The directors present the strategic report for the year ended 31 December 2025.

Introduction

The principal activity of the company is to own and operate the Bluebell Railway between Sheffield Park and East Grinstead in Sussex.

Profit of £67,194 against the 2024 loss of £618,494

The directors are pleased with the 2025 result, which was a considerable improvement on the projection made in the previous report. An extract from the management accounts is set out in Table 1 below. The management accounts are in a different format from the audited accounts but show the same result.

The directors were disappointed when they prepared the budget for 2025 which showed a projected loss of £564k following the actual loss in 2024 of £618k.

For the reasons explained below, the core operating loss has been reduced to £236k (line 27), and the overall result after extraordinary items is a profit of £67k (line 35).

This does not mean that the serious financial issues identified in early 2025 have gone away – it remains vital that in the medium term the railway gets back to running at an operating profit.

The proposed restructuring will greatly aid this, because becoming a charity would create the opportunity to claim gift aid – projected at least £200k pa, charitable relief on business rates, likely to save a further £40k per annum and various other savings.

The main drivers for the turnaround in the 2025 result are:

• Excellent performance by the Commercial Team, with the overall contribution from commercial activities rising by 9% (line 9).

• Useful increase in the contribution from catering (line 10)

• Underspend by the Carriage & Wagon department of £108K (line 19)

• Budget for the infrastructure department underspent by £98K. (line 20)
  (some the above underspends are likely to be timing differences only i.e. work deferred from 2025 to future years)

• The unbudgeted £274k profit on sale of locomotives to the Bluebell Railway Trust. We are enormously grateful to the Trust for supporting the railway by purchasing Fenchurch and the Adams Radial. (Fenchurch will be leased back to the plc from January 2026 onwards.)

Total Equity increases by £715,321 during the year

As shown in Table 2 below we have ended up with total equity (shareholders’ funds) of £23,025,946 – up £715,321 on the previous year (see line 6)

This comes about because of the significant grants made by the Bluebell Railway Trust and other funders which are included directly in reserves and not shown in our Statement of Comprehensive Income (Profit & Loss account).

During the year there were additions to fixed assets amounting to £1,084,679.

Significant additions were:

National Lottery Heritage Fund funded improvements to Horsted Keynes station: £203K

From Bluebell Railway Trust and others:

Infrastructure track relaying:  £360K

Reverse osmosis project completion: £67K

Overhaul of Maunsell Q Class (541): £104K

Capital reserves were increased by grants and donations amounting to £894,639 which significantly funded these additions.

As a result of the increase in fixed assets / capital reserves, plus the profit for the year the net assets of the company increased by £715,321 to £23,025,946. The directors remain confident that this asset base gives the company a solid footing for the forthcoming year

Highlights of 2025

Halloween (new product Ghost train) a lot of work went into the professional filming, marketing and design of the mask.

Giants of Steam generated record sales, the highest we have had for the event

Excellent Christmas sales, with all dining trains sold.

The directors have assessed the principal risks and uncertainties in connection with the company’s activities. The main issues identified are as follows,

• The availability of sustainable supplies of suitable locomotive coal in light of world conflicts and UK Regulatory, environmental and political influences.

• The ageing profile of locomotives, boilers and carriages which get older with each cyclical overhaul increasing both the complexity and the engineering challenges faced as well as the greater costs being incurred.

• The ability to obtain grant funding and donations to support the non-trading activities such as locomotive, carriage and boiler overhauls as well as the restoration of station buildings and infrastructure.

• The age of working volunteers and their continued support of the Railway and the difficulties in recruiting the new generation of volunteers with the skills the Railway requires.

• The cost-of-living crisis and the reductions in family disposable income and the effect this has on visitor numbers together with the competition provided by other tourist attractions in the South East.

• Increased legislation, particularly concerning Health and Safety and increased monitoring by Regulators requiring more robust Safety Management Systems.

• The effect of weather on visitor numbers and also the effect of climate change on the railway infrastructure and the ability to operate in very hot and dry spells.

• Cash management and the effect of the company’s seasonal income where income is concentrated around Christmas products and particular Galas and special events

The board of directors meets every month to review and discuss the risks and uncertainties affecting the company’s performance and develops plans and strategies to cope with them. The board receive regular management information and monitors performance against budgets and forecasts using both financial and non-financial measures.

Key Performance Indicators

The directors review and assess the company’s performance against a variety of key performance indicators, the most significant of which are as follows:

• Cashflow

• Ticket sales and other admission and catering revenues

• Visitor numbers

• Performance against budget

Future developments

Following on from the actions taken in 2025 and the ongoing progress in 2026, the Company has developed a 5-year plan for the business.

Key benefits are as follows:

1. The restructuring plan will enable us to claim Gift Aid and bring savings in Rates and Software costs. These benefits are expected to commence in late 2027 and should provide an income of over £200k per annum by 2030.

2. Achieving Arts Council accreditation for the majority of the Railway will enable us to seek funding from a wider range of grant-giving authorities and general donors. These funding streams should commence in the middle of 2028 and should provide an income of over £150k per annum by 2030.

3. We will continue to increase marketing in the area around East Grinstead and up the mainline into London and will have a wider availability of travel options operating to/from East Grinstead earlier in the day and later in the evening from late 2027/early 2028. We anticipate increasing footfall by 10,000 per annum by 2030, with net income increasing by £100k in each of the years 2028/2029 and £150k in 2030.

These measures are not anticipated to bring any significant financial benefits in 2026, and, given the costs of restructuring, we therefore anticipate a trading loss in 2026 but to show surpluses from 2027 onwards.

The Companies (Miscellaneous Reporting) Regulations 2018 require Directors to explain how they considered the interests of key stakeholders as set out in section 172(1) of the Companies Act 2006 when performing their duty to promote the success of the company. The following paragraphs summarise how the directors fulfil their duties.

The Board take their collective responsibility to promote the success of the company seriously. The board meets at least monthly, and all directors attend the majority of meetings.

The Board is committed to ensuring that the company maintains a strong reputation with its stakeholders including the Bluebell Railway Preservation Society Limited (and their members) and the Bluebell Railway Trust. The company also aims to maintain an excellent reputation in the Heritage Steam Railway world.

The Board is also committed to fostering good relations with local landowners and is mindful of the impact of the company’s operations on the local environment and community and aims to minimise any disruption or inconvenience.

We engage frequently with our employees and aim to keep them informed of any relevant changes that will impact them directly or indirectly. We value all of our employees and ensure that health, safety and wellbeing is promoted and maintained at all times without compromise which is of particular importance in the engineering department and the company maintains and updates a safety Management System incorporating best practice issued by the ORR and HRA and other similar regulators. Directors meet with respective managers on a regular basis.

Our suppliers are essential for our Railway to flourish, and we are always committed to purchasing goods and services from local sustainable businesses where possible. The company is committed to responsible financial behaviour and aims to settle all trade creditor payments within the agreed business terms.

The company is aware of its effect on the environment and is committed to reducing the impact as far as possible within the confines of the Heritage nature of the Steam Locomotives which, by necessity, burn fossil fuels. (coal) We are continuing to replace aging office equipment with energy-efficient products and are replacing old inefficient lamps with low-energy LED’s and have started a program to utilise solar power where it is not detrimental to the Heritage environment.

On behalf of the board

The directors present their annual report and financial statements for the year ended 31 December 2025.

The principal activity of the company continued to be that of the preservation and operation of the Bluebell Railway, historical locomotives, rolling stock and items of railway interest.

The results for the year are set out on page 16.

The directors are not permitted to recommend payment of a final dividend in accordance with the Articles of Association.

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

The company has made qualifying third party indemnity provisions for the benefit of its directors during the year. These provisions remain in force at the reporting date.

Given the anticipated changes to the company structure in the coming period, and the additional requirements arising from those changes, the Company proposes to conduct a tender for the 2026 audit. The current firm will be invited to submit a tender.

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

The directors are responsible for preparing the Strategic Report, Directors' Report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

- select suitable accounting policies and then apply them consistently;

- make judgements and accounting estimates that are reasonable and prudent;

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

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

We have audited the financial statements of Bluebell Railway Plc (the 'company') for the year ended 31 December 2025 which comprise the Profit and Loss account, the Balance Sheet, the Statement of Changes in Equity, the Statement of Cash Flows 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, including FRS 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 company's affairs as at 31 December 2025 and of its profit 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 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 directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

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

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

• the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

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

• 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 directors' remuneration specified by law are not made; or

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

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. 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

The objectives of our audit, in respect to fraud, are: to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses; and to respond appropriately to fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and its management.

Our approach was as follows:

• We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience, and through discussion with the directors and other management (as required by auditing standards), and discussed with the directors and other management the policies and procedures regarding compliance with laws and regulations;We considered the legal and regulatory frameworks directly applicable to the financial statements reporting framework (FRS 102 and the Companies Act 2006) and the relevant tax compliance regulations in the UK;

• We considered the nature of the industry, the control environment and business performance, including the key drivers for management’s remuneration;

• We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit;

• We considered the procedures and controls that the company has established to address risks identified, or that otherwise prevent, deter and detect fraud; and how senior management monitors those programmes and controls.

Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk. These procedures included: testing manual journals; reviewing the financial statement disclosures and testing to supporting documentation; performing analytical procedures; and enquiring of management, and were designed to provide reasonable assurance that the financial statements were free from fraud or error.

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. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

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 company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

The profit and loss account has been prepared on the basis that all operations are continuing operations.

Bluebell Railway Plc is a public company limited by shares incorporated in England and Wales. The registered office is Sheffield Park Station, Sheffield Park, Uckfield, East Sussex, TN22 3QL.

These financial statements have been prepared in accordance with Financial Reporting Standards 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company.

The financial statements have been prepared under the historical cost convention, modified to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

The company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts as the subsidiaries are not material for the purpose of giving a true and fair view. The financial statements present information about the company as an individual entity and not about its group.

The company made a profit for the year ended 31 December 2025 and had net assets at that date amounting to £23,025,946. A loss is forecast for the forthcoming year. true

The company continues to be challenged by significantly increased costs against a background of trying to increase income. Delivering a sustainable operating surplus from the Railway is proving to be difficult. The Board are taking actions to reduce the level of operating losses.

Whilst the Board recognise the challenges and uncertainties that the Railway faces, the Board believe that the continuing support from The Bluebell Railway Trust and the parent company, The Bluebell Railway Preservation Society, the actions to be implemented as detailed in the Strategic Report and the continued scrutiny of the Board, the company will continue as a going concern. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Turnover represents the fair value of the consideration received or receivable in the ordinary course of the company’s activities for the sale of goods and the provision of services, stated net of VAT and discounts and rebates.

Turnover from fares are recognised on the date of travel and turnover from event admission and station tickets are recognised on that date. Turnover from catering dining trains are recognised on the date of the related travel. All other retail sales in the shop, catering outlets and internet sales are recognised on the date of sale. Other revenue from filming, driver experiences and similar income are recognised on the date of the event. Amounts received in advance are deferred until the point of recognition.

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:

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

Freehold property consists of both heritage and non heritage buildings. Heritage buildings have very long useful economic lives before major restoration is required and are regularly maintained to a high standard and have a significant net realisable value, thus the depreciation charge is immaterial. The directors believe that there have been no events or changes in circumstances indicating an impairment may have occurred.

It is the Railway's policy to maintain as much of its collection of rolling stock in full working order as possible subject to financial and resource constraints. Routine maintenance costs are charged to the profit and loss account when incurred. The rolling stock is therefore deemed to have indeterminate lives and the directors do not consider it appropriate to charge depreciation.

Where a major renovation or overhaul is carried out for the first time or new construction of an item of rolling stock the costs incurred are capitalised as fixed assets. Costs incurred on subsequent overhauls are treated as maintenance costs and charged to profit and loss. Where a major renovation or overhaul has been completed on an item of rolling stock that remains the property of an independent owners group, where a long term hire agreement is in place between the company and the owners group, the costs incurred by the company are capitalised as fixed assets and are depreciated on a straight line basis over the expected useful economic life.

Investment property, which is property held to earn rentals and/or for capital appreciation, is measured using the fair value model and stated at its fair value as at the reporting end date. The surplus or deficit on revaluation is recognised in the profit and loss account.

Interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. 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 company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

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

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

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

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

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

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

Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets, 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.

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

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

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

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

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

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

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs.

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

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The costs of short-term employee benefits are recognised as a liability and an expense.

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

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

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

Donations, gifts and legacies

Donations, gifts and legacies are recognised once the company has entitlement.

The company receives donations from The Bluebell Railway Trust. The donations to the company from the Trust are recognised once they have been approved by the Trustees.

Donations received in respect of specific capital expenditure are credited to reserves and released to the profit and loss account over the anticipated useful lives of the assets concerned in accordance with the 'tangible fixed assets and depreciation' accounting policy.

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

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

The directors exercise judgement to determine useful lives and residual values of property, plant and equipment. The assets are depreciated to their estimated residual values over their estimated useful lives.

The reserves are released over the same period as the assets to which the capital reserve relates.

An analysis of the company's turnover is as follows:

The average monthly number of persons employed by the company during the year was:

Their aggregate remuneration comprised:

Key Management Personnel is made up of the directors who do not receive remuneration for their services (2024 - £nil).

The charge for the year can be reconciled to the profit/(loss) shown in profit and loss account as follows:

The company has corporation tax losses available to carry forward amounting to approximately £5.2m.

Heritage Assets

Included within the various categories of tangible fixed assets above, are heritage assets acquired at cost. These assets are considered to be heritage assets as they are held in support of the Railway's primary objective of increasing knowledge, understanding and appreciation of the Bluebell Railway and historic steam engines and carriages.

The fair value of the investment property has been arrived at on the basis of a valuation carried out by the directors, having taken professional advice. The valuation was made on an open market value basis.

The historic cost of the investment property amounted to £125,000.

The bank loan bears interest at a rate of 3.96% per annum above the prevailing base rate. Repayments are made by way of fixed monthly instalments of £8,333.33 and the loan is repayable over a 72‑month term.

The loan is secured by a fixed and floating charge over the assets and undertakings of the company and by legal mortgages over certain freehold properties.

The following are the major deferred tax liabilities recognised by the company and movements thereon:

Deferred tax has been recognised in respect of unrelieved tax losses carried forward to the extent that the directors believe it is more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted.

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

The company also operates a defined contributions scheme known as 'The Bluebell Railway Limited Retirement Benefit Scheme'. This scheme only has deferred members and no contributions have been paid by the company to the fund in the year (2024 - £nil).

Profit and loss reserves are reinvested into the company. In accordance with the company's Articles of Association any surplus profit and loss reserves are undistributable.

There are no significant contingent liabilities at 31 December 2025 (2024 - none).

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

None of the directors are remunerated for their services as directors (2024 - £nil).

During the year a director of the plc, provided electrical contracting services amounting to £44,965 (2024 - £57,066).

These transactions were undertaken on a normal commercial basis. At 31 December 2025 £3,547 remained outstanding (2024 - £2,780).

a) There are a number of fund raising groups consisting of volunteers who are members of The Bluebell Railway Preservation Society who raise money for specific projects at the railway.

b) The company receives donations from The Bluebell Railway Trust which derive from donations and legacies from shareholders of the company, members of The Bluebell Railway Preservation Society and also from 3rd parties. Whilst there is close working with The Bluebell Railway Trust, it is not a related party as defined by Financial Reporting Standard 102 Section 33.

c) At 31 December 2025 an amount of £Nil (2024 - £87,875) was due to The Bluebell Railway Preservation Society in respect of an unsecured loan.

The Bluebell Railway Preservation Society own 79.9% of the issued share capital and therefore have ultimate control of the entity.

The following are the parents of the largest and smallest groups in which this company's results are consolidated:

The consolidated financial statements of Bluebell Railway Preservation Society are available to the public and may be obtained from the registered office, Sheffield Park Station, Sheffield Park, Uckfield, East Sussex, TN22 3QL.

Details of the company's subsidiaries at 31 December 2025 are as follows: