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Registration number: 12381729

East Lancashire Railway Limited
Annual Report and
Financial Statements

31 December 2022

 

East Lancashire Railway Limited

Contents

Balance Sheet

1

Notes to the Financial Statements

2 to 7

 

East Lancashire Railway Limited

Balance Sheet
31 December 2022

Note

2022
£

2021
£

Fixed assets

 

Tangible assets

4

149,841

44,517

Current assets

 

Stocks

5

130,239

132,024

Debtors

6

407,213

458,861

Cash at bank and in hand

 

414,322

333,024

 

951,774

923,909

Creditors: Amounts falling due within one year

7

(971,541)

(974,036)

Net current liabilities

 

(19,767)

(50,127)

Net assets/(liabilities)

 

130,074

(5,610)

Capital and reserves

 

Called up share capital

1

1

Retained earnings

130,073

(5,611)

Shareholders' funds/(deficit)

 

130,074

(5,610)

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime. As permitted by section 444 (5A) of the Companies Act 2006, the Directors have not delivered to the registrar a copy of the Profit and Loss Account.

Approved and authorised by the Board on 26 October 2023 and signed on its behalf by:
 

.........................................
M W Kelly
Director

.........................................
D S Layland
Director

 
     

Company Registration Number: 12381729

 

East Lancashire Railway Limited

Notes to the Financial Statements
Year Ended 31 December 2022

1

General information

The company is a private company limited by share capital, incorporated in England.

The address of its registered office is:
Bolton Street Station
Bury
Lancashire
BL9 0EY

East Lancashire Railway Limited is the trading subsidiary of East Lancashire Light Railway Company Limited.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

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

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

The financial statements are presented in £ sterling.

Name of parent of group

These financial statements are consolidated in the financial statements of East Lancashire Light Railway Limited.

The financial statements of East Lancashire Light Railway Limited may be obtained from Bolton Street Station, Bury, Lancashire, BL9 0EY..

Going concern

The Company is dependent on its parent company continuing as a going concern. Should the parent company business be adversely affected, the going concern basis of accounting may not be appropriate.

Ongoing economic pressures have also been considered by the Board of this company, and forecasts have been prepared covering the period to December 2024 which have been subjected to sensitivity analysis. The Directors recognise that, in preparing the forecasts, there is an inherent risk that the plans may not be achieved. Despite this risk, the Directors believe that the Railway has secured sufficient financial reserves to enable it to continue as a going concern.

 

East Lancashire Railway Limited

Notes to the Financial Statements
Year Ended 31 December 2022

Audit report

The Independent Auditor's Report was unqualified. The name of the Senior Statutory Auditor who signed the audit report on 26 October 2023 was P G Nicol FCA, who signed for and on behalf of Horsfield & Smith.

Judgements

There are no judgements that would cause a significant effect on the amounts recognised in the financial statements.

Key sources of estimation uncertainty

The directors make estimates concerning the future. At the reporting date there are no estimates that would have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The Company recognises revenue when the amount of revenue can be reliably measured and it is probable that future economic benefits will flow to the entity.

Government grants

Government grants in respect of capital expenditure are credited to a deferred income account and are released to profit over the expected useful lives of the relevant assets by equal annual instalments. Grants of a revenue nature are credited to income so as to match them with the expenditure to which they relate.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Catering equipment

10 years straight line

Cash and cash equivalents

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

 

East Lancashire Railway Limited

Notes to the Financial Statements
Year Ended 31 December 2022

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

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.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method. Bar stocks are independently valued at cost.

At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to sell; the impairment loss is recognised immediately in the profit and loss account.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the Company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Deferred Income

Deferred income are monies taken in advance for bookings yet to take place. Once the events have taken place the income is transferred to the profit and loss account.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the Company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

 

East Lancashire Railway Limited

Notes to the Financial Statements
Year Ended 31 December 2022

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Financial instruments

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

Basic financial assets and liabilities are initially measured at transaction price, unless the arrangement constitutes a financing transaction.

If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future cashflows discounted at a market rate of interest. Such instruments are subsequently measured at amortised cost using the effective interest method.

Other financial assets and liabilities that are not basic financial instruments are initially measured at fair value, which is normally the transaction price. Such instruments are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except where the fair values cannot be measured reliably the instrument is measured at cost less impairment.

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

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

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

3

Staff numbers

The average number of persons employed by the Company (including Directors) during the year, was 7 (2021 - 6).


The staff who are engaged in administering the company and providing the services are employed by the parent charity East Lancashire Light Railway Company Limited. A managment charge is paid to the parent.

 

East Lancashire Railway Limited

Notes to the Financial Statements
Year Ended 31 December 2022

4

Tangible assets

Fixtures and fittings
£

Total
£

Cost or valuation

At 1 January 2022

142,880

142,880

Additions

119,100

119,100

At 31 December 2022

261,980

261,980

Depreciation

At 1 January 2022

98,363

98,363

Charge for the year

13,776

13,776

At 31 December 2022

112,139

112,139

Carrying amount

At 31 December 2022

149,841

149,841

At 31 December 2021

44,517

44,517

5

Stocks

2022
£

2021
£

Other inventories

130,239

132,024

 

East Lancashire Railway Limited

Notes to the Financial Statements
Year Ended 31 December 2022

6

Debtors

Current

Note

2022
£

2021
£

Trade debtors

 

81,265

112,027

Amounts owed by related parties

189,071

265,131

Prepayments

 

15,669

4,069

Other debtors

 

121,208

77,634

   

407,213

458,861

7

Creditors

Creditors: amounts falling due within one year

Note

2022
£

2021
£

Due within one year

 

Loans and borrowings

8

1,001

1,454

Trade creditors

 

383,203

444,521

Accruals

 

235,544

192,193

Deferred income

 

351,593

335,068

Other creditors

 

200

800

 

971,541

974,036

8

Loans and borrowings

2022
£

2021
£

Current loans and borrowings

Other borrowings

1,001

1,454

9

Parent and ultimate parent undertaking

The Company's immediate parent is East Lancashire Light Railway Company Limited (Company number 2023981), incorporated in England.

  These financial statements are available upon request from the General Manager, Bolton Street Station, Bury, Lancashire, BL9 0EY.

 The ultimate controlling party is the directors of East Lancashire Light Railway Company Limited.