REGISTERED NUMBER: 01412568 (England and Wales)

SWANAGE RAILWAY COMPANY LIMITED

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2026

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

DIRECTORS:

K M Potts

E M Sellen

N Au

A W Atkins

D J Bennett

B J Ford

P J Milford

S T Butler

C A Wynn-Evans

SECRETARY:

P J Milford

REGISTERED OFFICE:

The Station House

Swanage

Dorset

BH19 1HB

REGISTERED NUMBER:

01412568 (England and Wales)

ACCOUNTANTS:

Morris Crocker

Chartered Accountants

Lake House

2 Port Way

Port Solent

Portsmouth

Hampshire

PO6 4TY

FIXED ASSETS

Tangible assets

4

4,149,551

4,206,282

CURRENT ASSETS

Stocks

91,900

100,688

Debtors

5

72,646

67,813

Cash at bank and in hand

349,079

338,374

513,625

506,875

CREDITORS

Amounts falling due within one year

6

474,379

632,260

NET CURRENT ASSETS/(LIABILITIES)

39,246

(125,385

)

TOTAL ASSETS LESS CURRENT LIABILITIES

4,188,797

4,080,897

CREDITORS

Amounts falling due after more than one year

7

(2,412,215

)

(2,578,043

)

PROVISIONS FOR LIABILITIES

9

(46,010

)

(25,035

)

NET ASSETS

1,730,572

1,477,819

CAPITAL AND RESERVES

Called up share capital

486,963

486,963

Revaluation reserve

10

569,567

569,567

Retained earnings

674,042

421,289

1,730,572

1,477,819

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 January 2026.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 January 2026 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 19 June 2026 and were signed on its behalf by:

B J Ford - Director

1.	STATUTORY INFORMATION

Swanage Railway Company Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

Going Concern

The financial statements have been prepared on a going concern basis. The directors have assessed the company’s ability to continue as a going concern for a period of at least twelve months from the date of approval of these financial statements.

In making this assessment, the directors have considered the company’s current financial position, including its cash flow forecasts and available financing facilities. They have taken into account the potential impacts of known and reasonably foreseeable changes in trading performance, market conditions, and other relevant risk factors.

Based on this review, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.

Critical accounting judgements and key sources of estimation uncertainty

The directors have assessed that there are no critical accounting judgements or key sources of estimation uncertainty that have had a significant effect on the amounts recognised in the financial statements in the current or prior year.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Capital grants

Capital grants received by the company are shown on the balance sheet by including the grant in creditors as deferred income. The grant is released to the Profit and Loss Account in accordance with the depreciation policy of the asset to which the grant relates. Where an impairment has taken place on assets under capital funding the offset has reduced the credit balance on the grant.

Revenue Grants

Revenue grants are recognised as income over the period necessary to match them with the related costs which they are intended to compensate, on a systematic basis.

Tangible fixed assets

Assets are initially recognised at cost, and are assessed for indicators of impairment at each balance

sheet date. If there is objective evidence of impairment, an impairment loss is recognised in the income statement.

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

Land & buildings

4% straight line

Plant & machinery

2%, 10%, 20%, 25% straight line, 20% reducing balance

Heritage assets are now held at valuation and were revalued at 31st January 2026. Heritage assets are not depreciated as residual values are considered to be at least equal to the current valuation. As the heritage assets are not usually traded on an open market, values are often hard to determine. The directors have therefore used the values of the assets as provided by the Loco, Carriage & Wagon staff and volunteers, as best estimates.

Heritage assets will be revalued every five years, with the next valuation due in 2029.

Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in the Statement of financial activities as described below.

An asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, that estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.

Stocks

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

Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition.

Financial instruments

The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third parties and loans to related parties and investments in non-puttable ordinary shares.

Trade and other debtors

Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment

Cash and cash equivalents

Cash and cash equivalents comprise cash at bank and on hand, deposits with banks and other short-term highly liquid investments and bank overdrafts. In the balance sheet, bank overdrafts are shown within borrowings or current liabilities.

Trade and other creditors

Short term trade creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 36 (2025 - 32 ) .

4.	TANGIBLE FIXED ASSETS

Plant and

Land and

machinery

buildings

etc

Totals

£

£

£

COST

At 1 February 2025

881,375

5,538,029

6,419,404

Additions

122,738

54,724

177,462

Disposals

-

(56,720

)

(56,720

)

Reclassification/transfer

345,923

(345,923

)

-

At 31 January 2026

1,350,036

5,190,110

6,540,146

DEPRECIATION

At 1 February 2025

485,799

1,727,323

2,213,122

Charge for year

51,415

147,722

199,137

Eliminated on disposal

-

(21,664

)

(21,664

)

At 31 January 2026

537,214

1,853,381

2,390,595

NET BOOK VALUE

At 31 January 2026

812,822

3,336,729

4,149,551

At 31 January 2025

395,576

3,810,706

4,206,282

Included in plant and machinery etc is heritage assets, which consists of locomotives and rolling stock. The directors consider that the value of this would be £1,160,446.

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2026

2025

£

£

Trade debtors

11,977

2,827

Other debtors

60,669

64,986

72,646

67,813

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2026

2025

£

£

Bank loans and overdrafts

54,193

52,348

Trade creditors

151,621

251,422

Amounts owed to group undertakings

135,719

135,719

Taxation and social security

30,643

21,766

Other creditors

102,203

171,005

474,379

632,260

Amounts owed to group undertakings are unsecured, bear no interest and have no fixed repayment terms.

7.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2026

2025

£

£

Bank loans

-

51,845

Other creditors

2,412,215

2,526,198

2,412,215

2,578,043

Barclays plc holds fixed and floating charges over the undertaking all property and assets present and future. This includes goodwill, land, buildings, fixtures and fittings and other equipment owned by the company.

Other creditors due in more than one year consists of the following:

2026

2025

£

£

Capital grants from SRT

1,610,626

1,681,889

DCC cabinet grant

53,435

66,525

Big lottery fund

427,787

439,438

BP Perenco

297,522

310,521

Department of transport

22,845

25,172

Other capital grants

-

2,653

2,412,215

2,526,198

8.	LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

2026

2025

£

£

Within one year

113,850

108,600

Between one and five years

416,213

410,400

In more than five years

926,400

1,027,000

1,456,463

1,546,000

9.	PROVISIONS FOR LIABILITIES

2026

2025

£

£

Deferred tax

46,010

25,035

Deferred

tax

£

Balance at 1 February 2025

25,035

Provided during year

20,975

Balance at 31 January 2026

46,010

10.

RESERVES

Revaluation

reserve

£

At 1 February 2025

and 31 January 2026

569,567

The revaluation reserve relates to heritage assets.

11.	RELATED PARTY DISCLOSURES

Two directors have a shareholding in the parent of a Locomotives group which Swanage Railway group use as a supplier. During the year, there was transactions totalling £120,615 (2025: £115,000) with £25,200 (2025: £6,000) outstanding at year end.

The total amount outstanding on loans obtained from The Swanage Railway Trust was £135,719 (2025: £135,719). Interest is charged on the winter loan at 1.5% above the Bank of England base rate. Interest charged in the year was £11,975 (2025: £14,275).

12.	POST BALANCE SHEET EVENTS

At the Annual General Meeting held in October 2025, members approved governance changes to enable Swanage Railway Company to become an entity with charitable status and to assume the activities of the Swanage Railway Trust.

Subsequent to the year end, the necessary regulatory approvals were obtained to support this change. Following these approvals, the Company has commenced the transfer of the activities, assets and liabilities of the Swanage Railway Trust.

This transfer represents a significant expansion of the Company’s operations, with the activities previously undertaken by the Swanage Railway Trust now being carried out by the Company.

As these developments occurred after the balance sheet date, no adjustments have been made to the amounts recognised in these financial statements.No transaction has taken place yet.

13.	ULTIMATE CONTROLLING PARTY

Swanage Railway Trust Limited is regarded by the directors as being the company's ultimate parent company. The registered office of this is the same as Swanage Railway Company Limited and can be found on the Company Information page.

The company is controlled by Swanage Railway Trust by virtue of its 96% shareholding, making the Trust the parent company. The remaining 4% of issued share capital is non-voting.