Charity registration number 1166460 (England and Wales)
Company registration number 09784120
DUDLEY CANAL AND TUNNEL TRUST
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
DUDLEY CANAL AND TUNNEL TRUST
LEGAL AND ADMINISTRATIVE INFORMATION
Trustees
C A Bennett
R I Langford
P T Smith
J Deacon
L T Bradshaw
K WIlliams
A Truslove
L Head BEM
Dr M C Clark
L J Bratt
(Appointed 18 September 2024)
I G Watson
(Appointed 10 September 2024)
Charity number
1166460
Company number
09784120
Principal address
501 Birmingham New Road
Dudley
West Midlands
DY1 4SB
Auditor
CK Audit
No 4 Castle Court 2
Castlegate Way
Dudley
West Midlands
DY1 4RH
DUDLEY CANAL AND TUNNEL TRUST
CONTENTS
Page
Trustees' report
1 - 4
Statement of trustees' responsibilities
5
Independent auditor's report
6 - 8
Statement of financial activities
9
Charity and subsidiary balance sheet
10
Charity balance sheet
11
Statement of cash flows
12
Notes to the financial statements
13 - 27
DUDLEY CANAL AND TUNNEL TRUST
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -

The trustees present their annual report and financial statements for the year ended 31 December 2024.

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 charitable company governing document, 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)".

Objectives and activities

The principal activity of the charity is the advancement of education for the public benefit, on the history, social history, heritage, economy, geology, geography, archaeology, architecture and other features of the Dudley canal tunnels, inland waterways, mines and its working boats; and the protection, preservation, conservation, maintenance, repair, improvement and development of the Dudley canal tunnels, inland waterways, mines and working boats for the use and benefit of the public.

 

The strategies employed to achieve the charity's objectives are to:

 

 

 

 

 

 

 

 

 

Public benefit

The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charitable company should undertake.

DUDLEY CANAL AND TUNNEL TRUST
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -
Achievements and performance

 

Executive Summary

2024 marked a year of stability and building upon foundations built in previous years, with a new CEO in the later part of the year.

In a positive sign, the Trust increased the number of bookings generated directly, with less reliance on visitors from Black Country Living Museum. The introduction and growth of online bookings contributed to this.

The special events at Easter, Halloween and Christmas were well received, with a significant increase in bookings for the Easter and Halloween events. This was due to the excellent feedback received for these established events. The recent new event of paddleboarding days also increased in popularity.

The educational offer for schools continued, with extensive work undertaken to ensure that this met the needs of the modern school curriculum.

The onsite café restaurant saw noticeable increase in sales, whilst maintaining control on stock and wage costs. With the loss of the Catering Manager, a re-structuring of the catering workforce led to improvements in performance.

After a number of years of sales increases, the onsite shop saw a drop in turnover. This was partly due to fewer Museum visitors, the reduced interest in Peaky Blinders and the cost of living whereby disposal income is reduced. This was also noticeable in the café restaurant, where the average spend per transaction reduced.

Staffing remained at a steady level, until the latter part of the year. In November, a new CEO was appointed, following the retirement of the popular CEO of over seven years standing. Unlinked to the CEO appointment, a number of staff moved on to other employment at a similar time. Although a short-term headache for the CEO, this enabled a slight re-structuring of the staffing.

During the year, we are awarded the Express and Star Hospitality, Leisure and Retail Business of the Year. This was a great achievement and against some formidable organisations.

We welcomed a new Trustee, Laura Bratt, who hit the ground running to assist with commercial aspects of the organisation. We also welcomed Carly Thomas as a new Director for our Enterprises company, who has been a regular on site assisting with operations. This appointment led to a long-standing member of the team, Ian Watson, moving from Enterprises Directorship to a Trustee.

Volunteers part a large part in the organisation, and we could not do all we do without them: thanks were formally given at the annual volunteer party.

One challenge moving forward is to assist the new CEO in the role, although having worked locally in the heritage sector, he was fully conversant with the workings of the organisation before joining. Another challenge is to increase our presence and offer to the public, building upon an excellent team and core offer that has been established over many years.

Financial review

Total income for the year amounted to £1,042,966 (2023 £1,074,203). Total expenditure amounted to £1,148,652 (2023 £1,026,432). This resulted in a net deficit for the year of £105,744 (2023 net surplus £47,946). However, it included a £70,000 overpayment of the rent to a sister charity, Dudley Canal Trust (Trips), enabling a reduction in loan repayments by the sister charity, which will be of long-term benefit to our charity. The 2023 surplus included £98,119 movement of funds from another sister charity, which is shown as a donation: hence the 2023 result was technically a £50,298 deficit (£1,421 deficit after Gift Aid adjustment) and the 2024 result a £35,744 deficit.

DUDLEY CANAL AND TUNNEL TRUST
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -

Reserves policy

 

Our unrestricted funds are freely available to spend on any of the charity’s purposes in delivering our aims and keeping our business sustainable. Restricted funds and tangible fixed assets do not form part of our reserves.  They are in place to protect the charity and its operations during down turns in business or other major occurrence to ensure it can continue to protect and preserve the unique environment in its care and engage the public with its historic importance. Reserves are also used to support new projects and activities which the Trust has identified as part of its business development and planning.  

 

The Trust aims to maintain a minimum of £300,000 as reserves. This is based upon the three highest expenditure months for 2024 for non-discretionary spending. Where funds fall below this amount the Trust will review a “Zero Level” approach, identifying the associated risks and mitigating them, building back reserves and diversifying the funding base.

Our readily available cash reserves are currently £331,208 which is slightly above our policy of £300,000. We also have £40,000 on fixed term deposit.

Risk management

The trustees have reviewed the major risks to which the charity is exposed and confirm that systems have been established to mitigate those risks. Particular attention has focused on non-financial risks arising from fire, health and safety of staff, trippers and audiences. A key element in the management of financial risk is the ongoing commitment to gain an increasing number of visitors by offering deals through various mediums, together with attending various community events.

Governing document and constitution

The company is limited by guarantee and hence there is no share capital.

 

Dudley Canal and Tunnel Trust is governed by its Memorandum and Articles of Association dated 18 September 2015. It is a registered charity with the Charity Commission.

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:

 

C A Bennett
R I Langford
P T Smith
J Deacon
L T Bradshaw
K WIlliams
A Truslove
H O'Connor
(Resigned 24 July 2024)
L Head BEM
Dr M C Clark
L J Bratt
(Appointed 18 September 2024)
I G Watson
(Appointed 10 September 2024)

Trustees' indemnity

The charity has Trustees' indemnity insurance in place.

 

DUDLEY CANAL AND TUNNEL TRUST
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 4 -

Organisational structure

The board of trustees, who meet bi-monthly administer the charity. A Chief Executive is appointed by the trustees to manage the day to day operations of the charity and attend the bi-monthly board meetings to present the Chief Executive's report on the day to day running of the business.

 

A Finance and HR Manager looks after the Trusts finances and supports the Chief Executive on all HR issues. A Programme & Events Manager leads the Trust’s customer programme to align to its charitable purposes. A Learning Engagement Officer is responsible for the Trust’s education offer. An Operations Manager looks after the general day to day operation, with focus on boats, standards and health & safety requirements. A Commercial Manager looks after the operational and commercial performance of the Café and the Shop. Part time roles in Volunteer Coordinator and Marketing Executive, support the Trust’s Volunteers function and Marketing function respectively. All report to the Chief Executive.

Induction and training of new trustees

New trustees are briefed by the management regarding the operations and their legal obligations under charity and company law. They are also given a tunnel tour to obtain a better understanding of the company history and operations.

Related parties

The charity has a wholly-owned subsidiary, Dudley Canal and Tunnel Trust Enterprises Limited, a limited company whose purpose is to raise monies through commercial enterprise with the aim of profit making so that these profits may be gifted to Dudley Canal and Tunnel Trust to support their charitable purposes.

Auditor

In accordance with the company's articles, a resolution proposing that CK Audit be reappointed as auditor of the company will be put at a General Meeting.

The trustees' report was approved by the Board of Trustees.

P T Smith
Trustee
Dated: 18 August 2025
DUDLEY CANAL AND TUNNEL TRUST
STATEMENT OF TRUSTEES' RESPONSIBILITIES  
FOR THE YEAR ENDED 31 DECEMBER 2024
- 5 -

The trustees, who are also the directors of Dudley Canal and Tunnel Trust 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 charitable company 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 charitable company 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 charitable 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 charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

DUDLEY CANAL AND TUNNEL TRUST
INDEPENDENT AUDITOR'S REPORT
TO THE TRUSTEES OF DUDLEY CANAL AND TUNNEL TRUST
- 6 -

Opinion

We have audited the financial statements of Dudley Canal and Tunnel Trust (the ‘charitable company’) and its subsidiary ('the group') for the year ended 31 December 2024 which comprise the statement of financial activities, the balance sheet, 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:

-

give a true and fair view of the state of the goup's and charitable company's affairs as at 31 December 2024 and of its incoming resources and application of resources, for the year then ended;

-
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-

have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charitable 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.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' 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 charitable 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 trustees 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 trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and 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.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

-

the information given in the financial statements is inconsistent in any material respect with the trustees' report; or

-

sufficient accounting records have not been kept; or

-

the financial statements are not in agreement with the accounting records; or

-

we have not received all the information and explanations we require for our audit.

DUDLEY CANAL AND TUNNEL TRUST
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE TRUSTEES OF DUDLEY CANAL AND TUNNEL TRUST
- 7 -
Responsibilities of trustees

As explained more fully in the statement of trustees' responsibilities, the trustees, who are also the directors of the charitable company for the purpose of company law, 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 trustees 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 trustees are responsible for assessing the charitable 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 trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

 

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.

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

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

We identified and assessed the risks of material misstatement of the financial statements, in respect of irregularities whether due to fraud or error, or non compliance with laws and regulations and then designed and performed audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

We obtained an understanding of the legal and regulatory frameworks that are applicable to the Charity by discussion and enquiry with the trustees and management team and our general knowledge and experience of the charity.

We focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, Charities SORP, legislation, data protection, employment, and health and safety legislation;

We assessed the extent of compliance with the laws and regulations identified above through making enquiries of management, reviewing correspondence with relevant regulators.

Audit response to risks identified

We assessed the susceptibility of the Charity's' financial statements to material misstatement, including how fraud might occur. Audit procedures performed included but were not limited to:

DUDLEY CANAL AND TUNNEL TRUST
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE TRUSTEES OF DUDLEY CANAL AND TUNNEL TRUST
- 8 -

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the trustees and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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.

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity’s trustees 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 charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Blake Morris (Senior Statutory Auditor)
For and on behalf of CK Audit, Statutory Auditor
Chartered Accountants
No 4 Castle Court 2
Castlegate Way
Dudley
West Midlands
DY1 4RH
17 September 2025

CK Audit is eligible for appointment as auditor of the charitable company by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

DUDLEY CANAL AND TUNNEL TRUST
STATEMENT OF FINANCIAL ACTIVITIES
INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 9 -
Unrestricted
Restricted
Total
Unrestricted
Restricted
Total
funds
funds
funds
funds
2024
2024
2024
2023
2023
2023
Notes
£
£
£
£
£
£
Income and endowments from:
Donations and legacies
2
81,560
-
81,560
134,547
4,000
138,547
Charitable activities
5
802,867
-
802,867
761,923
-
761,923
Other trading activities
3
144,612
-
144,612
160,295
-
160,295
Investments
4
11,938
-
11,938
10,439
-
10,439
Other income
6
1,989
-
1,989
3,126
-
3,126
Total income
1,042,966
-
1,042,966
1,070,330
4,000
1,074,330
Expenditure on:
Raising funds
7
64,835
-
64,835
70,482
-
70,482
Charitable activities
8
1,078,535
4,437
1,082,972
954,469
546
955,015
Other expenditure
15
845
-
845
935
-
935
Total expenditure
1,144,215
4,437
1,148,652
1,025,886
546
1,026,432
Net gains/(losses) on investments
13
(58)
-
(58)
48
-
48
Net income/(expenditure) and movement in funds
(101,307)
(4,437)
(105,744)
44,492
3,454
47,946
Reconciliation of funds:
Fund balances at 1 January 2024
477,235
6,334
483,569
432,743
2,880
435,623
Fund balances at 31 December 2024
375,928
1,897
377,825
477,235
6,334
483,569

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

The notes on pages 13 to 27 form part of these financial statements.

DUDLEY CANAL AND TUNNEL TRUST
CHARITY AND SUBSIDIARY BALANCE SHEET
AS AT 31 DECEMBER 2024
31 December 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
16
50,251
45,067
Investments
18
11,494
11,552
61,745
56,619
Current assets
Stocks
19
30,621
30,795
Debtors
20
11,452
8,812
Investments
22
40,000
144,445
Cash at bank and in hand
331,547
344,321
413,620
528,373
Creditors: amounts falling due within one year
23
(73,023)
(65,805)
Net current assets
340,597
462,568
Total assets less current liabilities
402,342
519,187
Creditors: amounts falling due after more than one year
24
(24,517)
(35,618)
Net assets
377,825
483,569
The funds of the charitable company
Restricted income funds
26
1,897
6,334
Unrestricted funds
28
375,928
477,235
377,825
483,569

The notes on pages 13 to 27 form part of these financial statements.

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 2024, although an audit has been carried out under section 144 of the Charities Act 2011.

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.

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 18 August 2025
A  Truslove
Trustee
Company registration number 09784120 (England and Wales)
DUDLEY CANAL AND TUNNEL TRUST
CHARITY BALANCE SHEET
AS AT 31 DECEMBER 2024
31 December 2024
- 11 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
16
46,893
40,947
Investments
18
11,493
11,551
58,386
52,498
Current assets
Stocks
19
6,720
8,378
Debtors
20
16,769
5,778
Investments
22
40,000
144,445
Cash at bank and in hand
288,944
288,381
352,433
446,982
Creditors: amounts falling due within one year
23
(63,054)
(68,147)
Net current assets
289,379
378,835
Total assets less current liabilities
347,765
431,333
Income funds
Restricted funds
26
1,897
6,334
Unrestricted funds
345,868
424,999
347,765
431,333

The notes on pages 13 to 27 form part of these financial statements.

The net result reported in the Statement of Financial Activities of the parent charity for the year was a loss of £89,098 (2023: £61,528 profit).
The financial statements were approved by the Trustees on 18 August 2025
A  Truslove
Trustee
Company registration number 09784120
DUDLEY CANAL AND TUNNEL TRUST
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 12 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
32
(107,986)
119,756
Investing activities
Purchase of tangible fixed assets
(15,622)
(9,902)
Transfer (in)/out of short term investments
104,445
17,555
Investment income received
11,938
10,439
Net cash generated from investing activities
100,761
18,092
Financing activities
Repayment of bank loans
(5,549)
(5,585)
Net cash used in financing activities
(5,549)
(5,585)
Net (decrease)/increase in cash and cash equivalents
(12,774)
132,263
Cash and cash equivalents at beginning of year
344,321
212,058
Cash and cash equivalents at end of year
331,547
344,321

The notes on pages 13 to 27 form part of these financial statements.

DUDLEY CANAL AND TUNNEL TRUST
NOTES TO THE  FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 13 -
1
Accounting policies
Charity information

 

Dudley Canal and Tunnel Trust is a charitable company incorporated in England and Wales. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity. The address of the registered office is 501 Birmingham New Road, Dudley, West Midlands DY1 4SB.

1.1
Accounting convention

The financial statements have been prepared in accordance with the charitable company governing document, 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 charitable company is a Public Benefit Entity as defined by FRS 102.

The financial statements are prepared in sterling, which is the functional currency of the charitable 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 certain fair value investments.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 charitable company 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.

1.3
Charitable funds

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

Restricted funds are subject to specific conditions by donors or grantors 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 charitable company is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the charitable company 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.

No amount is included in the financial statements for volunteer time in line with SORP (FRS102).

Grants are included in incoming resources when they are receivable. Performance related grants are deferred and released after any performance conditions are met.

DUDLEY CANAL AND TUNNEL TRUST
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 14 -
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. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.

All expenditure is accounted for on an accruals basis. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that a settlement will be required and the amount of the obligation can be measured reliably. Support costs are those that assist the work of the charity but do not directly represent charitable activities and include office costs, governance costs and administrative payroll costs. They are incurred directly in support of expenditure on the objects of the charity and include project management carried out at Headquarters.

1.6
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:

Leasehold buildings
10% straight line
Foyer improvements
25% straight line
Boats and equipment
20% reducing balance and at varying rates on cost
Office furniture and equipment
20% reducing balance / 10% straight line
Computers
25% straight line

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.

1.7
Fixed asset investments

Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.

1.8
Impairment of fixed assets

At each reporting end date, the charitable 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).

1.9
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. Items held for distribution at no or nominal consideration are measured the lower of replacement cost and cost.

DUDLEY CANAL AND TUNNEL TRUST
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 15 -
1.10
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.

1.11
Financial instruments

The charitable 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 charitable company's balance sheet when the charitable 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.

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 charitable company’s contractual obligations expire or are discharged or cancelled.

1.12
Employee benefits

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 charitable company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.13
Retirement benefits

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

1.14
Leases

Rentals payable under operating leases, including any lease incentives received, are charged as an expense on a straight line basis over the term of the relevant lease.

DUDLEY CANAL AND TUNNEL TRUST
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 16 -
2
Donations and legacies
Unrestricted
Unrestricted
Restricted
Total
funds
funds
funds
2024
2023
2023
2023
£
£
£
£
Donations and gifts
81,560
134,547
4,000
138,547
Donations and gifts
Donations
6,419
11,631
4,000
15,631
Donations from Dudley Canal Trust
-
98,119
-
98,119
Gift aid
69,794
24,670
-
24,670
Other
5,347
127
-
127
81,560
134,547
4,000
138,547
3
Income from other trading activities
Unrestricted
Unrestricted
funds
funds
2024
2023
£
£
Shop income
116,331
135,188
Letting and licensing arrangements
6,493
7,025
Other income
21,788
18,082
Other trading activities
144,612
160,295
4
Income from investments
Unrestricted
Unrestricted
funds
funds
2024
2023
£
£
Income from listed investments
614
549
Interest receivable
11,324
9,890
11,938
10,439
DUDLEY CANAL AND TUNNEL TRUST
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 17 -
5
Income from charitable activities
Unrestricted
Unrestricted
funds
funds
2024
2023
£
£

Boat income

370,371
404,961

Workshop income

12,228
13,438

Admissions and booking fees

31,586
10,978
Function income
13,661
-

Membership

714
918

Rental income

550
1,880

Event income

146,472
137,031
Cruises
-
5,401
Cafe
227,285
187,316
802,867
761,923
6
Other income
Unrestricted
Unrestricted
funds
funds
2024
2023
£
£
Other income
1,989
3,126
7
Expenditure on raising funds
Unrestricted
Unrestricted
funds
funds
2024
2023
£
£
Trading costs
Other trading activities
64,835
70,482
DUDLEY CANAL AND TUNNEL TRUST
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 18 -
8
Expenditure on charitable activities
Direct costs
Direct costs
2024
2023
£
£
Staff costs
514,608
487,428
Depreciation and impairment
5,584
7,396

Electric, gas, telephone and water

51,726
49,771

Insurance

28,012
23,823

Maintenance and upkeep

65,105
30,027

Marketing advertising and PR

25,879
18,326

Service contracts

7,137
7,700

Heritage activities and donations

984
626

Health and safety

2,466
2,460

Consumables

1,715
2,016

Volunteer expenses

1,888
-

Activities and events

585
213

Events

-
25,000

Commission

26,083
24,520

Rent

107,450
39,400

Cruises

-
1,509
Cafe
80,539
76,468
919,761
796,683
Share of support and governance costs (see note 11)
Support
149,597
145,996
Governance
13,614
12,336
1,082,972
955,015
Analysis by fund
Unrestricted funds
1,078,535
954,469
Restricted funds
4,437
546
1,082,972
955,015

Rent for 2024 includes rent paid to Dudley Canal Trust (Trips) Limited amounting to £104,850 (2023 - £36,800). This assists payments of a loan by this sister charity.

9
Net movement in funds
2024
2023
£
£
The net movement in funds is stated after charging/(crediting):
Fees payable for the audit of the charity's financial statements
8,500
7,450
Depreciation of owned tangible fixed assets
10,442
9,171
DUDLEY CANAL AND TUNNEL TRUST
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 19 -
10
Trustees
None of the trustees (or any persons connected with them) received any remuneration or benefits from the charitable company during the year.
11
Employees

The average monthly number of employees during the year was:

2024
2023
Number
Number
Administration
8
7
Operational
29
30
Total
37
37
Employment costs
2024
2023
£
£
Wages and salaries
562,437
528,731
Social security costs
37,469
34,951
Other pension costs
11,820
10,136
611,726
573,818
The number of employees whose annual remuneration was more than £60,000 is as follows:
2024
2023
Number
Number
£60,001 to £70,000
-
1
Remuneration of key management personnel
2024
2023
£
£
Aggregate compensation
63,830
67,834

The Trust considers its key management personnel to be the Chief Executive.

DUDLEY CANAL AND TUNNEL TRUST
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 20 -
12
Support costs
Support costs
Governance costs
2024
Support costs
Governance costs
2023
£
£
£
£
£
£
Staff costs
97,118
-
97,118
86,390
-
86,390
Depreciation
4,858
-
4,858
1,775
-
1,775

Service costs

23,743
-
23,743
31,321
-
31,321

Directors expenses

438
-
438
574
-
574

Motor travel and entertaining

341
-
341
273
-
273

Legal and professional fees

2,189
-
2,189
2,163
-
2,163
Bad debt charges
969
-
969
-
-
-
Bank and credit card charges
19,941
-
19,941
23,500
-
23,500
Audit fees
-
8,500
8,500
-
7,450
7,450
Legal and professional
-
1,864
1,864
-
1,661
1,661

Accountancy and payroll services

-
3,250
3,250
-
3,225
3,225
149,597
13,614
163,211
145,996
12,336
158,332
Analysed between
Charitable activities
149,597
13,614
163,211
145,996
12,336
158,332
13
Gains and losses on investments
Unrestricted
Unrestricted
funds
funds
2024
2023
Gains/(losses) arising on:
£
£
Revaluation of investments
(58)
48
14
Taxation

The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.

15
Other expenditure
Unrestricted
Unrestricted
funds
funds
2024
2023
£
£
Financing costs
845
935
845
935
DUDLEY CANAL AND TUNNEL TRUST
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 21 -
16
Tangible Fixed Assets - Charity and Subsidiary
Leasehold buildings
Foyer improvements
Boats and equipment
Office furniture and equipment
Total
£
£
£
£
£
Cost
At 1 January 2024
11,653
-
236,436
34,171
282,260
Additions
-
10,083
2,071
3,468
15,622
At 31 December 2024
11,653
10,083
238,507
37,639
297,882
Depreciation and impairment
At 1 January 2024
682
-
205,411
31,100
237,193
Depreciation charged in the year
235
2,521
6,656
1,030
10,442
At 31 December 2024
917
2,521
212,067
32,126
247,631
Carrying amount
At 31 December 2024
10,736
7,562
26,440
5,513
50,251
At 31 December 2023
10,971
-
31,026
3,070
45,067
Tangible Fixed Assets - Charity
Leasehold buildings
Foyer improvements
Boats and equipment
Office furniture and equipment
Total
£
£
£
£
£
Cost
At 1 January 2024
11,653
-
229,393
33,613
274,659
Additions
-
10,083
2,071
3,468
15,622
At 31 December 2024
11,653
10,083
231,464
37,081
290,281
Depreciation and impairment
At 1 January 2024
682
-
201,985
31,045
233,712
Depreciation charged in the year
235
2,521
5,947
974
9,677
At 31 December 2024
917
2,521
207,932
32,019
243,389
Carrying amount
At 31 December 2024
10,736
7,562
23,532
5,062
46,892
At 31 December 2023
10,971
-
27,408
2,568
40,947
DUDLEY CANAL AND TUNNEL TRUST
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 22 -
17
Financial instruments
2024
2023
£
£
Carrying amount of financial assets
Instruments measured at fair value through profit or loss
40,000
144,445
18
Fixed asset investments - Charity and subsidiary
Listed investments
£
Cost or valuation
At 1 January 2024
11,552
Valuation changes
(58)
At 31 December 2024
11,494
Carrying amount
At 31 December 2024
11,494
At 31 December 2023
11,552
2024
2023
Other investments (Charity only) comprise:
Notes
£
£
Investments in subsidiaries
1
1

The Charity holds 100% of the issued Ordinary Shares of Dudley Canal and Tunnel Trust Enterprises Limited. This wholly-owned subsidiary undertakes on-site trading to support the charitable activities of the Charity. At 31 December 2024, its net assets and shareholder's funds amounted to £30,061 (2023: £52,234).

19
Stocks
2024
2023
2024
2023
Charity and Subsidiary
Charity and Subsidiary
Charity
Charity
£
£
£
£
Finished goods and goods for resale
30,621
30,795
6,720
8,378
DUDLEY CANAL AND TUNNEL TRUST
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 23 -
20
Debtors
2024
2023
2024
2023
Charity and Subsidiary
Charity and Subsidiary
Charity
Charity
Amounts falling due within one year:
£
£
£
£
Trade debtors
5,573
4,877
5,544
2,762
Amounts owed by subsidiary undertakings
-
-
5,346
-
Other debtors
-
919
-
-
Prepayments and accrued income
5,879
3,016
5,879
3,016
11,452
8,812
16,769
5,778
21
Loans and overdrafts
2024
2023
£
£
Bank loans
30,073
35,618
Payable within one year
5,556
-
Payable after one year
24,517
35,618
22
Current asset investments
2024
2023
£
£
Fixed term bonds
40,000
144,445
23
Creditors: amounts falling due within one year
2024
2023
2024
2023
Charity and Subsidiary
Charity and Subsidiary
Charity
Charity
Notes
£
£
£
£
Bank loans
21
5,556
-
-
-
Other taxation and social security
33,601
36,353
31,418
33,878
Trade creditors
8,904
11,100
8,790
10,750
Amounts owed to subsidiary undertakings
-
-
-
7,453
Other creditors
4,514
2,713
4,148
2,027
Accruals and deferred income
20,448
15,639
18,698
14,039
73,023
65,805
63,054
68,147
DUDLEY CANAL AND TUNNEL TRUST
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 24 -
24
Creditors: amounts falling due after more than one year
2024
2023
2024
2023
Charity and Subsidiary
Charity and Subsidiary
Charity
Charity
Notes
£
£
£
£
Bank loans
21
24,517
35,618
-
-
25
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
11,820
10,136

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

26
Restricted funds

The restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used.

At 1 January 2024
Incoming resources
Resources expended
At 31 December 2024
£
£
£
£
Richardson Foundation
4,000
-
(4,000)
-
Historic England
2,334
-
(437)
1,897
6,334
-
(4,437)
1,897
Previous year:
At 1 January 2023
Incoming resources
Resources expended
At 31 December 2023
£
£
£
£
Richardson Foundation
-
4,000
-
4,000
Historic England
2,880
-
(546)
2,334
2,880
4,000
(546)
6,334

The balance on the Historic England restricted fund includes £1,620 (2023: £2,057) relating to fixed assets which are being depreciated on a 20% reducing balance basis.

DUDLEY CANAL AND TUNNEL TRUST
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 25 -
27
Analysis of net assets between funds
Unrestricted
Restricted
Total
funds
funds
2024
2024
2024
£
£
£
At 31 December 2024:
Tangible assets
49,177
1,074
50,251
Investments
11,494
-
11,494
Current assets/(liabilities)
339,774
823
340,597
Long term liabilities
(24,517)
-
(24,517)
375,928
1,897
377,825
Unrestricted
Restricted
Total
funds
funds
2023
2023
2023
£
£
£
At 31 December 2023:
Tangible assets
43,556
1,511
45,067
Investments
11,552
-
11,552
Current assets/(liabilities)
457,745
4,823
462,568
Long term liabilities
(35,618)
-
(35,618)
477,235
6,334
483,569
28
Unrestricted funds

The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.

At 1 January 2024
Incoming resources
Resources expended
Gains and losses
At 31 December 2024
£
£
£
£
£
General funds
477,235
1,042,966
(1,144,215)
(58)
375,928
Previous year:
At 1 January 2023
Incoming resources
Resources expended
Gains and losses
At 31 December 2023
£
£
£
£
£
General funds
432,743
1,070,330
(1,025,886)
48
477,235
DUDLEY CANAL AND TUNNEL TRUST
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 26 -
29
Operating lease commitments
Lessee

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

2024
2023
£
£
Within one year
5,240
5,778
Between two and five years
13,403
16,283
18,643
22,061
30
Related party transactions
Transactions with related parties

During the year the charitable company entered into the following transactions with related parties:

During the year a trustee of the charity gained income from the charity through her professional services and wares amounting to £1,075 (2023: £804).

 

During the year the wife of a trustee of the charity gained income from the charity through selling her wares amounting to £708 (2023: £996).

31
Results of the Charity's Subsidiary Trading Company

The Charity (parent) wholly owns a trading subsidiary which is incorporated in the UK and has the same registered office as the Charity. The subsidiary undertaking, Dudley Canal and Tunnel Trust Enterprises Limited (Company Registration No. 10299996) operates the ancillary commercial activities connected to the activities of Dudley Canal and Tunnel Trust. The trading company donates its' taxable profit to the Trust as unrestricted funds. A summary of the results is set out below. Separate unaudited accounts have been filed with the Registrar of Companies, with the same accounting reference date as the Charity.

 

Profit & Loss Account            2024        2023

     £         £

 

Turnover                 158,273         185,028

Cost of sales                 (61,369)      (70,482)

Gross profit                 96,904         114,546    

Administrative expenses              (71,477)     (68,462)

Operating profit                  25,427         46,084

Interest payable/receivable             (505)     (449)

Profit for year before and after taxation     24,922          45,635

DUDLEY CANAL AND TUNNEL TRUST
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 27 -
32
Cash generated from operations
2024
2023
£
£
(Deficit)/surplus for the year
(105,744)
47,946
Adjustments for:
Investment income recognised in statement of financial activities
(11,938)
(10,439)
Fair value gains and losses on investments
58
(48)
Depreciation and impairment of tangible fixed assets
10,442
9,171
Movements in working capital:
Decrease/(increase) in stocks
174
(12,006)
(Increase)/decrease in debtors
(2,640)
69,208
Increase in creditors
1,662
15,924
Cash (absorbed by)/generated from operations
(107,986)
119,756
Per cash flow statement page
(107,986)
119,756
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