Charity registration number 298142
Company registration number 02193894 (England and Wales)
THE DIESEL AND ELECTRIC PRESERVATION GROUP LTD
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
THE DIESEL AND ELECTRIC PRESERVATION GROUP LTD
LEGAL AND ADMINISTRATIVE INFORMATION
Trustees
T D Courtney-Clark
M N Howard
N McCannon
I W Robins
A W Royal
P J Tucker
Secretary
I W Robins
Charity number
298142
Company number
02193894
Registered office and
The Old Goods Shed
operational address
Wiiliton Station
Williton
Somerset
United Kingdom
TA4 4RQ
Independent examiner
Matthew Webb FCA
Azets Audit Services
Woodlands Court
Truro Business Park
Threemilestone
Truro
United Kingdom
TR4 9NH
Bankers
Unity Trust Bank UK plc
9 Brindley Place
Birmingham
United Kingdom
B1 2HB
Santander UK plc
Bridle Road
Bootle
Merseyside
L30 4GB
THE DIESEL AND ELECTRIC PRESERVATION GROUP LTD
CONTENTS
Page
Trustees report
1 - 3
Independent examiner's report
5
Statement of financial activities
6
Balance sheet
7 - 8
Notes to the financial statements
9 - 20
THE DIESEL AND ELECTRIC PRESERVATION GROUP LTD
TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The Trustees present their annual report and financial statements for the year ended 31 December 2023.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the Charity's Memorandum and Articles of Association, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019).

 

The Diesel & Electric Preservation Group Limited ("the Company or Charity"), also known as the D&EPG, is a Private Company Limited by Guarantee registered in England & Wales at Companies House (registration number 02193894) and incorporated on 16th November 1987. The Company is also a registered charity (registered with The Charity Commission for England & Wales, registration number 298142), whose principal activity is to advance the education of the public in the history and development of diesel traction on the railways of the West of England by the preservation and operation of diesel traction, particularly as it relates to the West of England.

 

The Charity's principal office and registered address is The Old Goods Shed, Williton Station, Williton, SOMERSET, TA4 4RQ.

Objectives and activities

The Company and Charity meets its principal activity by maintaining and operating a Diesel Traction Depot at Williton on the West Somerset Railway, which is home to the Charity's own fleet of six former British Rail (BR) mainline diesel locomotives dating from the early 1960s. The D&EPG also manages under contract an additional two ex-BR locomotives based at Williton that are in the private ownership of a group member and one former industrial shunting locomotive that is owned by the West Somerset Railway (WSR). The fleet regularly operates both public service and infrastructure trains on The WSR.

 

The late 1950s / early 1960s represent a very distinct and important period of change on Britain's railways as a result of the post-war Modernisation Plan and the wholesale replacement of steam traction with early diesel locomotives, especially on the former British Railways Western Region where a unique approach was adopted. The D&EPG believes that it is both educationally and historically important that our locomotives from this period are able to be demonstrated to the public in a living, working heritage setting.

 

The D&EPG fulfils a crucial supporting role to the WSR plc, making locomotives available to them on an as required basis and in support of their operations 365 days a year. Operating our depot and locomotives also enables both current and former railway staff to retain, develop and share their skills with colleagues and the general public and provides an exceptional environment of camaraderie including occasional social events and networking with other heritage railways and operating groups.

 

The diesel depot is staffed on Tuesdays, Saturdays and occasional other days by a core of some 20 active volunteers, several of whom are currently professional or former professional railway staff and who are drawn from a nationwide membership of over 300 supporting members. The charity's depot is frequently open to the public for viewing as operational considerations and safety permit.

 

The Charity's income has traditionally been derived primarily from mileage payments for locomotives miles operated (£34,480 during 2023, 2022: £67,337) and from membership dues and donations received (£70,640 including gift aid during 2023, 2022: £41,263).

The Trustees have paid due regard to guidance issued by the Charity Commission in relation to public benefit in deciding what activities the charity should undertake.

 

 

 

 

THE DIESEL AND ELECTRIC PRESERVATION GROUP LTD
TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Achievements and performance
Financial review

The year in review represented a consolidation with D1661 and both Hymeks out of traffic for the majority of the year, and the return of D9526 back from the hire at the Kent & East Sussex Railway (K&ESR). Diesel locomotive running on the West Somerset Railway (WSR) continued to see a summer diesel gala and the regular weekend diesel-hauled services, resulting in mileage receipts of £30,700 (2022: £30,150). Our Class 14 ‘Teddy Bear’ D9526 completed a long term hire on the K&ESR and our Class 47 D1661 47077 ‘NORTH STAR’ whilst continuing to run on the North Yorkshire Moors Railway (NYMR), had a lengthy overhaul so was not out earning as much as the previous year, however the overhaul was at minimal cost to the group and we are very grateful to the NYMR for their assistance with the work undertaken. This gave a reduced total locomotive running income of £34,480 (2022: £67,337).

Donations climbed significantly to £65,054 (2022: £33,960) including contributions totalling £25,136 (2022: £22,618) to two targeted fund-raising campaigns that were continued from the previous two years, one for the restoration of Class 14 ‘Teddy Bear’ D9518 (£5,939) and the other for the restoration of D1010 ‘WESTERN CAMPAIGNER’ (£19,197). Donations to these two funds are classified as Restricted Funds and can only be applied to the project for which they were donated. After deducting expenditure on parts and materials for each project (D9518: £7,481: D1010: £19,953), the shortfall of £2,298 has been offset against the funds carried forward from 2022, resulting in two separately identifiable restricted funds (D9518: -£768 : D1010: £17,859).

The net income from sales of books, DEPG-branded clothing and collectible items via the DEPG online store and through direct sales at events declined slightly to £6,399 (2022: £6,833), reflecting the continuing pressure on discretionary purchases.

The number of members increased during the year, from 296 in January 2023 to 317 by the end of the year, and this continuing trend is attributed to the raised profile of the group resulting from regular e-mailings and website updates combined with improved social media coverage. However, membership revenue reduced to £5,586 (2022: £7,303) due to the absence of the ‘catch up’ effect that had boosted membership income in 2022.

With the improved earning potential of the Group, the level of investment in infrastructure at Williton has increased significantly, with a new Oil Store being constructed, complete with spillage protection, for a total capital cost of £7,582 (£1,466 of which was capitalised in 2022). An opportunity was taken to acquire five 40-ft shipping containers for future use as storage facilities. The cost of moving these containers resulted in an expense of £7,700 which represents good value for the items acquired. Plans to acquire new 20-ft shipping containers to replace life-expired units at Williton were deferred to 2024.

Our locomotive fleet dates back to the early 1960s and spare parts are becoming more difficult to obtain as each year passes. The Group became aware of opportunities to acquire spare parts from other heritage railway groups that were scaling down, the result being that spare parts to the value of £4,289 (2022: NIL) were acquired and added to stock. The Group intends to continue to commit funds to the expansion of the spare parts stock - but on an opportunistic basis.

The Old Goods Shed at Williton remains out of use due to further deterioration of the roof structure, repairs of which are likely to cost in excess of £150,000. Plans for the restoration and change of use of this 1862 Grade II listed structure are in progress with the aim of attracting support from other organisations, but the future plans and costs have not yet been established so this liability remains our best estimate. A provision of £250,000 has been allocated to this project to cover the rising costs associated with the work required.

Considering all sources of income and after deducting expenditure, the result was a healthy operating surplus of £16,045 (2022: £47,333 excluding the £250,000 provision) during a year of heavy expenditure. This includes a reduction in restricted funds of £2,298 (2022: increase of £10,736) which was offset against the appropriate reserves for planned projects and major locomotive overhauls.

THE DIESEL AND ELECTRIC PRESERVATION GROUP LTD
TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

It is the policy of the D&EPG that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to six months of expenditure. The Trustees consider that reserves at this level will ensure that, in the event of a significant and unexpected drop in income, they will be able to continue the D&EPG’s current activities while consideration is given to ways in which additional funds may be raised or expenditure reduced. The recognition of a provision in 2022 for the repair of the Old Goods Shed has resulted in a deficiency of free reserves of £118,668. The trustees continue to explore all possible avenues to fund the repair and reduce this shortfall.

The Trustees have re-assessed the major risks to which the Group is exposed and are satisfied that systems are in place to mitigate exposure to these risks.

At the end of 2023 the Trustees and Officers of the D&EPG identified no doubts that the Group would be able to continue as a viable business. The diversification of income sources, the targeted fund-raising campaigns and the expanding membership have ensured that the D&EPG remains an ongoing concern.

The D&EPG has no subsidiary companies or charities nor does it hold funds on behalf of any such separate organisation.

 

Structure, governance and management

The Charity is governed by a full Memorandum & Articles of Association and as a Private Company Limited by Guarantee without share capital, it has no shareholders or persons with significant control.

The Trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

T D Courtney-Clark
M N Howard
N McCannon
I W Robins
A W Royal
P J Tucker

The D&EPG is managed on a day-to-day basis in accordance with the Company's Memorandum & Articles of Association, by a Board of Directors comprising the Company's officers and trustees and other members drawn from the active volunteer membership. The Board, which holds regular minuted meetings, is acutely aware of the nature of the D&EPG's Charitable Purposes to not only maintain our heritage assets in a safe and operational condition (including the undertaking of minor and major overhauls as required); and to operate our depot in a safe, inclusive, welcoming and educational manner regardless or the race, ethnicity, language, sexual orientation or disability of the visitor / member. D&EPG actively encourages the recruitment and training of younger people wherever practical and appropriate to do so.

 

None of the Trustees has any beneficial interest in the company. All of the Trustees are members of the company and guarantee to contribute £5 in the event of a winding up.

The company's current policy concerning the payment of trade creditors is to follow the CBI's Prompt Payers Code (copies are available from the CBI, Centre Point, 103 New Oxford Street, London WC1A 1DU).

 

The company's current policy concerning the payment of trade creditors is to:

THE DIESEL AND ELECTRIC PRESERVATION GROUP LTD
STATEMENT OF TRUSTEES RESPONSIBILITIES  
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -

The Trustees, who are also the directors of The Diesel and Electric Preservation Group Ltd for the purpose of company law, are responsible for preparing the Trustees Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

 

Company Law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

 

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

 

- select suitable accounting policies and then apply them consistently;

 

- observe the methods and principles in the Charities SORP;

 

- make judgements and estimates that are reasonable and prudent;

 

- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

 

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charity will continue in operation.

 

The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the Charity 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 Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Trustees report was approved by the Board of Trustees.

M N Howard
16 September 2024
THE DIESEL AND ELECTRIC PRESERVATION GROUP LTD
INDEPENDENT EXAMINER'S REPORT
TO THE TRUSTEES OF THE DIESEL AND ELECTRIC PRESERVATION GROUP LTD
- 5 -

I report to the Trustees on my examination of the financial statements of The Diesel and Electric Preservation Group Ltd (the Charity) for the year ended 31 December 2023.

Responsibilities and basis of report

As the Trustees of the Charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).

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

Independent examiner's statement

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

1

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

2

the financial statements do not accord with those records; or

3

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

4

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

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

Matthew Webb FCA
Azets Audit Services
Woodlands Court
Truro Business Park
Threemilestone
Truro
United Kingdom
TR4 9NH
Dated: 17 September 2024
THE DIESEL AND ELECTRIC PRESERVATION GROUP LTD
STATEMENT OF FINANCIAL ACTIVITIES
INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 6 -
Unrestricted
Restricted
Total
Unrestricted
Restricted
Total
funds
funds
funds
funds
2023
2023
2023
2022
2022
2022
Notes
£
£
£
£
£
£
Income from:
Donations and legacies
3
45,504
25,136
70,640
18,645
22,618
41,263
Charitable activities
4
34,480
-
34,480
67,337
-
67,337
Other trading activities
11,360
-
11,360
9,248
-
9,248
Investments
2,393
-
2,393
181
-
181
Total income
93,737
25,136
118,873
95,411
22,618
118,029
Expenditure on:
Charitable activities
5
75,394
27,434
102,828
308,814
11,882
320,696
Net income/(expenditure) for the year/
Net movement in funds
18,343
(2,298)
16,045
(213,403)
10,736
(202,667)
Fund balances at 1 January 2023
105,389
19,389
124,778
318,792
8,653
327,445
Fund balances at 31 December 2023
123,732
17,091
140,823
105,389
19,389
124,778

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.
THE DIESEL AND ELECTRIC PRESERVATION GROUP LTD
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 7 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
11
9,499
1,466
Heritage assets
12
232,900
232,900
Investments
13
1
1
242,400
234,367
Current assets
Stocks
14
14,672
10,084
Debtors
15
41,832
40,664
Cash at bank and in hand
103,798
99,634
160,302
150,382
Creditors: amounts falling due within one year
16
(11,879)
(9,971)
Net current assets
148,423
140,411
Total assets less current liabilities
390,823
374,778
Provisions for liabilities
(250,000)
(250,000)
Net assets
140,823
124,778
Income funds
Restricted funds
17,091
19,389
Unrestricted funds
General unrestricted funds
(63,697)
(82,040)
Revaluation reserve
187,429
187,429
123,732
105,389
140,823
124,778
THE DIESEL AND ELECTRIC PRESERVATION GROUP LTD
BALANCE SHEET (CONTINUED)
AS AT
31 DECEMBER 2023
31 December 2023
- 8 -

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 December 2023.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

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

The financial statements were approved by the Trustees on 16 September 2024
M N Howard
Trustee
Company registration number 02193894
THE DIESEL AND ELECTRIC PRESERVATION GROUP LTD
NOTES TO THE  FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
1
Accounting policies
Charity information

The Diesel and Electric Preservation Group Ltd is a private company limited by guarantee incorporated in England and Wales. The registered office is The Old Goods Shed, Williton Station, Williton, SOMERSET, TA4 4RQ.

1.1
Accounting convention

The financial statements have been prepared in accordance with the Charity's Memorandum and Articles of Association, the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). The Charity is a Public Benefit Entity as defined by FRS 102.

 

The Charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.

The financial statements are prepared in sterling, which is the functional currency of the Charity. 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 heritage assets. The principal accounting policies adopted are set out below.

1.2
Going concern

At the time of approving the financial statements, the Trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements. There are no material uncertainties which may create significant doubt over the chairty's ability to continue as a going concern.

1.3
Charitable funds

Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives.

The revaluation reserve represents the net (unrealised) gain arising on the revaluation of the heritage assets.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

1.4
Income

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the item of income have been met, it is probable that the income will be received and the amount can be measured reliably.

 

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

 

Membership subscriptions are credited to the Statement of Financial Activities in the year to which they relate. Life membership subscriptions are credited to the Statement of Financial Activites in the year they are received, as no refunds are given for unused portions of membership.

 

Income received in advance of provision of a sevice is deferred until criteria for income recognition are met.

THE DIESEL AND ELECTRIC PRESERVATION GROUP LTD
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 10 -

Donated professional services and donated facilities are recognised as income when the charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use by the charity of the item, is probable and the economic benefit can be measured reliably. In accordance with he Charities SORP (FRS 102), general volunteer time is not recognised.

 

On receipt, donated professional services and donated facilities are recognised on the basis of value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity: this is normally upon notification of the interest paid or payable by the bank.

1.5
Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.

 

Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources.

Irrecoverable VAT is charged at cost against the activity for which the expenditure was incurred.

1.6
Tangible fixed assets

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

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

Plant and equipment
10 years (straight line)
Oil Store
10 years (straight line)

Assets under construction are not depreciated.

 

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 recognised in the statement of financial activities.

Items of equipment are capitalised where the purchase price exceeds £1,000.

1.7
Heritage assets

The charity owns various locomotives and freight vehicles which are held and maintained for their historical and cultural value. Such assets are classified as heritage assets within the financial statements. A full description of the heritage assets is set out in Note 12.

 

Heritage assets are valued at their most recent valuation, which is currently 2020. Additions between valuations are stated at cost. Heritage assets are not depreciated as the trustees consider that they are artefacts of intrinsic value. Heritage assets are periodically reviewed for impairment, with any necessary impairment losses being taken to the Statement of Financial Activities.

THE DIESEL AND ELECTRIC PRESERVATION GROUP LTD
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 11 -
1.8
Fixed asset investments

The charitable company holds shares in an unquoted company, West Somerset Railway plc. The shares confer voting rights only and are held primarily to further the Charity's charitable objectives, rather than for financial return. As such, they are classified as programme-related investments on the balance sheet and measured at cost less impairment.

1.9
Impairment of fixed assets

At each reporting end date, the Charity 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).

1.10
Stocks

Stock includes spare parts and scrap which have been donated to the charity or acquired over a number of years to provide spare parts for the charity's locomotives and restoration work. Much of the stock is unique and as such there is no readily available market value. Donated stock is valued at an estimate of its fair value.

 

Stocks purchased by the Charity are measured at the lower of cost and net realisable value.

Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.

1.11
Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.12
Financial instruments

The Charity 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 Charity's balance sheet when the Charity 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 initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

THE DIESEL AND ELECTRIC PRESERVATION GROUP LTD
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 12 -
Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially 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.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

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

1.13
Provisions

Provisions are recognised when the Charity has a legal or constructive present obligation as a result of a past event, it is probable that the Charity will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in net income/(expenditure) in the period in which it arises.

2
Critical accounting estimates and judgements

In the application of the Charity’s accounting policies, the members 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. The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities include the inputs and estimates used in determining the valuation of heritage assets and the estimates used in determining the repair provision for the Old Goods Shed.

 

THE DIESEL AND ELECTRIC PRESERVATION GROUP LTD
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
3
Donations and legacies
Unrestricted
Restricted
Total
Unrestricted
Restricted
Total
funds
funds
funds
funds
2023
2023
2023
2022
2022
2022
£
£
£
£
£
£
Donations and gifts
39,918
25,136
65,054
11,342
22,618
33,960
Membership fees
5,586
-
5,586
7,303
-
7,303
45,504
25,136
70,640
18,645
22,618
41,263
4
Charitable activities
2023
2022
£
£

Locomotive hire

34,480
67,337
THE DIESEL AND ELECTRIC PRESERVATION GROUP LTD
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
5
Charitable activities

Direct costs

Support costs

Governance costs

Total
2023

Direct costs

Support costs

Governance costs

Total
2022
2023
2023
2023
2022
2022
2022
£
£
£
£
£
£
£
£
Depreciation and impairment
-
328
-
328
-
-
-
-

Maintenance and restoration costs

56,295
-
-
56,295
29,672
-
-
29,672

Rent

8,510
-
-
8,510
6,873
-
-
6,873

Utilities

3,787
-
-
3,787
2,601
-
-
2,601

Property and site maintenance

13,974
-
-
13,974
261,988
-
-
261,988

Purchases

5,343
-
-
5,343
4,297
-
-
4,297

Postage and stationery

-
937
-
937
-
535
-
535

Newsletter and publicity

-
1,149
-
1,149
-
2,596
-
2,596

Telephone

-
572
-
572
-
616
-
616

Insurance

-
5,943
-
5,943
-
5,039
-
5,039

Subscriptions

-
-
-
-
-
260
-
260

Miscellaneous costs

-
2,185
-
2,185
-
2,165
-
2,165

Legal and professional

-
-
3,805
3,805
-
-
4,054
4,054
87,909
11,114
3,805
102,828
305,431
11,211
4,054
320,696
87,909
11,114
3,805
102,828
305,431
11,211
4,054
320,696
Analysis by fund
Unrestricted funds
60,475
11,114
3,805
75,394
293,549
11,211
4,054
308,814
Restricted funds
27,434
-
-
27,434
11,882
-
-
11,882
87,909
11,114
3,805
102,828
305,431
11,211
4,054
320,696

Property and site maintenance expenses for 2022 include £250,000 to recognise a provision for the estimated costs to repair the Old Goods Shed (see note 17).

THE DIESEL AND ELECTRIC PRESERVATION GROUP LTD
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
6
Net movement in funds
2023
2022
£
£
Net movement in funds is stated after charging/(crediting)
Accounts preparation fees (Azets)
1,815
1,650
Independent examination fees (Azets)
1,815
1,650
Depreciation of owned tangible fixed assets
328
-
7
Trustees

None of the Trustees (or any persons connected with them) received any remuneration during the year, but two trustees were reimbursed a total of £1,255 in respect of travelling expenses (2022- £nil).

8
Employees

The average monthly number of employees during the year was:

2023
2022
Number
Number
Total
-
0
-
0
There were no employees whose annual remuneration was more than £60,000.
9
Staff and key management personnel

The charitable company does not have any employees (2022: none). Trustees do not receive any remuneration as a result of their office. Total benefits paid to key management personnel were £nil (2022 - £nil).

10
Taxation

The charity is exempt from corporation tax as all its income is charitable and is applied for charitable purposes.

THE DIESEL AND ELECTRIC PRESERVATION GROUP LTD
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
11
Tangible fixed assets
Assets under construction
Plant and equipment
Oil Store
Total
£
£
£
£
Cost
At 1 January 2023
1,466
24,063
-
25,529
Additions
6,116
2,245
-
8,361
Transfers
(7,582)
-
7,582
-
At 31 December 2023
-
26,308
7,582
33,890
Depreciation and impairment
At 1 January 2023
-
24,063
-
24,063
Depreciation charged in the year
-
75
253
328
At 31 December 2023
-
24,138
253
24,391
Carrying amount
At 31 December 2023
-
2,170
7,329
9,499
At 31 December 2022
1,466
-
-
1,466

Tangible fixed assets consist of the Heritage Diesel Visitor Centre displays, models, display equipment, viewing and maintenance access staging, and the members' messroom cabin, together with equipment used in the overhaul and restoration of railway vehicles.

THE DIESEL AND ELECTRIC PRESERVATION GROUP LTD
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
12
Heritage assets
£
At 1 January 2023 and at 31 December 2023
232,900

The valuation of the locomotives was reassessed by the trustees as at 31 December 2023 with regard to recent market sales of similar locomotives and their current condition and are satisfied there is no material change from the prior year.

Locomotives:

Class 14 0-6-0 D.H. Nos. D9518 & D9526

Class 35 "Hymek" D.H. Nos. D7017 & D7018

Class 47/8 "Brush" D.E. No. D1661 "North Star"

Class 52 "Western" D.H. No. D1010 "Western Campaigner"

 

Freight vehicles:

Brake van No. B952527

Ferry van No. B787158

Lowmac No. B904146

Open wagon No. GW118904

Vanwide No. B784676

 

The charitable company enters into agreements with the owners of diesel locomotives wherein the charitable company becomes the custodian of those locomotives for a specified period. Under the agreements the charitable company is responsible for the administration of the locomotives, their maintenance and operation whilst on West Somerset Railway. The charitable company does not recognise these locomotives as assets on its balance sheet. The agreements in force at 31 December 2023 were:

 

Clive Burrows: Class 33 x 2 Nos. D6566 & D6575 both for the fifteen years expiring 29th August 2029.

West Somerset Railway: Andrew Barclay 0-4-0DH 578 for ten years expiring on 01st May 2031.

 

13
Investments
184,000 ordinary shares in West Somerset Railway plc:
£
Historic costs
14,400
Less: impairment
(14,399)
At 1 January 2023 and at 31 December 2023
1

The shares were purchased in 1995. Since 2002, West Somerset Railway plc has had a nil dividend policy, which has meant that the shares have no readily ascertainable market value. Accordingly the trustees have written the value of the shares down to £1.

THE DIESEL AND ELECTRIC PRESERVATION GROUP LTD
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
14
Stocks
2023
2022
£
£
Components
1,009
1,009
Spare parts
10,289
6,000
Finished goods and goods for resale
3,374
3,075
14,672
10,084
15
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
4,506
5,898
Other debtors
4,248
5,394
Prepayments and accrued income
33,078
29,372
41,832
40,664
16
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
7,806
6,114
Accruals and deferred income
4,073
3,857
11,879
9,971
17
Provisions for liabilities
2023
2022
£
£
Old Goods Shed repairs
250,000
250,000

The Old Goods Shed at Williton Station was built in 1862 to a Brunel broad gauge design by the Bristol & Exeter Railway. The stone-built slate-roofed building has been the home of the DEPG since 1980 and became a Grade II listed building in 1984 (listing number 1345661). The DEPG entered into a 35-year lease agreement with the West Somerset Railway for the Williton Goods Yard site in 1994 and the Old Goods Shed is included within the boundary of the Goods Yard. The building has since fallen into disrepair but the lease includes obligations for the DEPG to maintain the building, so remedial work will need to take place before the end of the lease term (29th August 2029).

 

The building was vacated at the end of 2020 due to concerns about the structural safety. The estimated cost of the remedial work depends on the planned future use of the building. The previous use of the building as a locomotive repair bay cannot justify the repair cost, so work is taking place to establish a plan for a community use facility that would be funded by multiple parties. The repair cost for the roof structure is estimated at approximately £150,000 with a further £100,000 needed for additional woodwork.

THE DIESEL AND ELECTRIC PRESERVATION GROUP LTD
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
18
Analysis of net assets between funds
Unrestricted
Revaluation
Restricted
Unrestricted
Revaluation
general funds
reserve
funds
Total
general funds
reserve
Restricted funds
Total
2023
2023
2023
2023
2022
2022
2022
2022
£
£
£
£
£
£
£
£
Fund balances at 31 December 2023 are represented by:
Tangible assets
9,499
-
-
9,499
1,466
-
-
1,466
Heritage assets
45,471
187,429
-
232,900
45,471
187,429
-
232,900
Investments
1
-
-
1
1
-
-
1
Current assets/(liabilities)
131,332
-
17,091
148,423
121,022
-
19,389
140,411
Provisions
(250,000)
-
-
(250,000)
(250,000)
-
-
(250,000)
(63,697)
187,429
17,091
140,823
(82,040)
187,429
19,389
124,778

Restricted funds relate to funds raised specifically for the restoration of the D1010 and D9518 locomotives.

THE DIESEL AND ELECTRIC PRESERVATION GROUP LTD
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
19
Operating lease commitments

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

2023
2022
£
£
Within one year
8,502
8,502
Between two and five years
2,258
10,758
In over five years
1
2
10,761
19,262
20
Related party transactions

There were no disclosable related party transactions during either the current or the prior year.

 

 

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