Caseware UK (AP4) 2022.0.179 2022.0.179 2023-01-312023-01-31false462022-02-01Passenger rail transport, interurban35truefalse 00688587 2022-02-01 2023-01-31 00688587 c:EntitiesWithJointControlOrSignificantInfluenceOverReportingEntity 2022-02-01 2023-01-31 00688587 c:EntityWithJointControlOrSignificantInfluence1 2022-02-01 2023-01-31 00688587 c:EntityWithJointControlOrSignificantInfluence2 2022-02-01 2023-01-31 00688587 c:EntitiesWithJointControlOrSignificantInfluenceOverReportingEntity c:RentalIncomeTransactions 2022-02-01 2023-01-31 00688587 c:EntitiesWithJointControlOrSignificantInfluenceOverReportingEntity 2023-01-31 00688587 c:EntitiesWithJointControlOrSignificantInfluenceOverReportingEntity 2022-01-31 00688587 c:EntityWithJointControlOrSignificantInfluence1 2023-01-31 00688587 c:EntityWithJointControlOrSignificantInfluence1 2022-01-31 00688587 c:EntityWithJointControlOrSignificantInfluence2 c:Leases 2022-02-01 2023-01-31 00688587 2023-01-31 00688587 2021-02-01 2022-01-31 00688587 2022-01-31 00688587 d:CompanySecretary1 2022-02-01 2023-01-31 00688587 d:Director1 2022-02-01 2023-01-31 00688587 d:Director2 2022-02-01 2023-01-31 00688587 d:Director3 2022-02-01 2023-01-31 00688587 d:Director4 2022-02-01 2023-01-31 00688587 d:Director5 2022-02-01 2023-01-31 00688587 d:Director6 2022-02-01 2023-01-31 00688587 d:Director7 2022-02-01 2023-01-31 00688587 d:Director8 2022-02-01 2023-01-31 00688587 d:Director9 2022-02-01 2023-01-31 00688587 d:Director9 2023-01-31 00688587 d:Director10 2022-02-01 2023-01-31 00688587 d:Director11 2022-02-01 2023-01-31 00688587 d:Director12 2022-02-01 2023-01-31 00688587 d:Director12 2023-01-31 00688587 d:Director13 2022-02-01 2023-01-31 00688587 d:Director13 2023-01-31 00688587 d:RegisteredOffice 2022-02-01 2023-01-31 00688587 c:Buildings 2022-02-01 2023-01-31 00688587 c:Buildings 2023-01-31 00688587 c:Buildings 2022-01-31 00688587 c:Buildings c:OwnedOrFreeholdAssets 2022-02-01 2023-01-31 00688587 c:PlantMachinery 2022-02-01 2023-01-31 00688587 c:PlantMachinery 2023-01-31 00688587 c:PlantMachinery 2022-01-31 00688587 c:PlantMachinery c:OwnedOrFreeholdAssets 2022-02-01 2023-01-31 00688587 c:MotorVehicles 2022-02-01 2023-01-31 00688587 c:MotorVehicles 2023-01-31 00688587 c:MotorVehicles 2022-01-31 00688587 c:MotorVehicles c:OwnedOrFreeholdAssets 2022-02-01 2023-01-31 00688587 c:FurnitureFittings 2022-02-01 2023-01-31 00688587 c:FurnitureFittings 2023-01-31 00688587 c:FurnitureFittings 2022-01-31 00688587 c:FurnitureFittings c:OwnedOrFreeholdAssets 2022-02-01 2023-01-31 00688587 c:OtherPropertyPlantEquipment 2022-02-01 2023-01-31 00688587 c:OwnedOrFreeholdAssets 2022-02-01 2023-01-31 00688587 c:FreeholdInvestmentProperty 2023-01-31 00688587 c:FreeholdInvestmentProperty 2022-01-31 00688587 c:CurrentFinancialInstruments 2023-01-31 00688587 c:CurrentFinancialInstruments 2022-01-31 00688587 c:Non-currentFinancialInstruments 2023-01-31 00688587 c:Non-currentFinancialInstruments 2022-01-31 00688587 c:CurrentFinancialInstruments c:WithinOneYear 2023-01-31 00688587 c:CurrentFinancialInstruments c:WithinOneYear 2022-01-31 00688587 c:Non-currentFinancialInstruments c:AfterOneYear 2023-01-31 00688587 c:Non-currentFinancialInstruments c:AfterOneYear 2022-01-31 00688587 c:ShareCapital 2023-01-31 00688587 c:ShareCapital 2022-01-31 00688587 c:RevaluationReserve 2023-01-31 00688587 c:RevaluationReserve 2022-01-31 00688587 c:RetainedEarningsAccumulatedLosses 2022-02-01 2023-01-31 00688587 c:RetainedEarningsAccumulatedLosses 2023-01-31 00688587 c:RetainedEarningsAccumulatedLosses 2021-02-01 2022-01-31 00688587 c:RetainedEarningsAccumulatedLosses 2022-01-31 00688587 c:RetainedEarningsAccumulatedLosses 2021-02-01 00688587 d:FRS102 2022-02-01 2023-01-31 00688587 d:Audited 2022-02-01 2023-01-31 00688587 d:FullAccounts 2022-02-01 2023-01-31 00688587 d:PrivateLimitedCompanyLtd 2022-02-01 2023-01-31 iso4217:GBP xbrli:pure

Company Registration Number 00688587























THE RAVENGLASS AND ESKDALE RAILWAY COMPANY LIMITED





FINANCIAL STATEMENTS





 31 JANUARY 2023




















img29cd.png

 
THE RAVENGLASS AND ESKDALE RAILWAY COMPANY LIMITED
 

COMPANY INFORMATION


Directors
Mr I A Aldred 
Lady J D Boyd 
Mr E J Clarkson Webb 
Mr P R W Hensman OBE 
Mr R Hensman 
Mrs L C B Langton 
Mr T L W Raynsford 
Mrs V J Russell 
Miss C Bourne (appointed 21 April 2023)
Mrs G A Townsend 
Mrs A P Wix 
Miss A Boyd (appointed 21 April 2023)
Miss C Seel (resigned 31 December 2022)




Company secretary
Mr J R Winter



Registered number
00688587



Registered office
Maudlands
Maude Street

Kendal

Cumbria

LA9 4QD




Independent auditors
Armstrong Watson Audit Limited
Chartered Accountants and Statutory Auditors

Fairview House

Victoria Place

Carlisle

Cumbria

CA1 1HP





 
THE RAVENGLASS AND ESKDALE RAILWAY COMPANY LIMITED
 

CONTENTS



Page
Directors' Report
 
1 - 2
Independent Auditors' Report
 
3 - 6
Statement of Income and Retained Earnings
 
7
Statement of Financial Position
 
8 - 9
Notes to the Financial Statements
 
10 - 18


 
THE RAVENGLASS AND ESKDALE RAILWAY COMPANY LIMITED
 

 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JANUARY 2023

The directors present their report and the financial statements for the year ended 31 January 2023.

Directors' responsibilities statement

The directors are responsible for preparing the Directors' Report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors 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 company and of the profit or loss of the company for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

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

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Directors

The directors who served during the year were:

Mr I A Aldred 
Lady J D Boyd 
Mr E J Clarkson Webb 
Mr P R W Hensman OBE 
Mr R Hensman 
Mrs L C B Langton 
Mr T L W Raynsford 
Mrs V J Russell 
Mrs G A Townsend 
Mrs A P Wix 
Miss C Seel (resigned 31 December 2022)

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the company's auditors are aware of that information.

Page 1

 
THE RAVENGLASS AND ESKDALE RAILWAY COMPANY LIMITED
 

 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2023

Auditors

The auditorsArmstrong Watson Audit Limitedwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

Small companies note

In preparing this report, the directors have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 





................................................
Mr J R Winter
Secretary

Date: 24 July 2023

Page 2

 
THE RAVENGLASS AND ESKDALE RAILWAY COMPANY LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS, AS A BODY, OF THE RAVENGLASS AND ESKDALE RAILWAY COMPANY LIMITED
 

Opinion


We have audited the financial statements of The Ravenglass And Eskdale Railway Company Limited (the 'company') for the year ended 31 January 2023, which comprise the Statement of Income and Retained Earnings, the Statement of Financial Position and the related notes, including a summary of significant accounting policiesThe 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:


give a true and fair view of the state of the company's affairs as at 31 January 2023 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 directors' 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 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 directors 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 Annual Report other than the financial statements and  our Auditors' Report thereon.  The directors are responsible for the other information contained within the Annual Report.  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 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.


Page 3

 
THE RAVENGLASS AND ESKDALE RAILWAY COMPANY LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS, AS A BODY, OF THE RAVENGLASS AND ESKDALE RAILWAY COMPANY LIMITED (CONTINUED)


Opinion on other matters prescribed by the Companies Act 2006
 

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


the information given in the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Directors' Report has been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Directors' Report.


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


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit; or
the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the Directors' Report and from the requirement to prepare a Strategic Report.


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 1, the directors 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 directors 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 directors are responsible for assessing the 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 directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.


Page 4

 
THE RAVENGLASS AND ESKDALE RAILWAY COMPANY LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS, AS A BODY, OF THE RAVENGLASS AND ESKDALE RAILWAY COMPANY LIMITED (CONTINUED)


Auditors' responsibilities for the audit of the financial statements
 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' 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:

• We obtained an understanding of laws and regulations that affect the company, focusing on those that had a
direct effect on the financial statements or that had a fundamental effect on its operations. Key laws and
regulations that we identified included the UK Companies Act, tax legislation and employment legislation.
• We enquired of the directors, reviewed correspondence with HMRC and reviewed directors meeting minutes
for evidence of non-compliance with relevant laws and regulations. We also reviewed controls the directors
have in place to ensure compliance.
• We gained an understanding of the controls that the directors have in place to prevent and detect fraud. We
enquired of the directors about any incidences of fraud that had taken place during the accounting period.
• The risk of fraud and non-compliance with laws and regulations and fraud was discussed within the audit team
and tests were planned and performed to address these risks. We identified the potential for fraud in the
following areas: revenue recognition and management override of controls.
• We reviewed financial statements disclosures and tested to supporting documentation to assess compliance
with relevant laws and regulations discussed above.
• We enquired of the directors and third-party advisors about actual and potential litigation and claims.
• We performed analytical procedures to identify any unusual or unexpected relationships that might indicate
risks of material misstatement due to fraud.
• In addressing the risk of fraud due to management override of internal controls we tested the appropriateness
of journal entries and assessed whether the judgements made in making accounting estimates were indicative
of a potential bias.


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.


Page 5

 
THE RAVENGLASS AND ESKDALE RAILWAY COMPANY LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS, AS A BODY, OF THE RAVENGLASS AND ESKDALE RAILWAY COMPANY LIMITED (CONTINUED)


Use of our report
 

This report is made solely to the company's directors, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006Our audit work has been undertaken so that we might state to the company's directors those matters we are required to state to them in an Auditors' 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 company and the company's directors, as a body, for our audit work, for this report, or for the opinions we have formed.





Joanna Gray (Senior Statutory Auditor)
for and on behalf of
Armstrong Watson Audit Limited
Chartered Accountants and Statutory Auditors
Carlisle

24 July 2023
Page 6

 
THE RAVENGLASS AND ESKDALE RAILWAY COMPANY LIMITED
 

STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 JANUARY 2023

2023
2022
£
£

  

Turnover
  
2,253,629
1,705,575

Cost of sales
  
(404,564)
(304,139)

Gross profit
  
1,849,065
1,401,436

Administrative expenses
  
(1,913,471)
(1,660,331)

Other operating income
  
70,381
613,621

Operating profit
  
5,975
354,726

Interest payable and similar expenses
  
(656)
(831)

Profit before tax
  
5,319
353,895

Tax on profit
  
49,851
(153,314)

Profit after tax
  
55,170
200,581

  

  

Retained earnings at the beginning of the year
  
1,335,536
1,134,955

  
1,335,536
1,134,955

Profit for the year
  
55,170
200,581

Retained earnings at the end of the year
  
1,390,706
1,335,536
There were no recognised gains and losses for 2023 or 2022 other than those included in the statement of income and retained earnings.

The notes on pages 10 to 18 form part of these financial statements.

Page 7

 
THE RAVENGLASS AND ESKDALE RAILWAY COMPANY LIMITED
REGISTERED NUMBER: 00688587

STATEMENT OF FINANCIAL POSITION
AS AT 31 JANUARY 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 5 
1,958,221
2,024,604

Investment property
  
1,700,000
1,700,000

  
3,658,221
3,724,604

Current assets
  

Stocks
 7 
123,421
104,632

Debtors: amounts falling due within one year
 8 
78,910
151,718

Cash at bank and in hand
  
62,094
58,296

  
264,425
314,646

Creditors: amounts falling due within one year
 9 
(223,390)
(162,720)

Net current assets
  
 
 
41,035
 
 
151,926

Total assets less current liabilities
  
3,699,256
3,876,530

Creditors: amounts falling due after more than one year
 10 
(657,254)
(829,196)

Provisions for liabilities
  

Deferred tax
  
(384,662)
(445,164)

  
 
 
(384,662)
 
 
(445,164)

Net assets
  
2,657,340
2,602,170


Capital and reserves
  

Called up share capital 
  
60,000
60,000

Revaluation reserve
 11 
1,206,634
1,206,634

Profit and loss account
 11 
1,390,706
1,335,536

  
2,657,340
2,602,170


Page 8

 
THE RAVENGLASS AND ESKDALE RAILWAY COMPANY LIMITED
REGISTERED NUMBER: 00688587

STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 JANUARY 2023

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.

The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




................................................
Mr P R W Hensman OBE
................................................
Mr T L W Raynsford
Director
Director


Date: 24 July 2023

The notes on pages 10 to 18 form part of these financial statements.

Page 9

 
THE RAVENGLASS AND ESKDALE RAILWAY COMPANY LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023

1.


General information

The Ravenglass and Eskdale Railway Company Limited ('the company') is a limited company incorporated in the United Kingdom. The address of the registered office and principal place of business is Maudlands, Maude Street, Kendal, Cumbria, LA9 4QD.
These financial statements have been presented in Pound Sterling as this is the currency of the primary economic environment in which the company operates.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The following principal accounting policies have been applied:

 
2.2

Going concern

At the balance sheet date, the company had net current assets of £41,035, net assets of £2,657,340 after making a £55,170 profit for the year to 31 January 2023.
The company is capitalising on increased tourism in the area due to the popularity of staycations. This increased period of trade, together with support from the wider group, will ensure the company has sufficient cash to pay liabilities as they fall due for at least 12 months from signing the financial statements. It is for these reasons that the directors deem the going concern basis appropriate.

Page 10

 
THE RAVENGLASS AND ESKDALE RAILWAY COMPANY LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023

2.Accounting policies (continued)

 
2.3

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the company has transferred the significant risks and rewards of ownership to the buyer;
the company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the company will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

 
2.4

Operating leases: the company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.5

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Statement of Income and Retained Earnings in the same period as the related expenditure.

 
2.6

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

Page 11

 
THE RAVENGLASS AND ESKDALE RAILWAY COMPANY LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023

2.Accounting policies (continued)

 
2.7

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

 
2.8

Pensions

Defined contribution pension plan

The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the company in independently administered funds.

 
2.9

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

 
2.10

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Page 12

 
THE RAVENGLASS AND ESKDALE RAILWAY COMPANY LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023

2.Accounting policies (continued)


2.10
Tangible fixed assets (continued)

Land is not depreciated. Depreciation on other assets is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Freehold property
-
2% straight line
Motor vehicles
-
25% straight line
Fixtures, fittings and equipment
-
10 - 25% straight line
Rolling stock, Plant and machinery
-
2 - 25% straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.11

Investment property

Investment property is carried at fair value, the decision to revalue is determined by the directors annually and any valuation is carried out by the directors and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. Changes in fair value are recognised in the Statement of Income and Retained Earnings.
Deferred tax is provided on these gains at the rate expected to apply when the property is sold.

 
2.12

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. 
At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.13

Debtors

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

 
2.14

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

Page 13

 
THE RAVENGLASS AND ESKDALE RAILWAY COMPANY LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023

2.Accounting policies (continued)

 
2.15

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.16

Provisions for liabilities

Provisions are made where an event has taken place that gives the company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the company becomes aware of the obligation, and are measured at the best estimate at the reporting date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Statement of Financial Position.


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

The preparation of these financial statements require management to make judgments, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. 
Judgments and estimates are continually evaluated and are based on historical experiences and other factors, including expectations of future events that are believed to be reasonable under the circumstances. 
The company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.
(a) 
Establishing useful economic lives for depreciation purposes of property, plant and equipment
Long-lived assets, consisting primarily of property, plant and equipment, comprise a significant portion of the total fixed assets. The annual depreciation charge depends primarily on the estimated useful economic lives of each type of asset and estimates of residual values. The directors regularly review these assets' useful economic lives and change them as necessary to reflect current thinking on remaining lives in light of prospective economic utilisation and physical condition of the assets concerned. Changes in asset useful lives can have a significant impact on depreciation charges for the period. Details of the depreciation policies based on estimated useful economic lives are included in accounting policies note 2.10.
(b
) Revaluation of investment property
Under FRS102, investment property must be accounted for at its fair value in the financial statements. The directors use an independent Chartered Surveyor to undertake a professional valuation at the year end, and assess this annually.


4.


Employees

The average monthly number of employees, including directors, during the year was 46 (2022 - 35).

Page 14

 
THE RAVENGLASS AND ESKDALE RAILWAY COMPANY LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023

5.


Tangible fixed assets





Freehold property
Rolling stock, plant and machinery
Motor vehicles
Fixtures, fittings and equipment
Total

£
£
£
£
£



Cost or valuation


At 1 February 2022
1,675,151
1,702,946
10,430
149,645
3,538,172


Additions
22,510
13,197
-
-
35,707


Disposals
-
(413,611)
-
(31,712)
(445,323)



At 31 January 2023

1,697,661
1,302,532
10,430
117,933
3,128,556



Depreciation


At 1 February 2022
412,998
966,766
10,430
123,374
1,513,568


Charge for the year on owned assets
33,758
57,147
-
7,477
98,382


Disposals
-
(411,068)
-
(30,547)
(441,615)



At 31 January 2023

446,756
612,845
10,430
100,304
1,170,335



Net book value



At 31 January 2023
1,250,905
689,687
-
17,629
1,958,221



At 31 January 2022
1,262,153
736,180
-
26,271
2,024,604

Page 15

 
THE RAVENGLASS AND ESKDALE RAILWAY COMPANY LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023

6.


Investment property


Freehold investment property

£



Valuation


At 1 February 2022
1,700,000



At 31 January 2023
1,700,000

The 2023 valuations were made by H&H Land & Estates, on an open market value for existing use basis.



If the Investment properties had been accounted for under the historic cost accounting rules, the properties would have been measured as follows:

2023
2022
£
£


Historic cost
537,239
537,239

537,239
537,239


7.


Stocks

2023
2022
£
£

Parts and operating stock
68,487
45,846

Goods for resale
54,934
58,786

123,421
104,632



8.


Debtors

2023
2022
£
£


Trade debtors
-
1,228

Other debtors
7,500
15,000

Prepayments and accrued income
71,410
135,490

78,910
151,718


Page 16

 
THE RAVENGLASS AND ESKDALE RAILWAY COMPANY LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023

9.


Creditors: Amounts falling due within one year

2023
2022
£
£

Other loans
10,000
10,000

Trade creditors
80,445
60,648

Corporation tax
11,602
27,585

Other taxation and social security
-
7,906

Accruals and deferred income
121,343
56,581

223,390
162,720



10.


Creditors: Amounts falling due after more than one year

2023
2022
£
£

Other loans
46,700
56,700

Amounts owed to group undertakings
496,361
654,800

Other creditors
114,193
117,696

657,254
829,196


The company has two unsecured loans. One of £26,700 is repayable on the winding up of the company, or in the event of a binding contract being entered into by the company for the sale of its physical assets employed in the operation of the railway. The second loan of £100,000 is repayable in ten equal installments over 10 years with the first repayment having been made on 31 October 2015. It bears interest at 1% over base rate (2022: 1% over the base rate). The total amount outstanding on this loan at the year end date is £30,000 (2022 - £40,000) due to the company receiving a repayment holiday during the prior year. Interest was still paid on this loan.


11.


Reserves

Profit and loss account

This reserve represents cumulative profits and losses.

Investment property fair value reserve
This reserve represents the cumulative revaluation gains and losses on revaluation of investment freehold property less any deferred tax recognised in respect of this property.


12.


Pension commitments

The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £34,217 (2022 - £32,882). Contributions totaling £Nil (2022 - £Nil) were payable to the fund at the reporting date.

Page 17

 
THE RAVENGLASS AND ESKDALE RAILWAY COMPANY LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023

13.


Related party transactions

Included within debtors is a loan of £7,500 (2022: £15,000) to the Ravenglass Railway Museum Trust, a  where two Directors are also Trustees. Rent of £3,500 (2022: £3,500) was paid to the company by the Trust in the year.
Included within creditors is a loan of £30,000 (2022: £40,000) payable to the Ravenglass and Eskdale Railway Preservation Society Trust, a Charity in which a Director is also a Trustee. 
Operating lease charges of £4,500 (2022: £4,500) were paid by the company to the Ravenglass and Eskdale Railway Preservation Society, a Company in which a Director is also a Director.  


14.


Controlling party and ultimate parent undertaking

Lake District Holdings Limited, which is registered in England and Wales, is the ultimate parent company.
In the opinion of the directors there is no controlling party. 

Page 18