy 2050, whi¢h will set ¢yJt what the enterprise aspires to become and how It VAII get Ihare. The emerging findings of this exeruse wll be shamd members and shareholders 81 the 2025 Annual Gen8ral Meeting, with the Strategy Otself due lo be finalised in 2026 aftgr a full consultation process. From Its Inc8Ptlon wi 2024-2025, thls straleglslng has been Ilnked lo a refresh of the Twsl'$ approach to fijnd raislng. This has included identifying indivlduals with expertise in this area who could be brought onto the Trust board. strengthening conla¢ts with key external stakeholders and potgntial fundef5. and dgsigning now. financially.viable projects that can fijrther the Watèrcress Line's objectives. These projects are noljust about locomotives. rolling stock and infrastructure. Rother they focus on peopl8 and skllls because that is where the future of our railway lie5. On that note, I pay tribute to all those who have gol the railway to where 1118 now In heritage and commerd81 terms and who increasad the momentum in 2024-2025. It's a cast of thousands ssJpport8d by key institutions and groups including the National Lottery, our bankeTS. our auditors, the local authorities, Ioc81 communities. and our visitors from across the country and from abroad. That's what 1n9'HrPshiro'S Heritage Rel9Y, is all about and we look forniard with confidon¢o10 th8 ar$ ahoad. St•ph•fi Evans CMG OBE Chalr Date.. 08 Dember 2025
WATERCRESS LINE HERITAGE RAILWAY TRUST LIMITED TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT AND STRATEGIC REPORT) FOR THE YEAR ENDED 31 MARCH 2025 What we do The Watercress Line is Hampshire's heritage railway that presetvès thè memories and skills of the pasl and promotes sustainable transport for the future. We deliver social value to our volunteers and visitors,. economic valuÈ to our region,. and cultural value to Ihe nation in the preservation ol stations, line, track, locomotives and rolling stock of Ihg Southern Railway, reflecting the golden era of steam travel through a time of change. The Watercress Line Heritage Railway Tnjst's objectives ar• to piès•rve. restore, maintsin, operate. exhibit, educate, instruct. stimulate, promote and gn¢our8ge interest in heril8ge railways, locomotives, rolling sl¢xk, buildtngs, artilac15 and equipment and to foster and support railway preservation. Tho Watercress Line Hgritsge Railway Trust supports thg railway Ih8t is managed by Mid-Hants Railway Llmiled I'MHR'I, of which the Trust is the m8jorlty shareholder. The Watercress Line is the trading name of these combined entities. In setting our objectives and planning our aclivilies, the Truslges have Considered the Charity Commission's general guidance on public benefit and to ils supplementsry public benefit guidance on advancing education and on fee-charging. Presetvation and resloralion The Trust fulfils ils purposg lo ensure our railway forever remalns a thrfvlng ar beloved part of Hampshlre's heritage and transport story by supporting the Watercress Llne lo- Maintsin and operate relevanl period locomotives, folling stock, stations, processes and practices. Invest in thg ovethaul. conservallon and restoration of relevant period stèam locomotives and tlie8el traction units. Svc¢essfully Completing the iesloration of the 4-6-2 Merchant Navy Class locomotive 3500S Canadian Pacifi¢ and continuing work on projects which includes our BR Standard Class 4 locomotive 75079, Standard Class 4T locomotive 80150 and the diesel-electric Hampshire Multiple Unil 1125. Invest in the overhaul and resloralion of relevant pedod carriages and wagons. including improvements in accesslbility and prestrnt8lon across its signfflcanl collection of Mk 1 Carriages and the Bull¢id carriage 4211. Support education programmes that brlng chlldren and young people to the railway to experience the magic of stsam and leam about the history, science, technology, engine81ing and maths behind it. Promote Watercress Line heritage through an outreach programme across the region. Enabl8 the provision of opportunities for the public lo enjoy and learn by experiendng a joumey on the TalVay. through its support ofMHR. Su ort for Mid-Hanls Railwa Limlted The Trusl owns the majority of shares in MHR whlch operates the Watercress Line across ten miles of Hampshire countryside bord$ring the South Downs N81ion81 P8rk, wilh four vlnlage sl81ions from Alton lo Alresford and a large flgel of rolling stock. 11 supports MHR to maintain heritage engineering and operational ski115 from th$ last generation of stèam, sp8cific31ty'. Maintaining and 0rating its collection for thè public to Èngage with. Maintsining specialist practical skills and knowledge in the rnaintenance and operation of induslrlal heritage. in particular.. Locomotives. Carriages and wagons from the last ggneration ol steam. Original and re¢onfigLJrèd signalling equipment, their mainl8nan¢8, intègration and operation. The firing and management of sleam locomotives on a challenging steep gradlent line. The managemènt and maintenanc8 of historic stwctures and track known as the Pemanent Way Creating appr•nticeships and training opportunities in heritage enginring. Organising and dglivering a suite of structured learning programme$ for schools, youth groups and unlverslty Students. Providing a¢ce5s and inlerpretslion lo its engineering facilities from viewing galleries. Organising h8nds•on leaming or skills actiwlie5 for children and young people during school holidays. Taking specialist knowledge and training lo other organisation5 through outreach. Maintaining a specialist archive. Carrying over 80,000 visitors during the year. Continuing its successful strategy of layerin9 highly tsrgeted events for differenl audience segments in¢luding on-lrain experiences.
WATERCRESS LINE HERITAGE RAILWAY TRUST LIMITED TRUSTEES. REPORT {INCLUDING DIRECTORS. REPORT AND STRATEGIC REPORT) FOR THE YEAR ENDED 31 MARCH 2025 The Trust also supports MHR in the effective management of Watercres5 Line assets such as: A collection of period locomotives, carriages. vans, wagons and steam cran8s owned by a variety of partners including the Twst and MHR. and operated for the public for around 2(X) days a year as part of our visitor attrath'on. resford SlalSon- a d8stinalion station that houses a café, shop and pedod buildings on the edge of a characterful Georgian town. It has a community and events space in the tormer Goods Shed owned by the Twst and owns car paTk le8sed to Hampshire County Council. Ropley Station- an event venue slatlon that houses a major engineering m8intenanc8 and restoration f8cility and visitor infrastructure including an evenl café and shop. Medstead and Four Marks Station lh8 highest st8tlon in Soulhem England, a delightlul interfude that hosts occasional event facilities and exhibitions. Alton Stslion 8 gateway leased from Netsvork Rail that gives the W8tsr¢r8ss Line direct access lo London Wat8rloo and South Western Railway seNices and a historic market town once knovm lo Jane Austsn. More than 40 acres of land bordering the South Down5 National Park on which the track. Sidings, yards and stations sil. includlng cuttings, culverts and bridges. Partn8rshi The Watercress Llne delivers ils objectives and manages its asse15 through partnerships 8r*d neOrkS of organisations and groups without which il could not function, induding.. Regional Groups Ihat meet lo support and maintain inl8T8St in the railway. Private ownor individuals and groups that own key rolling stock, event and opèrational assets. The Urie Society and Wadebridge Ltd that own partner lo¢omotives and undertake resloralion prolects. The Somerset and Dorset Railway Trust that own5 P8rtner locomotives and museum objects. Neork Rail that owns infrastruclufe Ihal the Watercress Line uses and provi¢Jes support to the railway. South Western Rallw8y that operates London Waterloo services from Aton. The National Railway Museum that owns locomotives based al the Watercress Lin8. The Waler¢ress Line is a member of the Heritage Rail Association and has a contract with th8 National Lottery Heritage Fund for the restor3tion of 35005 C8n8dian Pacific. 11 participates in the inform81 Southern Six neork of local heritage railways, and is a member of the Hampshlre Chamber of Commerce antl the Destination Marketing Or9anisalions Visit Winchester, Visit Hampshlre and Tourism South Ea$l. VolL¢nlee The effgctive operation of th8 Watefcre5s Line is dependent on 550 volunteers who work as footplate crews, provlde engineering expertise, run èvents, serve on dining trains. fill safety and cuslomer service roles on the station3 and In signal boxes. They maintain the stations across horticulture, buildings maintenance and cleanliness. set up and break down events. clean carriages, cook breakfasts and mea15, park ¢ars, and provide ticketing services, maintsin emall and telephone lines. produce magazines, ¢reat• and edit films, take and market photographs, and distribute leaflgts. They provide r051ering, timatabling, compliance. safely management and training services across railway. The Trustees gratefully acknowledge the continuing financial and physical involvement and support of membèrs and volunteers to resloralion projects and running the railway. Without their commiknent and enthusiasm, the Trust and the Watercress Line would not be able lo op8rate. ional Grou The Trust valu•s the work and c<mtributson of its sevèn Ragional Groups. scattered acros5 the south-east, who meet regularty and set their own programmes. Thtrse groups are a vital outreach of interest in and support for the railway with promotion. fellowship and fundraising al their core. FundTaisin The Trust raises funds through membership subs¢ripliDns, donations, grant5, legarjes and fundraising events. It is regisler8d by and upholds the stsndards ofthe Fundraising Regulator. It appeals forfunds from members, SLbPPOrters and the giving public including in the Watercress Line News, on the website and on slalions and in trains. The Charity does not sèll or pass on any details about its members. 5UPPOrters and dorbors to any other organisation and complies with current data protection requirements.
WATERCRESS LINE HERITAGE RAILWAY TRUST LIMITED TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT AND STRATEGIC REPORT) FOR THE YEAR ENDED 31 MARCH 2025 Slrale ic lans The Trust continually Teviews the slralegie5 necessary lo achieve its objectives and meets with MHR Directors to consider slrategio prioritie5. The Trustees and Directors have formed a working group to review the core strategic intent for 2050 an¢J shape the Investment landscape for the Watercress Line. In the meantime, MHR is delivering its objectives through the 2023 Strategic Next Steps Plan in which the WateTcre5s Line aspires to be.. Sltuat•d: recognised and valued 85 a backdrop lo Hampshire and the South Downs. Brand the Watercress Line with the South Downs and celebrate our views. Develop partnerships with local Organisalions and businesses. Celebrate local walercress, food and drink culture through our catering offerings. Contribute to a sense of place and social cohesion for new local residents. Salient: clear about its identity, purpose and relevance. Focus on the last generation of steam and the first generation of diesel and celebrate our post-war heritage. Fund and expand our STEM education programme. Celebrate and leverag& our operabonal and 8n9ineering 6xp8ttise. Racognise, measura and dgvise siTalegies to minimiso its anvironmental impact. Pollshod: known for excellenc8. Have an award-winning bdu¢ation programme. Ensure our volunteering experien¢8 is 'bgSt in class,. Pass on our operallons and englneering expertise lo the next generation. Plan lo fund and cieale undercover storage for rolling stock. Support Ihe continuous revlew and improvement of the railw8y'$ fety culture. Accesslble: easy for everyone to use. Invest in our ststions and rolling stock lo be physlcally accessible. Explain the operation and pu¥pose of the railway as well as engineering al a level that everyone can understand across our visitor touch points. Celebrate the ernotional connection of our target and local audience to the last days of steam. Create consistency and clarity in our experiences largeled lo a wide and ctearfy defined range of users. Performance Report for the Year Ke achievements Canadian Pa¢ifi¢ and the Bulleld Story- The Power to Dream The highlight of the year the completion of the resloralion of the 4*.2 Merchant Navy Class locomotive 35005 Canadian P8cifie and its return lo steam in Mah 2025. This is the Culmination of a multi-decade and multi-million pound project to bring this 1941 locomotive back into operation and. in the process, highlight the human stories surroijnding It. The Trust funded the ¢ompSetion of the lo¢omoliv9 on lime through ils legacy income, highlighting Ihe importance of those remembering thg Railway in their wills. Al the same lime. the Bulleid carriage 4211 restoration was completed, featuring an innovative roof sèaling methodology lo improve the lrfe of the canvas.covered wooden roof.. and intemal changtrs to improve accessibility advised by the slud¢nts of the local Treloars Sthool. In addition to thè enginè8ring a¢hievomont, thè launch of the locomotiv8 markèd a slep change since the Covld ntra¢tion in the organisats'on's ability to engage stskeholders and generate news coverage. A PR Strategy based on the main th8mes of the PfOjg¢1 Fr¢edom in the wartime slorles of sacrifice in the contgxl of thg locomotlve build at a lime of material shortages and th8 Merchant Navy shipping losses aft8r which the dass was named., the women who look over war work lo build the locomotive al Eastleigh Railway Works,. and the Tole of the locomotive around D- Day and repalrialion Hop¢ in the pea¢trtime storfes of the Windrush and £10 POMS whose flrsl and last journeys by rail in the UK wèrè the trains lo and from thè south coast ports; the holiday boom after the war and the glamorous boat trains that promoted international travel by rail
WATERCRESS LINE HERITAGE RAILWAY TRUST LIMITED TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT AND STRATEGIC REPORT) FOR THE YEAR ENDED 31 MARCH 2025 Power in Bull8id's innovative and American-inspired design improvoments lo produce a loco of speed and capability that defied the BR standard test equipment., sel speed r8coTds,' and modemised the technology and ergonomics of locomotive design of its day. The18un¢h week mado a signrficanl contribution to the Railway al a koy moment. coming oul of tho winter period and welcomirvJ more than 2,500 guests on Ils CelebraOn trains. Railwa 200 The Watercress Lino look an early lead in promoting and engaging the publlc with the national ¢elebralioris for the 200 anniversary of the first passenger rail joumey. The Leaming and Outreach Co-ordinator partn8red with the Winchester Poetry Festival to work wlth over 100 authors and poets who conlribulgd to the creation of a rablway PO8ty and pros& anthology which can be viewed on the railway's website. The team also ran an award-winnlng ¢r8ative community engagtrment project working with ov8r 100 individuals and community groups and funded by the Arts Soclety Alre5ford. Ta¢tile textile panels inspirèd by Railway 200 stories were collaboratively designed and crafted by the volunteer5 and launched into a programme of ¢Ji$p18y across the region in the Railway 200 year. Business stabili The Waler¢ress Line welcomed 80.317 passengers in the year, an 8.5% increase al a lime of visitors falling across the heritage sector. Blssiness corbtinued to manag8 on an 'avslerity' footing, reviewing and managing ils resources relenlle5s1y by improving transparency, driving out inefficiencies, raising margins, strearnlining processes and focussing on the visitor oxperience. Emblematic of this 5uc¢trss was the vital winter Steam Illuminations event which ran f8wer services, attracted mre visitors, and improved the experience, delighting nearfy 20,000 visilors while dglivering a 12•A Improvement In Revenue P9r Pa5sengar Mile on the prior year. Leamin and Outreach The Education and Oulrgach team was shortlistetl for the Heritsge Railway Association 'Tgam of the Yearf award in February 2025 and received a highly commended award. Tho team was also the Linkedln Communlty and Archive Heritage Group's Group of the Month for ils Rallway 200 work. A lotsl of 3,463 leamer$ were engaged across on and offsite activities including fomal and inforrnal, 18d and self- gui(Jed vlsitors lo the railway. A further 678 learners wer9 turned away due to capacity ¢onslTaints. New volunteer5 were trained and the t8am expanded in the year. The Lltdo Locos early years club was discontinued due to year- round Competition in the local area. The Educallon Room ot Ropley is hampered by a18ck of healing lo sustain year- round activity. Education aclivilles are core funded by the Trust and delivered by a Learning and Outreach Officer supported by thirteen volunteers. Institutions Leamers Education: Key Stages: Earty Years, Receptlon and Year 1-2 Schoc*ls Key Stage 34 schools Further and Higher education Home Education rou Youth Groups.. Scovting and Girl Guiding groups Evenin visits at Ro le Outreach talks and workshops= Youth groups Adult and Commun 33 1241 42 129 46 8 groups 15 rou 199 451 6 gTOUPS 21 rou 205 1150 rou ren ceshi s and Trainin Apprentice Matt Parr left hi5 apprenticeship at the end of March 2025 In his third year as a Fitter M8¢hinist apprenlico WOTking with Fareh8m College.
WATERCRESS LINE HERITAGE RAILWAY TRUST LIMITED TRUSTEES, REPORT (INCLUDING DIRECTORS. REPORT AND STRATEGIC REPORT) FOR THE YEAR ENDED 31 MARCH 2025 Volunt$erin During the year, a volunteer learn from the Watercress Lin8 inlroduced the Heritage Operations Pro¢esslng Systems IHOPSI for the management of volunteer staff informatson and complianc8. This project, led by the Signalling Department, has enabled the organisation lo move its compliance managèment away frorn distributed paper and legacy dalabasts systems, and to enable better rostering, team visibility, communiealions and compliance check5. 11 is an ongoing piolecl bul has been an exemplary volunteer team effort. The Volunteer Steering Group is a group of volunteers that manag8s the development of volunteering processes and recruilmenl. 11 has had huge success wrth ils in year recruitment by retheslablishing and revilalising ¢ommunlcalions and a¢livilies that were lost over Covid, setting up systems, running regular voluntèer recruitment days., responding lo volunteer enquiries and galvanising inlemal teams lo improve the darity of their needs. responses and inductions. More than 100 ngw volunteers have b8en introduced to the Railway. M8mb8rshi Membership of the Trust continued to decline al a rale of 3.6°1o, Wth the rates identical a¢ross life and discretionary members, and a chum rale of 150/0 in discretionary members. A membership research project commencèd to rgvi8w options for a major drive for new members and to irnprove the retention rates of existing membership. We thank the volunteers for ¢ontinuing to manage the adrninislralion of members and company shareholders and the Watercress Linè N8ws production team who keep our Members up lo date wth the Railway's activikn'es. Structur•. Governanc• and Management Governin document The Watercress Line Haritagg RaiKvay Trust Limited is a Company Limited by Guarantee. It was granted charitable status in May 1982 and is registered with thè Charity Commission. Revised Articles of AsSlatiOn, effective frorn 1 April 2022, were agreed and registered by Companies House and the Charities Commission. The liability of Memb8rs is limited to £1 each. Trustees Trustees Iwho are also Directors of the Company for the purptsses of company lawl who seNèd through the year are outlined on page 1. Trustees are subject lo election or re-election aordIng to procedures sel out in the Articles of Association. The Trust's Articles of Association p8rmit th8 apw'ntment of a minimum of three and up lo nine TrusleelDireclors who have lo stand4own after three years but may be re-elecl8d for furth81 pèriods. All are requirtrd lo be appropriately skilled, according lo needs, to form an effeclive Board. Trustees receive appropriatè induction, ongoing training and annual performance appraisal. On appointmenl. new Trustees work alongside existy'ng Twstees to galn experience. Training is made available for all Trustees. Or anisation and Mans Èmenl The Charity operates through a Board that determines the general policy of the Trust. Committees with membership that in¢ludes both the Tnjsl and the Company m8n8ge the laclical business of the Railway. The Business and Finance Committee ensurgs dgcisions are aligned and deliverabltr, 8n¢J the Safely & Assurance Committee provid8s ovèrsight of MHR'S ¥ailway and operational safely management system. The Board meets regularty throughout the year and is support8d by the Chief Exècutive Officer vh)0 advises on and implements deThsions. The Board is responstble for sethng strategy and direction with MHR running railway operations and commgrcial aclivitses. Routs'no adminislralive functions are undertaken by MHR. Risk Mana ement The Trustees regularly rèview the finances and risks of the Chaty and Its 8ubsidlary companies and examines the major risks the Charity faces whgn pr8p3ring and updating Ihelr plans. In conjunction with lh8 MHR Directors, the Charity has developed systems to monitor and control these risks and manage any impact thal they may have in the future. MHR controls the Safety Management Systems for the operation of the railway and on90ing reviews includ&s risk analysis and assessment.
WATERCRESS LINE HERITAGE RAILWAY TRUST LIMITED TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT AND STRATEGIC REPORT) FOR THE YEAR ENDED 31 MARCH 2025 Tho Trustee5 hav8 identified the top three risks Eo the Trust are.. Financial resilience due to changing demographlcs and giviThJ h8bits Environmental preparèdness due lo changing18gislation and cultural expectstions Leadership and skills due to increasing competition for @ffeclive tslenl key risks for the Company arg.. cash flow, which is being managed In an active turnaround matching products with changing consumer spending filling technical skilled roles supply chaln disruption an(1 prico volaUIIty Related arties The Charity has two Subsidiary bul not wholly owned cLJmpanles: Mi**Han15 Railway Limited which oper8tss tho railway under the brand name'The W8lercrnss Line,. Wadgbridge 1340071 Locomotive Limited which owns the Southern Railway Wost Country class Ic0M0t1Ve 'Wadebridge'. which is in resloT8ti0n. Shares in each can only be purchased ty the Trust and existing shareholders are encouraged lo transfer their shares to the TTUSt. Sustainabili Th8 Charity Commissbon encourag8s Trustees to nSider the sustainabllity of their charity and its future. The Trustees recognlse the steps that have been taken lo secure the fijlure of the railway. the dearer financlal transparency, success in attracting talent, in¢0$e in visitors, improved company trading and successful volunt9er rgcruilmenl. 11 has supported the active turnaround of the Company and Invèsted in its Locomotive Projects providing assets, securing skills and supporting the cornpany. It has confidence in the future and the abllity of the Charity to attract support to secure the long-tem) sustainability and viabitily of th8 railway. Flnanclal Revl•w The Trust las a group) reported strong Income from its tradin9 and charitable aclivilies. However, the Trust reports net deficit of £2,544,173 compared lo a surplus of £462,281 in 2024. This deficit has arisen thTough a write-down In the value of a number of fixed assets in the Current period following thè adoption ol more ri9oTous and consistent methodology to determine the audit value of rolling stock, pa'CUlarlY locomotives. lor which there is little markot data. and which recognises the restoration costs now run ahead of realisable valug . The subsidiary companles. Mid-Hants Railway Limited reported a loss of £683,152 and Wadebridge 134007) Locomotlve Limited reported a loss of £420.253 in tho yèar ended 31 March 2025. MHR has laken active measures to tum around throughout the persod. supported by the Trust in improving financial transparency, attracting talent. reviewing its ass8ts and buslness and winning th8 support of its volunteers and funders. These measures have been bolstered firm and positiv8 support from its bank. As a Group. the Wat8rcfess Line derives revenue from Travel on and around h8ritag8 assets and events that sUPPOrt ils charrtable aims. Trading activities to support visitors and trvgnts. Rerbts and revenue from railway estate and infrastructur8. Earned income from specialist ongineering activibes. Donations. grants and legacies. Reserv8s olic The policy of the Charity is to malnlaln a level of unr8stricted funds, not committed or invested In tangible assets. whlch will enable the Charity lo ensure conlinuily of activity and have the ablllly to adjust. in a mea$uTed way, to any significant changes in resources. Th8 Reserves Policy recognlses that reserves are necessary lo maintain the day to day operations of the charity for a period of six months. The Trustoes seek to keep a £150,000 buffer between available funds and committed funds. Al the year end this criteria was not mel but action has been taken since the year end to bring thls in lin8.
WATERCRESS LINE HERITAGE RAILWAY TRUST LIMITED TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT AND STRATEGIC REPORT) FOR THE YEAR ENDED 31 MARCH 2025 As of 31 March 2025, total funds of the Charity were £6,465.38412024.. £9,009.557). Of Ih88e, £942.75012024'. £1,107.6381 are restricted funds. and £5,523,332 {2024-. £7,901,919} are unrestricted funds. Of the unr8Stricted lunds, £6,745,902 12024-. £8,888,601) is represented by tsngible fixed assets, and £308.137 represented by net current liabilities12024.' £64,295 net current assets.) There are long-lemi liabilibes and provislons of £914,43312024: £1.050.9771. Plans for future riods The Boards of the Charity and MHR met during the year to review Ihe financial pos10 of the companies, develop the fvndraising slratogy and 9ranl appllcations. The Charity's income includes a large proportion of grants. donations and 18gacy income. By ils nature Ihe18vel of this income cannot be assured in any year. The Trustees acknowled9e that they would be able to delay capital projects if required to balance cash flow were there to be a shortfall in expe¢led income. The Trust has developed a fundraising strategy and in 20254 will leverage the retum lo steam of Canadlan Pacrfic and develop its long term strategy to create a vision for the Railway in 2050. It will ¢onlinue lo run campaigns lo support the Railway and specific projects as well as developing capacity and capability. These campaigns will help lo shape and bed in the staff. structures and habits of fur¢draisin9 that will allow the Trust lo continue lo raise regular funds to support its charitable objectives across the Railway. Looking forward. the Trustees expect incom8 to be a continuing mix of grants, subscriplions, donations and 1ggoQy income. Dlsclo8ur• of Inlormatlon to audltors In so far as the Trustees are 8ware'. there is no relevant audit information of which the charitable group's auditor is unaware; and Ihg Trustees have tsken all steps that Ihgy ought lo have taken to make themselves awore of any relevant audit information and to establish that the auditor is aware of that infoimalion. The Trustees are responsible for the maintenance and integrity of the corporate and financial information in¢lutled on the charitable group's website. Legislation in the United Kingdom goveming the preparation and dissemination of financial slatements may drffer from18gislation in other jurisdictions. Audltor ets Audit Service5 were appointed a5 auditor to the charitable company and group and a resolution proposing that they be rg-appointed will be put to a General IAeeting, in accordan¢e with section 485 of the Companies Act 2006. The Trustees, report. including the Dlreclors, report and slraleglc report, was approved by the Board of Trustees. y Ord•r of the Board Stephen Evans Chair of th8 Board of Trusts8S Date.- 08 December 2025
WATERCRESS LINE HERITAGE RAILWAY TRUST LIMITED STATEMENT OF TRUSTEES. RESPONSIBILITIES FOR THE YEAR ENDED 31 MARCH 2025 The Trustees (who are also Directors of Water¢ress Llne Heritage Railway Trust Limile(I for the purposes of company lawl are responsible for prep8rsng the Trustees, Annual Report lincluding the Directors. and Strategic R$portl and the financial statements in accordan wlth 8pplieable law and Unlled Kingdom AccountirvJ Standards (United Kingdom Generally Apted Accounting Practice). Company law requir8S the Trustees lo prèpare financial stslemenls for each financial year. Under company18w the Trustegs must not approve thè financial statements unless they are s81isfied that they give a tru& and fair wew of the state of affairs of the charitable company and th8 group and of the incoming resources and application of resour¢8s. including the income and expenditL¢re. of the ch8ritsbl8 group for that P8riod. In preparfng these financial statements. the TTLislees are required lo-. select 5uKable accounting policies and then apply them ¢onsistenlly', observe the methods and principles in the Chariti8s SORP 2019 {FRS 1021.. make judgements and eslimales that 8rg reasonable 8n¢J prud8nt'. ststè whether applicable UK Accounting Sl8ndards have been followed., prepare the financial slalements on the going concem basis unless il is Inappropriate lo presume that the Charitable 9roup will continue in operation. The Trustees are responsible for keeping ad8quale accounting ordS that disclose with reasonable accuracy al any time the financial position of thè ¢harilable group and ènable them to ensure that the fin8n¢i81 ststements CoMY wilh the Comp8nies Act 2006. They are also responsible for safèguarding the as$8ts of the charitsble comp8ny and the group and hence for tsking reasonable steps for the pfevenlion and d8leclion of frau(J and other irregularities. 10-
WATERCRESS LINE HERITAGE RAILWAY TRUST LIMITED INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF WATERCRESS LINE HERITAGE RAILWAY TRUST LIMITED Oplnion We have audited the financial statements of Watercress Line Heritagg Railway Trust Limited (the 'charilable parent company'l and ils subsidiaries (the 'group'l for the year end8d 31 March 2025 which comprise the consolidated statemènt of fin8ncial aclivilies, the group and charitabl& parent company balance sheets, the consolidated statement of cash flows and the notes lo the financial statements, including SignifnI accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepl8d Accounting Practice). In our opinion, the financial stalernents.. give a true and fair view of the stal8 ol the group's and charilable parent company's affairs as at 31 March 2025 and of the group's incoming resources and 3ppli¢ation ol resources, for the year thèn ended., have been proptsrly prepared in accordance with United Kingdom Generally ACpIed Accounting Practice., and have been prepared in accordance with thg requlrements of the Companies Act 2006. Basls for oplnlon We conducted our atjdit In accordance with International Standards on Auditing {UKI IISAS IUKII and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statèments se¢tion of our report. We are independent of the group and ¢harilable parent company in accordance wlh the ethi¢al requirements that are relevant lo our audit of the financial statements in the UK. including the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance wllh these requirements. We believe that audit evidence we have obtained is sufficient and appropriate to provido a basis for our opinion. Concluslons relatlng to golng ¢on¢¢m In auditsng the finan¢ial stslernenls, we have concluded that the trustees. usa ofthe going concem basis of accounting in the preparation of the financial ststernents is appropriate. Based on the work we have perfomied, we have not identified any material uncertainties relab'n9 to events OT conditions that, individually or collectively. may cast significant doubt on the 9roup or charitable parent company's ability to continue as a going ¢oncem for 8 peri(Kl of 81 least fvlelve months from when the financial statements are aulhorised for issue. Our respon5ibililies and the sponSibl11t1eS of the trustèes with respect lo going concern ar8 d8s¢ribed in thg relevant sections of this report. Other Infomiatlon The other information compris8s the infonnalion included in the annual report, other than the financial slatgments and our auditorfs report thereon. The tnjslees are responsible for the other infomialion contained within the annual report. Our opinion on the financial statements does nol cover the other infofmation and. ex¢epl lo the extent otheNise explicitly slated, we do nol oxpress any form of assurance conclusion Ihereon. Our responsibility is to read the olher infomation and, in doing so. consider wh8lh8r th8 Other information is materially inconsistent with the financial ststements or our knowledge obtained in the Course of th8 audit, or otheNi$e appears to m3leTially misslate(J. If we identrfy such material inconsistencies or apparent material misstatements, wé are required to determine whether this gives rise lo a material misstslemenl in the financial statements themselves. If, based on the work we have performed, we concludt that there is a materi81 mi8318tement of this other informatlon, W8 are required to report that lacl. We have nothing to report in this regard. Oplnlons on other matters pres¢rSb•d by the Companles Act 2006 In our opinion, based on the work undertaken in the coursg of the audll.. the information given in the trustees, report, which includes the strategic report and directors, report prepared for the purposes of company law, for the financial year for which the financial statemènts are prepared Is consislenl with the financial slalemenls., and the strategic report and the directors, report included wilhln th8 Iruslegs, report hav9 baen prepared in accordance with the applicable legal requirements
WATERCRESS LINE HERITAGE RAILWAY TRUST LIMITED INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF WATERCRESS LINE HERITAGE RAILWAY TRUST LIMrrED Matters on whlch we are rwulred to report by èxception In the Ih1 of the knowlgdge and understsnding of the group 8nd charitable parent company and $ environment obtained in the cwrse of Ihe audit, we have not identified mat8rbal mis5t8tements in the straleglc report and the dlrgctors, T8FKIrt included within the truslee$' raport. We have nothlng lo report in respect of the following m8tters in r9101ion lo whlch thg Companies Act 2006 requires us to report to you rf. in our opinion.. adequats and proper accounting rewrds have TK)t beèn kept. or retums adequate for our audit hove not been received from branches not vlsiled by us., OT the financial statements are not in agraement wolh the 8ccounts.ng Tecords and retums.. or certain di10$ureS of trustees, remuneration specifiod by law are not made.. or we have not received all the infomiation and explanations we require lor our audit. Retsponslbllltle$ of trusto0s As explained more fully In the staternenl of trustees. responsibilitles, lh8 trustees (who are also the directors of the chadlable parent company fof thg purpose of Company lawl are responsible for thè preparation of the flnanclal statemènts and for being satisfied that they give a true and fair view, and for such inlemal control as the trustees delerming is necessary to enable the preparation of financial ststements that are fro9 from matsrial misstat8mgnt, whether due to fraud or error. In preparing the financial stat8ments, the trustees are responsible for assessing tho group and charitable parent company's ability to continue as a going concem. disclosing, a5 applicable, matters related to going conc8m and using th6 going concern ba515 of ac¢ounts'ng unless the tfuslees either inlond lo liquidate the group or charltable parent company or to cease operations, or have no reallstic altemative bul to tlo so. Audltorfs respon$lblllties for the audtt of the flnanclal slatements Our objeclivos are to obtain Te8S0n8ble assurance about whethèr the financial statements as a whole are free from materi81 misstalèmenl, whether due to fraud or error. and to issue an auditorfs report that includes our opinion. Reasonablg assurance is a high lev81 of assurance but is not a guarantee Ihal an audit conducted in accordance with ISAS IUKI will always delect a m8t8rial misstslemenl when rt exists. IAisstatements can 8rise from fraud OT error and arè considered material if, Individually or in the aggregate, they eould ieasonably be gxpected to inlluence the economic d8cisions of users lak8n on the basis of these financial slalements. A furth8r d8scriplion of our responsibllilles 1$ available on the Financial Reporling Council'5 webslle al hll s'.Ilwww.frc or .uklOur-WorklAuditlAu(Jil-and-assurancelSlandards-and- uidancelslandards-and uidance-for- auditorslAuditors-res r-audiUDescfi tion-of-audilofs-res onsibililies-for-audit.as Thls description forms part of our auditorfs r8POrt. 12-
WATERCRESS LINE HERITAGE RAILWAY TRUST LIMITED INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF WATERCRESS LINE HERITAGE RAILWAY TRUST LIMITED Extent to which the audit was considered capable of dotecting ivrègularitiès, in¢ludlng fraud Irrègularities. in¢luding fraud. are ins18nces of non-compliance with laws and regulations. We design procedures in line with our responsibilities. outlined above, lo delecl material misstatements in respect of irregularities, including fraud. In response to the risk of irregularities and non-complianc8 with laws and r8gul3tions, including fraud, we deslgned procedures which included.. Enquiry of management and those charged with governance around acbjal and potential litigation and claims as well as actual, suspected and alleged fraud., Revlewing minLrtes of meetings of those charged with governance.. Assessing the extent of ¢omplian¢e with the laws and regulations considered to have a diréct material effect on the financial $181em8nls or th8 OP8ralions of the enllty through enquiry and inspecth'on., Reviewing financial statement dis¢losures and lesling lo suppoth'ng documentation lo assess compliance with applicable laws and regulations., Pertorming audit work over the risk of management bias and override of controls. including testing of joumal entries and other adjuslmenis for appropriateness, evaluating tha business rationale of significant transa.On$ outside the normal course of business and reviewing accountsng estimates for indicators of pot8nlial bias. Because of the inherent limitations of an audit, there is a risk that we will not detect 811 irgUIantie5, induding thosg leading lo a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to bewme awara of instsn¢es of non-compliance. The risk is also greal8r regarding irregularities occurring due lo fraud rather than error. as fraud involves int&ntional conc8alm9nt. forgery, collusion, omission or misrepresentation. Use of our roport This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 01 Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we mwht stste to the charitable companys members those mattets we are required lo stale to them in an auditors. report and for no other purpose. To the ftjllèsl extent pemiitted by law. we do not accept or assume responsibility lo anyone oth8r than the charitable company and the charitable company's members as a body, for our audit work, for this report. or for the opinions we have formed. QA4 rts Jon Nobl• ISenl¢r Statutory Audltor) For and on behalf of Az¢t$ Audlt Servl¢e$ Chartered A¢c¢untants Statutory Audito¥r Third Floor. Gateway House Tollgats Chandlèrs Ford Hampshire United Kingdom S053 3TG 13-
WATERCRESS LINE HERITAGE RAILWAY TRUST LIMITED CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (includlng Summary of Income and Expenditure) FOR THE YEAR ENDED 31 MARCH 2025 Unr•stricted Funds R$trl¢ted Funds Total Funds Total Funds {restatedl 2024 Notes 2025 Incom• Donations and lega¢ies Income from charitable 8Ctivilies Income from othgr tradin9 activities Investment income Other income 235.597 36,185 2,955.253 20.984 39.810 371.124 606,721 36,185 2.955,253 20.984 39,810 1,115,862 37,514 2.639.397 18,411 35,454 Total Income 3,287,829 371.124 3.658,953 3,846,638 Expendtturo Costs of raising funds Expenditure on charitsblo activities Impairnienl of assets 3.519,819 266.581 2,417,232 3,519,819 292,135 2.417,232 3.141,152 277.392 25,554 14115 Total 8xpendlture 1Ye interest and taxatlon 6.203,632 25.554 6,229 186 3.418.544 Interest payable Taxation 146.9811 73.041 {46,9811 73.041 154,7601 88.947 13 Net IncomellDofl¢lt) 12,889,743> 345.570 12.544,1731 462,281 Transfers begen funds 2412S 511.156 1511.1561 Net mov•ment In funds (2,378.5871 1165.5861 {2.544,173} 462,281 Fund balances at 01 April 7.901,919 1,107,638 9,009,557 8.547.276 Fund balances at 31 March 5.523.332 942.052 6.465.384 9,009,557 14-
WATERCRESS LINE HERITAGE RAILWAY TRUST LIMITED CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (Including Summary of Income and Exp•nditure FOR THE YEAR ENDED 31 MARCH 2025 Prlor flnancial year Unrestricted Funds Irestatsdl Restrlct Funds Irestatedl Total Funds Irestatedl 2024 Notes Income Donatlons and legacies Income from charitable activities Income from other trading activities Investment income Olhgr income 798.862 37.514 2,639,397 18,411 35,454 317.000 1,115,862 37,514 2.639,397 18,411 35,454 Total In¢omo 3,529,638 317.000 3,846.638 Expendlture Costs of raising lunds Expenditure on charitable aclivrties 3.141,152 261.336 3,141,152 277,392 16,056 Total expendllure b•for• Interfrst and taxatlon 3.402,488 16,056 3.418.544 Interest payable Taxalion 154,7601 88,947 154.7601 88,947 13 Net IncomellDeficit) 161,337 300,944 462,281 Transfers between funds 24125 164,273 1164,2731 Net movgmgnt In funds 325.610 138,671 462,281 Total fvnds brought forward 7,576,309 970,967 8,547,276 Total funds carrled fonyard 7,901,919 1,107,638 9.009,557 The prior year Statement of Financial Activities has b$en reslaled to ensure classification of income and expenditure is consistent with the current financial yeai. Total income, totsl expenditure. and lolal funds are unchanged. 15-
WATERCRESS LINE HERITAGE RAILWAY TRUST LIMITED BALANCE SHEET FOR THE YEAR ENDED 31 MARCH 2025 Group 2025 2024 Not8S Flxed a$s•ts'. Tangiblg assets Investments 14 6.745,902 8,822.190 66,411 15 6.745,902 8,888.601 Current assots: stock 16 17 217,840 241,531 1.137,919 1,597.290 267,588 714,967 1,123,859 2,106.414 Oeblors Cash al bank and in h8ntl Cr•ditors- amounts falllng due wlthin one year 18 {963.375) 1934.4811 Not ¢urront ass•ts 633915 1.171.933 Totsl assets lèss ¢urr9nt Ilabllltlg$ 7,379,817 10,060,534 Credltors: amounts falllng due afttrr more than ont yoar 19 {706,661) (770,1641 Provlslons for Ilabilities 22 1207.772) 1280,8131 Net a$$•ts 6,465.384 9,009,557 Income funds Restricted income funds 25 942.052 1.107,638 Unreslricled income funds.. General funds (Xher reserve Minority interests 24 4,530.513 514.765 478.054 6,902,272 514,765 484,882 5.523,332 7,901,919 Totsl funds 6,465 384 9,009,557 16-
WATERCRESS LINE HERITAGE RAILWAY TRUST LIMITED BALANCE SHEET FOR THE YEAR ENDED 31 MARCH 2025 Company 2025 2024 Notes Flxed assets: Tangible assets Investments 14 1.854.947 847,920 2.702,867 2,688,157 907.503 3.595,660 15 Curr•nt as$•ts: Debtors 17 119.813 1,131,310 1,251,123 632.634 1.092.547 1.725,181 Cash at bank and in hand Creditors: amounts fa115ng du• wlthln one year 18 191,7311 124.6421 Net current assets 1,159,392 1,700.539 Total assets l•ss curront 3.862.259 5.296.199 Creditors: amounts falling due after more than one year ProvlsSons for lilbllltles Nèt a$$•t$ 3,862,259 5,296,199 Fund$ Restricted income funds 25 942,052 2,920.207 1,107,638 4.188.561 Unreslricled income fvnds.. Total funds 3.862.259 5,296,199 Tr* f•wKial $l•lwrts P•90• 14 * 39 •N¥o¥•d by ts e¢wd d Ow•¢tty• ky 08 December 2025 Dlrg¢tor- S Evans Director- G H Watson Company r•glstsr•d ntsmb•r." 01126590 17-
WATERCRESS LINE HERITAGE RAILWAY TRUST LIMrrED CONSOLIDATED STATEMENT OF CASHFLOWS FOR THE YEAR ENDED 31 MARCH 2025 2025 2024 {r••t•t•d) N•t u*h provld•d ty op•r•llng •¢lMII••: 31 808.399 86.365 Ca•h tkn from Inv119 •cil¥lll••: Int•r8$1 rK•lvod Pmco8d8 881• fix•d as¥•ts purch of tanglbl• fix¢d w8ets 18.411 225.th)0 1943.2881 14 1829.238) N•t G••h In Inv••dng ackn• 1697.304) {810.8271 C••h 116w• trom Iln•nclng •ctlvMIM: IncrusWlr•duclionl of borrowir4J$ 20 (90,0991 1263,362) Ch•ng• In c••h •nd •qulv•l•nl• In th• y••r C••h And cuh •qulv•l•nts •tth• •tth of th• y••r 1987,824) 821,047 1.808,871 Cuh and e••h •qul¥•l•rA• at th• •nd of th• y••r •42.043 821.047
WATERCRESS LINE HERITAGE RAILWAY TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Accounting policies Charity Inforniatlon Watercress Line Heritage Railway Trust Limited is a private charitable company limited by guarante8 incorporalgd in England and Wales. The registered office 1$ Alresford Slalion, Alresford, S024 9JG. 1.1 A¢countlng Convtntlon Thè financial ststem8nts have beèn prepared in 8¢¢0rdan¢e wth the Companie5 Act 2006, and "Accounting and Rgporting by Charities.. Slatgment of Recommended Pracllce 8pplic8ble lo charlties preparing their ac¢ounls in accordance with the Financial Reporting Standard 8pplicable in the UK and Republic of Ireland {FRS 1021'1gffective 1 January 20191. The Charitable company is a Public Benefit Entity as defined by FRS 102. The financial statements are prepared in stertlng, which Is the lunclional currency of the charitable company. Monetsry amounts In these financial statements are rounde(I to the nearest £1. The financial statements have been prepared under the historical cLJst convention, modified to include the revaluation of certain freehold land and building5 and other assets al fairvalue. The principal accounting policies adopted are sel out below. Prnparatlon of consolldatsd flnan¢lal statem•nts Th8 fin8n¢ial sts18ments consolidatB th8 results of th8 ¢haril8ble ¢omp8ny an¢J its subsidiaries. Mid-Hants Railway Limited and Wadebridge1340071 Lo¢omolive Limited are consolidated using the purchase method. The n8t incom8 from the subsidiary companies is shown in note 5 of the accounts. Transactions wilhln the group are eliminated on n$011dat10n. 1.2 Golng ¢Onrn At tho time ofapproving th8 financial statements Ihg TrLtslees hav8 a reasonable expectstion that the charftsble company and group havo adequate rasourcos lo continue in 0ratIonal existence for the foreseeable future. Thus the Trustees continue lo adopt the going concem basis of accounting in preparing th8 ffinancial statements. The Trustees recognise that there is uncertainty in a consumer induslry and that dlscrelionary spend and donations have to be fought for. Improved transparency and acb've managemgnl has given confidenc8 that costs in the Group are being controlled. The review of major costs such as en6rgy contracts, and the reprofiling of the CBILS loan to a 1&year bank loan has eased the pressure on the Group while new products and improved productivity lake effect. Proactive assessment Is ongoing lo seek new operats'ng income opportunities and other funding options, and these continue lo be pursued with vigour. Whilst the Trustees recogn5se Ihe Challenges and uncertainties th81 the railway faces. they believe that with ntinued support from the bank. the a¢tions already implèmented detai18d above, and continuèd scrutiny by the Trustees and MHR Board, the Group will continu9 as a going ¢on¢ern. The Trustees have Considered the level of funds held and the expected level of ineomg and expgnditure for 12 months from authorising these financial statements and are content that the budgeted income and expenditurts is suffiugnt to be able to continue as a going concern. 1.3 Charltable funds Unrestricted funds are available for use al the discretion of the trustees in furtherance of the general objectives of the Company. and which have not bgèn designatèd for other purposes. Restricted lunds are lunds which are lo be used in accordance with specrfic Testricttons imposed by donors (* which have been raised by the Company for particular purposes. The aim and use of each fund is sel out in the notes lo the financial slalements. 19-
WATERCRESS LINE HERITAGE RAILWAY TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 1.4 Income Donations and income from subscriptions, staled n81 of value add80 tax, are Credited on the stslement of rinancial activilies in the year lo which they relat8 with any relating to future years being shown in creditors. Income relating to reslri¢led funds is separal8ly disclosed. Income from exlended membership subscriplioris is recognis8d in the year of receipt in the statement of financial 8¢tivilies. In accordance with Charities SORP {FRS 1021 no amounts are included in the financial statements for servlces donated by volunteers. The Trustees. annual report acknovledges their essenU81 contribution lo the charty's SUCCgSS. Income from legacles is recognised al the earlier ofthe date on which either the Company 15 aware that probat8 has been granted, the eslale finalised an(J nolificalion received by the Company that a distribution wlll be made or has been received. Receipt of a l$gacy, in whole OT in part, is only considered probable when Ihg amount Can be measured reliably and the Company notified of the gxe¢utor's intention to make a dislributlon. If the Company is aware ol the granting of probate, but the cfil9ri8 for income recognition have not been met, the legacy Is Irealed as a contingent asset and disclosed if malerfal. Income from the subsidiary companies rgpTesenls sales, oxcluding value added tax. in respect of tickets for steam train experiences and rides. retsil and catering goods supplied during the year. external engin88ring work p8rformed and locomotive hire charges. Payments re¢eived on account arg not included within lumover until such time as the service is rendered OT obligallon fulfilled. Income from government and other grants. whether'capitsl, or'revenue., is reco9nised when the Company has entitlement lo the funds, any performance conditions have been mel, It Is probable the income will be rgGeived and the amount ¢an be measurgd reliably and Ss not (leferred. Interest from funds on deposit is included upon nOrICation of interest payable by the bank. Dividends from shareholdlngs are recLxJnlsed wh9n tha dividend is received. 1.5 EXpendure Exp&ndittJre is accounted for on an accru81s basis and reco9ni$ed once there is a legal or constructive obligation to make a paym8nt to a third party, il is probable that settlement will be required and the amount of the obligation can be Tneasyred reliably. Cost of raising funds are those incurred by the subsidiary companies in commercial trading. Charitable aclivilies indude expendllure associated with th8 mainten3rh¢8 and preseTvallon of railway transportation syStgm$. equipment and any support costs associated w¢lh those activities. Support costs indude fijnctions that support the work of the Company, bul do not directly undertake charilabla activrties. Governance costs include Ihosg incurred in the governance of the Company and its assets ant1 afe primarily associated wlth ¢onstitulion81 and statutory requirements. Grants payabla are paym8nts to third parties for furtherance of the Company's objectives. The grants are accounted for where 8ilhgr the trustees havg agreed to pay the grant wthout condition and the recipient has a reasonable expeclafjon that Ihey will receive the grant. or any condition attaching to the grant is outside the control of the Company. 1.6 Oporating le•$•$ Costs in Tespect of certain hiring arrangements are accrugd on an annual basis and charged diredy to the SOFA. Some of the hlr8 arrangements are open ended and have no fixed d8tg of expiry
WATERCRESS LINE HERITAGE RAILWAY TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Accountlnu pollcles 1.7 Tanglble flxed assets Tangible fixed assets are inikn'ally measured al cost,, or d8am8d cost. bèing purchase price or valuallon, and subsequently measured al cost, net of depreciabon and any impairment losses. Depreciation is recognised lo write off the cost or valuation of assets less their residual values ov8r thoir useful lives on the following bases.. Freehold land and buildings Plant and machinery Rolling slock Assets in the course of construction O-2. slraighl line basis 0-25°h straight line basis 10-12.50/0 slralghl Ilne basis Not depreciated until brought into us8 The gain or loss arising on th8 disposal of an ass8t is datsmined as the drfference botwagn the sale proceeds and the carrying value of the asset and is recognised in net incomellexpenditurel for the y8ar. Restoration costs for locomotives are capitslised as fix9d assets. and depreclaled from the point al which the locomotive reenters services over the length of their boiler certificats {usually 10 years), d8emgd to be the expected useful economic life. Locomotives are d6preciat8d down to thèir residual non-running value. Where locornolive, owned by an independent group, is overhauled by the company and a long.term hir& agreement is in place, the costs incurred are capitalised. Costs are depreciated on a straighl-line basis over thg expected useful lrfe lusually 10 years). Other than the Ropley engineering workshops, depreciated at 2% per annum, the freehold land and buildlngs are not depreciated below their residual value. In the opinion of the Directors, il is the Company's purpose lo resloie, preserve and keep these assets in good repair for the future. Freehold property consists mainly of historlc buildings which have long useful economic lives and high residual valu8s. The trustees are of the opinion that no circumstances causing an impairment of value ol land and buildings havtr Occurred. The GTOUP has taken advantage of the Iransilional provisions of FRS102 to relain previously rg-valued assets at their bwk value. 1.8 Fixed asset investments Fixed asset investments are slated al c051, or valuation, les5 provision for any impairmgnl In value. 1.9 Impalmitnt of fix•d assets At each reporting end dale, the charity ViewS the carrying amounts of ils tangible assels to determine whether there is any indicathon that those assets have suffered an impaimienl loss. If any such indi¢alion exists, the recoverable amount of the asset is estimated to delgrmlne Ihe exlenl of the impairment loss lif any). Any impairment is recorded via Iha profit and loss account. 1.10 stocks Stocks are stated ot the lower of cost and nel re8li5able value, after making du8 allowancg for obsolete and slow moving itèms. 1.11 C¥sh and ¢a$h ¥qulval?nts Cash and cash oquivalents in¢lude Cash in hand. d8POSits held al call wilh banks, olher short lemi Investments with original maturities of three months or less, and bank ov8rdrafts. Bank overdrafts are shown within borrowings in currenl liabilities. 21
WATERCRESS LINE HERITAGE RAILWAY TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Accounting poll¢l•$ 1.12 Flnan¢lal Instrumonts The charity has elected to apply the provisions of Secllon 11 'Basic Fin8ncial Instfuments, and Section 12 'other Financlal Instrum8nts Issues, of FRS 102 to all ils financial instruments. Financi81 Instruments are recognisod in the charfVs balance sheet when the charity bocomes party to the conlraclu81 provisions of the instrument. Financial as$8ts and liabllitles are offset. with the net amounts presen19(l in the financial stat8m8nts, when there is a legally enforceable righl to sel off the re¢ognised amovnts and Ihere is an intsntion lo settle on a net basis or lo realise the asset and settle the liabiltty simultaneously. Bask flnancial assets Basic financi81 assgts, which include debtors and cash and bank balances, 8re initially measured 8t transa¢tion price including transaction costs and are subsequenyy Carried al am(¥tised Cost using the effective intarest method unless the arrangement constitutes a financing Iransaclion, where th8 transaction is measured at tho present value of the future receipts discounted at a markgt rate of inteiesl. Financial assets ¢lassifi8d as receivable within one year are not amortised. Baslc fln•n¢l•l Ilabllltles Basic financlal IlabS1ities including crgditors are initially rgcognised al transaction price unless th8 8rr8ng8m8nt conslilules a financing transaction, where the debt inslwment is measured at the preserit value ol the futuro payments dlscounted at a market rale of interest. Flnancial liabilities c18ssified as payable within one y8ar aTe not amortised. Debt instruments ore subsequenuy carried at amortlsgd cost. using the effoctive interest rate m8lhod. Trad8 creditors aro obligations to pay for goods or seeS that have bgen acqLTrired In the ortlin8ry course of operations from suppliers. Amounts payable are d8ssified as current Ilabilities If payment Is due within one year or less. If not, they are presented as non-current liabilities. Derecognltion of flnanclal li•bilttle$ Flnancial liabilities are derecognised when the Charity's contractual lgationS expire Of are discharged or cancelled. 1.13 T#xatlon Th& Company is an exempt charity within th8 meaning of scheilule 3 ofthe Charities Act 2011 and is considered lo pass ihe tests sel out in ParagTaph 1 Schedule 6 Finance A¢1 2010 and Iherefow it meets the definitbon of a charitable company for UK corporaliori lax purposes. Within the subsidiary Companies. deferred lax is recognised in respect of all tsming difference5 between the r8cognition of Income and expenses in the financi81 statements and their inclusion in lax assessments. Unrelieved lax losses and other deferred tax assets are recognised only to the extent that It is probable that they will be recovered agatnsl the reversal of deferred tax liabilities or othw future taxable profrts. Dofar¥ed tax 6 measured using the tax r3l8s and laws that have been en8¢led or SLbbslanlively enacted by the reporting date and that are expe¢led to apply lo the reversal of the Ilming difference, ex¢epl for revalued land ar investment property where the tax rats that appligs lo the sale of the asset Is used. Current and deferred tsx a8Sgls and liabilities are not discounted. 1.14 Employee ben Temiinalion benèfits are recognised immediately 88 an expense when th8 charity is demonstrably committed to terminate the employment of 8n gmployee or lo provide termination ben$fits.
WATERCRESS LINE HERITAGE RAILWAY TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 1.15 R¢llr¢menl n¢fIts The Group operates a d8fined contribution pènsion scheme. Contributions are charged to the profil and loss account as they become payable in accordance with the rule5 of the scheme. 1.16 Provlslons Provisions a recognised when the company has a legal or conslmclive present obligation as a result of a past event, il is probable that the company will be required lo setue that obligation and a reliable estimate can be made of the amount of the obligation. The amount recognised as 8 provision is thè best esllmale of Ihg ¢onsideralion required to seltle the present obllgalion at the reporting 8nd date, taking Into account the rlsks and uncertainties surrounding the obligation. Where the effect of the Ilme value of money is material, Ihg amount expected lo be requirgd lo settle the obligation is ie¢ognised al psent value. When a provision is measurgd at present value. the unwinding of the discount is recognlsed as 8 finance Cost In the st8temenl of financial a¢livities In the period in which it arises. 1.17 Regional groups A number of regional groups of volunteers and supporters hold funds to support their day to day activities. Total income and expenditure is shown in these accounts whilst specific don81ions lo the Company are included in donations on a received basis. Judgements and key sources of estimation uncertaSnty In the application of the charity's accounting policies, the trustees are required lo make judgements, estimates and assumptions about the carying amount of as5els and liabilities that ale not readily apparent from other sources. The esthmales and as50aaled assumptions are based on historical experience and other factors that are relevant. Actual resu115 may differ from these estimates. The estlm81es 8ntl underfying 8ssumplions are ffjviewed on an ongoing basis. Revisions to accounling eslim8les are recognised in the period in which the estimate is revlsed where the revision affects only that period. or In the peiiod of the revlsion 8TKI future periods where the revision affects both current 8nd future periods. The following judgem&nts lapart from those involving estimatosl have had the most significant effgd on amounts r8COgnisèd in the financial stat8m8nts'. Depreciation, and eshmation of the useful lives of fixed assets Residual values of tangible fixed assets L8gacy income recognition -23-
WATERCRESS LINE HERITAGE RAILWAY TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Income from donatlon$ and legacles Vnrostrlcted funds R•$trfctsd funds Total fund$ Totsl funds 2025 2025 2025 2024 Donaknons 84.196 130.554 301,240 2,000 67,884 385,436 132,554 67.884 20,847 606,721 362,719 735.120 Legacies Grants Glft ald 20,847 235.597 18,023 Total donations and legacies 371.124 1,115.862 Unro$trlotsd funds Re$trl¢t•d funds Total funds Total funds 2024 2024 2024 2023 Donations 45.719 735,120 317,000 362,719 735.120 640.141 24,462 Le9a¢iès Grants Grft aid 18,023 798.862 18,023 1.115,862 15,275 679.878 Totsl donations and legacies 317,000 Income from ¢haritable actlvltles Unrestrlctsd fund$ Total Unr¢strl¢tsd funds funds Tolal funds 2025 2025 2024 2024 Subscriptions Regional groups 36.185 36,185 34,970 34.970 36.185 36,185 37,514 37.514 -24-
WATERCRESS LINE HERITAGE RAILWAY TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 5 Tradlng activities Total Totsl Unr•$trl¢t•d funds Unrostriet•d funds Note 2025 2024 Charlty tradlng Incomè Trading income 2,955,253 2,639.397 Fundraising and trading •xp•n$•$ Cost of goods sold Staff related costs 1.174.473 1,155,359 152.276 205,578 374,609 136,225 130,688 190,611 3,519.819 1,063,419 1,033.841 141.874 206,711 286.640 99,031 109,107 200,529 3,141,152 Marketing Utilities Depreciation All other Costs Support costs Govemance costs Nel expenditure from trading activities 1564,566} 1501,7551 Included in the above trading activities are the results of the group's subsldiarSes. Mid-Hanls Railw8y Limited (Company No. 01673483}, which operates commercial activities on The Watgrcress Line, and Wadebrid9e1340071 Locomotive Limited. The results have been adjusted to r8move transactions beiween group companies. A summary of the results for the Subsidiaries is as follows.. Mid41ants Railway Llmlted 2025 Wadgbrldge1340071 Loeomotlve Lirnitod 2025 2024 2024 Turnover 3,386,882 240,934 {4.129,9251 1.979 1183,0221 1683,1521 2.803,390 418.037 {3,739,4981 107.043 223 1,285 102,386 18.429} 11B.og61 Other income 430,698 113,4831 71.062 Expenditure Movements r8lating to taxation Impaim)gnt of assets Profiullossl for the year 1908,753 (420.2531 1411.0281 77.148 Net Assets / Capital & Reserves 3,149.575 3.832.727 390.160 810,413 -25-
WATERCRESS LINE HERITAGE RAILWAY TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 6 Inv•stmènt Income Unrostrict•d fvDd$ 2025 Total funds Unr•strlctsd funds 2024 Totsl fund$ 2025 2024 Bank interest re¢givable 20,984 20,984 18.411 18.411 7 oth•r Incomlng r•sources Unr•$tricted funds Totsl funds 2025 Unrestrl¢ted funds 2024 Total funds 2025 2024 Rentsl incorne 0th8r Income 31,482 8,328 39,810 31,482 8.328 39,810 28,650 6,804 35,454 28.650 6,804 35.454 The presentation ol the comparative flgur8s has bèen restated to be Gonsistenl with the presentation of other incom8 in the ¢urrent ye8r. 8 Expendlture on ch•rltable actlvltlos Unrestrlcted tunds 2025 R9$trlcted fund$ 2025 Totsl nd$ 2025 Unrestrlded funds 2024 R•strl¢tod funds 2024 Total funds 2024 Note Locomotive malnlenance Watercress Line News Regional 9roup expenditure Hampshire Unil costs SLtbscriplions Depreciation of tanglble fixed assets Loco storage costs Support costs Govemance 518 16.157 7.922 25.554 41,711 7.922 7,500 9,804 16,056 23,556 9,804 4,023 4.023 4,125 4,125 67.449 4,360 67,449 11,895 4.282 11,895 4.282 42.018 40,120 40.120 42.018 910 910 4,260 137,911 41.439 261,336 91.536 91.536 32,206 32.206 266,581 25.554 292,135 Following a review of Ihg allocation of costs in the eurrent finanual year, the Comparative figures have been restated to show costs previously included as costs of trading activities a5 apportioned against cost of charitable activities. consistent with presentation In the curienl year. ITher$ has been no change in totsl expenditure recognised in the prior year}. 137,911 41.439 277,392 16.056
WATERCRESS LINE HERITAGE RAILWAY TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 9 Support and governance costs Support Governance Costs costs 2025 Support Govemanct cests c¢st$ 2024 Staff costs 217,311 217,311 244,708 244,708 Prlnting, postage. IT and slationery Bank charges Auditors remun8rab.on Professional fees 3,965 3,965 1,648 948 948 662 662 44,625 82,305 1.237 113,801 488,986 40,824 66,483 100 115.410 222.817 40,824 66,483 100 44,625 82,305 1.237 113,801 241.968 Meeting costs Insurance 115.410 222,224 445,041 247,018 Support costs in the prior year have been restsled lo be comparablo with costs identified as support and govemance costs in thè ¢urrenl year. Total expenditure for the prior year is un¢hanged. 10 Net movement in funds Nel movement in funds is stst8d after.. 2025 2024 Depreciation of owned tangible fixed assets IProfity loss on disposal of tsngible fixed assets Impairment of tangible fixed ass•ts Impairment of investments Operating lease costs 416.629 27,126 2,350,821 66,411 14.127 326,760 13,0001 13,790 11 Audltors, r¢mun8ratlon Fees payable lo the company's auditor and associales 2025 2024 Audit of the financial statements of th8 group and wmpanies Non audit services 16,500 12,400 28,900 22,000 33,750 -27-
WATERCRESS LINE HERITAGE RAILWAY TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 12 staff ¢osts Staff costs for the group during the year were as follows= 2025 2024 Wages and salaries Social secur¢ty costs Pension costs 1.143.687 106.579 22.965 988.076 91.191 19.947 1.273,231 1.099,214 The average monthly number of employees was as follows.. 2025 No. 2024 No. Trading operations Enging8ring CEO, senior team, and admln 14 12 23 22 42 Th8 average monthly number of full-time oquivalent employees during the year was 36 {2024.. 30.51. The number of higher paid employees was.. 2025 No. 2024 No. In the band £60,001 - £70.000 In thè band £80,001 - £90,000 K&y managem8nt personnel received rernuneTalion and benefits totslling £144,45512024.. £144,735) and pension contributions of £2.42812024: £2,6421. During the year, the charity recognised expenditure for temiination payments totalling £4,90012024= £01. -28-
WATERCRESS LINE HERITAGE RAILWAY TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 13 Taxatlon The Company is a règistered Charity anrl is exempl from tsxallon under S505 Taxes Act 1988. The Company is registered for Value Added Tax. No provision for corporation lax has been made for Mi(kHanls Railway Limited or Wadgbrldge1340071 Locomotive Limlted followng their results foT the year. a) Analy$l$ of ¢harge In the year 2025 2024 Deferred tax movement 73,041 88,947 {bl Factors affecting current tax charge 2025 2024 Loss on ordinary activities before taxation 11.176,446} 1422,8291 Loss on ordinary aclivitses by rate of lax 250k12024- 190k} 1294,1121 180,3381 Effects of.. Items not d8ductible 2,630 171,969 14,586 175.9841 54,161 Impacl of rat¢ Changes Fixed ass8t adjuslmenl Pemanenl differences In respect of depr8¢ialion Sal8 proc86ds Chargeablg gain Deferred lax as8el not recognised in relatlon to losses 17,145 {46,3181 44,946 29,327 Total current tax 173.0411 188,9471 -29-
WATERCRESS LINE HERITAGE RAILWAY TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 14 Tanglble flxèd assets Group Fr••hold land and bulldlngs Plant and machlnory Rolllng Stock Assots In course of construction Total Cost Al 01 April 2024 Additions 3,345,840 2.502.228 39.213 {41,544) 3.979,340 6,612 1764,$041 1.472,510 2.232,527 897.463 12,059.935 943,288 {806,048) Disposals Transfer belween classes 11.472.510) Al 31 March 2025 3,345.840 2,499,897 4.693,958 1.657,480 12,197,175 Dopr•ciation At 01 April 2024 Charge for the year Depreciation on dlsposals Impaimient 568,285 77,183 886,213 119.156 13.1681 1,783,247 220,290 1550.7541 1.061.231 3,237,745 416,629 1553.9221 2.350,821 1,289,590 At 31 March 2025 645.468 1,002.201 2,514,014 1,289.590 5,451.273 N•1 book value Al 31 March 2025 2,700,372 1.497,696 2.179,944 367.890 6,745,902 At 31 March 2024 2.777.555 1.616,015 2,196,093 2,232,527 8,822,190 Rolling stock, previously included as part of plant and aquipmenl, has begn presented as 8 separate class of asset in the current year, to giv$ a cl8ar PTesentalion of movements relabng to these assets. The brought forward figures have been re$lat8d to show this classification. An open Maet vacant possession valuation undertaken by Grfmley, international propgty advisers. in August 1999 81 the request of MHR Ltd, placed a value of £860,000 on thg freehold land and buildings. The Directors conslder that this valuation support5 the exis1Sng us6 value placed on these asse15 In the financial slalemenls. Freehold land and buildings are included above at this open market valuation together with the cost of subsequent additions an¢J improvements. 30-
WATERCRESS LINE HERITAGE RAILWAY TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 14 Tanglblg Flxed Assots l¢ontlnued} 2025 2024 Cost or valuation of freehold land and buildings is represented by.. Valuation in 1999 860,000 2,485.840 3.345,840 860.000 2.485,840 3.345.840 Costs sinco 1999 If land and buildings had not been revalugd, th9y would have been included at the following amounts- Hislori¢al Cost 2,831,075 2,831,075 Cumulative Depreciatlon (614,6291 1568.2851 Net Book Value 2,216,446 2,262,790 Company Freehold land and bulldSngs Plant and machlnery Rolling slo¢k As$èts In cours• of constw¢tlon Total Cost Al 01 April 2024 Addib'ons 494.785 78,822 844,229 5,017 1,803.827 462,839 3,221,663 467,856 Disposals Transfer beeen classes 1.453,209 11,453,209) Al 31 March 2025 494,785 78.822 2,302.455 813,457 3,689,519 Dèpreclatlon At 01 April 2024 Charge for the year Depreciation on disposals Impairment 81,239 8,6t14 44,194 5,476 408,073 27,939 533,506 42,019 878,209 380,838 1.259,047 At 31 March 2025 89.843 49,670 1,314.221 380,838 1,834,572 Net book value Al 31 March 2025 404,942 29,152 988,234 432,619 1.854,947 Al 31 March 2024 413,546 34.628 436,156 1.803,827 2.688.157 The Director5 regard all the Company's fixed assets as being used for direct charitable purposes. Land and buildings owned by thè Company are th8 Alresford Goods Shed. Included in the Company's assets in course of construction are locomotives 75079, 34005 and 80150. Included in the Group disclosures are locomotives 41312 and 3781. and coaches SC1105, E4549, E4910. S35329. S21236. 3769 and van 765. 31
WATERCRESS LINE HERITAGE RAILWAY TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 15 Flxgd assot investments Group Company 2025 2024 2025 2024 Market value at 1 April 2024 Increase from donation of shares 66.411 66,411 907.503 6,828 902,973 4,280 Additional investment 250 Impaimienl of investments 166,4111 {66,4111 Markel valLbe at 31 March 2025 66.411 847,920 907.503 Investments at market value compris8.' Group Company 2025 2024 2025 2024 Shar8s in Mid-Hanls Railway Lld Dividend shares of £1 each Ordinary $har8s of 25p each 100 100 427.389 433,217 Shares in Wadgbridge1340071 Locomotive Ltd 414,603 413.603 847.920 841,092 34105 Light Pacffic Group {unlisted investments) 66.411 66,411 66.411 847,920 907,503 The Company owns all of the issued Equity Dwidend shar&s in Mid-Hants Railway Limited Icompany regislor8d nurnber 1117090} in addition lo 55.05%12024: 54.31Tr/0l of the issued Ordinary non equity 25p shares. MHR Ltd is an unlisted company registered and operating in England and Wales, and ils 8ccounling yeaTvend is ¢o-tem)inus with the Company. 11 is not possible to quantify the lik8ly market value of the inve51ment. At 31 March 2025 the net assets of MHR Ltd were £3,149,575. Th8 Cotnpany also owns a controlling interest of 76.96%12024'. 76.80/01 of the issued share capllal of Wadebfidge 1340071 LocornotivÈ Limited (company registered number 016734831. The objectivgs of this company are lo maintain and hire ex-southern RaIaY Locomotive 34007 Wadebridge. At 31 March 2025 the nel assets of Wadebridge Ltd were £390.160. Th9 34105 Light Pa¢Kic Group is an unincorporated organi$8tion which owns ex-Bril'sh Railways Southem Reglon Locomotive 34105 Swanage. The company owns 26.60A of the issued shares in the locomolive. The value of this share has been Impaired during the year. lo reflect the expected T9alisable value of the inv8stment to the charity, in accordance with FRS 102. However, the share of ownership of the locomotive is still hèld.
WATERCRESS LINE HERITAGE RAILWAY TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 16 Stoeks Group Company 2025 2024 2025 2024 Raw matgrials 37.018 180,822 40,381 Finished goods 227,207 217,840 267,588 17 Debtors Gtoup Company 2025 2024 2025 2024 Trade debtors Other tsxalion and Social securty costs Other debtors 83,221 27,822 39,811 15,442 75.235 22,699 37,582 48,008 15,442 591,236 15,454 13,682 15,442 75,235 8.011 11,284 15,442 591,236 6.661 632,634 Re9ional group balances Accrued legacy income Amounts due from subsidiaries 241,531 714,967 119.813 18 Credltor$: amounts falllng due wlthln one year Group Company 2025 2024 2025 2024 Bank loans and overdraft 359,315 232,097 392,847 276.434 Trade creditors Amounts due lo subsidiaries Other creditors other taxation and social security Accruals Deferred income 9,707 71,320 17,642 44,636 23.671 58,775 244,881 963.375 44,051 6,269 27,319 187,561 10,704 7,000 934,481 91,731 24,642 The pre5enlalion of accruals, othef creditors, and deferred incomg has b9en reclassrfied in the current and comparative figure5, to give a clearer view of the nature of diff6rent balances contained within current creditors. The bank loan5 and overdraft are secured by a fixed and floating chargè over the subsidiary company'$ freehold railway propety and other assets. -33-
WATERCRESS LINE HERITAGE RAILWAY TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 19 Credltors: amounts falling duo after more than on• y•ar Group Company 2025 2024 2025 2024 Bank loans 413,661 293,000 477,164 293,000 770,164 Oiher Creditors 706,661 20 Loan$ Group 2025 2024 Bank108n 477,100 567.199 Payable within one year Payable betsveen 0 to five years by irnstalments Payable in more than 5 years by inslalments 63,439 169,936 243,725 90.035 218.678 258.488 21 Def•rred Inme Group 2025 2024 Oeferred income at start of yeaT Resources deferred during tho year Amounts released from previous years 213.931 112,700 1213,9311 1112,7001 244.881 213.931 Deferred Income al end of year 213.931 Deferred income relates to bookings mad8 in advance for events and ioumey tickets. 22 Dgferred taxatlon The following are the major d&feTred tsx liabilities and assets recognised by the group= Group 2025 2024 Deferred tax balances 207 772 280.813 23 R•tlrement benefit schemes Since August 2015. Mid-Hanls Railway Limited has operated a dèfined contribution pension scheme for its employees under the govemment's auto enrolmenl scheme. The assets of the scheme are held sgparal8ly from those of the charity in an ind8pendenUy administered fund. The charge to profil of loss in re$cl of d8finèd contribution schemes was £22.96512024: £19,947).
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WATERCRESS LINE HERITAGE RAILWAY TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 25 R•$trl¢ted funds (contlnued) Restoration af Lo¢omotlv¢ 34058 'Slr Fr¢derl¢k Plle. Locomotive was previously own8d by the Tnjst and during the prior year, ownership was transferred lo Southern Locomotive Ltd I'SLL'I. who will undertake the resloralion of the locomotive. This fund represents donations received slfi¢311Y lo assist the restoration and is bging used lo part fund the restoration being undertaken by SSL. R•$toratlon of Locomotlve 80150 Locomotive is owned by the Trust. This fund represents donations received specifically lo assist the restorats'on. Funds not spent in the year have been carried foNard. R•storatlon of L¢xomotlve 73096 Locomotive is owned by MHR Ltd. This fund represents donations received spgdfically to assist th8 resloralion. Funds not spent In the year have been carried forward. Restoratlon of LocomotSv• 34007 'Wadebrldgg' Locomotive is owned by Wadebridge1340071 Locomotive Limited, which is undertaking thè rèstoration. Some funds have been transferred where spend on restoration works. and the balance carried fotward. Restoratlon of wauons This fund reprèsents donations received specffjcally to assist with the restoration of wagons. Funds nol spont in the year have boen carrd foNard. Bulleld coa¢hè$ This fund is to restore and replace the racks in two Bulleid coaches. S1456S and S4367S. Funds not spgnl In the year have been carrled forward. Restoratlon of Hayling coaches This fund represents donations received towards the re51oralion of four 19th century coaches built by the London Brighton and South Coast Railway. Funds rsol spent in the year have been carried forward. Restoration of Black 5 Locomotive is owned by the Tfust. This fund r8pr8s8nts donations r8ceiv8d specifically to asslsl the resloralion. Funds not spent in the year have been carried forward. R•$toratlon of Canadlan Pa¢lflc This fund represents grants and donallons recelve(I spgcifically to assist with the restorallon of the Canadian Pacific locomotive. Grants and donations rÈceiv8d in th8 year havg been Snt on resloratjon. with no balanco carried forward. Rest¢ratlon of ¢arrlagÈ F03063 This fund r8presents donations received specffically lo assist with the resloralion of First Class carriage F03063. Funds not spent in the year have been earrlgd forward. Restoratlon of Lo¢¢motlve 75079 This fund represents donations received specifically to as51$1 with the resloralion of l¢)comotlV8 75079. Funds not spent in the year have been ¢arried forward. Provl$lon of Toollng This fund r8pr8sènts a donation speeifi¢ally rècèived to assisl with the purchase of tooling for the railway. Funds not spent in the year have been carried forward. Maintenance of Footbridge This fund represents a donation specrficalty ceiVed lo assist with the maintenance of the Modsteatl & Four Marks Footbridge. Funds not spent in Ihe year have been carried lorward. Hampshlr• Unlt 1125 This fund represents donations received spgclfically to assist with the restoration of Hampshire Unit 1125. Funds not spènt in thé year have been Garried forward. 37-
WATERCRESS LINE HERITAGE RAILWAY TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 26 Analysls of not assets b•twegn funds At 31 March 2025, fulld balances are repr&sented by: Group Unrestrl¢ted Restrictod funds funds Company Unre$trl¢tod Restrl¢ted funds tunds Total Total Fixed assets 8,745,902 655,238 6,745,902 942,052 1,597,290 1963,375) {706,6611 (207.7721 2,702.867 309.071 {91.7311 2,702.867 Current assets 942,052 1.251.123 191.7311 Current liabilllles 1963.3751 1706,6611 1207,7721 Long term Ilabillties Provisions for liabilibes Total N81 Assets 5.523,332 942,052 6.465.384 2.920.207 942,052 3,862,259 27 Conllngent a5SOt$ There is inherent uncertainty in the Probate valuation of eslales as a result of the nature of underfying assets and liabilities. and the time that elapses b9tween probate and closure of other conting8n¢ies that attend the estatg. Legacies ale rgcognised al th8 point of notification of grant of probate. when It can be mgasured or estimatad with sufficienl reliability. At the year end, charity was enliued to multiplè legacies whose value could not b8 estimated with SLrfficienl reliability to recognise in the year. in accordance with FRS 102 and the Chanties, SORP. 28 Related party transactions During the year, a locomotive was sold for £225.000 to a company controlled by an individual ¢onsidered to bè a related party of Mid-Hanls Railway Ltd, and therefore of the group. The Irans8¢tion look place al ami's length basis. 29 Trustees Llablllty Insuran¢• Watercress Lin8 Heritage Railway Tnjst Limited have established indemnity insurance on behalf of th& Trustees and Directors costing £4.642 {2024 - £4.6421. 30 Operatlng loase commltmgnts The group had fvture minimum rgntsls payable under rn•cancelIable operating leas8s as follow: Group 2025 2024 Within 1 years Betsn 2 and 5 years In over 5 years 18.950 56,079 254.612 19,715 62,106 267,536 329.641 349,357 -38-
WATERCRESS LINE HERITAGE RAILWAY TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 31 Reconciliation of net movement In fund$ to n•t ea$h flow from 0ratIng a¢tlvltl*$ Group Notos 2025 2024 Net 5ncomelldefieitl before taxation for the year Adlu$tmènts for: Depreciation chargès Inleresl received De¢reasellin¢reasel in debtors Incrèas8lldècreasel in other creditors De¢reasellinrreasèl in stock Impairment of tangible fixed assgts and investment Loss on disposal Not cash provided by operating activities 12.617,2141 373,334 14 416,629 120,984} 473.436 62.426 49.748 2,417,232 326,760 118,4111 1623,4041 18,495 9,591 27,126 808,399 86,365 32 Analys1$ of cash and ¢ash equlvalonts Group 2025 2024 Cash at bank and in hand 1,137,919 1,123,859 Overdrafts 295,876 842,043 302.812 821,047 33 Analy$l$ of ¢hang•s In nèt ¢a$h Group Cash flows 01 April 2024 31 March 2025 Cash in hand 1,123,859 1567,1991 302,812 253,848 14,060 90,099 6,936 111,095 1,137.919 1477,1001 295,876 364,943 Bank loans Ovgrdraft -39-