Company registration number 01887852 (England and Wales)
BODMIN AND WENFORD RAILWAY PLC
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024
BODMIN AND WENFORD RAILWAY PLC
COMPANY INFORMATION
Directors
Mr A Cox
Mr P Fitzgerald
Mr P Foster
Mr D Letcher
Mr S Lightfoot
Mr D Nelson-Brown
Mr N Wood
Secretary
Mr N Wood
Company number
01887852
BODMIN AND WENFORD RAILWAY PLC
CONTENTS
Page
Strategic report including Managing Director's statement
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Profit and loss account including statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 22
BODMIN AND WENFORD RAILWAY PLC
STRATEGIC REPORT INCLUDING MANAGING DIRECTOR'S STATEMENT
FOR THE YEAR ENDED 31 JANUARY 2024
- 1 -

The directors present the strategic report for the year ended 31 January 2024.

Fair review of the business

Information is contained in the Managing Director's statement below.

Principal risks and uncertainties

The business' principal financial instruments comprise bank balances, trade debtors and trade creditors. The main purpose of these instruments is to finance the business operations. In respect of bank balances, the liquidity risk is managed by maintaining a balance between the continuity of funding and flexibility through the use of overdrafts at floating rates of interest.

 

Trade debtors are managed in respect of credit and cashflow risk by policies concerning the credit offered to customers and regular monitoring of amounts outstanding for both time and credit limits. The amounts presented in the balance sheet are net of any allowances for doubtful debts.

 

Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts as the fall due. The company's policy, wherever possible, is to pay suppliers by the end of the month following receipt of an invoice.

Development and performance

See Managing Director's statement below.

Managing Director's statement

In October 2022 David Nelson-Brown stood down as Chairman of the PLC and was succeeded by Paul Foster. David became the railways first Managing Director so he could focus his time on the financial and day to day management of the business in more detail. This report has been prepared by David on behalf of the Chairman and Board of the PLC.

Last years report was set in very challenging financial times. The loss we posted last year had a huge knock-on effect in the 2023 season. It has been a very difficult period for the management team who have worked tirelessly to steady the ship and steer us through this period, and I can’t thank them enough for their determination, commitment and courage to push through. The winter was a tough period for us as a wider railway, having to make some unpopular and unpalatable decisions to sell assets. We thought long and hard about this and the long-term impact as well as the short time cash benefits. I think we have made sensible choices and we have positioned ourselves well for the future with a much-reduced burden of deteriorating assets, and now more of our fleet housed undercover.

 

Since I last wrote the major project to return 5552 to running order has been completed and has been highly successful since. We are still reliant on hired in motive power for our spare engine, currently sister engine 5553 belonging to the Waterman Railway Heritage Trust. We are trying to reduce our dependency on this, having reduced the number of committed steaming days this year from last. This will still result in a bill of approximately £32,000 this year alone, just for the use of this locomotive.

 

At last years AGM there was huge support to transition this company from a PLC to a LTD company, and to continue the process of the railway wide restructuring. We have made steady progress on that this year and expect substantial progress this coming winter. My thanks to all of you who have supported the Boards vision on this once in a generation reorganization of the railways structure and governance.

 

The coffee shop business we have created continues to flourish with now 5 station outlets under the Cornish Rail Coffee Co brand. It has its own dedicated catering manager and we are starting to see good returns on this investment. If we achieve the desired expansion in Q1 2025, by the end of 2025 the coffee side of the business will generate more turnover than the heritage railway. Quite staggering in such a short period of time.

BODMIN AND WENFORD RAILWAY PLC
STRATEGIC REPORT INCLUDING MANAGING DIRECTOR'S STATEMENT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 2 -
Managing Director's statement (continued....)

I reported last year that 2024 looked set to be a financially stable year, and we are still forecasting for a break-even year. This will be a massive achievement given the financial shock the industry has suffered in the last few years. We are very grateful for the generosity of our members and shareholders over the last 2 funding appeals, without your support we may well not have survived. I’m looking forward to the coming winter knowing it will be tight – but survivable if all goes as planned.

 

As ever I must end with a huge thanks to our volunteers and staff who work so hard and give so much to ensure we go from strength to strength. The railway is all about the people and without you, it would be a collection of rusty lifeless scrap. You all make the railway what it is and I am humbled by the enormity of your dedication and commitment.

Section 172(1) Statement

The directors have had regard to the matters set out in Section 172 (1) (a) to (f) of the Companies Act 2006 when performing their duties under Section 172. These matters have been considered by the directors when making company decisions (short term and long term) at the regular board meetings throughout the year. Further information has been provided in the directors report.

On behalf of the board

Mr D Nelson-Brown
Managing Director
31 July 2024
BODMIN AND WENFORD RAILWAY PLC
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JANUARY 2024
- 3 -

The directors present their annual report and financial statements for the year ended 31 January 2024.

Principal activities

The principal activity of the company continued to be the promotion and creation of general interest in railways and to establish anoperating railway centre.

Results and dividends

The results for the year are set out on page 8.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr A Cox
Mr P Fitzgerald
Mr P Foster
Mr D Letcher
Mr S Lightfoot
Mr D Nelson-Brown
Mr N Wood
Statement of directors' responsibilities

The directors are responsible for preparing the annual 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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:

 

 

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 enable them to ensure that the financial statements comply with the Companies Act 2006. They 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.

Strategic report

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report.

BODMIN AND WENFORD RAILWAY PLC
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 4 -
Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

Engagement with others

The board of directors has been chosen to be representative of both the railway and the heritage interests as well as to provide good business management. Board meetings are held throughout the year to consider the heritage aspect of the railway and also to monitor the commercial success and employer obligations of the company. The directors try to maintain a good business relationship with suppliers, particularly those that are local, and all of their customers.

On behalf of the board
Mr D Nelson-Brown
Director
31 July 2024
BODMIN AND WENFORD RAILWAY PLC
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF BODMIN AND WENFORD RAILWAY PLC
- 5 -
Opinion

We have audited the financial statements of Bodmin and Wenford Railway PLC (the 'company') for the year ended 31 January 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Material uncertainty relating to going concern

We draw attention to Note 1.2 in the financial statements, which sets out events and conditions that indicate a material uncertainty exists that may cast significant doubt on the company’s ability to continue as a going concern in the coming years. Our opinion is not modified in respect of this matter.

 

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 auditor's 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.

Opinions on other matters prescribed by the Companies Act 2006

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

BODMIN AND WENFORD RAILWAY PLC
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BODMIN AND WENFORD RAILWAY PLC
- 6 -
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 strategic report or 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:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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.

Auditor's 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 auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud.

We do not consider that the financial statements are significantly susceptible to material misstatement caused by fraud or error. The main risk is the misappropriation of cash, but cash handling is minimised as a result of the COVID pandemic and bookings being made predominantly online. Stock could also be misappropriated but CCTV should deter theft.

The main laws and regulations applicable to the entity are health and safety and employment law.

 

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below:

- Enquiry of management around actual and potential litigation and claims and to identify any instances of non-compliance with laws and regulations.

- Reviewing minutes of meetings of those charged with governance.

- Reviewing legal fee invoices for evidence of any litigation claims or non compliance.

- Carrying out a year end stock take check to provide reassurance that stock is accurately recoded and counted.

- Testing to trace cash banked from sales reports.

 

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Other matters which we are required to address

Except for the matter described in the Material uncertainty related to going concern section, we have determined that there are no other key audit matters to be communicated in our report.

BODMIN AND WENFORD RAILWAY PLC
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BODMIN AND WENFORD RAILWAY PLC
- 7 -

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Amy Sole FCA (Senior Statutory Auditor)
For and on behalf of Phillips Frith LLP
16 August 2024
Chartered Accountants
Statutory Auditor
9 Tregarne Terrace
St Austell
Cornwall
PL25 4DD
BODMIN AND WENFORD RAILWAY PLC
PROFIT AND LOSS ACCOUNT INCLUDING STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JANUARY 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
1,193,253
1,053,326
Cost of sales
(921,562)
(774,830)
Gross profit
271,691
278,496
Administrative expenses
(415,953)
(497,963)
Other operating income
3
72,843
9,212
Operating loss
4
(71,419)
(210,255)
Interest receivable and similar income
200
390
Interest payable and similar expenses
8
(1,677)
(1,462)
Loss before taxation
(72,896)
(211,327)
Tax on loss
9
(17,681)
(49,064)
Loss for the financial year
(90,577)
(260,391)
Total comprehensive income for the year
(90,577)
(260,391)

The profit and loss account has been prepared on the basis that all operations are continuing operations.

BODMIN AND WENFORD RAILWAY PLC
BALANCE SHEET
AS AT
31 JANUARY 2024
31 January 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
10
558,528
548,928
Investments
11
76
76
558,604
549,004
Current assets
Stocks
13
27,549
24,268
Debtors
14
56,819
66,668
Cash at bank and in hand
32,293
35,349
116,661
126,285
Creditors: amounts falling due within one year
15
(270,262)
(198,500)
Net current liabilities
(153,601)
(72,215)
Total assets less current liabilities
405,003
476,789
Creditors: amounts falling due after more than one year
16
(76,798)
(86,728)
Provisions for liabilities
Deferred tax liability
18
62,873
45,192
(62,873)
(45,192)
Net assets
265,332
344,869
Capital and reserves
Called up share capital
21
637,409
626,369
Profit and loss reserves
(372,077)
(281,500)
Total equity
265,332
344,869
The financial statements were approved by the board of directors and authorised for issue on 31 July 2024 and are signed on its behalf by:
Mr D Nelson-Brown
Director
Company registration number 01887852 (England and Wales)
BODMIN AND WENFORD RAILWAY PLC
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JANUARY 2024
- 10 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 February 2022
620,144
(21,109)
599,035
Year ended 31 January 2023:
Loss and total comprehensive income for the year
-
(260,391)
(260,391)
Issue of share capital
21
6,225
-
6,225
Balance at 31 January 2023
626,369
(281,500)
344,869
Year ended 31 January 2024:
Loss and total comprehensive income for the year
-
(90,577)
(90,577)
Issue of share capital
21
11,040
-
11,040
Balance at 31 January 2024
637,409
(372,077)
265,332
BODMIN AND WENFORD RAILWAY PLC
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JANUARY 2024
- 11 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
24
46,848
(81,731)
Interest paid
(1,677)
(1,462)
Net cash inflow/(outflow) from operating activities
45,171
(83,193)
Investing activities
Purchase of tangible fixed assets
(50,352)
(24,089)
Interest received
200
390
Net cash used in investing activities
(50,152)
(23,699)
Financing activities
Proceeds from issue of shares
11,040
6,225
Repayment of bank loans
(9,115)
(10,001)
Net cash generated from/(used in) financing activities
1,925
(3,776)
Net decrease in cash and cash equivalents
(3,056)
(110,668)
Cash and cash equivalents at beginning of year
35,349
146,017
Cash and cash equivalents at end of year
32,293
35,349
BODMIN AND WENFORD RAILWAY PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024
- 12 -
1
Accounting policies
Company information

Bodmin and Wenford Railway PLC is a private company limited by shares incorporated in England and Wales. The registered office is Bodmin & Wenford General Station, Harleigh Road, Bodmin, Cornwall, PL31 1AQ.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.

1.2
Going concern

These financial statements are prepared on the going concern basis. The directors have a reasonable expectation that the company will continue in operational existence for the foreseeable future. However, the directors are aware of certain material uncertainties which may cause doubt on the company's ability to continue as a going concern and provide the following explanation:

 

"Following another challenging year there continues to be a material uncertainty about our financial viability. The sharp rise in our cost base across all aspects of the business has led to the loss we have posted and costs continue to outstrip income.

The current cash flow forecast is detailed and gives us confidence that we know what is coming this winter. This document is regularly updated with changing forecasts of income and expected expenditure on projects and maintenance throughout the winter period. This coming winter, whilst challenging, is forecast to be better than last winter’s outturn, largely down to the planned expansion of the coffee shop businesses at further stations as detailed in the strategic report. The board believe the income generated from this side of the business will provide the support that the railway requires, predicting a breakeven position in the current year. As such we believe the going concern basis of accounting is warranted." David Nelson-Brown (Managing Director).

1.3
Turnover

Turnover comprises the fair value of the consideration received or receivable for the sale of tickets and goods in the normal course of the company's activities. Turnover is shown net of VAT, returns and discounts. Turnover is recognised when, the amount can be reliably measured and it is probable that future economic benefits will flow to the entity.

1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Track
4% per annum on the reducing balance basis
Leasehold improvements
4% per annum on the reducing balance basis
Plant and equipment
15% per annum on the reducing balance basis
Computer equipment
33% per annum on the straight line basis

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

BODMIN AND WENFORD RAILWAY PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 13 -

The company's leasehold properties are situated on land owned by Cornwall Council and rented to the railway through the Bodmin and Wenford Railway Trust.

1.5
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss. No assets are carried at revalued amount.

1.6
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the last invoice price.

1.7
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand and deposits held with banks. Bank overdrafts are shown within borrowings in current liabilities.

1.8
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are measured at transaction price Financial assets are all receivable within one year.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

BODMIN AND WENFORD RAILWAY PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 14 -
Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities and are all due within one year.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.9
Taxation

The tax expense represents the sum of the deferred tax released to the profit and loss account from the utilisation of brought forward losses against current profits.

Current tax

The tax calculated is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date, less losses brought forward and utilised against the liability.

BODMIN AND WENFORD RAILWAY PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 15 -
Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.10
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.11
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease.

1.12
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

1.13

Donations

Donations relating to an asset are recognised in the profit and loss account as income systematically over the assets expected useful life. The donation is recognised as deferred income rather than being deducted from the assets carrying amount.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

BODMIN AND WENFORD RAILWAY PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 16 -
3
Turnover and other opertaing income
2024
2023
£
£
Turnover analysed by class of business
Admission and ticket sales
626,387
572,505
Cornish Rail Coffee Company
295,848
218,721
Souvenir shop
65,084
73,686
Other operating income
205,934
188,414
1,193,253
1,053,326
2024
2023
£
£
Other opertaing income
Coronavirus support and job retention scheme received
-
2,667
Other donations
72,843
6,545
72,843
9,212
4
Operating loss
2024
2023
Operating loss for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
4,850
4,715
Depreciation of owned tangible fixed assets
40,752
37,062
Operating lease charges
28,881
27,026
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
4,850
4,715
6
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2024
2023
Number
Number
Production staff
8
9
Administrative staff
14
10
Total
22
19
BODMIN AND WENFORD RAILWAY PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
6
Employees
(Continued)
- 17 -

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
377,120
332,014
Social security costs
18,686
19,624
Pension costs
5,850
5,926
401,656
357,564
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
15,692
-
0
Company pension contributions to defined contribution schemes
227
-
15,919
-
0
8
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
1,601
968
Other finance costs:
Other interest
76
494
1,677
1,462
9
Taxation
2024
2023
£
£
Deferred tax
Origination and reversal of timing differences
17,681
49,064

The main rate of corporation tax changed to 25% (from 19%) from 1st April 2023.

BODMIN AND WENFORD RAILWAY PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
9
Taxation
(Continued)
- 18 -

The actual charge for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Loss before taxation
(72,896)
(211,327)
Expected tax credit based on the standard rate of corporation tax in the UK of 24.00% (2023: 19.00%)
(17,495)
(40,152)
Tax effect of utilisation of tax losses not previously recognised
-
0
84,631
Unutilised tax losses carried forward
20,214
-
0
Permanent capital allowances in excess of depreciation
(2,719)
713
Deferred tax
17,681
3,872
Taxation charge for the year
17,681
49,064

At the year end the company had tax losses available for carry forward against future trading profits amounting to £545,541 (2023: £461,317).

10
Tangible fixed assets
Track
Leasehold improvements
Assets under construction
Plant and equipment
Computer equipment
Total
£
£
£
£
£
£
Cost
At 1 February 2023
447,745
241,543
40,098
310,086
3,169
1,042,641
Additions
-
0
-
0
-
0
50,352
-
0
50,352
At 31 January 2024
447,745
241,543
40,098
360,438
3,169
1,092,993
Depreciation and impairment
At 1 February 2023
174,348
128,947
-
0
188,326
2,092
493,713
Depreciation charged in the year
10,936
4,504
-
0
24,266
1,046
40,752
At 31 January 2024
185,284
133,451
-
0
212,592
3,138
534,465
Carrying amount
At 31 January 2024
262,461
108,092
40,098
147,846
31
558,528
At 31 January 2023
273,397
112,596
40,098
121,760
1,077
548,928
BODMIN AND WENFORD RAILWAY PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 19 -
11
Fixed asset investments
2024
2023
Notes
£
£
Investments in associates
12
76
76
12
Associates

Details of the company's associates at 31 January 2024 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Bodmin And Wadebridge Railway Company Limited
Unit 22 Callywith Gate Industrial Estate, Launceston Road, Bodmin, Cornwall, United Kingdom, PL31 2R
Ordinary shares
13.10
13
Stocks
2024
2023
£
£
Raw materials and consumables
4,300
-
Finished goods and goods for resale
23,249
24,268
27,549
24,268
14
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
45,500
53,243
Other debtors
2,250
5,806
Prepayments and accrued income
9,069
7,619
56,819
66,668
15
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
17
10,000
10,000
Trade creditors
126,564
152,689
Taxation and social security
20,176
17,605
Other creditors
10,379
3,504
Accruals and deferred income
103,143
14,702
270,262
198,500
BODMIN AND WENFORD RAILWAY PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 20 -
16
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
17
14,218
23,333
Deferred income
19
62,580
63,395
76,798
86,728
17
Loans and overdrafts
2024
2023
£
£
Bank loans
24,218
33,333
Payable within one year
10,000
10,000
Payable after one year
14,218
23,333
18
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
62,873
45,192
2024
Movements in the year:
£
Liability at 1 February 2023
45,192
Charge to profit or loss
17,681
Liability at 31 January 2024
62,873
19
Deferred income
2024
2023
£
£
Other deferred income
62,580
63,395
BODMIN AND WENFORD RAILWAY PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 21 -
20
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
5,850
5,926

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

21
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
637,409
626,369
637,409
626,369

During the year 11,040 ordinary shares having an aggregate nominal value of £11,040 were issued and fully paid for an aggregate consideration of £11,040.

22
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2024
2023
£
£
Within one year
29,808
12,641
Between two and five years
110,202
40,635
In over five years
204,938
202,313
344,948
255,589
23
Related party transactions
Transactions with related parties

Two of the company's directors, PG Fitzgerald and SR Lightfoot are also trustees of Bodmin and Wenford Railway Trust which is the company's largest shareholder, owning 34.28% of the issued share capital.

 

During the year the company hired one locomotive in addition to leasing the station and track from Bodmin and Wenford Railway Trust amounting to £43,725 (2023: £46,800).

 

The company also recharged maintenance work on the Bodmin and Wenford Railway Trust's rolling stock (comprising materials and labour) which totalled £173,400 (2023: £146,433).

 

At the balance sheet date the amount due to Bodmin and Wenford Railway Trust was £42,475 (2023: £18,090) and the amount due from Bodmin and Wenford Railway Trust was £38,000 (2023: £50,725).

 

During the year the company recharged workshop costs incurred to Bodmin Railway Preservation Society totalling £Nil (2023: £6,131) who owns 32.11% of the company's issued share capital.

 

No amounts were due to/from Bodmin Railway Preservation Society at the balance sheet date.

BODMIN AND WENFORD RAILWAY PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 22 -
24
Cash generated from/(absorbed by) operations
2024
2023
£
£
Loss for the year after tax
(90,577)
(260,391)
Adjustments for:
Taxation charged
17,681
49,064
Finance costs
1,677
1,462
Investment income
(200)
(390)
Depreciation and impairment of tangible fixed assets
40,752
37,062
Movements in working capital:
Increase in stocks
(3,281)
(108)
Decrease in debtors
9,849
12,351
Increase in creditors
71,762
80,069
Decrease in deferred income
(815)
(850)
Cash generated from/(absorbed by) operations
46,848
(81,731)
25
Analysis of changes in net funds
1 February 2023
Cash flows
31 January 2024
£
£
£
Cash at bank and in hand
35,349
(3,056)
32,293
Borrowings excluding overdrafts
(33,333)
9,115
(24,218)
2,016
6,059
8,075
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