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2022-12-31-accounts

COMPANY REGISTRATION NUMBER 01157099

SOUTH DEVON RAILWAY TRUST FINANCIAL STATEMENTS 31 DECEMBER 2022

Charity Number 800299

PEPLOWS LIMITED

Chartered Accountants & Statutory Auditor Moorgate House King Street Newton Abbot Devon TQ12 2LG

SOUTH DEVON RAILWAY TRUST

FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2022

CONTENTS PAGE
Members of the Board and professional advisers 3
Trustees’ Annual Report and Strategic Review 4
Independent auditor's report to the trustees 14
Statement of financial activities 18
Income and expenditure account 19
Balance sheet 20
Cash flow statement 21
Notes to the financial statements 22

SOUTH DEVON RAILWAY TRUST

TRUSTEES’ ANNUAL REPORT AND STRATEGIC REVIEW

YEAR ENDED 31 DECEMBER 2022

Directors J K Morton Chairman and Operating
A R Cash Mechanical Engineering
R J Elliott Fund Raising
G Hooper Director
J Keohane MVO BEM Volunteer Liaison
A L Taylor MCIPS
(appointed 14 January 2023) Director
P C Treglown MCIPR MIoD Marketing
C A Williams Director
Company Secretary
 V P Coon
Company Number 1157099
Charity Registration Number
 800299
Registered Office The Station
Buckfastleigh
Devon
TQ11 0DZ
Auditors Peplows Chartered Accountants
Moorgate House
King Street
Newton Abbot
Devon
TQ12 2LG
Business Address The Station
Buckfastleigh
Devon
TQ11 0DZ
Bankers Lloyds Bank plc
Fore Street
Okehampton
Devon
EX20 1HJ
Solicitors Ashfords LLP
Ashford House
Grenadier Road
Exeter Business Park
Exeter
Devon
EX1 3LH
Tozers LLP
Broadwalk House
Southernhay West
Exeter
EX1 1UA

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SOUTH DEVON RAILWAY TRUST

TRUSTEES’ ANNUAL REPORT AND STRATEGIC REVIEW

YEAR ENDED 31 DECEMBER 2022

The Trustee/Directors present their report and the Financial Statements for the year ended 31[st] December 2022.

Introduction

The Trustees are obliged by charity and company law to report on various matters; the purpose of this and the strategic review is to provide not only the relevant information but to enhance it. These reports are lengthy as they also serve to give the necessary information required by the Charity Commission.

Following the announcement in 2020 and subsequent instigation of a significant reorganisation programme for the South Devon Railway (SDR) as an enterprise those changes are now complete.

Following the conversion of the South Devon Railway Trust’s (SDRT) subsidiary business South Devon Railway PLC into a charitable community benefit society (CCBS) and renamed South Devon Railway Limited (SDRL), SDRT handed over full day to day operational control to SDRL on 13[th] March 2020 however for accounting purposes the effective date recorded was the 1[st] January 2020.

It should be noted that these (SDRT) accounts reverted and now remain a single entity format as SDRT is no longer part of the consolidation.

SDRT assumes its duties now as landlord for the property and assets leased to SDRL and retains the function of fund raiser for the enterprise. Management and oversight of the retail and catering business formerly undertaken by SDR Plc is operated by the wholly owned (by SDRL) and controlled subsidiary South Devon Railway Retail and Catering Limited. South Devon Railway Engineering Limited (SDRE) will remain as the SDR’s wholly owned (by SDRL) and controlled subsidiary mechanical engineering business acting as the SDR’s commercial trading arm.

Both subsidiary businesses are responsible for the day-to-day management of their respective commercial trading businesses whilst reporting to the SDRL board directly. Both boards are comprised of non-executives and members of the SDRT and/or SDRL management team. Both subsidiary boards perform the same roles as any company board overseeing the running of a company, monitoring its budgets, profitability, and commercial direction with any taxable profits gift aided to the parent organisation. Both subsidiary companies satisfy the Charity Commission’s guidance on charities undertaking trading activities.

SDRL accepts and undertakes independent responsibility for the safe operation of the railway.

Principal Objectives, Aims and Activities

By means of SDRL’s charitable objects being complementary despite the reorganisation programme the object for which the Trust was established remains unaltered despite operational control now being delivered by SDRL.

To advance public education in the history and development of railway transportation systems in particular by the preservation, operation, and exhibiting of railway vehicles, systems and equipment and to foster and support heritage railway preservation. In pursuit of this object, the principal activity of the Trust is operating a heritage railway line and museum that provides passengers with the opportunity to experience and learn about rail travel as it was prior to 1966. In doing so the Trust, wherever possible, follows the custom and practice of the Great Western Railway or that of British Railways (Western Region).

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SOUTH DEVON RAILWAY TRUST

TRUSTEES’ ANNUAL REPORT AND STRATEGIC REVIEW

YEAR ENDED 31 DECEMBER 2022

There have been no changes in the above policies since the last report. Any surplus generated by its activities is applied to its charitable purposes.

Our aims continued through the year to be focused on the long-term future of the railway and planning for its future and will be delivered by SDRL with the financial support of the SDRT. In particular:

The Trustees confirm that they have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the charity’s aims and objectives in planning future activities.

Education Policies: Public Benefit

The SDR has several strategies to advance public learning and benefit. These are both formal and informal and delivered in conjunction with SDRL’s management programme. Apart from the visitor experience, this is supported by presentation, interpretation and guidebooks, the SDR further offers:

The locomotives and rolling stock restored, maintained and used are from the period referred to in our objective and we have a policy of reproducing accurate and appropriate liveries. Staff are encouraged to wear appropriate uniforms that reflect the GWR and BR(W), buildings are painted in appropriate colours and are decorated with period advertisements and other artefacts. Historic railway buildings, equipment and structures from around the former GWR network have been rescued, rebuilt and returned to their former use. These include station buildings, signal boxes, water towers, station canopies, lamp huts, signalling & telegraph equipment and more. This is explained to visitors in the SDR’s publicity material.

Our methods of working recreate the appropriate period, with the exception of safety critical elements of the operation in which we are required to conform to all modern safety criteria and standards.

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SOUTH DEVON RAILWAY TRUST

TRUSTEES’ ANNUAL REPORT AND STRATEGIC REVIEW

YEAR ENDED 31 DECEMBER 2022

The SDR’s engineering division (SDRE) has collected a wide range of engineering equipment from the former railway companies within Great Britain and these are used for the restoration, renovation, rebuilding and maintenance of our own and other railways’ historic rolling stock as referred to above. This activity also keeps alive a host of traditional railway heavy and light engineering skills. By offering the SDR’s specialist engineering services to other locomotive and railway operators, these skills are shared with peers around the country, while providing opportunities for the expansion and further preservation of these historic skills.

The SDR’s museum has collected a valuable collection of historic railway relics and artefacts that tell the story of the former Great Western Railway, the former Ashburton branch (which is today’s South Devon Railway) and railways in the West Country in general.

As well as providing a fascinating and educational attraction for visitors, the museum is the focal point of the SDR’s activities for schools. The SDR provides a range of railway-themed educational activities for school pupils of all ages. This ranges from topics such as the railways in wartime and the evacuation of children to destinations such as the West Country, to the conversion of the old Great Western Railway from Brunel’s broad gauge to Stephenson’s standard (or narrow) gauge over a single weekend in 1892.

The SDR has appointed a trustee with specific responsibility for heritage to ensure that the educational heritage of the railway forms a central core of all activities and operations. He is a highly respected expert in all aspects of railway heritage and particularly that of the GWR.

In the wider context the SDR contributes both directly and through its visitors to the economy of the Southwest region, parts of which community have a high score on the national deprivation indices.

Governance

The SDR is a complex organisation with a variety of mechanisms that operate to present a working railway that is largely staffed by volunteers.

The SDRT is a company with a share capital, but with liability limited by guarantee, subject to the provisions of Companies Act 2006 and is governed by its Memorandum and Articles of Association. As a registered charity, the SDRT is managed by a Board of unpaid directors acting as Trustees and is subject to the requirements of Charities Act 2011. The Board management structure, which is designed to achieve the SDRTs charitable objects, described in more detail later in this report and kept under review.

Governance Review

The Board now consists of eight Trustees, presently four of whom are also elected members of the South Devon Railway Association’s management committee; one of those is also the Chairman of the Dumbleton Hall Preservation Society (to be renamed South Devon Railway Locomotive Support Group); one of them a director of the Devon Diesel Society.

SDRT and the three active companies in the South Devon Railway Group usually hold their Board meetings on separate days, except for those which involve the external auditor, when they are held consecutively, to minimise the auditor’s time.

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SOUTH DEVON RAILWAY TRUST

TRUSTEES’ ANNUAL REPORT AND STRATEGIC REVIEW

YEAR ENDED 31 DECEMBER 2022

Trustees and their interests

The Trustees who served during the year and their interests in the company are as stated below:

Ordinary Shares
2022 2021
A R Cash
1		 1
R J Elliott
182*		 182*
G Hooper -
 -
J Keohane MVO BEM
375		 375
J K Morton (Chairman) - -
A L Taylor MCIPS 151
 151
P C Treglown MCIPR MIoD
-		 -
C A Williams -
 -

*Held jointly with Mrs J M Elliott

Mr R J Elliott also holds 50 Founders’ Shares (2021 – 50). In the event of a poll vote a Founders’ Share entitles the holder to 10 votes per share.

The above were all Trustees at 22 September 2023, the date upon which the balance sheet was approved and signed - J K Morton, having been Chairman of the board for the whole of 2022.

The Trust is a registered charity and the Memorandum and Articles of Association do not permit the Trustees to enjoy any remuneration from their office, but light refreshments are supplied during meetings, at the Trust’s expense. The Trust does not normally reimburse any Trustees with travelling expenses, but if circumstances require an exceptional amount of travel, then a Trustee may be reimbursed with a return rail fare or petrol money.

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SOUTH DEVON RAILWAY TRUST

TRUSTEES’ ANNUAL REPORT AND STRATEGIC REVIEW

YEAR ENDED 31 DECEMBER 2022

The Board

The SDRT Board is responsible for the strategic direction of the Trust. It determines and reviews policy. The Trustees are responsible for matters such as Health & Safety and safeguarding the Trust’s assets.

The SDRT Board considers both Health & Safety and Finance as standing agenda items at all SDRT Board meetings. In addition, the SDRT board:

Trustees

Members of staff or volunteer department heads may also attend meetings of the Board at the Trustees’ request to provide specific advice as required. Various departments usually submit reports for each scheduled meeting, which are included within the Railway Manager’s report. The Board generally meets as and when required either in person or alternatively by electronic audio-visual means.

Recruitment and training of Trustees

Although many decisions are consensual, the Trust Board operates on the principle of cabinet collective responsibility. Thus, once decisions are made, all Trustees are expected to support those decisions publicly. Expertise and an understanding of governance, together with a willingness and ability to get actively involved in tasks and projects are considered fundamental. On that basis, there are currently no non-executive director/trustees. Any potential Trustee is expected to bring some added value to the Board.

The pattern of recruitment in recent times has been to invite potential Trustees to full Board meetings as non-voting participants. This enables both the existing Trustees and the candidate to form an opinion of each other and their ability to work in harmony. At an appropriate point, an offer of co-option may be made thereby bringing the new Trustee onto the Board until the next AGM, when formal election, in accordance with the Memorandum and Articles of Association, takes place. Alternatively, the Health & Safety Committee or the informal management meetings may be used as a proving ground. The South Devon Railway Association has a long-established right to nominate two of their number as Trustees, however their recruitment, selection for co-option and subsequent election are otherwise no different from any other Trustee. Although it has never happened, nomination by the SDRA is not a guarantee to eventual co-option and election.

The Trustees are constantly seeking to identify suitable candidates. Training is appropriate to the experience and knowledge of the new Trustee; however, the recruitment process may act as an induction period. New Trustees receive the last available report and accounts, together with the relevant Charity Commission publications relating to the duties of Trustees and Companies House publications relating to the duties of directors.

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SOUTH DEVON RAILWAY TRUST

TRUSTEES’ ANNUAL REPORT AND STRATEGIC REVIEW

YEAR ENDED 31 DECEMBER 2022

Committees

Under the new structure it is anticipated SDRT will form two committees to assist in the efficient conduct of business. Each has a functional role and appropriate delegated powers.

  1. Fundraising Committee.

  2. Property and Asset Management Committee.

Charitable and Political Contributions

There have been no Political Contributions (2021: £Nil) received in the year.

Investment powers

The Trust may invest monies not immediately required for its purposes in or upon such investments, securities or property as may be thought fit, subject to statutory requirements, as defined in the Memorandum & Articles of Association. No opportunities to exercise these powers have occurred for several years.

Taxation Status

In the opinion of the Directors, the Trust is an exempt charity within the meaning of schedule 3 of the Charities Act 2011 and is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes.

Organisation of the Trust

Volunteers provide administrative support relating to fundraising, gift aid, and administration.

Review of the development and financial position of the Trust

A review of the development, activities and achievements of the Trust together with its financial position is set out in the Strategic Review, which has the approval of the Trustees.

Financial control

The Board as Trustees are all responsible for the affairs of the Trust and this includes the preparation of the financial statements and the reports thereon of which this report is a part. The detail of the preparation is delegated to the Finance Director and the Company Secretary, but the Board as a whole approves all statements.

The final accounts are the audited record of the financial activity for the year.

A framework of procedures designed to provide proper financial controls is in place to ensure effective stewardship and is reviewed at least annually. The accounting records are maintained by the accounts team under the direction of the Finance Director and are subject to annual external audit. During the year actual income and expenditure is monitored against the budget by the Finance Director. If necessary, day-to-day priorities are adjusted.

The Finance Director reports to the Board, generally on an exception basis. Otherwise, as funds are generated by operations, they are released to designated projects and budgets.

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SOUTH DEVON RAILWAY TRUST

TRUSTEES’ ANNUAL REPORT AND STRATEGIC REVIEW

YEAR ENDED 31 DECEMBER 2022

Relationship with other charitable and non-charitable organisations

The SDRT maintains membership of the Heritage Railway Association, the trade body for the heritage railway industry, and is a leading contributor in their setting of industry standards and which may receive approval by the Office of Rail and Road, the safety regulator for Heritage Railways and their workshops.

Risk Management

SDRT recognises the need to identify risk to its business (financial, non-financial and operational) and control measures are implemented where necessary. Formal risk assessments are reviewed and reassessed annually on a cyclical basis.

Commercial risks are minimised by ensuring there are adequate procedures in place and business interruption cover is maintained against the possibility of an incident affecting the Trust’s ability to function. Appropriate insurance policies are maintained to provide cover in a number of other areas, subject to underwriters’ limitations.

Commercial risk is managed by separating asset ownership and commercial activities into independent legal entities. South Devon Railway Limited (SDRL), South Devon Railway Retail and Catering Limited (SDRR&C) and South Devon Railway Engineering Limited (SDRE). As separate legal entities, they insulate the Trust against the risks of financial failure arising from their areas of activity, which is in accordance with the recommendations of the Charity Commission. To this end, the Trust has formally leased the land and buildings occupied by the shop, kiosk and café at Buckfastleigh, together with the land occupied by Buckfast Butterflies Ltd to SDRL.

Trustees’ responsibilities

The trustees (who are also directors of South Devon Railway Trust for the purposes of company law) are responsible for preparing the Trustees’ Annual Report (including the Strategic Report) and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

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 the income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping adequate accounting records that 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.

In so far as the trustees are aware:

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SOUTH DEVON RAILWAY TRUST

TRUSTEES’ ANNUAL REPORT AND STRATEGIC REVIEW

YEAR ENDED 31 DECEMBER 2022

Reserves policy

The majority of the Trust reserves are represented by heritage assets, premises and the railway. They are not readily realisable. The specific purpose funds also form part of the reserves. The Trustees are well aware of the need to build cash reserves as the opportunities arise. The seasonal nature of the Trust’s visitors means that cash reserves are usually committed to meeting requirements “out of season”.

Legacies

The Trustees have appointed the Company Secretary as “Legacies Officer” to promote bequests to the Trust and have arranged with a local firm of solicitors to operate a Wills for Charity scheme. As the South Devon Railway Association is not a charitable body, monies left to it may not be as tax efficient to the estate as could be if the money had been bequeathed to the Trust.

Financial position of the Charity

This is described in more detail in the Strategic Review below. The Trustees believe that the levels of debt incurred in securing the railway for posterity and improving the infrastructure are at acceptable levels. A programme for the renewal of the loan stock is in place. It remains the Trust policy to reduce debt and to build up cash reserves to support winter cash requirements without recourse to borrowing if possible. The Trustees regard the overall position of the Trust as being satisfactory.

Fund-raising standards

The Trustees aim to uphold the highest standards in its fundraising exploits. Funding from the general public is raised by use of an “envelope scheme”. Donations are made in envelopes available on the trains, on a purely voluntary basis. Trust staff and volunteers do not have contact with the donors at this point, which ensures that passengers do not feel any pressure or obligation to donate.

Auditors

In accordance with S144 Charities Act 2011, a resolution proposing that Michael Young of Peplows Limited Chartered Accountants be re-appointed as auditor of the company will be put to the Annual General Meeting.

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SOUTH DEVON RAILWAY TRUST

TRUSTEES’ ANNUAL REPORT AND STRATEGIC REVIEW

YEAR ENDED 31 DECEMBER 2022

Strategic Review

Financial Performance 2022

The Trust is getting back into its stride after the enforced reduction in activity thanks to Covid, thankfully, just before it struck the organisational changes meant that SDRL was able to meet virtually and manage operations during and post lockdown.

For the trustees it highlighted the fact that its articles of association were out of step with modern day charity best practice and prevented the use of software such as Zoom to hold meetings. Now that we can once more meet face to face your trustees started a thorough review with legal help which has resulted in a new updated governing document being sent to the Charity Commission for their approval. When this is received, we will prepare a resolution to be put to the membership to adopt the new articles, this may be at the forthcoming AGM but if there is any delay in the response from the charity commissioners, we will call an EGM at a later date.

The Trust now has a very clear future role. It is the owner of the property assets of the railway as well as all of the locomotives and rolling stock not in private hands, it is therefore responsible for ensuring these are protected for future generations to enjoy. In addition, as a registered charity, the Trust plays a key role in fund raising. Under our fund-raising director, Richard Elliott, a small subcommittee has been formed to undertake research into sources of grants. This is in support of the initiative undertaken by SDRL to launch a share issue to finance many of the development projects planned for all our stations and the Buckfastleigh site. There are several of these that are a very good fit for things like the National Heritage Lottery Fund and there are many other funds worth considering. During the forthcoming year the committee will select the best opportunities and with board approval, prepare and submit applications.

The accounts show a small deficit this year and highlight the need to review the values applied to the rental agreements between SDRT and SDRL in the future to ensure that the trust has sufficient income to cover its expenses.

Locomotives and Rolling Stock

With operational income vastly depleted and volunteer access restricted for some of the year the SDRL locomotive and infrastructure programme although not on hold has made little progress other than maintain the operational fleet until circumstances and income otherwise improved.

Loan Stock

Loan stocks are a vital component of the financing structure of the SDR. Loan Stock investments provide interest at slightly higher rates than would be obtainable in the open market (from recognised financial institutions) presently for these investors and this, in part, recognises the unsecured nature of this type of investment. Loan notes are for fixed periods of time and are renewable, at the choice of the investor, when they mature and many of our investors do so on a regular basis.

New loan stock offerings are usually linked to major capital projects and, most notably, the last one being in 2018 which supported the purchase of the field adjacent to the station at Buckfastleigh.

No new loan stock was issued during 2022.

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SOUTH DEVON RAILWAY TRUST

TRUSTEES’ ANNUAL REPORT AND STRATEGIC REVIEW

YEAR ENDED 31 DECEMBER 2022

Specific Purpose Funds

Contributions continue to accrue for a range of specific purpose funds. The lease and transfer agreements between SDRT and SDRL ensures SDRL continues to maintain the policies previously agreed by SDRT in respect of all funding raised for specific purposes.

Outlook

With public confidence clearly returning toward public events and social interactions generally it is evident the wider commercial environment is steadily returning to normal, 2023 will hopefully reflect growth from an industry that has for the previous two years been otherwise effectively either mothballed or at best running at 50% capacity. Clearly there will be new challenges to face. Inflation and a reliable and economic source of quality fuel for our locomotives remain topics unresolved.

Site and infrastructure developments at Buckfastleigh initiated during August 2022 are still to be determined. Although favourable indications have been received toward the conclusion; to date, disappointingly no final outcome has been published. The developments will be funded and completed by SDRL.

Whilst the Trust’s cash position remains robust careful planning with prudent policy controls need to be continually exercised to ensure spending on both operational needs and development projects remains within the Trusts financial capabilities.

Approved on 22 September 2023

Vernon Coon

Registered office: Company Secretary The Station Dartbridge Road Buckfastleigh Devon TQ11 0DZ

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SOUTH DEVON RAILWAY TRUST

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF SOUTH DEVON RAILWAY TRUST (continued)

YEAR ENDED 31 DECEMBER 2022

Opinion

We have audited the financial statements of South Devon Railway Trust (the ‘charitable company’) for the year ended 31 December 2022 which comprise SOFA, Income and Expenditure Account, Balance Sheet, Cash Flow Statement and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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’s responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in 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 charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are 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

The other information comprises the information included in the trustees’ annual report and strategic review, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report and strategic review. 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.

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 course of 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 this gives

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SOUTH DEVON RAILWAY TRUST

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF SOUTH DEVON RAILWAY TRUST (continued)

YEAR ENDED 31 DECEMBER 2022

rise to a material misstatement in the financial statements themselves. 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.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 10, the trustees (who are also the directors of the charitable company for the purposes of company law) 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 charitable company’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 charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act.

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.

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:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

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SOUTH DEVON RAILWAY TRUST

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF SOUTH DEVON RAILWAY TRUST (continued)

YEAR ENDED 31 DECEMBER 2022

We assessed the susceptibility of the charitable company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of noncompliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/Our-Work/Audit/Audit-and-assurance/Standards-and-guidance/Standards-andguidance-for-auditors/Auditors-responsibilities-for-audit/Description-of-auditors-responsibilities-foraudit.aspx. This description forms part of our auditor’s report.

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SOUTH DEVON RAILWAY TRUST

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF SOUTH DEVON RAILWAY TRUST (continued)

YEAR ENDED 31 DECEMBER 2022

Use of our report

This report is made solely to the charitable company’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charitable company’s members 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 the charitable company’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Moorgate House King Street Newton Abbot Devon TQ12 2LG

MICHAEL YOUNG BSC FCA (Senior Statutory Auditor) For and on behalf of PEPLOWS LIMITED Chartered Accountants & Statutory Auditor

22 September 2023

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SOUTH DEVON RAILWAY TRUST

STATEMENT OF FINANCIAL ACTIVITIES

YEAR ENDED 31 DECEMBER 2022

Note
Income and endowments
from:
Donations and legacies
2
Charitable activities
3
Investments
4
Total income and
endowments
Expenditure on:
Charitable activities
5
Other expenditure
6
Total expenditure
Net income
Other recognised (losses):
Other (losses)
Net movement in funds
Reconciliation of funds:
Total funds brought
forward
Total funds carried
forward
24		 Unrestricted
Funds
Restricted
Funds
Endowment
Funds
Total Funds
2022
Total Funds
2021
£
£
£
£
£
7,304
4,070
-
11,374
576,365
84,501
-
-
84,501
80,000
-
-
-
-
29
91,805
4,070
-
95,875
656,394
124,179
13,834
-
138,013
427,507
2,625
-
-
2,625
6,510
126,804
13,834
-
140,638
434,017
(34,999)
(9,764)
-
(44,763)
222,377
-
-
-
-
(34,999)
(9,764)
-
(44,763)
222,377
2,730,036
545,095
119,149
3,394,280
3,171,903
2,695,037
535,331
119,149
3,349,517
3,394,280

All income and expenditure derive from continuing activities.

The statement of financial activities includes all gains and losses recognised during the year.

The notes on pages 22 to 38 form part of these financial statements.

- 18 -

SOUTH DEVON RAILWAY TRUST

INCOME AND EXPENDITURE ACCOUNT

YEAR ENDED 31 DECEMBER 2022

2022 2021
Note £ £ £ £
INCOME 95,875 656,394
---------------------------------------------------- ----------------------------------------------------
TOTAL INCOME 95,875 656,394
TOTAL EXPENDITURE (116,076) (433,931)
---------------------------------------------------- ----------------------------------------------------
OPERATING SURPLUS 9 (20,201) 222,463
OTHER INCOME
Interest receivable and similar income 4 - 29
---------------------------- ----------------------------
- 29
---------------------------- --------------------------------
(20,201) 222,492
INTEREST PAYABLE
Interest payable: Loans (1,501) (1,332)
Interest payable: Loan stock (7,994) 7,606
Interest payable: Bank loans (12,882) (4,185)
HP interest (2,185) (2,204)
---------------------------- ----------------------------
-------
(24,562) (115)
------------------------------- --------------------------------
RETAINED SURPLUS FOR THE
FINANCIAL YEAR (44,763) 222,377
============================ ================================

All of the above amounts relate to continuing activities.

The notes on pages 22 to 38 form part of these financial statements.

- 19 -

SOUTH DEVON RAILWAY TRUST

BALANCE SHEET

31 DECEMBER 2022

2022 2021
Note £ £
FIXED ASSETS
Intangible assets 14 19,314 22,074
Tangible assets 15 3,469,194 3,841,800
Investments 16 270,516 270,516
------------------------------------------ ----------------------------------------------------
3,759,024 4,134,390
CURRENT ASSETS
Debtors 17 260,210 173,367
Cash at bank 377,770 399,288
---------------------------------- --------------------------------------------
637,980 572,655
CREDITORS: Amounts falling due
within one year 18 (569,322) (690,215)
---------------------------------- --------------------------------------------
NET CURRENT (LIABILITIES)/ASSETS 68,658 (117,560)
------------------------------------------- ----------------------------------------------------
TOTAL ASSETS LESS CURRENT LIABILITIES 3,827,682 4,016,830
CREDITORS: Amounts falling due
after more than one year 19 (478,165) (622,550)
-------------------------------------------- ------------------------------------------
NET ASSETS 3,349,517 3,394,280
=========================================== ==========================================
CHARITY FUNDS
Endowment funds 21
Share capital 118,674 118,674
Capital redemption reserve 475 475
Restricted funds 22 535,331 545,095
Unrestricted funds 23 2,536,378 2,571,377
Revaluation reserve 158,659 158,659
-------------------------------------------- ------------------------------------------
TOTAL CHARITY FUNDS 3,349,517
===========================================		 3,394,280
==========================================

These financial statements were approved by the members of the board on the 22 September 2023 and are signed on their behalf by:

C A Williams Director

Company Registration Number: 01157099

The notes on pages 22 to 38 form part of these financial statements.

- 20 -

SOUTH DEVON RAILWAY TRUST

CASH FLOW STATEMENT

YEAR ENDED 31 DECEMBER 2022

Note
Cash flow from operating activities
25
Net cash flow from operating activities
Cash flow from investing activities
Payments to acquire tangible fixed assets
Receipts from sales of tangible fixed assets
Interest received
Net cash flow from investing activities
Cash flow from financing activities
Repayment of long term loans
Repayment of finance lease liabilities
Interest paid
Net cash flow from financing activities
Net increase / (decrease) in cash and cash equivalents
Cash and cash equivalents at 1 January 2022
Cash and cash equivalents at 31 December 2022
Cash and cash equivalents consists of:
Cash at bank and in hand
Cash and cash equivalents at 31 December 2022		 2022
(107,814)
(107,814)
-
290,002
-
290,002
(169,568)
(9,576)
(24,562)
(203,706)
(21,518)
399,288
377,770
377,770
377,770		 2021
385,965
385,965
(309,305)
4,000
29
(305,276)
(146,601)
(9,575)
(115)
(156,291)
(75,602)
474,890
399,288
399,288
399,288

The notes on pages 22 to 38 form part of these financial statements.

- 21 -

SOUTH DEVON RAILWAY TRUST

DETAILED STATEMENT OF FINANCIAL ACTIVITIES

YEAR ENDED 31 DECEMBER 2022

1. ACCOUNTING POLICIES

General information and basis of preparation

South Devon Railway Trust is a company with share capital, but with liability limited by guarantee, subject to the provisions of Companies Act 2006 and is governed, in the United Kingdom, by its memorandum and Articles of Association. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity. The address of the registered office is given in the charity information on page 3 of these financial statements. The nature of the charity’s operations and principal activities are to advance public education in the history and development of railway transportation systems in particular by the preservation, operation, and exhibiting of railway vehicles, systems and equipment and to foster and support heritage railway preservation. In pursuit of this object, the principal activity of the Trust is operating a heritage railway line and museum that provides passengers with the opportunity to experience and learn about rail travel as it was prior to 1966. In doing so the Trust, wherever possible, follows the custom and practice of the Great Western Railway or that of British Railways (Western Region).

The charity constitutes a public benefit entity as defined by FRS 102. 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 Ireland issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Accounting Practice.

The financial statements are prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are prepared in sterling and rounded to the nearest £.

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

Funds structure

Unrestricted funds are available to use to further any of the purposes of the charity. Designated funds are unrestricted funds of the charity which have been set aside by the trustees to fund particular future activities of the charity. Revaluation reserve is part of unrestricted funds created from unrealised gains in fixed assets. Restricted funds are donated for particular areas of the charity work or specific projects undertaken.

Transfers between funds are made in the following circumstances:

Where expenditure in accordance with a restricted fund exceeds the balance of the restricted fund, the deficit is financed from general unrestricted funds.

Where the Trustees have designated funds for a specific purpose funds are transferred to / from general unrestricted funds.

The element of the depreciation charge on revalued fixed assets that exceeds the historic cost charge is released from the revaluation reserve to the general unrestricted fund.

- 22 -

SOUTH DEVON RAILWAY TRUST

DETAILED STATEMENT OF FINANCIAL ACTIVITIES

YEAR ENDED 31 DECEMBER 2022

1. ACCOUNTING POLICIES (continued)

Funds structure (continued )

Designated funds comprise unrestricted funds that have been set aside by the trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The cost of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

Endowment funds represent those assets which must be held permanently by the charity, principally issued share capital. Income arising on the endowment funds can be used in accordance with the objects of the charity and is included as unrestricted income. Any capital gains or losses arising on the investments form part of the fund. Investment management charges and legal advice relating to the fund are charged against the fund.

Incoming resources

All incoming resources are included in the Statement of Financial Activities (SoFA) when the charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably, and it is probable that the income will be received.

For donations to be recognised the charity will have been notified of the amounts and the settlement date in writing or payment will have been received. If there are conditions attached to the donation and this requires a level of performance before entitlement can be obtained then income is deferred until those conditions are fully met or the fulfilment of those conditions is within the control of the charity and it is probable that they will be fulfilled.

Donated facilities and donated professional services are recognised in income at their fair value when their economic benefit is probable, it can be measured reliably and the charity has control over the item. Fair value is determined on the basis of the value of the gift to the charity. For example the amount the charity would be willing to pay in the open market for such facilities and services. A corresponding amount is recognised in expenditure.

No amount is included in the financial statements for volunteer time in line with the SORP (FRS 102). Further detail is given in the Trustees’ Annual Report.

Fixed asset gifts in kind are recognised when receivable and are included at fair value. They are not deferred over the life of the asset.

For legacies, entitlement is the earlier of the charity being notified of an impending distribution or the legacy being received. At this point income is recognised. On occasion legacies will be notified to the charity however it is not possible to measure the amount expected to be distributed. On these occasions, the legacy is treated as a contingent asset and disclosed.

Income from grants are recognised at fair value when the charity has entitlement after any performance conditions have been met, it is probable that the income will be received and the amount can be measured reliably. If entitlement is not met, then these amounts are deferred.

- 23 -

SOUTH DEVON RAILWAY TRUST

DETAILED STATEMENT OF FINANCIAL ACTIVITIES

YEAR ENDED 31 DECEMBER 2022

1. ACCOUNTING POLICIES (continued)

Incoming resources (Continued)

Income from trading activities includes income earned from fundraising events and trading activities to raise funds for the charity. Income is received in exchange for supplying goods and services in order to raise funds and is recognised when entitlement has occurred. Where applicable income is recognised net of VAT.

In respect of trading contracts for specific customers, income represents the value of work done in the year, including estimates of amounts not invoiced based upon the stage of completion of the contract.

Investment income is earned through holding assets for investment purposes such as shares and property. It includes dividends, interest and rent. Where it is not practicable to identify investment management costs incurred within a scheme with reasonable accuracy the investment income is reported net of these costs. It is included when the amount can be measured reliably. Interest

income is recognised using the effective interest method and dividend and rent income is recognised as the charity’s right to receive payment is established.

Endowment funds are in respect of share capital are permanent and non-distributable.

Donations / legacies of shares in South Devon Railway Trust: These are recognised in the Statement of Financial Activities at their current value at time of donation. Due to the charitable nature of the company these shares are not entitled to an income and as such the market value is considered to be at the issue price of £1 each. The Trust is not permitted to hold its own shares so any shares received are immediately cancelled.

Resources expended

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. It is categorised under the following headings:

Irrecoverable VAT is charged as an expense against the activity for which expenditure arose.

Governance costs represent the costs of financing and the cost of complying with constitutional and statutory requirements.

- 24 -

SOUTH DEVON RAILWAY TRUST

DETAILED STATEMENT OF FINANCIAL ACTIVITIES

YEAR ENDED 31 DECEMBER 2022

1. ACCOUNTING POLICIES (continued)

Pension costs

Pension costs previously paid by SDRT have been transferred to SDRL.

Investments

Investments in subsidiary undertakings are included at historical cost

Due to the insignificant nature of other investments these have been included at cost.

Amortisation

Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful economic life. The intangible asset is considered to have an operating life of 20 years from acquisition of the statutory power to own and operate the Railway, which became effective on 30 December 2009

Fixed assets

All fixed assets are initially recorded at cost, although assets held in 2000 are included at their valuation fixed under the transitional provisions of FRS15 and FRS102.

Depreciation

Depreciation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful economic life of that asset as follows:

Freehold Property - Land nil
- Buildings 30 or 50 years straight line
Track and infrastructure - Between 10 and 50 years straight line
Workshop and other equipment - 25% reducing balance
Locomotives - 10 years straight line
Rolling stock - 10 years straight line

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Tax

The charity is an exempt charity within the meaning of schedule 3 of the Charities Act 2011 and is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes.

Going concern

The financial statements have been prepared on a going concern basis as the trustees believe that no material uncertainties exist. The trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern.

- 25 -

SOUTH DEVON RAILWAY TRUST

DETAILED STATEMENT OF FINANCIAL ACTIVITIES

YEAR ENDED 31 DECEMBER 2022

2. VOLUNTARY INCOME

Unrestricted Restricted Total Funds Total Funds
Funds Funds 2022 2021
£ £ £ £
Gifts 55 4,070 4,125 9,986
Legacies 7,249 - 7,249 142,377
Grants - - - 424,002
---------------------------------------- ----------------------------------- --------------------------------------- ---------------------------------------
7,304 4,070 11,374 576,365
================================ ================================ ================================ ================================

3. INCOME FROM CHARITABLE ACTIVITIES

Unrestricted Total Funds Total Funds
Funds 2022 2021
£ £ £
Management charges / rent receivable 80,000 80,000 80,000
Other income 4,501 4,501 -
----------------------------------- ----------------------------------- -----------------------------------
84,501 84,501 80,000
================================ ================================ ===================================

4. INVESTMENT INCOME

Bank interest receivable

Unrestricted Total Funds Total Funds
Funds 2022 2021
£ £ £
- - 29
-------------------------------- -------------------------------- --------------------------------
- - 29
================================ ================================ ===================================

5. ANALYSIS OF EXPENDITURE ON CHARITABLE ACTIVITIES

Unrestricted Restricted Total Funds Total Funds
Funds Funds 2022 2021
£ £ £ £
Railway 93,332 13,834 107,166 194,795
Support costs - Railway 30,847 - 30,847 26,891
Donations to South Devon Railway
Limited - - - 205,821
------------------------------- ------------------------------- ------------------------------- -------------------------------
124,179 13,834 138,013 427,507
================================ ================================ ================================ ================================

- 26 -

SOUTH DEVON RAILWAY TRUST

DETAILED STATEMENT OF FINANCIAL ACTIVITIES

YEAR ENDED 31 DECEMBER 2022

6. ANALYSIS OF OTHER EXPENDITURE

Unrestricted Total Funds Total Funds
Funds 2022 2021
£ £ £
Governance costs 2,625 2,625 6,510
----------------------------------- ----------------------------------- -----------------------------------
2,625 2,625 6,510
================================ ================================ =============================================

7. ALLOCATION OF SUPPORT COSTS

Finance
Amortisation
Office costs / Overheads
Other
Total		 Raising
funds
Railway
Total
2022
Total
2021
£
£
£
£
-
5,087
5,087
4,380
-
2,760
2,760
2,760
-
23,000
23,000
12,000
-
-
-
7,751
-
30,847
30,847
26,891

The Charities activities are split into different entities and therefore costs are recorded separately and so do not require apportionment. The Charity does not expend money in an attempt to raise funds so it is not appropriate to allocate costs to raising funds.

8. GOVERNANCE COSTS

Note
Auditor’s remuneration
10		 2022
£
2,625
2,625		 2021
£
6,510
6,510

9. NET INCOME/(EXPENDITURE) FOR THE YEAR ENDED 31 DECEMBER 2022

Net income is stated after charging / (crediting):

2022 2021
£ £
Depreciation of tangible fixed assets 187,866 198,680
Loss / (Gain) on sale of tangible fixed assets (105,262) (4,000)
Amortisation of other intangible assets (included within note 14) 2,760 2,760

- 27 -

SOUTH DEVON RAILWAY TRUST

DETAILED STATEMENT OF FINANCIAL ACTIVITIES

YEAR ENDED 31 DECEMBER 2022

10. AUDITOR’S REMUNERATION

The auditor’s remuneration amounts to an audit fee of £2,625 (2021 - £6,510).

11. STAFF COSTS AND EMOLUMENTS

Total staff costs were as follows:

Total staff costs were as follows:
2022 2021
£ £
Wages and salaries - -
Social security costs - -
Defined contribution pension costs - -
-------------------------------- --------------------------------
- -
================================ ================================

Particulars of employees:

The average number of employees and full time equivalent (FTE), of the charity, during the year was Nil (2021 – Nil).

No employees received total employee benefits (excluding employers pension costs) of more than £60,000 during the year (2021 – Nil).

The charity receives the benefit of volunteer services, these are not quantified in the accounts as this cannot be reliably quantified.

All of the board of Trustees are volunteers and are included in the staff numbers above.

12. TRUSTEES' REMUNERATION

Other than travel expenses reimbursed in exceptional circumstances, none of the trustees received any remuneration, which is in accordance with the Charity's governing document. During the year £Nil (2021: £Nil) has been reimbursed to Trustees.

13. INTEREST PAYABLE AND SIMILAR CHARGES

Bank loans and overdrafts
Loan stock
Other loans
HP interest		 2022
£
12,882
7,994
1,501
2,185
24,562		 2021
£
4,185
(7,606)
1,332
2,204
115

- 28 -

SOUTH DEVON RAILWAY TRUST

DETAILED STATEMENT OF FINANCIAL ACTIVITIES

YEAR ENDED 31 DECEMBER 2022

14. INTANGIBLE FIXED ASSETS

CHARITY

CHARITY
Transport &
Works Act Order
£
COST
At 1 January 2022 and 31 December 2022 55,183
==============================
AMORTISATION
At 1 January 2022 33,109
Charge for the year 2,760
-------------------------
At 31 December 2022 35,869
========================
NET BOOK VALUE
At 31 December 2022 19,314
==============================
At 31 December 2021 22,074
==============================

Transport & Works Act Order: This is the capitalised costs of acquiring the statutory power to own and operate the Railway, which became effective on 30 December 2009.

- 29 -

SOUTH DEVON RAILWAY TRUST

DETAILED STATEMENT OF FINANCIAL ACTIVITIES

YEAR ENDED 31 DECEMBER 2022

15. TANGIBLE FIXED ASSETS

Brought Carried
forward forward
1 Jan 22 Additions Disposals 31 Dec 22
£ £ £ £
COST
Freehold Land and
buildings 1,738,638 - - 1,738,638
Track and infrastructure 1,624,353 - - 1,624,353
Workshop & Other
Equipment 884,450 - - 884,450
Locomotives 1,132,782 - (184,740) 948,042
Rolling stock 533,185 - - 533,185
------------------------------------------ ---------------------------------- ----------------------- --------------------------------------------
5,913,408 - (184,740) 5,728,668
========================================== ================================== ======================= ===========================================
Brought Carried
forward forward
1 Jan 22 Charges Disposals 31 Dec 22
£ £ £ £
DEPRECIATION
Freehold Land and
buildings 159,045 19,340 - 178,385
Track and infrastructure 603,509 56,984 - 660,493
Workshop & Other
Equipment 681,924 32,669 - 714,593
Locomotives 416,766 64,549 - 481,315
Rolling stock 210,364 14,324 - 224,688
-------------------------------- -------------------------------- ----------------------- --------------------------------
2,071,608 187,866 - 2,259,474
================================ ================================ ======================= ================================
Brought Carried
forward forward
1 Jan 22 31 Dec 22
£ £
NET BOOK VALUE
Freehold Land and buildings 1,579,593 1,560,253
Track and infrastructure 1,020,844 963,860
Workshop & Other Equipment 202,526 169,857
Locomotives 716,016 466,727
Rolling stock 322,821 308,497
------------------------------------------- -------------------------------------------
3,841,800 3,469,194
=========================================== ===========================================

- 30 -

SOUTH DEVON RAILWAY TRUST

DETAILED STATEMENT OF FINANCIAL ACTIVITIES

YEAR ENDED 31 DECEMBER 2022

15. TANGIBLE FIXED ASSETS (continued)

In respect of assets stated at valuations, the comparable historical cost and depreciation values are as follows:

2022 2021
£ £
NBV of revalued tangible fixed assets:
Net book value at end of year 418,329 418,329
================================ ================================
Historical cost:
At 31 Dec 21 and 31 Dec 22 578,411 578,411
================================ ================================
Depreciation:
At 1 Jan 22 340,172 340,172
Charge for year - -
-------------------------------- --------------------------------
At 31 Dec 22 340,172 340,172
================================ ================================
Net historical cost value:
At 31 Dec 22 238,239 238,239
================================ ================================
At 1 Jan 22 238,239 238,239
================================ ================================
The net historic cost value per class of asset is:
2022 2021
£ £
Track and infrastructure 22,591 22,591
Workshop & Other Equipment 2,685 2,685
Locomotives 192,016 192,016
Rolling stock 20,947 20,947
------------------------------------- -------------------------------------
238,239
================================		 238,239
================================

The directors revalued the assets held in 2000. Under the transitional rules of FRS15 and FRS 102 this revaluation has not been updated.

16. INVESTMENTS

2022 2021
Cost: £ £
At 1 Jan 2022 and 31 Dec 2022 270,516
================================		 270,516
================================

Analysis of investments at 31 Dec 2022 between funds

Unrestricted Restricted Total Funds Total Funds
Funds Funds 2022 2021
£ £ £ £
Other investments
UK Group undertakings 252,184 - 252,184 252,184
Other UK unlisted Securities 18,332 - 18,332 18,332
----------------------------------- -------------- ------------------------------------ ------------------------------------
270,516 - 270,516 270,516
================================== ============== =================================== ================================

- 31 -

SOUTH DEVON RAILWAY TRUST

DETAILED STATEMENT OF FINANCIAL ACTIVITIES

YEAR ENDED 31 DECEMBER 2022

16. INVESTMENTS (continued)

The Charity holds shares in the following companies incorporated in England and Wales, which are included in these consolidated accounts:

South Devon Railway Limited (FCA number 03711951) - this company operates the shop and kiosk at the Buckfastleigh railway station. The Charity holds 100% of the Ordinary A shares and 9.2% of the Ordinary shares. In accordance with the constitution of South Devon Railway Limited, the Charity is intitled to one vote, so South Devon Railway Trust does not exercise any control over South Devon Railway Limited and therefore this company is not consolidated into group accounts.

5526 Limited (company number 02775522) - this company owns locomotive 5526, which is leased to the Charity rent free. The Charity holds 76.1% of the ordinary shares and voting rights. 5526 Limited is currently dormant and so is not consolidated into group accounts.

17. DEBTORS

2022
 2021
£ £
Trade debtors 228,135 -
Other debtors 12,908 12,908
Prepayments and accrued income 19,167 160,459
------ ---------------------- ----------------------------
260,210
============================		 173,367
============================

Amounts owed by group undertakings are interest free and repayable on demand.

Trade debtors include £73,297 (2021: £Nil) that is repayable in greater than 12 months.

18. CREDITORS: Amounts falling due within one year

2022
 2021
£ £
Bank loans and overdrafts 71,451 91,210
Amounts owed to associated undertakings 269,605 352,147
Taxation and social security - 6,096
Taxation deducted 8,009 6,272
Other loans 86,000 46,000
Other creditors 4,790 4,790
Accruals 9,392 8,625
Loan stock 110,500 165,500
HP agreements 9,575 9,575
--------------------------------- ---------------------------------
569,322 690,215
================================ ==================================

- 32 -

SOUTH DEVON RAILWAY TRUST

DETAILED STATEMENT OF FINANCIAL ACTIVITIES

YEAR ENDED 31 DECEMBER 2022

18. CREDITORS: Amounts falling due within one year (continued)

The following liabilities disclosed under creditors falling due within one year are secured by the charity:

2022
 2021
£ £
Bank loans and overdrafts 71,451 91,210
HP agreements 9,575 9,575
---------------------------------- ----------------------------------
81,026
=================================		 100,785
=================================

The bank finance is secured by a first legal charge over the property known as Stations, buildings and land at Buckfastleigh to Totnes Railway Line and an unlimited debenture incorporating a fixed and floating charge.

The hire purchase agreements are secured on the assets financed.

Amounts owed by/to group or associated undertakings are interest free and repayable on demand.

19. CREDITORS: Amounts falling due after more than one year

2022
 2021
£ £
Loan stock 98,500 78,500
Bank loans and overdrafts 111,659 88,938
HP agreements 5,869 15,445
Other loans 262,137 439,667
---------------------------------- ----------------------------------
478,165
=================================		 622,550
===================================

The following liabilities disclosed under creditors falling due after more than one year are secured by the charity:

by the charity:
2022 2021
£ £
Bank loans and overdrafts 111,659 88,938
HP agreements 5,869 15,445
---------------------------------- ----------------------------------
117,528 104,383
================================= ===================================
Details of securities are disclosed above in the note for amounts due in less than one year.
The following aggregate liabilities are repayable by instalments, and are due for repayment after
more than five years from the balance sheet date:
2022 2021
£ £
Bank loans and overdrafts 54,820
================================		 85,118
============================

Details of securities are disclosed above in the note for amounts due in less than one year.

The following aggregate liabilities are repayable by instalments, and are due for repayment after more than five years from the balance sheet date:

The bank loans are repayable by instalments. There are two separate loans, interest is payable 1.75% above Bank of England base rate.

- 33 -

SOUTH DEVON RAILWAY TRUST

DETAILED STATEMENT OF FINANCIAL ACTIVITIES

YEAR ENDED 31 DECEMBER 2022

20. CREDITORS - CAPITAL INSTRUMENTS

Creditors include finance capital which is due for repayment as follows:

2022 2021
£ £
Amounts repayable:
In one year or less or on demand 277,526 312,285
In more than one year but not more than two years 113,300 200,505
In more than two years but not more than five years 310,045 336,927
In more than five years 54,820 85,118
---------------------------------- ----------------------------------
755,691 934,835
================================= ==================================

The above liabilities comprise bank loans and loan stock.

21. ENDOWMENT FUNDS

Balance at Incoming Outgoing Balance at
1 Jan 2022 resources resources Transfers 31 Dec 2022
£ £ £ £ £
Endowment Funds &
Capital 119,149 - - - 119,149
================================ ============================ ======================= ============================ ================================

- 34 -

SOUTH DEVON RAILWAY TRUST

DETAILED STATEMENT OF FINANCIAL ACTIVITIES

YEAR ENDED 31 DECEMBER 2022

22. RESTRICTED INCOME FUNDS

RESTRICTED INCOME FUNDS
Balance at Incoming Outgoing Balance at
1 Jan 2022 resources resources 31 Dec 2022
£ £ £ £
Dumbleton Hall RTSA fund 32,691 1,120 - 33,811
Hawksworth 2180 fund - 400 - 400
GW development fund - 720 - 720
Foundation fund - 1,830 - 1,830
-------------------------------- ---------------------------- ----------------------- --------------------------------
32,691 4,070 - 36,761
Depreciating funds:
Nursery Pool Bridge - Heritage lottery
fund 120,780 - 3,660 117,120
Heritage Rolling Stock Conservation
Centre fund 65,044 - 1,449 63,595
1420 fund 26,852 - - 26,852
Hawksworth 2180 fund 51,045 - - 51,045
GW development fund 27,015 - - 27,015
Gronk fund 24,448 - 548 23,900
Totnes signalling fund 13,517 - 2,169 11,348
Toilet block fund 2,098 - 350 1,748
Training building fund 3,200 - 800 2,400
Station field fund 79,233 - - 79,233
Site development fund 87,882 - 3,388 84,494
S & T Store in Totnes fund 3,290 - 470 2,820
Play area 8,000 - 1,000 7,000
-------------------------------- ---------------------------- ----------------------- --------------------------------
545,095 4,070 13,834 535,331
================================ ============================ ======================= ================================

The restricted funds consist of the following:

Endowment funds and capital. This is the issued share capital of the company as follows:

2022 2021
£ £
Allotted, called up and fully paid 118,187 Ordinary shares of £1
each 118,187 118,187
Capital redemption reserve 475 475
487 Promoter shares of £1 each 487 487
---------------------------------- ----------------------------------
119,149 119,149
================================= ================================

- 35 -

SOUTH DEVON RAILWAY TRUST

DETAILED STATEMENT OF FINANCIAL ACTIVITIES

YEAR ENDED 31 DECEMBER 2022

22. RESTRICTED INCOME FUNDS (continued)

Dumbleton Hall RTSA fund: For the restoration or ongoing maintenance of locomotive 4920.

Hawksworth 2180 fund: For the restoration or ongoing maintenance of coach Hawksworth 2180.

GW development fund: Expenditure on any project relating to the Great Western Railway.

Foundation fund: For the support of maintenance and improvements on infrastructure and rolling stock.

DEPRECIATING FUNDS :

These funds have already been expended on fixed assets; the funds will decrease as these assets depreciate.

Nursery Pool Bridge: Heritage lottery fund. This relates to the grant given by HLF as part of the rebuilding of Nursery Pool bridge. This asset is being depreciated over a fifty year period and the restricted fund is being utilised over the same period.

Heritage Rolling Stock Conservation Centre: For the construction of the Heritage Rolling Stock Conservation Centre.

1420 fund: For the restoration or ongoing maintenance of locomotive 1420.

Hawksworth 2180 fund: For the restoration or ongoing maintenance of coach Hawksworth 2180.

GW development fund: Expenditure on any project relating to the Great Western Railway.

Gronk fund: To cover the restoration and depreciation costs of the new 09 shunter.

Totnes signalling fund: To be used on the signalling at and around the station at Totnes.

Toilet block fund: To be used on the replacement toilet block at Buckfastleigh station.

Training building fund: For the construction of a building to be used for training.

Station field fund : For the purchase of the station field.

Site development fund: For the development of the sit at and around Buckfastleigh station.

S & T Store in Totnes fund: For the building and maintenance of the S & T Store in Totnes. Play area: For the refurbishment of the play area in the grounds of Buckfastleigh station.

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SOUTH DEVON RAILWAY TRUST

DETAILED STATEMENT OF FINANCIAL ACTIVITIES

YEAR ENDED 31 DECEMBER 2022

23. UNRESTRICTED INCOME FUNDS

Balance at Incoming Outgoing Balance at
1 Jan 2022 resources resources Transfers 31 Dec 2022
£ £ £ £ £
Designated Fund –
Revaluation fund 158,659 - - - 158,659
General funds 2,571,377 91,805 126,804 - 2,536,378
------------------------------------------ ------------------------------------------ ------------------------------------------ ---------------------------- ------------------------------------------
2,730,036
==========================================		 91,805
==========================================		 126,804
==========================================		 -
============================		 2,695,037
==========================================

Revaluation reserve: This represents the increase in value of fixed assets over original cost. The reserve is being released to the general unrestricted fund to match the element of depreciation charge in excess of the historic cost charge.

24. ANALYSIS OF NET ASSETS BETWEEN FUNDS

Net current
Fixed Invest- assets/ Long term
assets ments (liabilities) liabilities Total
£ £ £
Restricted Income Funds:
Endowment Funds & Capital - - 119,149 - 119,149
Restricted Funds 498,570 - 36,761 - 535,331
--------------------------------- -------------- --------------------------------- -------------- --------------------------------
498,570 - 155,910 - 654,480
--------------------------------- -------------- ---------------------------------- -------------- --------------------------------
Unrestricted Income Funds:
Designated Funds 158,659 - - - 158,659
General Funds 2,831,279 270,516 (87,252) (478,165) 2,536,378
------------------------------------------ -------------- -------------------------------- -------------------------------- ------------------------------------------
2,989,938 270,516 (87,252) (478,165) 2,695,037
------------------------------------------ -------------- -------------------------------- -------------------------------- ------------------------------------------
Total Funds 3,488,508 270,516 68,658 (478,165) 3,349,517
============================================ ================================== ================================== ================================== ============================================

25. RECONCILIATION OF NET INCOME / EXPENDITURE TO NET CASHFOW FROM OPERATING ACTIVITIES

PERATING ACTIVITIES
Net income for year
Interest receivable
Interest payable
Depreciation and impairment of tangible fixed assets
Amortisation and impairment of intangible fixed assets
(Profit) / loss on disposal of tangible fixed assets
(Increase)/Decrease in debtors
Increase in creditors
Net cash flow from operating activities		 2022
£
(44,763)
-
24,562
187,866
2,760
(105,262)
(86,843)
(86,134)
(107,814)		 2021
£
222,377
(29)
115
198,680
2,760
(4,000)
314,888
(348,826)
385,965

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SOUTH DEVON RAILWAY TRUST

DETAILED STATEMENT OF FINANCIAL ACTIVITIES

YEAR ENDED 31 DECEMBER 2022

26. ANALYSIS OF CHANGES IN NET DEBT

1 Jan 22 Cash flows 31 Dec 22
£ £ £
-------------------------------- ---------------------------- --------------------------------
Cash and cash equivalents (399,288) 21,518 (377,770)
-------------------------------- ---------------------------- --------------------------------
Debt due within 1 year 302,710 (34,759) 267,951
Debt due after 1 year 607,105 (134,809) 472,296
Hire purchase agreements 25,020 (9,576) 15,444
-------------------------------- -------------------------------- --------------------------------
934,835 (179,144) 755,691
-------------------------------- -------------------------------- --------------------------------
535,547
================================		 (157,626)
================================		 377,921
================================

27. RELATED PARTIES

The Charity is controlled by the Trustees of Dumbleton Hall Preservation Society through this and the previous year. The ultimate controlling party is R J Elliott ACIB, who is the chairman of Dumbleton Hall Preservation Society.

The following hold loan stock as at 31 December 2022 and 2021:

J Keohane MVO BEM, Trustee, £Nil (2021 £10,000) R J Elliott ACIB, Trustee, £Nil (2021 £5,000). C A Williams, Trustee, £30,000 (2021 £30,000)

Interest is payable at 3.5% or 2.75%.

The charity has taken interest free loans from Trustees, the balance outstanding at 31[st] December 2022 is £62,000 (2021 - £116,000)

At the year end, the charity owes £269,605 (2021 - £352,147) to an associate charity (South Devon Railway Limited – SDRL). The loan is interest free and repayable on demand.

During the year:

The charity received £80,000 (2021 - £80,000) rent from SDRL. The charity paid donations to SDRL of £Nil (2021 - £205,821).

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