Tunbridge Wells & Eridge Railway Preserv - Charities report - 21.2

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 2021

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

25

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 2021. 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 2022.

ACHIEVEMENT AND PERFORMANCE

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 2020. This investment is key to fulfilling the principal objective of the society to preserve the railway line between Tunbridge Wells and Eridge, its rolling stock, building 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 2020 season was extremely challenging with the railway closed to the public for a significant part of the year, and various Covid-19 restrictions in place for the short period when we were allowed to open. Our team of volunteers and the management teams of the Society and Operating Company pulled together to steer both the society and railway through the challenges. In the background, teams adopted virtual meetings and were applying for government emergency grant funding amongst the other more usual activities.

The successful application for joint DCMS Funds administered via the HLF, allowed the railway corporate infrastructure to become more resilient, and supported Covid security measures. It also allowed offsite remote working, with many back office functions continuing remotely, facilitated by the IT investment made possible by the DCMS grant.

As the year progressed, together we were able to organise Covid risk assessments allowing maintenance tasks to gradually resume. This was followed by adaptation of the site and carriages to be more Covid secure, and then mass training and competence assessment for staff prior to being able to reopen the railway to the public. We lost most of our special events, but were able to re-establish regular train services in the Autumn, and even managed around half of the Santa Special season before local and national restrictions were applied. In the background, various project work continued when possible to ensure the continued enhancement of the railway and its products were not forgotten during the public closure.

The 2021 season whilst beyond the remit of this report, was again impacted by Covid restrictions. However, we did see an earlier opening to the public than in 2020, and a return of a number of our special events plus the introduction of the hugely successful Polar Express. This latter was not only a great commercial success, but also provided seasonal employment and development opportunities, particularly to younger members of the railway and local community. We are all hoping for and looking forward to a return to greater normality during 2022, 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 £338,862 (2020: £102,588). This increase was due to increased donations and legacies received this year, and from Covid-19 pandemic relief grants. The net surplus for the year amounted to £161,547 (2020: £5,593). 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 at 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, which have enabled 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. Previously the joint Finance Committee covered fund raising, but following the delay due to the need to respond to the challenges posed by Covid-19, the separate joint fund raising sub-committee was set up 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 M L Dives

Mr D Henderson (resigned 4/9/2020)

Mr T Crofts (resigned 19/2/2021)

Mr C Bower

Mr D C Cross

Mr B Humber (resigned 17/1/2021)

Mr B L Halford

Mr S R Owens

Mrs G E Henderson (appointed 1/3/2020) (resigned 4/9/2020)

Mr M J Dodd (appointed 17/1/2021)

Mr M A Patrick (appointed 17/1/2021)

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 27 January 2022 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 2021.

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

Since your charity's gross income exceeded £250,000 your examiner must be a member of a listed body. I can confirm that I am qualified to undertake the examination because I am a registered member of ICAEW which is one of the listed bodies.

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

31 January 2022

2021

2020

Unrestricted

Restricted

Total

Total

funds

funds

funds

funds

Notes

£

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

2

292,482

31,295

323,777

72,472

Charitable activities

Restoration of rolling stock and improvement of facilities

13,742

-

13,742

11,120

Other trading activities

3

-

480

480

6,060

Investment income

4

318

-

318

760

Other income

604

-

604

12,176

Total

307,146

31,775

338,921

102,588

EXPENDITURE ON

Raising funds

5

-

409

409

2,999

Charitable activities

6

Restoration of rolling stock and improvement of facilities

149,453

27,511

176,964

93,996

Total

149,453

27,920

177,373

96,995

NET INCOME

157,693

3,855

161,548

5,593

Transfers between funds

18

(14,983

)

14,983

-

-

Net movement in funds

142,710

18,838

161,548

5,593

RECONCILIATION OF FUNDS

Total funds brought forward

516,837

223,141

739,978

734,385

TOTAL FUNDS CARRIED FORWARD

659,547

241,979

901,526

739,978

2021

2020

Unrestricted

Restricted

Total

Total

funds

funds

funds

funds

Notes

£

£

£

£

FIXED ASSETS

Tangible assets

11

57,151

130,000

187,151

192,348

Investments

12

319,489

-

319,489

284,489

376,640

130,000

506,640

476,837

CURRENT ASSETS

Debtors

13

65,515

2,921

68,436

28,628

Cash at bank and in hand

233,001

191,391

424,392

357,819

298,516

194,312

492,828

386,447

CREDITORS

Amounts falling due within one year

14

(15,609

)

(26,000

)

(41,609

)

(40,973

)

NET CURRENT ASSETS

282,907

168,312

451,219

345,474

TOTAL ASSETS LESS CURRENT LIABILITIES

659,547

298,312

957,859

822,311

CREDITORS

Amounts falling due after more than one year

15

-

(56,333

)

(56,333

)

(82,333

)

NET ASSETS

659,547

241,979

901,526

739,978

FUNDS

18

Unrestricted funds

659,547

516,837

Restricted funds

241,979

223,141

TOTAL FUNDS

901,526

739,978

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 January 2021.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 January 2021 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 27 January 2022 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 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.

Grants of a revenue nature are credited to income so as to match them with the expenditure to which they relate.

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

2021

2020

£

£

Appeals and donations

57,466

34,607

Legacies

216,548

37,865

Grants

49,763

-

323,777

72,472

Grants received, included in the above, are as follows:

2021

2020

£

£

Tunbridge Borough Council

38,429

-

Wealden District Council

11,334

-

49,763

-

3.	OTHER TRADING ACTIVITIES

2021

2020

£

£

Fundraising income

480

6,060

4.	INVESTMENT INCOME

2021

2020

£

£

Interest on cash deposits

318

760

5.	RAISING FUNDS

Raising donations and legacies

2021

2020

£

£

Fundraising costs

409

2,999

6.	CHARITABLE ACTIVITIES COSTS

Support

Direct

costs (see

Costs

note 7)

Totals

£

£

£

Restoration of rolling stock and improvement of facilities

146,883

30,081

176,964

7.	SUPPORT COSTS

Management

Finance

Other

Totals

£

£

£

£

Restoration of rolling stock and improvement of facilities

11,712

305

18,064

30,081

Included in support costs are fees payable to the independent examiner for the examination of the accounts amounting to £5,400 (2020: £5,280).

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

2021

2020

Restoration

of

rolling

stock and

improvement

of

Total

facilities

activities

£

£

Postage and stationery

4,233

2,182

Advertising

1,796

1,748

Sundries

23

312

Accountancy

5,400

5,280

Bookkeeping

260

-

Bank charges

305

-

Establishment costs

12,867

15,545

Depreciation of tangible fixed assets

5,197

5,196

30,081

30,263

8.	NET INCOME/(EXPENDITURE)

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

2021

2020

£

£

Depreciation - owned assets

5,197

5,196

9.	TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 January 2021 nor for the year ended 31 January 2020.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 January 2021 nor for the year ended 31 January 2020.

10.	COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

Unrestricted

Restricted

Total

funds

funds

funds

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

45,630

26,842

72,472

Charitable activities

Restoration of rolling stock and improvement of facilities

11,120

-

11,120

Other trading activities

284

5,776

6,060

Investment income

760

-

760

Other income

12,176

-

12,176

Total

69,970

32,618

102,588

EXPENDITURE ON

Raising funds

66

2,933

2,999

Charitable activities

Restoration of rolling stock and improvement of facilities

70,978

23,018

93,996

Total

71,044

25,951

96,995

NET INCOME/(EXPENDITURE)

(1,074

)

6,667

5,593

Transfers between funds

(11,025

)

11,025

-

Net movement in funds

(12,099

)

17,692

5,593

RECONCILIATION OF FUNDS

Total funds brought forward

528,936

205,449

734,385

TOTAL FUNDS CARRIED FORWARD

516,837

223,141

739,978

11.	TANGIBLE FIXED ASSETS

Plant and

machinery

£

COST

At 1 February 2020 and 31 January 2021

207,936

DEPRECIATION

At 1 February 2020

15,588

Charge for year

5,197

At 31 January 2021

20,785

NET BOOK VALUE

At 31 January 2021

187,151

At 31 January 2020

192,348

12.	FIXED ASSET INVESTMENTS

Shares in

group

undertakings

£

MARKET VALUE

At 1 February 2020

324,489

Additions

35,000

At 31 January 2021

359,489

PROVISIONS

At 1 February 2020 and 31 January 2021

40,000

NET BOOK VALUE

At 31 January 2021

319,489

At 31 January 2020

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

82

31/1/21

31/1/20

£

£

Aggregate capital and reserves

464,407

320,168

Loss for the year

(2,847

)

(30,857

)

13.	DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2021

2020

£

£

Amounts owed by group undertakings

62,350

7,293

Other debtors

5,350

20,982

Prepayments and accrued income

736

353

68,436

28,628

14.	CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2021

2020

£

£

Other loans (see note 16)

26,000

26,000

Accruals and deferred income

15,609

14,973

41,609

40,973

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

2021

2020

£

£

Other loans (see note 16)

56,333

82,333

16.

LOANS

An analysis of the maturity of loans is given below:

2021

2020

£

£

Amounts falling due within one year on demand:

Other loans

26,000

26,000

Amounts falling between one and two years:

Other loans - 1-2 years

26,000

26,000

Amounts falling due between two and five years:

Other loans - 2-5 years

30,333

56,333