Company registration number 01117090 (England and Wales)
MID-HANTS RAILWAY LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
MID-HANTS RAILWAY LIMITED
COMPANY INFORMATION
Directors
Ms Rebecca Dalley
(Appointed 21 February 2024)
Mr James Dunwoody
Mr James Russell
Mr Gregory Watson
(Appointed 14 September 2023)
Secretary
Ms Rebecca Dalley
Company number
01117090
Registered office
Alresford Station
Alresford
Hampshire
United Kingdom
SO24 9JG
Auditor
Azets Audit Services
Athenia House
10-14 Andover Road
Winchester
Hampshire
United Kingdom
SO23 7BS
MID-HANTS RAILWAY LIMITED
CONTENTS
Page
Directors' report
1
Directors' responsibilities statement
2
Independent auditor's report
3 - 5
Statement of comprehensive income
6
Statement of financial position
7
Notes to the financial statements
8 - 16
MID-HANTS RAILWAY LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -

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

Principal activities

The principal activity of the company continued to be the operation of a steam railway.

Directors

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

Ms Rebecca Dalley
(Appointed 21 February 2024)
Mr James Dunwoody
Mr James Russell
Mr Gregory Watson
(Appointed 14 September 2023)
Mrs A Houghton
(Resigned 14 August 2023)
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.

Small companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

On behalf of the board
Mr Gregory Watson
Director
12 February 2025
MID-HANTS RAILWAY LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -

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.

MID-HANTS RAILWAY LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MID-HANTS RAILWAY LIMITED
- 3 -

Qualified opinion on financial statements

We have audited the financial statements of Mid-Hants Railway Limited (the 'company') for the year ended 31 March 2024 which comprise the statement of comprehensive income, the statement of financial position 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, except for the effects of the matter described in the Basis for Qualified Opinion paragraph, the financial statements:

Basis for qualified opinion

The financial statements for the year ended 31 March 2023 included a qualified opinion due to the auditors being unable to conclude on the income included in the financial statements, as well as related debtor and creditor balances. It was also qualified regarding the accuracy of the stock valuation.

 

The comparative information included in these financial statements has not been amended from that included in the financial statements for the year ended 31 March 2023 and we have been unable to obtain sufficient appropriate audit evidence concerning the opening balance position at 1 April 2023. Work has been undertaken on balances referred to above at 31 March 2024 and historical differences cleared to the Statement of Comprehensive Income, however we have been unable to obtain sufficient appropriate audit evidence to confirm in which year any differences arose. The stock valuation includes some client estimates due to the type and age of stock held, however with the provision included against this stock at year end we are satisfied that the figure at 31 March 2024 is materially correct, however we were unable to verify the accuracy of the stock figure brought forward from 31 March 2023. As a result, it has not been practicable to quantify the financial effects on the Statement of Comprehensive Income for the year ended 31 March 2024.

 

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 qualified opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

MID-HANTS RAILWAY LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MID-HANTS RAILWAY LIMITED
- 4 -

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:

Matters on which we are required to report by exception

Except for the matter described in the Basis for qualified opinion, in the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Directors' report.

 

In respect solely of the limitation on our work described in the Basis for qualified opinion section of our 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.

MID-HANTS RAILWAY LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MID-HANTS RAILWAY LIMITED
- 5 -

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.

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

 

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework.  Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.  This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

 

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

 

 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation.  This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.  The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

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.

Jon Noble
Senior Statutory Auditor
For and on behalf of Azets Audit Services
13 February 2025
Chartered Accountants
Statutory Auditor
Athenia House
10-14 Andover Road
Winchester
Hampshire
United Kingdom
SO23 7BS
MID-HANTS RAILWAY LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
- 6 -
2024
2023
£
£
Turnover
2,803,390
2,404,461
Cost of sales
(1,478,053)
(1,491,075)
Gross profit
1,325,337
913,386
Administrative expenses
(2,206,685)
(2,678,474)
Other operating income
417,822
1,139,711
Operating loss
(463,526)
(625,377)
Interest receivable and similar income
215
218
Interest payable and similar expenses
(54,760)
(45,618)
Loss before taxation
(518,071)
(670,777)
Tax on loss
107,043
(15,919)
Loss for the financial year
(411,028)
(686,696)

The income statement has been prepared on the basis that all operations are continuing operations.

MID-HANTS RAILWAY LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2024
31 March 2024
- 7 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
4
5,347,724
5,535,729
Current assets
Stocks
267,588
277,179
Debtors
5
96,655
153,953
Cash at bank and in hand
3,947
209,845
368,190
640,977
Creditors: amounts falling due within one year
6
(903,464)
(1,052,288)
Net current liabilities
(535,274)
(411,311)
Total assets less current liabilities
4,812,450
5,124,418
Creditors: amounts falling due after more than one year
7
(770,164)
(564,061)
Provisions for liabilities
(209,559)
(316,602)
Net assets
3,832,727
4,243,755
Capital and reserves
Called up share capital
787,266
787,266
Revaluation reserve
9
514,765
514,765
Profit and loss reserves
2,530,696
2,941,724
Total equity
3,832,727
4,243,755

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 board of directors and authorised for issue on 12 February 2025 and are signed on its behalf by:
Mr Gregory Watson
Director
Company Registration No. 01117090
MID-HANTS RAILWAY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 8 -
1
Accounting policies
Company information

Mid-Hants Railway Limited is a private company limited by shares incorporated in England and Wales. The registered office is Alresford Station, Alresford, Hampshire, United Kingdom, SO24 9JG.

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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

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. The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

 

The financial statements of the company are consolidated in the financial statements of Watercress Line Heritage Railway Trust Limited. These consolidated financial statements are available from its registered office, Alresford Station, Station Road, Alresford, SO24 9JG.

MID-HANTS RAILWAY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 9 -
1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements. This is because.

 

Directors have set in motion an active turnaround programme and staffed the company with the expertise to deliver it. Although the turnaround plan is still in its infancy the improvement since the year end in the feedback and buzz around the railway plus the numbers attending the Watercress Line for activities such as Steam Illuminations, galas and family events have shown a significant 7% increase over the prior year with an 8% increase in spend per visitor. This builds upon the increased efficiency of the organisation shown by a 31% increase in Spend per Visitor over 2 years and a doubling of metrics such as Revenue per Passenger Mile for our key Steam Illuminations product while our visitor numbers rebuild with a pivot towards digital marketing. This demonstrated performance improvement and feedback provides the Directors with the confidence the business will continue to grow for the foreseable future.

 

In addition to this since the year end the directors have undertaken additional measures to strengthen the cashflow of the company with the disposal of an asset as detailed in the notes to the accounts aswell as continued bank support with the conversion of its shorter term loans into longer term loans and the renewal of its overdraft facilities.

 

The Directors recognise that the economic climate is challenging. The Company continually explores opportunities to maximise its business, take advantage of new income opportunities and seek other funding options, and these are pursued with vigour. The Directors have considered the current trading activity coupled with the forward forecast for 12 months from authorising these financial statements and are content that the budgeted income, expenditure and cashflow is sufficient to be able to continue as a going concern.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

MID-HANTS RAILWAY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 10 -
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:

Freehold land and buildings
0-2%
Plant and equipment
0-25%
Assets under construction
Nil

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.

Locomotives are depreciated over the length of their boiler certificate (usually 10 years) down to their residual value. Where a locomotive, owned by independent group, is overhauled by the company and a long term hire agreement is in place, the costs incurred are capitalised. Costs are depreciated on a straight line basis over the expected useful life (usually 10 years). Other than the engineering workshops at Ropley, which are depreciated at 2% per annum, freehold land and buildings, track and certain coaches are not depreciated below their residual values. In the opinion of the directors, it is the company's purpose to restore, preserve and keep these assets in good repair for the future.

 

Freehold property consists mainly of historic buildings which have long economic lives and high residual values. Therefore any depreciation charge would be immaterial. The directors are of the opinion that no circumstances causing an impairment have occurred. The company has taken advantage of the transitional provisions to retain revalued assets at book values, no revaluation was carried out at transition.

 

Plant and equipment includes locomotives, rolling stock and track.

 

Assets under construction are not depreciated until they are brought into use. The company capitalises direct wages and employers national insurance in respect of internal capital projects. Coaches are deemed to have a residual value of £5,000 and once items reach that value no further depreciation is charged. Coaches that had a lower book value than this at the start of the year were continued to be held at that value.

 

Impairment reviews are carried out annually with adjustments recorded via the profit and loss account.

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. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

MID-HANTS RAILWAY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 11 -

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.6
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.7
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and 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.

1.8
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 statement of financial position 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 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.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

MID-HANTS RAILWAY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 12 -
Basic financial liabilities

Basic financial liabilities, including creditors, bank loans and loans from fellow group companies, 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 business 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.

1.9
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.10
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement 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.

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 income statement, 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.

1.11
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

MID-HANTS RAILWAY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 13 -
1.12
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 except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

1.13
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.

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.

3
Employees

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

2024
2023
Number
Number
Total
45
45
MID-HANTS RAILWAY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 14 -
4
Tangible fixed assets
Freehold land and buildings
Assets under construction
Plant and equipment
Total
£
£
£
£
Cost
At 1 April 2023
2,844,039
810,203
4,136,701
7,790,943
Additions
10,518
20,157
67,960
98,635
Disposals
(3,502)
-
0
(29,457)
(32,959)
Transfers
-
0
(779,176)
779,176
-
0
At 31 March 2024
2,851,055
51,184
4,954,380
7,856,619
Depreciation and impairment
At 1 April 2023
421,120
-
0
1,834,094
2,255,214
Depreciation charged in the year
69,427
-
0
217,213
286,640
Eliminated in respect of disposals
(3,502)
-
0
(29,457)
(32,959)
At 31 March 2024
487,045
-
0
2,021,850
2,508,895
Carrying amount
At 31 March 2024
2,364,010
51,184
2,932,530
5,347,724
At 31 March 2023
2,422,919
810,203
2,302,607
5,535,729

Freehold land and buildings:

 

 

 

2024

2023

 

£

£

Historical cost

2,336,290

2,329,274

Cumulative depreciation based on historical cost

487,045

421,120

 

1,849,245

1,908,154

 

 

 

The difference between this figure and the carrying net book value is the revaluation reserve as shown on page 4.

5
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
22,699
3,645
Amounts owed by group undertakings
7,661
119,253
Other debtors
66,295
31,055
96,655
153,953
MID-HANTS RAILWAY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 15 -
6
Creditors: amounts falling due within one year
2024
2023
£
£
Bank loans and overdrafts
392,847
266,500
Trade creditors
231,408
233,634
Amounts owed to group undertakings
6,661
-
0
Taxation and social security
23,544
89,194
Other creditors
249,004
462,960
903,464
1,052,288
7
Creditors: amounts falling due after more than one year
2024
2023
£
£
Bank loans and overdrafts
477,164
564,061
Other creditors
293,000
-
0
770,164
564,061

The other creditor above relates to funds received towards the future maintenance of Butts Bridge. The timing of any future payments are unknown and will only arise when maintenance requirements are identified.

8
Loans and overdrafts
2024
2023
£
£
Bank loans
567,199
830,561
Bank overdrafts
302,812
-
0
870,011
830,561
Payable within one year
392,847
266,500
Payable after one year
477,164
564,061

The bank loans are secured by a fixed and floating charge over the freehold railway property and other assets

9
Revaluation reserve
2024
2023
£
£
At the beginning and end of the year
514,765
514,765
MID-HANTS RAILWAY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 16 -
10
Operating lease commitments
Lessee

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

2024
2023
£
£
348,817
309,443
11
Events after the reporting date

In April 2024, Mid-Hants Railway Limited disposed of locomotive 73096 to a private buyer.

12
Parent company

The ultimate parent company is Watercress Line Heritage Railway Trust Limited, a registered charity and company registered in England and Wales, which holds 100% of the equity dividend shares and 54.31% of the non-equity shares. The charity is controlled by its Board of Trustees. Copies of the consolidated financial statements can be obtained from the registered office: Alresford Station, Alresford, Hampshire, SO24 9JG.

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