REGISTERED COMPANY NUMBER: 03040336 (England and Wales)

REGISTERED CHARITY NUMBER: 1046614

REPORT OF THE TRUSTEES AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31ST DECEMBER 2024

FOR

LLANGOLLEN RAILWAY TRUST LIMITED

Page

Report of the Trustees

1

to

6

Statement of Trustees' Responsibilities

7

Report of the Independent Auditors

8

to

11

Statement of Financial Activities

12

Balance Sheet

13

Cash Flow Statement

14

Notes to the Cash Flow Statement

15

Notes to the Financial Statements

16

to

26

The trustees who are also directors of the charity for the purpose of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31st December 2024.

This report has been prepared in accordance with the small company regime of the Companies Act 2006. The trustees have adopted the provisions of the Statement of Recommended Practice (SORP) Accounting and reporting by Charities 2011. The trustees have complied with the duty in section 17(5) of the 2011 Charities Act.

OBJECTIVES AND ACTIVITIES

Objectives and aims

The objectives of the charity remain the same, being to support the restoration, preservation and operation of the Llangollen Railway for the benefit of the public. This is achieved by means of education, particularly related to engineering and the history of railways locally & nationally, in the natural environment of the Dee Valley which contributes to heath and wellbeing.

The main objectives for the year are:-

- The management, maintenance and restoration of a heritage railway.

- The encouragement of volunteer activity in support of the above aims.

- The preservation of heritage skills.

- Preserving the railway and its history for the public in an immersive, informative, educational style.

- Expanding membership of the railway.

- the continued improvement of our governance and accountability.

Public benefit

The Llangollen Railway has a very high profile both locally and nationally and its interaction with the public is vital. The public and the towns of Llangollen and Corwen benefit enormously by the railway's presence as a tourism, leisure, transport and educational facility.

The line first opened in the 1860s and is operated to 21st century standards in a way that in addition to being educational allows a fun and safe experience, knowing that participation is helping to preserve real history for the future.

The Railway is open to all, either on a visitor level or as an opportunity to volunteer as a working member. "Everyone is welcome" has always been a cornerstone of the Railway's philosophy, and since restoration started over forty years ago it has provided an enhancing experience for innumerable people locally, nationally and internationally.

The Railway has a very significant effect on the local economy both in the employment it provides and also the number of visitors it attracts to the Dee Valley and North East Wales.

Statement of compliance

The trustees have referred to the Charity Commission's general guidance on public benefit when reviewing the 2024 activities and making plans for future periods, and believe that they have complied with their duty to have due regard to this guidance.

Volunteers

Volunteers represent a considerable human resource contribution to the operation of our Heritage Railway, throughout all of the operational, engineering, commercial and customer focussing departments. This inevitably serves as an intrinsic component of a viable and sustainable business. Through a volunteer framework and policy of engagement, induction, training, and ongoing supervision, volunteers are integrated within the small employee team to ensure the Railway can deliver its charitable purpose being the primary custodian of a heritage railway, which centres on the interpretation and preservation of an industrial heritage attraction for public benefit. The project therefore contributes to wider community identity, whilst serving as an additional economic driver for the wider local and regional tourism and business sectors.

The Railway currently has 380 registered volunteers, with approximately 250 volunteers routinely rostering on a weekly basis (during operational periods).

The volunteer framework allows for people (many of the older age brackets), to remain active and involved in a project they are enthusiastic about, whilst equally in the knowledge they are supporting a charitable cause.

STRATEGIC REPORT

Achievements and performance

Charitable activities

We continued our usual programme of special events alongside day-to-day operations. We also continued to make overdue improvements to our infrastructure and coaching stock.

None of this would have been possible without the efforts of a great many volunteers working alongside the paid staff. As ever, we owe a huge debt of gratitude to all concerned.

CounterCulture Partnership reported to the board following their review on governance, operations and strategic plans for the future.

The Shared Prosperity Fund grant £375,000 has funded the review above but also enabled us to invest in volunteer co-ordination and training, the customer experience, and environmental protection, not least alternatives to burning fossil fuels.

Financial performance

It has been a challenging year. Whilst ticket sales were slightly in excess of 2023, sales have not recovered to pre-pandemic levels. Inevitably this impacts on our ability to cover operational costs.

Cash resources have covered the loss but inevitably these are finite.

Outlook

A major continuing concern for the Trust, the heritage railway sector generally and numerous other organisations which rely on volunteers, both national and local, big and small, is the availability of volunteers. Our numbers remain about 30% down and this is reflected across the voluntary sector as a whole.

This leads to concerns also for the preservation of heritage skills. We are working with local colleges, for example, to try to address this by means of work experience and apprenticeships.

The cost of living crises remains a major concern in terms of passenger numbers, costs and impact on our volunteers. The trustees will continue to act cautiously as regards motive power and discretionary spend.

The environment

This is also an obvious concern for the sector and is being addressed by the Heritage Railway Association as best it can. Whilst it can be said that steam power in the industry contributes very little to the overall problem, that particular argument doesn't really stand scrutiny. The fact is, taken together with all the other so-called minor contributors, it all adds up to the big problem the world faces.

There are no easy solutions to the fuel issue currently but greener alternatives are being developed and tested.

We are working with our public sector and third sector partners on carbon offset activities.

Financial review

Investment policy and objectives

The nature of the trust's funding is such that there will never be enough funds to do everything we wish to achieve in terms of heritage restoration. The Trust continues to depend very heavily on donations, legacies and grants to carry out larger projects in particular, for example the building of Corwen Station.

It is the board's policy to continue to operate debt-free with the exception of the odd small finance lease which may be expedient. In this respect we have to bear in mind there is a working capital need January to June in particular of approximately £300,000.

Where surplus funds arise these are invested in short term interest bearing deposit accounts.

Reserves policy

The trustees have considered the level of reserves the charity ought to maintain to endeavour to ensure financial viability for the long term.

Ideally we would have a capital reserve of £100,000 to towards a major catastrophe or other significant, unforeseen need. Cash resources do not permit this currently however over and above working capital requirements.

The account with Barclays Bank also holds the £30,000 Advance Sales Reserve created in the wake of our experience in the administration and eventual liquidation of Llangollen Railway PLC.

Restricted funds

£

Total Restricted funds

1,138,004

Less:

Restricted Tangible assets

(1,050,598

)

Restricted Intangible assets

(16,458

)

Restricted debtor

(61,093

)

Restricted funds held for future

periods (Bank):

9,855

Unrestricted funds:

936,681

Designated funds:

330,000

Principal risks and uncertainties

The charitable company's operations expose it to a variety of financial risks including price risk, credit risk, liquidity risk and cash flow risk.

The charitable company's principal financial instruments comprise sterling bank accounts together with trade debtors and trade creditors that arise directly from operations.

Price risk - Price risk is managed by monitoring the market, current rates of inflation and costing products and services in accordance with these factors.

Credit risk - Credit risk is mitigated by monitoring and managing the credit limits given to our customers.

Liquidity risk - Liquidity risk is managed by maintaining sufficient cash balances for working capital during the first 6 months of the year, a balanced mix of income streams, and managing closely the debtors/creditors mix. Stock holdings are relatively low.

Cash flow risk - Cash flow risk is managed through careful budgeting, our credit management procedures and negotiation of payment terms where practicable.

Financial and risk management objectives and policies

The trustees review the risk register at least annually and review the major risks to which the company is exposed. The principal risks to Llangollen Railway Trust Limited as at 31st December 2024 were:

- Failure to secure grant funding to fulfil the organisation's business plan

- Poor performance or dissatisfaction with the quality of delivery to all of our customers

- Loss of business-critical staff and volunteers

- Cost of living/energy crisis impacting customers and volunteers

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

Llangollen Railway Trust Limited is a company limited by guarantee governed by its Memorandum and Articles of Association dated 6th March 1995. It is registered as a charity with the Charity Commission, number 1046614. Anyone over the age of 18 can become a member of the company. Each member agrees to contribute £1 in the event of the charity being wound up.

Governance Review

Following the external review in 2020, CounterCulture Partnership undertook a further review in 2024. Whilst there remains more to do, we do have the policies and procedures of a well-managed 21st century charity and company of our size.

We have a clear framework of responsibility to provide leadership and oversight.

A number of advisers in other, related fields joined the board during the year. They have brought additional breadth and depth to discussion and decision making.

Appointment of new trustees

As set out in the Articles of Association one third of the trustees retire by rotation each year and shall if they so wish offer themselves for re-election. The trustees have the power to co-opt such trustee(s) as they see fit, such trustee(s) co-opted shall be appointed until the following AGM, where they may stand for formal appointment.

Organisational structure

The board of trustees, which shall number a minimum of four with no maximum numbers, administers the charity.

Decision making

LRT has a small employed senior management team (Trust Manager, Chief Engineer & Operations Manager). All have experience of Organisational Management within the charitable and heritage sectors, specific to organisations that have both engineering and public/tourism components. The senior managers oversee a strategic section of 4 principal divisions - Organisation/Administration, Operational, Engineering and Volunteering. Each division incorporates several 'heads of departments' within them, which serve to directly oversee each departmental plan, which has been endorsed and mandated by the Senior Management Team. The Senior Management Team is answerable to the Board of Trustees which through a 'Framework of Responsibility' outlines delegated authorities to the management team, who in turn will work closely with their respective departments and HODs. There is a regular

programme of specific sub-committee and full board meetings.

Each department has a plan of activity, be it engineering, interpretation or commercially focussed. Each plan incorporates its actions, in an economic sense, into the Organisation's budget forecast, which is directly (daily/weekly) overseen by the senior management team, with the Board collectively affording scrutiny via subcommittee or full board meetings.

Due to the close communication between the HODs, the Senior Management Team and the Board, it is felt suitable oversight is assured and any unexpected situations, requiring small or significant decision making are therefore robustly addressed.

Should additional advice be required to inform internal organisational decision making, e.g volunteer management or HR matters (including payroll) etc, the Board and Management team will work collaboratively with suitable external agencies and seek opinion. This is exampled with utilising an external HR company to support ongoing staffing matters, to working with like-minded volunteer/charity organisations to develop robust policies and procedures.

LRT has now developed an organisational strategy which aims to demonstrate a mature approach to sustainability, whilst appreciating lessons learnt from the past. The strategy is based on the following structure;

- Purpose - Our Charitable Objectives

- Principles - Collaboration, Communication, Compliance and Cohesion

- Priorities - 1. Governance and Leadership, 2. Commitment to Heritage Preservation, 3. Public Benefit, 4. Financial Resilience, 5. Volunteer Experience

- Plans - purposeful and costed to support each priority.

Induction and training of new trustees

New trustees undergo a training process to explain to them their statutory obligations under charity and company law, the Memorandum and Articles of Association, the organisational structure and decision-making process. Trustees are encouraged to attend suitable external events where these will enhance the substance and quality of their role. All trustees, both existing and newly appointed, are required to confirm that they have read and understood the Charity Commission booklet CC3, "The essential trustee, what you need to know, what you need to do".

Related parties

Llangollen Railway Trust has a wholly-owned subsidiary, being Llangollen & Corwen Railway (Trading) Limited. This company is and has been dormant for many years.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

03040336 (England and Wales)

Registered Charity number

1046614

Registered office

The Station

Abbey Road

Llangollen

Denbighshire

LL20 8SN

Trustees

P J Coles (resigned 31.12.2024)

P H Freeth (Chairman)

R J Creasey

P J Edwards (resigned 08.11.2024)

M Theobald

P Brewer

R E Carter (appointed 21.09.2024)

Company Secretary

R J Creasey

Auditors

M. D. Coxey and Co. Limited

Chartered Accountants

and Statutory Auditors

25 Grosvenor Road

Wrexham

LL11 1BT

Bankers

Barclays

Business Direct

Leicester

LE87 2BB

AUDITORS

The auditors, M. D. Coxey and Co. Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

Report of the trustees, incorporating a strategic report, approved by order of the board of trustees, as the company directors, on 12th September 2025 and signed on the board's behalf by:

R J Creasey - Trustee

The trustees (who are also the directors of Llangollen Railway Trust Limited for the purposes of company law) are responsible for preparing the Report of the Trustees 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 period. In preparing those financial statements, the trustees are required to

-	select suitable accounting policies and then apply them consistently;

-	observe the methods and principles in the Charity SORP;

-	make judgements and estimates that are reasonable and prudent;

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

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

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to 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.

In so far as the trustees are aware:

-	there is no relevant audit information of which the charitable company's auditors are unaware; and

-	the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.

Opinion

We have audited the financial statements of Llangollen Railway Trust Limited (the 'charitable company') for the year ended 31st December 2024 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the charitable company's affairs as at 31st December 2024 and of its incoming resources and application of resources, including its income and expenditure, 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 Auditors' 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 trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.

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.

In connection with our audit of the financial statements, 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 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 the audit:

-	the information given in the Report of the Trustees for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Report of the Trustees has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

-	adequate accounting records have not been kept or returns adequate for our audit have not been received from branches not visited by us; or

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

-	certain disclosures of trustees' remuneration specified by law are not made; or

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

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 purposes 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.

Our 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 a Report of the Independent Auditors 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.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

- we identified the laws and regulations applicable to the company through discussions with directors and other management

- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and

- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations;

To address the risk of fraud through management bias and override of controls, we:

- performed analytical procedures to identify any unusual or unexpected relationships;

- tested journal entries to identify unusual transactions;

- assessed whether judgements and assumptions made in determining accounting estimates were indicative of potential bias; and

- investigated the rationale behind significant or unusual transactions;

There are inherent limitations in our audit procedures described above. 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 directors 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 for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.

Use of our report

This report is made solely to the charitable 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 charitable company's members those matters we are required to state to them in an auditors' 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 charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Joanne Evans (Senior Statutory Auditor)

for and on behalf of M. D. Coxey and Co. Limited

Chartered Accountants

and Statutory Auditors

25 Grosvenor Road

Wrexham

LL11 1BT

12th September 2025

31.12.24

31.12.23

Unrestricted

Restricted

Total

Total

funds

fund

funds

funds

Notes

£

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

2

90,087

288,790

378,877

240,444

Other trading activities

3

1,114,625

-

1,114,625

1,082,848

Investment income

4

3,579

-

3,579

4,254

Total

1,208,291

288,790

1,497,081

1,327,546

EXPENDITURE ON

Raising funds

5

762,159

270,297

1,032,456

902,933

Charitable activities

6

General costs

561,320

26,988

588,308

548,364

Property costs

37,042

45,869

82,911

129,043

Total

1,360,521

343,154

1,703,675

1,580,340

NET INCOME/(EXPENDITURE)

(152,230

)

(54,364

)

(206,594

)

(252,794

)

RECONCILIATION OF FUNDS

Total funds brought forward

1,418,911

1,192,368

2,611,279

2,864,073

TOTAL FUNDS CARRIED FORWARD

1,266,681

1,138,004

2,404,685

2,611,279

31.12.24

31.12.23

Unrestricted

Restricted

Total

Total

funds

fund

funds

funds

Notes

£

£

£

£

FIXED ASSETS

Intangible assets

12

5,600

16,458

22,058

25,358

Tangible assets

13

1,057,997

1,050,598

2,108,595

2,186,532

Investments

14

1

-

1

1

1,063,598

1,067,056

2,130,654

2,211,891

CURRENT ASSETS

Stocks

15

23,159

-

23,159

18,575

Debtors

16

44,506

61,093

105,599

175,519

Cash at bank and in hand

248,356

9,855

258,211

483,985

316,021

70,948

386,969

678,079

CREDITORS

Amounts falling due within one year

17

(112,938

)

-

(112,938

)

(278,691

)

NET CURRENT ASSETS

203,083

70,948

274,031

399,388

TOTAL ASSETS LESS CURRENT LIABILITIES

1,266,681

1,138,004

2,404,685

2,611,279

NET ASSETS

1,266,681

1,138,004

2,404,685

2,611,279

FUNDS

18

Unrestricted funds

1,266,681

1,418,911

Restricted funds:

Restricted

1,138,004

1,192,368

TOTAL FUNDS

2,404,685

2,611,279

The financial statements were approved by the Board of Trustees and authorised for issue on 12th September 2025 and were signed on its behalf by:

R J Creasey - Trustee

Cash flows from operating activities

Cash generated from operations

1

(218,274

)

36,497

Net cash (used in)/provided by operating activities

(218,274

)

36,497

Cash flows from investing activities

Purchase of tangible fixed assets

(7,500

)

(190,806

)

Sale of tangible fixed assets

-

1,500

Net cash used in investing activities

(7,500

)

(189,306

)

Change in cash and cash equivalents in the reporting period

(225,774

)

(152,809

)

Cash and cash equivalents at the beginning of the reporting period

483,985

636,794

Cash and cash equivalents at the end of the reporting period

258,211

483,985

1.	RECONCILIATION OF NET EXPENDITURE TO NET CASH FLOW FROM OPERATING ACTIVITIES

31.12.24

31.12.23

£

£

Net expenditure for the reporting period (as per the Statement of Financial Activities)

(206,594

)

(252,794

)

Adjustments for:

Depreciation charges

88,737

90,602

Loss on disposal of fixed assets

-

40,241

Decrease/(increase) in group debtors

3,530

(348

)

(Increase)/decrease in stocks

(4,584

)

18,480

Decrease in debtors

66,390

38,651

(Decrease)/increase in creditors

(165,753

)

101,665

Net cash (used in)/provided by operations

(218,274

)

36,497

2.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.24

Cash flow

At 31.12.24

£

£

£

Net cash

Cash at bank and in hand

483,985

(225,774

)

258,211

483,985

(225,774

)

258,211

Total

483,985

(225,774

)

258,211

1.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) '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)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value.

The trustees consider that there are no material uncertainties about the Trust's ability to continue as a going concern.

Status and principal activities

Llangollen Railway Trust Limited is a company limited by guarantee, incorporated in England and Wales. Its Registered Office is The Station, Abbey Road, Llangollen, Denbighshire, LL20 8SN.

The principal activity of the company is that of the repair and maintenance of transport equipment.

Financial reporting standard 102 - reduced disclosure exemptions

The charitable company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland':

•

the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);

•

the requirements of paragraphs 12.26, 12.27, 12.29(a), 12.29(b) and 12.29A.

Significant judgements and estimates

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

The key judgements and sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are described below:

- Estimated useful lives and residual values of fixed assets:

The carrying value of fixed assets are reviewed each year end for indicators of impairment triggers. If such triggers exist, management would be required to carry out a formal impairment review using a discounted cash flow model to determine their value in use on a cash-generating unit basis. The value in use calculation requires management to estimate the future cash flows expected to arise from the cash-generating unit and a sustainable discount rate in order to calculate the present value.

Depreciation of tangible fixed assets has been based on estimated useful lives and residual values deemed appropriate by the directors. Estimated useful lives and residual values are reviewed annually and revised as appropriate. Revisions take into account estimated useful lives used by other companies operating in the sector and actual asset lives and residual values, as evidenced by disposals during current and prior accounting periods.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, 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 accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Raising funds

Costs of generating funds comprise those costs directly attributable to the commercial activities of the Trust.

Charitable activities

The costs directly attributable to the maintenance of the railways. Donations to other charities are allocated to charitable activities.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2021, is being amortised evenly over its estimated useful life of ten years.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Land, Buildings and Improvements

-

The length of the lease

Plant and machinery

-

at varying rates on cost

Rolling stock

-

2% on cost

Motor vehicles

-

10% on cost

Computer equipment

-

33% on cost

Expenditure of a capital nature is recognised as an addition to fixed assets. All fixed assets are stated at cost.

Related party exemption

The charitable company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Taxation

The charity is exempt from corporation tax on its charitable activities.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

Financial instruments

The following assets and liabilities are classified as financial instruments - trade debtors and trade creditors.

Trade debtors and trade creditors are measured at the undiscounted amount of cash or other consideration expected to be paid or received.

Financial assets are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in profit and loss.

The charity's functional and presentational currency is the Pound Sterling (£).

2.	DONATIONS AND LEGACIES

31.12.24

31.12.23

Unrestricted

Restricted

Total

Total

funds

funds

funds

funds

£

£

£

£

Donations

79,755

645

80,400

52,755

Gift aid

10,332

-

10,332

2,614

Legacies

-

-

-

52,493

Grant income

-

288,145

288,145

132,582

90,087

288,790

378,877

240,444

Grants received, included in the above, are as follows:

31.12.24

31.12.23

£

£

Leveling up fund

-

103,552

Shared Prosperity

286,145

29,030

DCC Cost of living grant

2,000

-

288,145

132,582

3.	OTHER TRADING ACTIVITIES

31.12.24

31.12.23

Unrestricted

Restricted

Total

Total

funds

funds

funds

funds

£

£

£

£

Cafe income

100,432

-

100,432

104,002

Ticket sales

894,340

-

894,340

864,072

Subscriptions

20,804

-

20,804

20,480

Magazines, raffles and locomotive hire

53,000

-

53,000

47,453

Holiday letting income

12,789

-

12,789

24,087

Other sales

33,260

-

33,260

22,754

1,114,625

-

1,114,625

1,082,848

4.	INVESTMENT INCOME

31.12.24

31.12.23

Unrestricted

Restricted

Total

Total

funds

funds

funds

funds

£

£

£

£

Bank interest

3,579

-

3,579

4,254

5.	RAISING FUNDS

Other trading activities

31.12.24

31.12.23

Unrestricted

Restricted

Total

Total

funds

funds

funds

funds

£

£

£

£

Purchases

221,052

14,215

235,267

322,451

Staff costs

319,466

256,082

575,548

414,673

Hire of plant and machinery

95,906

-

95,906

73,403

Bad debts

3,991

-

3,991

-

Steaming expenses

112,856

-

112,856

80,361

Holiday letting expenses

8,888

-

8,888

12,045

762,159

270,297

1,032,456

902,933

6.	CHARITABLE ACTIVITIES COSTS

Support

Direct

costs (see

Costs

note 7)

Totals

£

£

£

General costs

4,735

583,573

588,308

Property costs

-

82,911

82,911

4,735

666,484

671,219

7.	SUPPORT COSTS

Management

Finance

Other

Totals

£

£

£

£

General costs

367,787

1,822

213,964

583,573

Property costs

29,137

-

53,774

82,911

396,924

1,822

267,738

666,484