Tunbridge Wells & Eridge Railway Preserv - Charities report - 20.2

REGISTERED COMPANY NUMBER: 02129019 (England and Wales)

REGISTERED CHARITY NUMBER: 1039493

Report of the Trustees and

Unaudited Financial Statements for the Year Ended 31 January 2020

for

The Tunbridge Wells & Eridge Railway

Preservation Society Limited

Page

Report of the Trustees

1

to

4

Independent Examiner's Report

5

to

6

Statement of Financial Activities

7

Balance Sheet

8

to

9

Notes to the Financial Statements

10

to

24

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 January 2020. The trustees have adopted the provisions of 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 (FRS 102) (effective 1 January 2019).

OBJECTIVES AND ACTIVITIES

Objectives and aims

The principal objective of the company is to advance the education and preserve for the public good, the railway line between Tunbridge Wells and Eridge, its rolling stock, buildings and ancillary artefacts of historical interest.

Having re-opened the line and consolidated the services between Tunbridge Wells West and Eridge, the trustees initiated a SWOT analysis during 2018, to assist in setting objectives and planning future activities. This has been developed into a draft joint Forward Plan for the Railway. The latter parts of the consultation process were delayed by COVID-19 and will be resumed in 2021.

ACHIEVEMENT AND PERFORMANCE

The 2019 season provided the society and railway with what at the time were seen as some significant challenges but also some very notable highlights. Once again, our team of volunteers came together to steer both the society and railway through the challenges and to enjoy the successes placing us in a relatively healthy position heading into 2020 which with the onset of COVID-19 restrictions early in 2020 was to prove essential.

The Society's biggest asset is its approximate 80% share investment in the operating company, a position it was able to maintain and strengthen during 2019. This investment is key to fulfilling the principle objective of the society to preserve the railway line between Tunbridge Wells and Eridge, its rolling stock, buildings and artefacts of historic interest. The volunteers of the society provide the majority of the workforce of the operating company from the leadership team to the entire operations and commercial teams, and the training and support of these volunteers is another key objective of the society.

The 2019 season saw a greater regulatory interest in the entire heritage railway movement, but this was something we were prepared for and had made significant improvements over preceding years. We have been able to further build on these foundations not only to ensure the compliance of the railway, but to further enhance our processes and the training and knowledge of our volunteers. Together we were able to organise and deliver some very successful events such as the summer diesel gala, the fabulous beer and cider festival in its 9th year, and the ever popular Santa Specials. We continued to develop our dining train products and made further strides towards forming a dedicated train for the future to allow this core commercial product to be further enhanced in future years. Further volunteer effort went into starting a brand new catering facility project for use at Eridge utilising a previously derelict Southern Railway parcels van.

The society made a major commitment to purchase Jinty steam locomotive 47493 which has been based on the line for a significant time and is now part way through an overhaul to allow a further ten years operation. A major fund raising appeal was launched to fund this under the banner of "securing the future of steam on the Spa Valley Railway", and this caught the imagination of volunteers and public alike. The locomotive is a perfect size and power for the line, and will be key part of our plans for the years ahead.

As everyone will be aware the 2020 season has brought a whole new set of challenges having decimated railway operations for five months, but the almost entirely voluntary nature of our organisation and timely management of plans and resources by our volunteers and trustees has seen us tackle everything thrown at us in this unprecedented year. A successful emergency grant application has given some confidence that we will be able to weather the storm, and the receipt of some legacy donations has given fresh hope to several key projects vital to the future success of the railway. We are all looking forward to a return to some semblance of normality during 2021 but as ever our volunteers will be ready to respond to whatever that normality may look like.

FINANCIAL REVIEW

Reserves policy

The members have established a policy whereby the reserves of the charity are maintained to enable the society to continue to meet its objectives now and in the future.

The total incoming resources of the charity during the year amounted to £102,588 (2019: £62,898). This increase was due to increased donations and legacies received this year. Additional income was also received from the scrapping of various items held. The net surplus for the year amounted to £5,593 (2019: deficit of £41,002). The major source of funding remains donations and legacies. The trustees acknowledge the continuing support given by volunteer labour, without which the railway would not be able to operate.

FUTURE PLANS

Work was completed on the review of organisational structure and this was implemented as far as possible the end of December 2019. This implementation was very timely, and helped both the Society and Operating Company to formulate a rapid and effective series of responses to COVID-19 in March 2020.

COVID-19 meant that many back office functions had to be done remotely, and planned improvements to IT, and funding administration were completed and have the back office to become more efficient.

The Society also introduced an initially ad hoc E-newsletter to keep older members and supporters in touch during COVID-19, and that is now expected to become a permanent fixture.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The Tunbridge Wells & Eridge Railway Preservation Society is a company limited by guarantee, governed by its memorandum and articles of association as adopted on incorporation on 7 May 1987.

Recruitment and appointment of new trustees

The Board of Trustees may at any time appoint any member of the Society as a member of the Board. The Board of Trustees shall be comprised of not less than four members up to a maximum of sixteen members.

Organisational structure

This was changed, and there are now separate meetings for Trustees and the Leadership Team of the railway, with a joint Trustee Leadership meeting quarterly. There is also a joint Finance sub-committee, to advise and make recommendations on financial strategy to both companies. In addition, the Trustees and Leadership team have nominated observers at each other's meeting. Currently the joint Finance Committee, covers fund raising, as the setting up of the separate joint fund raising sub-committee was delayed by the need to respond to the challenges posed by COVID-19 and is expected to come into existence in 2021.

MEMBERSHIP

At the end of December 2020, the Trustees reviewed membership renewals and found that membership at that point had increased over the past 2 years. Whilst there was a dip in numbers when the new membership payment systems changed to accommodate remote working, numbers recovered and increased. A similar increase was recorded in working members.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

02129019 (England and Wales)

Registered Charity number

1039493

Registered office

West Station

Nevill Terrace

Tunbridge Wells

Kent

TN2 5QY

Trustees

Mr J S Nye

Mr C R S MacRae

Mr J Pay (resigned 26/3/2019)

Mr M L Dives

Mr S Pay (resigned 26/3/2019)

Mr D Henderson (resigned 4/9/2020)

Mr T Crofts

Mr C Bower

Mr D C Cross

Mr B Humber

Mr B L Halford (appointed 19/1/2020)

Mr S R Owens (appointed 25/1/2020)

Mrs G E Henderson (appointed 1/3/2020)

Mrs G E Henderson resigned as a trustee on 4 September 2020.

Independent Examiner

Swindells LLP

Chartered Accountants

Wilson House

48 Brooklyn Road

Seaford

East Sussex

BN25 2DX

This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

Approved by order of the board of trustees on 26 January 2021 and signed on its behalf by:

Mr D C Cross - Trustee

Independent examiner's report to the trustees of The Tunbridge Wells & Eridge Railway Preservation Society Limited ('the Company')

I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 January 2020.

Responsibilities and basis of report

As the charity's trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').

Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity's accounts as carried out under section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act.

Independent examiner's statement

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:

1.	accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or

2.	the accounts do not accord with those records; or

3.	the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or

4.

the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities (applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)).

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

Ian Jenkins

ICAEW

Swindells LLP

Chartered Accountants

Wilson House

48 Brooklyn Road

Seaford

East Sussex

BN25 2DX

26 January 2021

2020

2019

Unrestricted

Restricted

Total

Total

funds

funds

funds

funds

Notes

£

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

2

45,630

26,842

72,472

46,136

Charitable activities

Restoration of rolling stock and improvement of facilities

11,120

-

11,120

11,646

Other trading activities

3

284

5,776

6,060

3,995

Investment income

4

760

-

760

386

Other income

12,176

-

12,176

735

Total

69,970

32,618

102,588

62,898

EXPENDITURE ON

Raising funds

5

66

2,933

2,999

269

Charitable activities

6

Restoration of rolling stock and improvement of facilities

70,978

23,018

93,996

103,631

Total

71,044

25,951

96,995

103,900

NET INCOME/(EXPENDITURE)

(1,074

)

6,667

5,593

(41,002

)

Transfers between funds

18

(11,025

)

11,025

-

-

Net movement in funds

(12,099

)

17,692

5,593

(41,002

)

RECONCILIATION OF FUNDS

Total funds brought forward

528,936

205,449

734,385

775,387

TOTAL FUNDS CARRIED FORWARD

516,837

223,141

739,978

734,385

2020

2019

Unrestricted

Restricted

Total

Total

funds

funds

funds

funds

Notes

£

£

£

£

FIXED ASSETS

Tangible assets

11

62,348

130,000

192,348

67,544

Investments

12

284,489

-

284,489

284,489

346,837

130,000

476,837

352,033

CURRENT ASSETS

Debtors

13

19,282

9,346

28,628

15,539

Cash at bank and in hand

165,691

192,128

357,819

389,702

184,973

201,474

386,447

405,241

CREDITORS

Amounts falling due within one year

14

(14,973

)

(26,000

)

(40,973

)

(22,889

)

NET CURRENT ASSETS

170,000

175,474

345,474

382,352

TOTAL ASSETS LESS CURRENT LIABILITIES

516,837

305,474

822,311

734,385

CREDITORS

Amounts falling due after more than one year

15

-

(82,333

)

(82,333

)

-

NET ASSETS

516,837

223,141

739,978

734,385

FUNDS

18

Unrestricted funds

516,837

528,936

Restricted funds

223,141

205,449

TOTAL FUNDS

739,978

734,385

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 January 2020.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 January 2020 in accordance with Section 476 of the Companies Act 2006.

The trustees acknowledge their responsibilities for

(a)	ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.

These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.

The financial statements were approved by the Board of Trustees and authorised for issue on 26 January 2021 and were signed on its behalf by:

Mr D C Cross - Trustee

1.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) '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 (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value.

The charitable company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland':

•

the requirements of Section 7 Statement of Cash Flows.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

Life membership is recognised in the year received and is not deferred. Annual subscriptions are recognised in the period in which they relate to with prepaid subscriptions being recognised as deferred income.

Voluntary income including donations, grants and legacies is recognised where there is entitlement, certainty of receipt and the amount can be measured with sufficient reliability.

Income derived from charitable activities is recognised as earned (that is, as the related goods or services are provided). Income received in advance of events is recognised as deferred income until the event takes place.

Investment income is recognised on a receivable basis.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Costs of generating funds are the costs associated with attracting voluntary income.

Charitable expenditure comprises those costs incurred by the charity 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.

Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources, for example, allocating property costs by floor area, or per capita, staff costs by the time spent and other costs by their usage.

Irrecoverable VAT is charged against the category of resources expended for which it was incurred.

Tangible fixed assets

Individual fixed assets costing £100 or more are initially recorded at cost.

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 as follows:

Plant and machinery

3 years straight line and 15% reducing balance

Rolling stock

15 years straight line once restoration work is completed

Taxation

The charity is exempt from corporation tax on its charitable activities.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Investments

Investments in subsidiaries are valued at cost less provision for impairment.

Going concern

The trustees have also assessed whether the going concern basis of preparation continues to be appropriate, based on whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the charitable company to continue as a going concern. This assessment has been required in the light of the significant uncertainty around the short to medium term impact of the spread of the Covid-19 virus.

At the time of approving the financial statements the trustees believe that all appropriate measures have been or will be taken to ensure that the charitable company will be able to continue its operations for at least the next 12 months and thus conclude that the going concern basis remains appropriate.

2.	DONATIONS AND LEGACIES

2020

2019

£

£

Appeals and donations

34,607

16,666

Legacies

37,865

29,470

72,472

46,136

3.	OTHER TRADING ACTIVITIES

2020

2019

£

£

Fundraising income

6,060

3,995

4.	INVESTMENT INCOME

2020

2019

£

£

Interest on cash deposits

760

386

5.	RAISING FUNDS

Raising donations and legacies

2020

2019

£

£

Fundraising costs

2,999

269

6.	CHARITABLE ACTIVITIES COSTS

Support

Direct

costs (see

Costs

note 7)

Totals

£

£

£

Restoration of rolling stock and improvement of facilities

63,733

30,263

93,996

7.	SUPPORT COSTS

Management

Other

Totals

£

£

£

Restoration of rolling stock and improvement of facilities

9,522

20,741

30,263

Included in support costs are fees payable to the independent examiner for the examination of the accounts amounting to £5,280 (2019: £5,280).

Support costs, included in the above, are as follows:

2020

2019

Restoration

of

rolling

stock and

improvement

of

Total

facilities

activities

£

£

Postage and stationery

2,182

1,701

Advertising

1,748

1,700

Sundries

312

150

Computer costs

-

405

Accountancy

5,280

5,280

Establishment costs

15,545

9,198

Depreciation of tangible fixed assets

5,196

5,196

30,263

23,630

8.	NET INCOME/(EXPENDITURE)

Net income/(expenditure) is stated after charging/(crediting):

2020

2019

£

£

Depreciation - owned assets

5,196

5,196

9.	TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 January 2020 nor for the year ended 31 January 2019.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 January 2020 nor for the year ended 31 January 2019.

10.	COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

Unrestricted

Restricted

Total

funds

funds

funds

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

37,713

8,423

46,136

Charitable activities

Restoration of rolling stock and improvement of facilities

11,646

-

11,646

Other trading activities

361

3,634

3,995

Investment income

386

-

386

Other income

735

-

735

Total

50,841

12,057

62,898

EXPENDITURE ON

Raising funds

269

-

269

Charitable activities

Restoration of rolling stock and improvement of facilities

55,041

48,590

103,631

Total

55,310

48,590

103,900

NET INCOME/(EXPENDITURE)

(4,469

)

(36,533

)

(41,002

)

Transfers between funds

(22,908

)

22,908

-

Net movement in funds

(27,377

)

(13,625

)

(41,002

)

RECONCILIATION OF FUNDS

Total funds brought forward

556,312

219,075

775,387

TOTAL FUNDS CARRIED FORWARD

528,935

205,450

734,385

11.	TANGIBLE FIXED ASSETS

Plant and

machinery

£

COST

At 1 February 2019

77,936

Additions

130,000

At 31 January 2020

207,936

DEPRECIATION

At 1 February 2019

10,392

Charge for year

5,196

At 31 January 2020

15,588

NET BOOK VALUE

At 31 January 2020

192,348

At 31 January 2019

67,544

12.	FIXED ASSET INVESTMENTS

Shares in

group

undertakings

£

MARKET VALUE

At 1 February 2019 and 31 January 2020

324,489

PROVISIONS

At 1 February 2019 and 31 January 2020

40,000

NET BOOK VALUE

At 31 January 2020

284,489

At 31 January 2019

284,489

There were no investment assets outside the UK.

The company's investments at the balance sheet date in the share capital of companies include the following:

Wealden Railway Company Limited

Registered office: West Station, Nevill Terrace, Tunbridge Wells, Kent, TN2 5QY

Nature of business: Operation of train service and restoration

%

Class of share:

holding

Ordinary

80

31/1/20

31/1/19

£

£

Aggregate capital and reserves

320,168

351,025

Loss for the year

(30,857

)

(5,639

)

13.	DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Amounts owed by group undertakings

7,293

-

Other debtors

20,982

15,046

Prepayments and accrued income

353

493

28,628

15,539

14.	CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Other loans (see note 16)

26,000

-

Amounts owed to group undertakings

-

13,133

Accruals and deferred income

14,973

9,756

40,973

22,889

15.	CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2020

2019

£

£

Other loans (see note 16)

82,333

-

16.

LOANS

An analysis of the maturity of loans is given below:

2020

2019

£

£

Amounts falling due within one year on demand:

Other loans

26,000

-

Amounts falling between one and two years:

Other loans - 1-2 years

26,000

-

Amounts falling due between two and five years:

Other loans - 2-5 years

56,333

-