The trustees present their annual report and financial statements for the year ended 31 December 2025.
The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charity's governing document, the Companies Act 2006 and the Statement of Recommended Practice, "Accounting and Reporting by Charities", issued in March 2005.
Objectives and Policy
The objects of the Society are: to advance education/learning: encourage and promote public interest in; and promote the preservation of steam and other railway locomotives, rolling stock, railway machinery and equipment of historical interest including (but not exclusively) by:
- the restoration, preservation and operation of heritage locomotives, rolling stock, and other items of railway infrastructure;
- the establishment and maintenance of a museum; and
- the provision of an education/learning programme for schools and general public
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
I am pleased to report that 2025 proved to be a much more successful year than 2024, when we suffered a setback with virtually no mainline activity owing to external disputes between the regulator, the Office of Rail and Road, and West Coast Railways. Owing to this ongoing dispute, our work with the Railway Touring Company ended abruptly. Although this impasse remains, we have been able to work with Vintage Trains on several excursions and we have visited several other heritage railways with 45596, including the West Somerset Railway, Peak Rail and Nene Valley Railway. Our last trip with “Bahamas” before being withdrawn was at the Great Central Railway, following their Autumn gala. We enjoyed a very memorable members' evening train, with our coach immediately behind the loco and an orange glow from the firebox all around. The engine was then moved by low loader from the Great Central Railway to Tyseley for a full overhaul. Normally, after a 7-year ticket, a mainline certificated loco would commence a comprehensive but not full overhaul. However, following the lack of main line work and after much discussion, we decided that the only option, as we wanted to continue main line working, was to fit airbrakes to the locomotive to be able to work with centrally locked main line coaches, not just with slam door coaches as could be operated with vacuum brakes. This should see the locomotive available for a further 10 years and able to work on the main line again without the challenges in these last two years.
As well as 45596, our Coal Tank locomotive visited several heritage railways including operating in tandem with “Bahamas” at the Great Central Railway. We also took both locomotives as guests to the largest locomotive gathering of the year, the Rail 200 Event at the Alstom Works at Litchurch Lane in Derby, and our locos took their place alongside icons such as “Flying Scotsman”, “Tornado” and “Sir Nigel Gresley”. So many visitors commented on how well turned out both locomotives were. Rail 200 proved to be a milestone year for railway heritage, with many families encountering steam and historic diesel locomotives in operation for the first time.
Rail 200 also contributed to an increase in our visitor numbers at the museum at Ingrow. Our duty officers have continued to open the museum daily, and the number of school visits has also encouragingly increased as well. Perhaps the highlight of the year has been the unveiling of the Roger Bell collection of nameplates and other railwayana in the museum. It is now possible to see on public display for the first time such notable nameplates as British Legion, Patriot, Private E Sykes, Ayrshire Yeomanry and Duchess of Abercorn, to name just a few. You really must blink twice to believe all you are seeing in such a display at the same time. It was delightful to host Roger's partner Brenda Lawson, her daughter Claire and so many of Roger's friends as well as Jeff Gantschuk from the Royal British Legion, who dedicated the group of nameplates as a means of remembrance. Roger was a strong supporter in the early days of the Society as well as playing a major part in the preservation of 6201 “Princess Elizabeth”. Pete Skellon, Mike & Chris Bentley and a dedicated team spent many months in creating this magnificent new display.
We continued to work closely with our partners at the Keighley and Worth Valley Railway and the Vintage Carriages Trust to ensure that the Rail Story experience is a memorable day out for visitors. We participated in the KWVR Spring gala with both 45596 and 1054 in steam and the Coal Tank also operated on several other days on the railway including on vintage trains. In partnership with the Vintage Carriages Trust, we again participated in the September Heritage Open Days with behind-the-scenes tours at both museums. Also, we played our part in events during the Bradford City of Culture 2025 production of the Railway Children and indeed the costumes for the production have been donated to us for dressing up days! Our Learning Coach has been open on a notable number of days and was again used as a polling station in the local elections, and our local councillors have also held their advice surgery in the Coach. In addition, we have continued to play a major role in the Bradford Museums Group and Museum Development North and our workshop team has worked on our locomotives and rolling stock on a weekly basis. Indeed, considerable work has been completed on our crane tank locomotive “Southwick” and it now looks the most complete that it has done for over 40 years. The team have continued to enjoy warmer winter working using our cosy mess facility, which makes on site outside work that little more tolerable knowing that a hot drink in a dry and warm environment is now available.
We continue to work on our review of governance and are implementing its proposals step by step to ensure that the Society is fit for purpose and can meet the modern challenges that continue to come our way.
Reserves
The Balance Sheet shows the restricted and unrestricted funds of the Society at the year-end and the prior year. Note 15 shows the movements on restricted funds. At the year-end, unrestricted funds amounted to £562,984, but after taking account of amounts invested in fixed assets less fixed assets relating to restricted funds, the free reserves are £486,727, representing approximately 63 months' expenditure, which the trustees feel is adequate.
Financial Risk Strategy
The Board of Trustees regularly reviews the main areas of financial risk. These may be summarised as follows: -
a) Insufficient funds to continue operations and complete projects.
b) Unauthorised transactions.
c) Failure to safeguard our assets.
d) Failure to adhere to legislation or restrictions in whatever field.
e) Liabilities are not identified and provision not made for them.
These risks are mitigated as follows:
The Board meets regularly to oversee the Society’s activities. Major expenditure has to be approved by the Board and board members (directors) have specific roles and duties. The Board ensures that current projects have sufficient funds available on a regular basis from a variety of sources e.g. subscriptions, donations, Gift Aid, shop and museum income and grants. At present the company has no borrowings. Our assets are housed securely at Ingrow other than "Bahamas" which is securely stored at Haworth. Items stored outside are secured and protected from the weather. A modern security system is in place and various insurance policies including public liability are in force. The Board keeps up to date with legislation and regulations by contact with specialists in the preservation sphere, membership of various associations and by taking advice from recognised experts.
Along with several other heritage railways, we will be participating in an event to commemorate the 150th anniversary of the death of Charles Beyer, engineer, and the 60th anniversary of the closure of Beyer Peacock Works in Gorton, Manchester. We have a considerable collection of Beyer Peacock memorabilia that will be put on display, and KWVR are hoping to run a special train with 957, a Beyer Peacock-built loco often referred to as the Green Dragon from the original Railway Children film. We are making progress with a new facility to house our extensive and growing collection of railway items and to keep them safe whilst they are not on display.
Next year is a very significant one for the Society as we celebrate the 60th anniversary of our acquisition of “Bahamas” in 1967, and 2028 will see the 60th anniversary of the opening of our base at Dinting Railway Centre. We are planning to salute those pioneers who started it all off in so many ways by activities at Ingrow and on the KWVR, as well as on the other side of the Pennines where we began, including a possible civic reception hosted by the mayor of Stockport. The jewel in the crown would be if, later in the year, the overhaul of 45596 “Bahamas”, our flagship locomotive, was completed in time for our 60th anniversary celebrations. We will continue to implement the findings of our governance review to ensure that the Society is fit for purpose for another 60 years.
The Bahamas Locomotive Society Limited is a company limited by guarantee, registered in England as no. 956100 on 12 June 1969 and is governed by its Articles of Association as amended on 14 December 2025. The company has also been registered as a charity for educational purposes as no. 259626 since 10 August 1970.
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:
The Board of Trustees, currently consisting of nine directors and trustees, holds monthly meetings to manage the activities of the Society. Details of the directors/trustees are included in the company information given on the first page of the financial statements.
A wholly owned subsidiary, Bahamas Loco Trading Limited, was formed in 1991 with a working capital of £5,000. This company is responsible for all trading activities such as locomotive hire, employment contracts, books and souvenir sales. Profits are transferred to the Society in return for free use of the Society's locomotives and other assets.
The Society is an organisation based on voluntary involvement. Fortunately, the Society is well supported by its friends and members and relies on volunteer labour wherever possible. Thanks again are due to the dedicated team who have operated the museum and shop and cared for the Society’s assets. A small number of paid staff are employed by Bahamas Loco Trading Ltd in customer-facing and museum roles. Otherwise, neither directors nor members receive any remuneration.
Liquid assets are held in current and deposit accounts with various high street banks and the Charities Official Investment Fund.
The Society's base was formerly known as "Ingrow Loco Museum" on the Keighley and Worth Valley Railway (KWVR) in West Yorkshire where an ex-Midland Railway goods warehouse has been converted into a workshop and museum with financial assistance from the National Lottery Heritage Fund. The Ingrow site is continuing to be developed as "Rail Story" and the Society has re-branded and developed its museum there to provide the "Engine Shed" component of the attraction.
Accountants Simpson Wood will be considered for re-appointment at the forthcoming annual general meeting.
The trustees report was approved by the Board of Trustees.
The trustees, who are also the directors of The Bahamas Locomotive Society Limited for the purpose of company law, are responsible for preparing the Trustees Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.
In preparing these financial statements, the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.
In preparing these financial statements, the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
I report on the financial statements of the charity for the year ended 31 December 2025, which are set out on pages 7 to 19.
The trustees, who are also the directors of The Bahamas Locomotive Society Limited for the purposes of company law, are responsible for the preparation of the accounts. The trustees consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed. The charity's gross income exceeded £250,000 in 2017 and I am qualified to undertake the examination being a qualified member of The Institute of Chartered Accountants in England and Wales.
Having satisfied myself that the charity is not subject to audit under company law and is eligible for independent examination, it is my responsibility:
to examine the accounts under section 145 of the 2011 Act;
to follow the procedures laid down in the General Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act; and
My examination was carried out in accordance with the General Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given as to whether the accounts present a ‘true and fair view’ and the report is limited to those matters set out in the statement below.
In connection with my examination, no matter has come to my attention:
to keep accounting records in accordance with section 386 of the Companies Act 2006; and
to prepare financial statements which accord with the accounting records, comply with the accounting requirements of section 396 of the Companies Act 2006 and with the methods and principles of the Statement of Recommended Practice: Accounting and Reporting by Charities;
to which, in my opinion, attention should be drawn in order to enable a proper understanding of the financial statements to be reached.
Voluntary activities
Investments
Raising funds
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
The Bahamas Locomotive Society Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is The Shippen, 8 The Old Hall Court Yard, Heath, Wakefield, West Yorkshire, WF1 5ST.
The accounts have been prepared under the historical cost convention, with the exception of investments which are included at market value.
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
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 as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the accounts.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of receipt.
Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.
Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods and services provided in the normal course of business, net of discounts, VAT and other sales related taxes.
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.
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.
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
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.
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.
A subsidiary is an entity controlled by the charity. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
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 is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in income/(expenditure) for the year, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
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 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 in prior years. A reversal of an impairment loss is recognised immediately, unless the relevant asset is carried in at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
Cash and cash equivalents include cash in hand, deposits held at call with banks, and bank overdrafts.
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets, 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, 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 receipts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of 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.
Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.
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 charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
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 the 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.
Grants
Capital grants received are treated as deferred income and as such are released to the income and expenditure account over the same period as asset depreciation. In accordance with the Statement of Recommended Practice, all heritage grants are treated as income when receivable.
Voluntary activities
Admissions
Other income
Raising funds
Fundraising and publicity
General fundraising expenditure
Governance costs
Rent and rates
Insurance
Light, heat and power
Repairs to buildings and equipment
Locomotive and rolling stock maintenance
Postage and stationery
Telephone
Sundries
Bank charges
Legal and professional fees
Travel and subsistence
Outreach activities
The governance costs relate to the accountancy fees for both this year and the previous year.
None of the trustees (or any persons connected with them) received any remuneration during the year and, aside from travel expenses, there were no trustees' expenses paid for the year (2024 - nil).
The average monthly number of employees during the year was:
The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.
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.
Gains and losses
The Bahamas Appeal is a specific fund for the restoration of the locomotive Bahamas and movements in funds are written off as incurred.
The National Lottery Heritage Fund Grant: Museum is the balance of the proceeds from the National Lottery Heritage Fund grant. The grant was provided to assist in the building of the society's museum. The fund is being written off in line with the life expectancy of the museum.
"The Southwick Fund" represents contributions by members and others towards the restoration of Robert Stephenson & Hawthorn crane tank no. 7069 "Southwick".
The Loco Dept. Fund: contributions from members towards the purchase and maintenance of tools for the workshop.
The Adamson Fund is a fund for maintenance of London & North Western Railway 0-6-2T No. 1054 "Coal Tank"
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.
During the year the charity entered into the following transactions with related parties:
Management charges of £38,101 (2024 - £2,802) were received from the subsidiary Bahamas Loco Trading Ltd. At the balance sheet date the amount due from the company was £56,252 (2024 - £43,335).
These financial statements are separate charity financial statements for The Bahamas Locomotive Society Limited.
Details of the charity's subsidiaries at 31 December 2025 are as follows: