2025-03-31-accounts

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Company registration number: 01865059 Trust registration number: 701034

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EAST LANCASHIRE RAILWAY TRUST LIMITED ANNUAL REPORT AND FINANCIAL STATEMENTS 31 MARCH 2025

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EAST LANCASHIRE RAILWAY TRUST LIMITED

CONTENTS

Reference and Administrative Details	~		1
Trustees’ Report			2 to6
Independent Auditors’ Report			7 to 10
Statement of Financial Activities			11
Balance Sheet			12
NotestotheFinancialStatements			13to23

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. EAST LANCASHIRE RAILWAY TRUST LIMITED

REFERENCE AND ADMINISTRATIVE DETAILS

Chairman	B Davies
Trustees	B Davies
	N E Bayley
	R Bernstein
	Cllr A C Cheetham
	D Hancock
	MW Kelly
	CRLaw
	CllrAMcMahon
	CE Morris
	P O'Neill
	Cllr B Sheerin
	K A Whitmore
Secretary	LC Ridsdale
Registered Office	Town Halil
	Knowsley Street	:	;
	Bury
	Lancashire
	BLO OSW
	The Trust is incorporated in Wales.
Company Registration Number	01865059
Trust Registration Number	701034
Bankers	National Westminster Bank
Auditor	Horsfield & Smith
	Tower House
	269 Walmersley Road
	Bury
	Lancashire
	BLS6NX

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EAST LANCASHIRE RAILWAY TRUST LIMITED

TRUSTEES’ REPORT

The Trustees, who are directors for the purposes of company law, present the annual report together with the financial statements and auditors’ report of the charitable company for the year ended 31 March 2025.

Trustees and officers

The trustees and officers serving during the year and since the year end were as follows:

Trustees:

B Davies

N E Bayley

R Bernstein (appointed 21 May 2025)

R Chapman (resigned 15 July 2024)

Cllr A C Cheetham D Hancock (appointed 17 May 2024) CllrJ Harris (resigned 21 May 2025) CllrJ Johnson (resigned 17 May 2024) M W Kelly CRLaw Clir P Malcolm (resigned 3 June 2024) CllrAMcMahon CE Morris

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P O'Neill (appointed 3 June 2024) Cllr B Sheerin K A Whitmore (appointed 15 July 2024)

Chairman: B Davies

Secretary: LC Ridsdale

Structure, governance and management

Each of the Trust's local authority partners holds the freehold title to the railway land within their respective local authority boundary. The Trust holds the head lease for the railway and sublets this to the East Lancashire Light Railway Company Limited (ELLR) a further partner on the Trust board of management. Recruitment and appointment of Trustees The Articles of Association govern the membership of the Trust and provide each member (Bury Metropolitan Borough Council, Rossendale Borough Council, Rochdale Metropolitan Borough Council and the East Lancashire Light Railway Company Limited), (collectively "the Member Partners") the right to nominate three members each to the Board of Management.

Organisational structure

The East Lancashire Railway Trust is a company limited by guarantee and therefore has no share capital.

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EAST LANCASHIRE RAILWAY TRUST LIMITED

TRUSTEES' REPORT

Objectives and activities

Objects and aims

The object of the Trust is to promote the permanent preservation for the benefit of the public generally of the historic railway line from Heywood to Rawtenstall, together with stations, buildings, locomotives and rolling stock.

The Trust also aims to educate the public on technical matters relating to railways, their construction and maintenance, engines, steam tractions and engineering skills and the importance of the railway in the industrial and social history of the towns and villages on the line from Heywood to Rawtenstall. : Public benefit ’ The Trustees confirm that they have complied with the requirements of section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales.

Financial review

During the year the Trust has continued to support the East Lancashire Light Railway Company Limited ("ELLR") with the planned programme for the maintenance of the structures and investments in projects to develop the potential of the Railway. To this end the trust have made a grants totalling of £72,158 (2024 : £181,735) to ELLR for the following:

				2025	2024
				£	£
Maintenance	ofstructures	structures		72,158	171,789
Contribution	to	marketing	strategy	-	9,946
				72,158	181,735

Where possible the Trust aims to minimise current expenditure, whilst maintaining a rolling programme of inspections and assessments to ensure structures continue to be in an operational condition.

Maintenance expenditure during the year relates these ongoing expenses.

Whilst the inspection program has found all structures to be fit for rail operations it has highlighted extensive repair work needed and a new five year rolling program has been drawn up to prioritise these. Additional funding will need to be generated to action this plan. The Trust has commissioned surveys to identify income generating opportunities from land occupied by the railway.

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A EAST LANCASHIRE TRUSTEES' REPORT

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EAST LANCASHIRE RAILWAY TRUST LIMITED

Policy on reserves

One of the aims of the Trust is to provide finance to maintain the structures on the railway line between Heywood and Rawtenstal. Typical expenditure on any one project is in excess of £100,000 and can be as much as £1M. For this reason the Trust needs to maintain substantial reserves to meet future obligations.

_ The Trustees have examined the requirement for free reserves which are those unrestricted funds not invested in fixed assets, designated for specific purposes or otherwise commuted. Free reserves at 31st March 2025 are £107,228 (2024 : £124,230). These consist of the unrestricted general fund and the maintenance fund less the value tied up in fixed assets. The Trustees consider that, given the nature of future expenditure, the Trust should aim to increase its free reserves.

One of the major risks faced by the Trust is having insufficient funds to meet future maintenance requirements. To mitigate this risk the Trustees have a rolling programme of annual inspection and assessment of structures, with remedial maintenance being carried out with a view to minimising the need for major repairs. Inspections are carried out by an independent Engineer, whose recommendations are then incorporated into the budget.

To supplement the Trust's funds wherever possible the Trustees actively seek grants from external sources. There is a risk that the Trust may not identify all grants to which it is entitled, but the Trustees make every effort to ensure this is not the case by constantly reviewing available grants before expenditure is undertaken.

Plans forfuture periods

A grant has been secured by the Trust from COF to fund the repair of the Higher Woodhill Viaduct. The three local authorities will contribute match funding to ths project.

investment policy and objectives

Under the Memorandum and Articles of Association, the Trust has the power to make any investment which the Trustees see fit.

The management committee has considered the most appropriate policy for investing funds. It has decided that lending funds on the money market provides the best return in line with the Trusts risk policy and uncertain short term demand.

Financial instruments

Objectives and policies

The Trust's activities expose it to a number of financial risks including credit risk, cash flow risk and liquidity risk.

Cash flow risk

The Trust’s activities expose it primarily to the financial risks of changes in interest rates. Interest bearing assets and liabilities are held at fixed rate to ensure certainty of cash flows.

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EAST LANCASHIRE RAILWAY TRUST LIMITED

TRUSTEES' REPORT

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Credit risk

The Trust’s principal financial assets are cash deposits held by Bury Metropolitan Borough Council.

The credit risk on liquid funds is limited because the funds are held by counterparties that are banks with high credit-ratings assigned by international credit-rating agencies.

The Trust's significant credit risk is that the funds are controlled by Bury Metropolitan Borough Council.

Liquidity risk

In order to maintain liquidity to ensure that sufficient funds are available for ongoing operations and future developments, the Trust uses a mixture of long-term and short-term investments.

Going concern

The Company has obligations in respect of the maintenance of key structures along the route of the railway. The Board of Trustees has recognised that the current level of cash reserves is insufficient to meet its obligations in the medium term, and the Board and the member Partners have addressed the existence of the possible shortfall in a timely manner. The schedule of planned maintenance work confirms that this work will be able to be carried out. For this reason it continues to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the Statement of Accounting Policies.

Statement of Responsibilities

The Trustees (who are also the directors of East Lancashire Railway Trust Limited for the purposes of company law) are responsible for preparing the Trustees’ report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland”.

Company law requires the Trustees to prepare financial statements for each financial year. Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including its income and expenditure, of the charitable company for that period. In preparing these financial statements, the Trustees are required to:

• e select suitable accounting policies and apply them consistently;

• observe the methods and principles in the Charities SORP;

• ¢ make judgements and estimates that are reasonable and prudent;

• e state whether applicable accounting standards, comprising FRS 102 have been followed, subject to any material departures disclosed and explained in the financial statements; and

• ¢ prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.

The Trustees are responsible for keeping proper accounting records that can disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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EAST LANCASHIRE RAILWAY TRUST LIMITED

TRUSTEES' REPORT

The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Disclosure of information to auditor

Each member has taken steps that they ought to have taken as a member in order to make themselves aware of any relevant audit information and to establish that the Trust's auditor is aware of that information. The Trustees confirm that there is no relevant information that they know of and of which they know the auditor is unaware.

Reappointment of auditor

In accordance with section 485 of the Companies Act 2006, a resolution for the re-appointment of Horsfield & Smith as auditor of the Trust is to be proposed at the forthcoming Annual General Meeting.

The annual report was approved by the Trustees of the Trust on 2c | das and signed on its behalf by:

B Davies Chairman and Trustee

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EAST LANCASHIRE RAILWAY TRUST LIMITED INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF

EAST LANCASHIRE RAILWAY TRUST LIMITED

Opinion

We have audited the financial statements of East Lancashire Railway Trust Limited (the ‘Trust') for the year ended 31 March 2025, which comprise the Statement of Financial Activities, Balance Sheet, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is United Kingdom Accounting Standards, comprising Charities SORP - FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and applicable law (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• ¢ give a true and fair view ofthe[state][of][ the][Trust's][affairs][as][at][31] March 2025 and[of][its][incoming] resources and application of resources, including its income and expenditure, for the year then ended;

• ¢ have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• e have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

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We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor responsibilities for the audit of the financial statements section of our report. We are independent of the Trustin accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the Trustees use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

.Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Trust's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were authorised for issue.

Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of[this][report.]

Other information

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The Trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

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EAST LANCASHIRE RAILWAY TRUST LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF

EAST LANCASHIRE RAILWAY TRUST LIMITED

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinion on other matter prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

• e the information given in the Trustees' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• e the Trustees' Report has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

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In the light of our knowledge and understanding of the Trust and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ Report. :

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

• adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

• e the financial statements are not in agreement with the accounting records and returns; or

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• ¢ certain disclosures of Trustees remuneration specified by law are not made; or e¢ we have not received all the information and explanations we require for our audit.

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• e the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies’ exemptions in preparing the trustees’ report and from the requirement to prepare a strategic report.

Responsibilities of Trustees

As explained more fully in the statement of responsibilities set out on page 5, the Trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Trustees are responsible for assessing the Trust's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the Trust or to cease operations, or have no realistic alternative but to do so.

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’ EAST LANCASHIRE RAILWAY TRUST LIMITED INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF

EAST LANCASHIRE RAILWAY TRUST LIMITED

Auditor responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We considered the nature of the limited company’s industry and its control environment.; and reviewed documentation oftheir policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management about their own identification and assessment of the risks of irregularities. ;

• ¢ had a direct effect on the determination of material amounts and disclosures in the financial statements. These included UK Companies Act, tax legislation; and

• e do not have a direct effect on the financial statements but compliance with which may be fundamental to the limited company’s ability to operate or to avoid a material penalty.

We ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations.

We discussed among the audit engagement team regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements. .

In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments; assessed whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.

tn addition to the above, our procedures to respond to the risks identified included the following:

• e reviewing financial statement disclosures by testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;

• e performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;

• enquiring of management concerning actual and potential litigation and claims, and instances of non-compliance with laws and regulations; and

• —————_. ¢ reading minutes of meetings of those charged with governance.

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EAST LANCASHIRE RAILWAY TRUST LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF

EAST LANCASHIRE RAILWAY TRUST LIMITED

Because ofthe[inherent][limitations][of][ an][audit,][there][is][a][risk][ that] we[will][not][detect][all][irregularities,] including those leading to 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 become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at:

www.fre.org.uk/auditors/auditors-assurance/auditors-responsibilities-for-the-audit-of-the-financial-statements This description forms part of our auditor's report.

Use of our report

This report is made solely to the charitable company's Trustees, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Trust's Trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its Trustees as a body, for our audit work, for this report, or for the opinions we have formed.

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Peter Nicol BEM BSc FCA (Senior Statutory Auditor) . “For and on behalf of Horsfield & Smith, Statutory Auditor

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Tower House

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269 Walmersley Road Bury Lancashire : BLO 6NX pate: 26. Nover\eer ols, ,

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EAST LANCASHIRE RAILWAY TRUST LIMITED

STATEMENT OF FINANCIAL ACTIVITIES YEAR ENDED 31 MARCH 2025 (INCLUDING INCOME AND EXPENDITURE ACCOUNT AND STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES)

				Total	Total
		Unrestricted	Restricted	2025	2024
	Note	£	£	£	£
Income and Endowments from:
Donations and legacies	2	30,000	-	30,000	30,000
Investment income	3	12,271	-	12,271	22,902
Other income	4	44,158	-	44,158	19,621
Total Income		86,429	-	86,429	72,523
Expenditure on:
Charitable activities	5	(97,128)	-	(97,128)	(206,513)
Total Expenditure		(97,128)	-	(97,128)	(206,513)
Gains/losses on investment
assets		159	-	159	29
Net expenditure		(10,540)	-	(10,540)	(133,961)
Net movement in funds		(10,540)	-	(10,540)	(133,961)
Reconciliation of funds
Total funds brought forward		552,131	390,427	942,558	1,076,518
Totalfundscarriedforward	16	541,591	390,427	932,018	942,557

All of the Trust's activities derive from continuing operations during the above two periods. The funds breakdown for 2024 is shown in note 16.

The notes on pages 13 to 23 form an integral part of these financial statements. 11

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EAST LANCASHIRE RAILWAY TRUST LIMITED

BALANCE SHEET

AS AT 31 MARCH 2025 (REGISTRATION NUMBER: 01865059)

(REGISTRATION NUMBER: 01865059)
		2025	2024
	Note	£	£
Fixed assets
Tangible assets	9	385,231	404,850
Investments	10	390,427	279,435
		775,658	684,285
Current assets
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Debtors	11	53,999	27,825
Investments	12	518	359
Cash at bank and in hand	13	107,228	235,222
		161,745	263,406
Creditors:Amounts fallingdue within oneyear	14	(5,385)	(5,134)
Netcurrent assets		156,360	258,272
Net assets		932,018	942,557
Funds of the Trust:
Restricted income funds
Restricted Funds		390,427	390,427
Unrestricted income funds
Unrestricted Funds		541,591	552,130
Totalfunds	16	932,018	942,557

The financial statements on pages 11 to 23 were approved by the Trustees, and authorised for issue on 2h. (228. and signed on their behalf by: BLtd,Davies MMK W Kelly : Chairman and Trustee Trustee

The notes on pages 13 to 23 form an integral part of these financial statements. 12

EAST LANCASHIRE RAILWAY TRUST LIMITED

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

1 Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice (applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of treland (FRS 102)) (issued in October 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Basis of preparation

East Lancashire Railway Trust Limited meets the definition ofa public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.

Going concern

The financial statements have been prepared on a going concern basis.

The trustees assess whether the use of going concern is appropriate i.e. whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the trust to continue as a going concern.The trustees make this assessment in respect of a period of at least one year from the date of authorisation for issue of the financial statements.

The Trustees and Member Partners have considered detailed reports submitted which indicate over a three year period its obligations to maintain the railway structures should be met. Although there is an inherent risk that plans may not be achieved, the trustees believe that sufficient financial reserves have been secured to enable it to continue as a going concern.

Exemption from preparing a cash flow statement

The Trust opted to early adopt Bulletin 1 published on 2 February 2016 and have therefore not included a cash flow statement in these financial statements.

Income and endowments

Voluntary income including donations, gifts, legacies and grants that provide core funding or are of a general nature is recognised when the Trust has entitlement to the income, it is probable that the income will be received and the amount can be measured with sufficient reliability.

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EAST LANCASHIRE RAILWAY TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

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Expenditure

All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources.

Charitable activities

Charitable expenditure comprises those costs incurred by the Trust in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

Governance costs

These include the costs attributable to the Trust’s compliance with constitutional and statutory requirements.

Taxation

The Trust is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the Trust is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

Tangible fixed assets

Individual fixed assets costing £1,000.00 or more are initially recorded at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

Depreciation and amortisation

Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life of 50 years.

Asset class

Asset class Depreciation method and rate Buildings, trackwork and structures 50 years straight line

Investments

Listed investments are initially recorded at cost. At each year end, the value is adjusted to bid price on the year end date.

Unrealised gains and losses represent the movement in market values during the year and are credited or charged to the Statement of Financial Activities based on the market value at the year end.

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EAST LANCASHIRE RAILWAY TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

Debtors

Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Financial instruments

Classification

Financial assets and financial liabilities are recognised when the charity becomes a party to the contractual provisions of the instrument.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Trust after deducting all of its liabilities. Recognition and measurement All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Financial assets and liabilities are only offset in the statement of financial position when, and only when there exists a legally enforceable right to set off the recognised amounts and the Trust intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Financial assets are derecognised when and only when a) the contractual rights to the cash flows from the financial asset expire or are settled, b) the Trust transfers to another party substantially all of the risks and rewards of ownership of the financial asset, or c) the Trust, despite having retained some, but not all, significant risks and rewards of ownership, has transferred control of the asset to another party.

Financial liabilities are derecognised only when the obligation specified in the contract is discharged, cancelled or expires.

Fund accounting

Unrestricted generalfunds

Unrestricted income funds are general funds that are available for use at the Trustees discretion in furtherance of the objectives of the Trust.

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EAST LANCASHIRE RAILWAY TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

Unrestricted designated funds

Designated funds are unrestricted funds set aside for specific purposes at the discretion of the trustees.

Restricted funds

Restricted income funds are those donated for use in a particular area or for specific purposes, the use of which is restricted to that area or purpose.

2 Income from donations and legacies

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		,	Unrestricted
			funds	Total		Total
			Designated	2025		2024
			£	£		£
Donations and legacies;
	Contributions from participating local
	authorities		30,000	30,000		30,000
			30,000	30,000		30,000
3	Investment income
					)
			Unrestricted
			funds	Total		Total
			General	2025		2024
			£	£		£
Interest receivable and		similar income;
	Interest receivable on bank deposits		12,271	12,271		22,902
4	Other income
			Unrestricted
			funds
				Total		Total
			General	2025		2024
			£	£		£
Rentalincome			44,158	44,158		19,621

• 4 Other income

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EAST LANCASHIRE RAILWAY TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

5 Expenditure on charitable activities

		Unrestricted funds	Unrestricted funds	Total	Total
		Designated	General	2025	2024
	Note	£	£	£	£
Allocated support
costs		30,000	61,932	91,932	201,569
Governance costs	6	-	5,196	5,196	4,944
		30,000	67,128	97,128	206,513
		Activity
		undertaken	Grantfunding	Total	Total
		directly	of activity	2025	2024
		£	£	£	£
Maintenance of structures		19,774	72,158	91,932	191,623
Development projects		-	-	-	9,946
		19,774	72,158	91,932	201,569

In addition to the expenditure analysed above, there are also governance costs of £5,196 (2024 - £4,944) which relate directly to charitable activities. See note 6 for further details.

6 Analysis of governance and support costs

Governance costs

	Unrestricted
	funds	Total	Total
	General	2025	2024
	£	£	£
Audit fees
Audit ofthe financial statements	5,196	5,196	4,944
	5,196	5,196	4,944

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EAST LANCASHIRE RAILWAY TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

7 Net incoming/outgoing resources

Net outgoing resources for the year include:

==> picture [450 x 55] intentionally omitted <==

----- Start of picture text -----
|||||| |---|---|---|---|---| |2025|2024| |£|£| |Audit|fees|5,196|4,944| |Depreciation|of fixed|assets|19,613|19,613|

----- End of picture text -----

8 Staff costs

No trustees, nor any persons connected with them, have received any remuneration from the Trust during the year.

The Trust is managed by Bury Metropolitan Bourgouh Council. The Council receives no renumeration for staff time taken to manage the Trust.

9 Tangible fixed assets

==> picture [445 x 249] intentionally omitted <==

----- Start of picture text -----
|||||||||| |---|---|---|---|---|---|---|---|---| |Freehold| |Property|Trackwork|Stations|Bridges|Total| |£|£|£|£|£| |Cost| |At|1|April|2024|47,097|239,640|636,053|57,836|980,626| |At|31|March|2025|47,097|239,640|636,053|57,836|980,626| |Depreciation| |At|1|April|2024|31,412|132,621|378,675|33,068|575,776| |Charge|for the| |year|948|4,793|12,721|1,157|19,619| |At|31|March|2025|32,360|137,414|391,396|34,225|595,395| |Net|book|value| |At|31|March|2025|14,737|102,226|244,657|23,611|385,231| |At|31|March|2024|15,685|107,019|257,378|24,768|404,850|

----- End of picture text -----

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EAST LANCASHIRE RAILWAY TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

10 Fixed asset investments

Other investments

		2025		2024
		£		£
;	Other investments	390,427		279,435
	11 Debtors
		2025		2024
		£		£
	Due from related undertakings	47,985		9,811
	Prepayments	14		14
	Other debtors	6,000		18,000
		53,999		27,825
	12 Current asset investments		;
		2025		2024
		£		£
	Listed other shares	518		359
	13 Cash and cash equivalents
		2025		2024
		£		£
	Cash at bank	107,228		235,222
	14 Creditors: amounts fallingdue within one year
		2025		2024
		£		£
	Othercreditors	5,385		5,134

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EAST LANCASHIRE RAILWAY TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

15 Trust status

The Trust is a company limited by guarantee and consequently does not have share capital.

The guarantors who are liable to contribute an amount not exceeding £10 towards the assets of the Trust in the event of liquidation are:

Bury Metropolitan Borough Council Rossendale Borough Council

East Lancashire Light Railway Company Limited

Rochdale Metropolitan Borough Council

The address of its registered office is:

Town Hall

Knowsley Street Bury Lancashire BLO OSW

16 Funds

	Balance at 1	Incoming	Resources	Balance at 31
	April 2024	resources	expended	March 2025
	£	£	£	£
Unrestricted funds
General
General Funds	552,131	56,429	(66,969)	541,591
Designated
Maintenance Fund	-	30,000	(30,000)	-
Total unrestricted funds	552,131	86,429	(96,969)	541,591
Restricted funds
Maintenance Funds	390,427	-	-	390,427
Totalfunds	942,558	86,429	(96,969)	932,018

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EAST LANCASHIRE RAILWAY TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

The specific purposes for which the funds are to be applied are as follows:

The maintenance fund

(Previously the commuted sum)

Comprises a derelict land grant fund and transfers from the general fund.

The derelict land grant fund represents the amount received in respect of monies to be invested to produce income towards the long term maintenance of major structures on the railway. There are no specific restrictions on the way in which such income should be used, and consequently that income is taken directly to the income and expenditure account. The monies comprising the fund are shown on the balance sheet as fixed assets investments, constituting the full amount of the monies on deposit so treated, and as part of the cash at bank.

The development fund

(Previously the non-derelict land grant fund)

Represents the amount in respect of capital payments towards expenditure necessary priorto the re-opening of the railway. Both the income and capital of this fund may be used for this purpose.

The analysis of the original make up of the fund and its subsequent application is as follows:-

		2025		2024
		£		£
Greater Manchester Council
Engineering works	:	183,000		183,000
Building works		75,000		75,000
Promotion and marketing		34,000		_34,000
		292,000		292,000
Rossendale Borough Council		60,000		60,000
		352,000		352,000
			)
Previously released to income and expenditure		(352,000)		(299,735)
Releasetoincomethisyear		-		(52,265)

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EAST LANCASHIRE RAILWAY TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

17 Analysis of net assets between funds

	Unrestricted		Totalfunds at
	funds	Restricted	31March
	General	funds	2025
	£	£	£
Tangible fixed assets	385,231	-	385,231	©
Fixed asset investments	-	390,427	390,427
Current assets	161,745	-	161,745
Current liabilities	(5,385)	-	(5,385)
Totalnetassets	541,591	390,427	932,018

18 Related party transactions

During the year the Trust made the following related party transactions:

East Lancashire Light Railway Company Limited

The Trust has a close relationship with East Lancashire Light Railway Company Limited. This company . operates the railway and also nominates 3 members to the Trust's Board of Management.

During the year the Trust made grants totalling £181,735 (2023 - £131,165) to the East Lancashire Light Railway Company Limited. Rental income receivable from East Lancashire Light Railway Company Limited was £19,621 (2023 - £19,621).

The railway does not make a predetermined annual contribution to the maintenance of structures. Jn the year , the railway incurred a cost of £138,5020 (2023 : £87,830) on the repairs to a building owned by the local authority partner.

At the balance sheet date the amount due from East Lancashire Light Railway Company Limited was £Nil (2024 - ENil).

Bury Metropolitan Borough Council

Bury Metropolitan Borough Councill nominates 3 members to the Trust's Board of Management.

The Council makes an annual contribution of £12,000 for the maintenance of the railway structures.

At the balance sheet date the amount due from Bury Metropolitan Borough Council was ENil (2024 - ENil).

Rochdale Metropolitan Borough Council Rochdale Metropolitan Borough Councill nominates 3 members to the Trust's Board of Management.

The Council makes an annual contribution of £12,000 for the maintenance of the railway structures.

At the balance sheet date the amount due from Rochdale Metropolitan Borough Council was £Nil (2024 - ENil). ,

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EAST LANCASHIRE RAILWAY TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

Rossendale Borough Council

"Rossendale Borough Council nominates 3 members to the Trust's Board of Management.

The Council makes an annual contribution of £6,000 for the maintenance of the railway structures.

At the balance sheet date the amount due from Rossendale Borough Council was £6,000 (2024 - £18,000).

;

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