The Trustees present their annual report and financial statements for the year ended 31 January 2026.
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 Memorandum and Articles of Association, the Companies Act 2006 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2019).
The charity's objectives are to support and/or maintain the Gloucestershire Warwickshire Railway as a living museum for the benefit of the public. In furtherance of these objects the charity may;
Make grants to organisations that contribute to the operation of the Gloucestershire Warwickshire Railway as a living museum, including organisations that restore locomotives or carriages or other equipment.
Acquire and preserve railway locomotives, railway carriages and other items of rolling stock and associated equipment.
Restore and house such locomotives, carriages or other rolling stock and equipment and put them on display, loan or hire them so they may be used if practicable and make suitable arrangements for their continued preservation as far as possible.
Publish or support the publication of books, articles or other material or otherwise to promote interest in Gloucestershire Warwickshire Railway as a living museum.
Accept gifts, donations, legacies and bequests of assets on any terms.
The Trustees have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing its aim and objectives, and in planning future activities.
The charity made a surplus for the year of £555,864 (2025: deficit of £84,491) with unrestricted reserves of £1,141,655 (2025: £585,056) and restricted reserves of £184,097 (2025: £184,832).
Reserves policy
The Trustees aim to maintain enough reserves in unrestricted funds at a level which equates to approximately 3 months of unrestricted charitable expenditure. Where the level of free reserves is in excess of this level the charity aims to use any surpluses to fund projects run by or in support of the Gloucestershire Warwickshire Railway or purchase assets for the railway.
Excess monies not required for the day to day running of the charity are invested in bank deposit accounts to provide a higher rate of return.
Restricted funds include monies raised specifically for the Viewing Gallery and other future projects.
Investment policy and objectives
The Trustees consider that the investment in the Gloucestershire Warwickshire Steam Railway Plc is an appropriate investment to enable the company to achieve its objectives.
Risk management
The Trustees identify and review the risks to which the charity is exposed and establish systems to mitigate those risks. The Charity is satisfied that systems are in place to mitigate their exposure to the major risks.
Chairman's report and review of the period
During the year under review, we provided Grant Aid to GWSR Plc for the purchase and planting of several trees to enhance our lineside, the acquisition of two machines for the Steam Department Machine Shop to increase its capabilities, and the procurement of new signalling cable from Gotherington to Cheltenham Racecourse to improve the Railway’s signalling and communications resilience.
The Viaduct Appeal was concluded as the financial year ended on 31st January, having successfully financed the replacement of the waterproof membrane. Essential repairs to the structure’s brickwork can now be funded from the remaining balance.
At the outset of the year, we welcomed David Burch as our new Financial Director. David has adapted quickly to his responsibilities, and we are already experiencing positive outcomes from his fresh approach, including the introduction of a new Donations and Fund Policy.
Regrettably, John Woodall, who has served as Secretary to the Board, indicated his intention to step down at the end of January 2026. I would like to formally acknowledge John's outstanding stewardship over the past three years. His support has been invaluable to me personally in my role as Chairman. In his stead, we have appointed Mike Taylor, who, while not previously a Volunteer, is a Member of GWRT with extensive experience working with Boards and has held significant positions in well-known companies.
Andrew Smith was elected to the Board of Directors in 2025 with a mandate to devise plans for enhancing the visitor experience. Andrew has since been appointed to the Board of GWSR Plc as our Cross Board Director. This dual role aligns well with his remit at GWRT, as both organisations share an interest in improving visitor engagement and satisfaction.
GWRT sponsored the Railway’s Rail 200 event held at the end of September to mark the anniversary of the first passenger carrying railway from Stockton to Darlington. GWRT President Sir Timothy Laurence made an official visit on the Saturday of the event where he was joined by Lord Faulkner of Worcester, the President of the Heritage Railway Association.
We have revised our "Gift that Lives on" leaflet to clarify the information required when a legacy is bequeathed to us, ensuring payment before the application of Inheritance Tax. Our accounts reveal that we received over £500,000 from legacies during the period under review, making this our most significant source of income.
Additionally, we republished our "Join Us" booklet under the new title "Get Involved", outlining the benefits of GWRT membership and providing an overview of volunteering opportunities with GWSR.
The Directors have resolved not to increase Membership Subscription Rates for 2026. However, members are hereby notified that rates will rise on 1st January 2027. From that date, members will have the option to receive "The Cornishman" as a digital publication. Although there will be no reduction in rates for those who choose the digital version, more of their subscription will be allocated for investment in the Railway as a Living Museum.
We also considered the provision of a free travel voucher and a £5 discount voucher for a second ticket, which are offered as membership benefits. Due to these benefits, we have been unable to claim Gift Aid on Members' Subscriptions for the past few years, as HMRC regulations stipulate that the value of a member’s benefits must not exceed 25% of the subscription value. In January, the Board decided that withdrawing the free travel voucher would have more severe consequences than the loss of Gift Aid income, including potential reputational damage, decreased donations to appeals, and reduced legacy income affecting both GWRT and GWSR Plc. The Board has however decided to withdraw the £5 additional voucher from 1st January 2027. The Railway will continue to honour theses £5 vouchers next year, as those issued this year will have an ongoing validity.
Our Museum Director, Rose Phillips, collaborated with Rail and Archive Trust and Broadway Museum to establish a long-term exhibition at Broadway Museum, focusing on the history of Broadway Station. Furthermore, we have initiated a project group dedicated to developing the concept for a GWRT-run museum, which will form a key part of the redevelopment of the Toddington Garden Centre site.
Rose is retiring from the Board at this AGM, and I would like to express my gratitude for the dedication and effort she has invested during her tenure.
Another significant development is the Board's decision to reduce the number of formal meetings from ten or eleven per year to four. It was recognised that urgent matters, such as time-sensitive grant applications, can be addressed by electronic means between scheduled meetings as needed.
Finally, I have chosen not to stand for re-election to the Board this year, thereby concluding thirteen years serving as a Director and Trustee of GWRT. My last duty as Chairman will be to preside over this AGM.
Future developments
The Charity continues its joint venture with the Gloucestershire Warwickshire Steam Railway Plc to raise funds for the future expansion of the railway.
Governing document
The Charity is governed by its Memorandum and Articles of Association and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.
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:
Recruitment and appointment of new trustees
The Trustees, who are also directors are appointed by ordinary resolution or by the existing directors.
Organisational structure
The Trustees are responsible for managing the charity. Responsibilities for some functions are delegated to individuals as they see fit.
Induction and training of new trustees
New Trustees are provided with information from the Charity Commission explaining the duties and responsibilities of trustees, together with a copy of the Charity's Memorandum and Articles of Association.
The Trustees, who are also the directors of Gloucestershire Warwickshire Railway Trust for the purpose of company law, are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the 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 sufficient 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 Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. 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.
The auditors, Ormerod Rutter Limited, will be proposed for re-appointment in accordance in accordance with Section 487(2) of the Companies Act 2006.
The trustees' report was approved by the Board of Trustees.
Opinion
We have audited the financial statements of Gloucestershire Warwickshire Railway Trust (the ‘charity’) for the year ended 31 January 2026 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
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 charity 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.
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 charity’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 auditor’s report thereon. Our opinion on the financial statements does not cover the other information and 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.
We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:
the information given in the financial statements is inconsistent in any material respect with the trustees' report; or
sufficient accounting records have not been kept; or
the financial statements are not in agreement with the accounting records; or
we have not received all the information and explanations we require for our audit.
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. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Based on our understanding of the charitable company, we identified the principal risks of non-compliance with laws and regulations including those that have a direct impact on the preparation of the financial statements and the extent to which non-compliance might have a material effect on the financial statements. Audit procedures performed included discussions with management, review of board meeting minutes, testing of journals, designing and performing audit procedures and challenging assumptions and judgements made by management in relation to accounting estimates.
There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Use of our report
This report is made solely to the charity’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.
Ormerod Rutter Limited is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
Gloucestershire Warwickshire Railway Trust is a private company limited by guarantee incorporated in England and Wales. The registered office is Churchward House, Winchcombe Railway Station, Winchcombe, Gloucestershire, GL54 5LD, United Kingdom.
The accounts have been prepared in accordance with the charity's Memorandum and Articles of Association, the Companies Act 2006 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2016). The charity is a Public Benefit Entity as defined by FRS 102.
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.
Designated funds are a portion of the unrestricted funds of the reporting charity that has been set aside for a particular purpose by the trustees.
Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
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.
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 the donation.
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.
Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure.
Raising funds includes all expenditure incurred by the charity to raise funds for its charitable purposes and includes costs of all fundraising activities, events and non-charitable trading.
The presentation of charitable activities flows from the charity’s vision and purpose.
Grants awarded in furtherance of the charity's objects are recognised as a note as soon as the charity has notified the recipient of the award.
Governance costs comprise all costs identified as wholly or mainly attributable to ensuring the public accountability of the charity and its compliance with regulation. These costs include external audit and legal costs.
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 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.
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
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.
Financial assets, other than those held at fair value through income and expenditure, are assessed for indicators of impairment at each reporting 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 net income/(expenditure) for the year.
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 net income/(expenditure) for the year.
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the charity 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.
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.
The charity is exempt from corporation tax on its charitable activities.
Investments
Investments are stated at deemed market value.
In the application of the charity’s accounting policies, the Trustees 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.
Raising funds
Postage, printing and stationery
Fundraising prizes
Insurance
Magazine postage and packaging
Bank charges
In the event of Gloucestershire Warwickshire Steam Railway Plc ceasing to operate, all grants made would be recoverable against assets held by Gloucestershire Warwickshire Steam Railway Plc.
There were no trustees' remuneration or other benefits for the year ended 31st January 2026 nor for the year ended 31st January 2025.
During the year, 2 trustees were reimbursed expenses of £1,058 in relation to stationery, insurance and promotional items. In 2025, 4 trustees were reimbursed expenses of £1,237 in relation to stationery, IT costs and premises expenses.
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.
Included within fixed asset investments is a fixed-term deposit held with Close Brothers Bank. The deposit was opened on 16 December 2025 and matures on 16 June 2027.
The funds are not available for withdrawal without penalty prior to maturity and have therefore been classified as a fixed asset investment.
Additionally total shares received as gifts during the year amounted to 1,690 (2025: 11,558).
The total of shares held in Gloucestershire Warwickshire Steam Railway Plc amount to 454,990 (2025: 453,300).
The total shares held in Severn Valley Railway (Holdings) Plc amount to 1,282 (2025: 1,282).
The total shares held in Great Central Railway Plc amount to 688 (2025: 688).
The directors are of the opinion that the deemed market value of investments is £nil (2025: £nil).
Included within accruals and deferred income is deferred income of £64,014 (2025: £65,829). This comprises income received in relation to future periods from members who have subscribed to 1 or 3 year memberships.
The funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:
Viewing gallery
A fund to enable the viewing of the maintenance of engines in the diesel and steam shed at Toddington.
Locomotive welfare building, volunteers' donations
An amount funded by the steam department for the fit out of the locomotive building once it has been built.
Friends of Winchcombe Station
This fund represents a donations to be used by the Friends of Winchcombe Station.
Carriage & wagon fund
A fund set up for the carriage and wagon team.
Toddington fence
A fund to erect fencing around the former Garden Centre site.
Winchcombe canopy
Funds for general repairs to canopy.
Coach donation
Funds for buffet coach refurbishment.
Viaduct appeal
Funds for repairs to Stanway viaduct.
Viaduct appeal - phase 2
Funds for further repairs to Stanway Viaduct,
Permanent way tool fund
Funds for the permanent way in relation to donations received from volunteers for purchasing equipment. Additionally, a donation was received to fund a Ford Ranger for the benefit of GWSR Plc.
Coach 3127
A generous donation enabled the purchase of this coach to provide first class accommodation in one of the carriage sets.
The funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes:
Gains and losses
Railway catering services
A fund set up by a group of members for occasional catering purchases.
RBR coaches
Funds for refurbishing the restaurant car.
Stanway viaduct
Funds to cover repair costs at Stanway viaduct.
Broadway resurfacing
Funds for the resurfacing work on Platform 2 at Broadway.
Broadway rebuild
Funds for the rebuilding work on Platform 2 at Broadway.
Bridge 32
Funds for repair work at Bridge 32.
S & T building
Funds for a new workshop at Winchcombe for the Signal and Telegraph department.
Parapet repairs
Funds for viaduct repairs.
Toddington slip phases 1 and 2
It was initially intended to deal with a small landslip by use of piling. However, work could not be completed due to geological conditions and the unspent funds were transferred to phase 2 which comprised remedial drainage work as an alternative.
Bridge 10
The bridge at Stanton, Bridge 10, carries the local minor road to Stanton village. Two wing walls had suffered movement and one of the pilasters required rebuilding. Work is complete with only the retention payable.
USK Hut completion
A small grant to cover landscaping work.
Trees for sustainability
Funds for along the line to promote the green corridor.
Milling machine
Funds for two extra machines in the workshop at Toddington.
Gotherington signal cable
Funds for replacement of the life-expired signal cable between Gotherington and Cheltenham racecourse.
Heritage trail
Funds for improvements around Toddington and Winchcombe.
Broadway museum
Funds for exhibition at the Broadway museum on the history of the Broadway station.
The company is limited by guarantee and therefore has no share capital. In the event of the company being wound up each member is liable for an amount not exceeding £10.
The company is a registered charity and has taken advantage of the exemption to dispense with the word Limited from its name.
There were no disclosable related party transactions during the year (2025 - none).
The charity had no material debt during the year.