The Trustees present their annual report and financial statements for the year ended 31 December 2025.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements 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)" (effective 1 January 2019).
The Diesel & Electric Preservation Group Limited ("the Company or Charity"), also known as the D&EPG, is a Private Company Limited by Guarantee registered in England & Wales at Companies House (registration number 02193894) and incorporated on 16th November 1987. The Company is also a registered charity (registered with The Charity Commission for England & Wales, registration number 298142), whose principal activity is to advance the education of the public in the history and development of diesel traction on the railways of the West of England by the preservation and operation of diesel traction, particularly as it relates to the West of England.
The Charity's principal office and registered address is The Old Goods Shed, Williton Station, Williton, SOMERSET, TA4 4RQ.
The Company and Charity meets its principal activity by maintaining and operating a Diesel Traction Depot at Williton on the West Somerset Railway, which is home to the Charity's own fleet of seven former British Rail (BR) mainline diesel locomotives dating from the early 1960s. The D&EPG also manages under contract an additional two ex-BR locomotives based at Williton that are in the private ownership of a group member and one former industrial shunting locomotive that is owned by the West Somerset Railway (WSR). The fleet regularly operates both public service and infrastructure trains on The WSR.
The late 1950s / early 1960s represent a very distinct and important period of change on Britain's railways as a result of the post-war Modernisation Plan and the wholesale replacement of steam traction with early diesel locomotives, especially on the former British Railways Western Region where a unique approach was adopted. The D&EPG believes that it is both educationally and historically important that our locomotives from this period are able to be demonstrated to the public in a living, working heritage setting.
The D&EPG fulfils a crucial supporting role to the WSR plc, making locomotives available to them on an as required basis and in support of their operations 365 days a year. Operating our depot and locomotives also enables both current and former railway staff to retain, develop and share their skills with colleagues and the general public and provides an exceptional environment of camaraderie including occasional social events and networking with other heritage railways and operating groups.
The diesel depot is staffed on Tuesdays, Saturdays and occasional other days by a core of some 20 active volunteers, several of whom are currently professional or former professional railway staff and who are drawn from a nationwide membership of over 400 supporting members. The Charity's depot is frequently open to the public for viewing as operational considerations and safety permit.
The Charity's income has traditionally been derived primarily from mileage payments for locomotives miles operated (£96,268 during 2025, 2024: £41,575) and from membership dues and donations received including gift aid (£62,555 in 2025, 2024: £89,871).
The Trustees have paid due regard to guidance issued by the Charity Commission in relation to public benefit in deciding what activities the charity should undertake.
The year in review saw the D&EPG acquire a Class 08 shunter D3516 (08 401) as a backup to Class 09 shunter D4107 (09 019) that was bought the previous year. Both locomotives will be made available for hire to the WSR or to other railways and will provide a useful income stream for the Charity.
The bodywork overhaul of D7017 that had been contracted out to the WSR in October 2024 progressed slowly due to the amount of work required and consumed all of the restricted funds raised specifically for the purpose, with an additional £8,227 being drawn from general reserves. D7017 returned to service at the ‘HYMEK 50 YEARS’ event in August 2025.
D7018 returned to traffic in May, just in time to haul a special for one of our earliest members for his 50th Wedding Anniversary. After running throughout the season, D7018 left the WSR in September to travel to the Great Central Railway for a period of 8 months hire, when it would not have been of use to the WSR thus earning the group valuable funds at our quietest period for income. D6566 also had a holiday, albeit just a weekend away, due to the need for it to support the WSR, this was attending a gala on the Spa Valley Railway. Diesel locomotives running on the WSR continued to see a summer diesel gala and the regular weekend diesel-hauled services, with the addition of the ‘HYMEK 50 YEARS’ event at the end of August. This plus unplanned running of Class 14 D9526 during the peak summer season resulted in hire receipts of £68,768 (2024: £33,085). Our Class 47 D1661 47077 ‘NORTH STAR’ also had a good year, earning income of £27,500 (2024: £8,490) to repay for repairs carried out in the previous year. Taken all together, locomotive running income was £96,268 (2024: £41,575) or 54% (2024: 29%) of total income.
Donations declined to £54,035 (2024: £81,832) due to reduced contributions to two of the targeted fund-raising campaigns that were continued from the previous three years with £4,691 raised (2024: £42,359) for the restoration of Class 52 D1010 ‘WESTERN CAMPAIGNER, £1,969 raised (2024: £13,232) for Class 14 ‘Teddy Bear’ D9518 and £9,629 raised (2024: £7,173) for Class 35 ‘Hymek’ D7017. A new campaign was started to raise funds for the conversion of Class 08 D3516 (08401) from air-braking to dual-braking and had raised £2,265 by year end. Donations to these funds are classified as Restricted Funds and can only be applied to the project for which they were donated.
After deducting expenditure on parts and materials for each project (D1010: £24,684 : D9518: £5,305 : D7017: £24,385 : D3516: £173), the shortfall of £35,992 has been deducted from the funds carried forward from 2024, resulting in four separately identifiable restricted funds (D1010: £27,477 : D9518: £5,109 : D7017: £0 : D3516: £2092).
The net income from sales of books, clothing and collectible items via the D&EPG online store and through direct sales at events rose to £14,688 (2024: £8,574), assisted by revenues from a D&EPG-published booklet on D7017 and from a new range of embroidered and printed D&EPG-branded clothing items.
The number of members increased during the year, from 372 in January 2024 to 414 by the end of the year, and this continuing trend is attributed to the raised profile of the Charity resulting from regular e-mailings and website updates combined with wider social media coverage. The membership revenue increased slightly to £8,520 (2024: £8,039).
With the continuing improvement in earning potential of the Charity, the level of investment in plant and equipment at Williton continues to increase, with a new cleaning machine purchased (£3,283), a fork-lift truck acquired and brought up to operational standard (£3,450) and a used mobile elevating work platform acquired and undergoing restoration (£1,645).
Our locomotive fleet dates back to the early 1960s and spare parts are becoming more difficult to obtain as each year passes. The Charity is actively seeking to acquire spare parts from other heritage railway groups and from sources abroad. Spare parts to the value of £6,865 were acquired during 2025 (2024: £911) and a further acquisition of refurbished Sulzer cylinder heads to the value of £26,909 was planned but not completed until June of 2026 and will be reflected in the accounts of that year. The Charity intends to continue to commit funds to the expansion of the spare parts stock and associated storage facilities - but on an opportunistic basis.
The Old Goods Shed at Williton remains out of use due to deterioration of the roof structure, repairs of which are likely to cost in excess of £150,000. Plans for the restoration and change of use of this 1862 Grade II listed structure are in progress with the aim of attracting support from other organisations, but the future plans and costs have not yet been established so this liability remains an estimate. A provision of £250,000 has been allocated to this project to cover the rising costs associated with the work required.
Considering all sources of income and after deducting expenditure, the result was a healthy operating surplus of £49,039 (2024: £57,338) during a year of heavy expenditure. This takes account of a decrease in restricted funds of £35,992 (2024: increase of £45,352) which was offset against the appropriate reserves for planned projects and major locomotive overhauls.
It is the policy of the D&EPG that unrestricted funds which have not been designated for a specific use should be maintained at a level approximating to six months of unrestricted expenditure. The Trustees consider that reserves at this level will ensure that, in the event of a significant and unexpected drop in income, they will be able to continue the D&EPG's current activities while consideration is given to ways in which additional funds may be raised or expenditure reduced. At 31 December 2025 unrestricted funds (excluding the revaluation reserve) were £25,093 which is below the working target level of £30,000. With the improvement in earning potential noted above, the trustees expect that the target level will be reached within the next 12 months.
The Trustees have re-assessed the major risks to which the charity is exposed and are satisfied that systems are in place to mitigate exposure to these risks.
At the end of 2025 the Trustees and Officers of the D&EPG identified no doubts that the charity would be able to continue as a going concern. The diversification of income sources, the targeted fund-raising campaigns and the expanding membership have ensured that the D&EPG remains an ongoing concern, with substantial assets and identifiable liabilities.
The D&EPG has no subsidiary companies or charities, nor does it hold funds on behalf of any such separate organisation.
The Charity is governed by a full Memorandum & Articles of Association and as a Private Company Limited by Guarantee without share capital, it has no shareholders or persons with significant control.
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 D&EPG is managed on a day-to-day basis in accordance with the Company's Memorandum & Articles of Association, by a Board of Directors comprising the Company's officers and trustees and other members drawn from the active volunteer membership. The Board, which holds regular minuted meetings, is acutely aware of the nature of the D&EPG's Charitable Purposes to not only maintain our heritage assets in a safe and operational condition (including the undertaking of minor and major overhauls as required); and to operate our depot in a safe, inclusive, welcoming and educational manner regardless or the race, ethnicity, language, sexual orientation or disability of the visitor / member. D&EPG actively encourages the recruitment and training of younger people wherever practical and appropriate to do so.
None of the Trustees has any beneficial interest in the company. All of the Trustees are members of the company and guarantee to contribute £5 in the event of a winding up.
The company's current policy concerning the payment of trade creditors is to follow the CBI's Prompt Payers Code (copies are available from the CBI, Centre Point, 103 New Oxford Street, London WC1A 1DU).
The company's current policy concerning the payment of trade creditors is to:
settle the terms of payment with suppliers when agreeing the terms of each transaction;
ensure that suppliers are made aware of the terms of payment by inclusion of the relevant terms in contracts; and
pay in accordance with the company's contractual and other legal obligations.
The Trustees, who are also the directors of The Diesel and Electric Preservation Group Ltd 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).
The Trustees report was approved by the Board of Trustees.
I report to the Trustees on my examination of the financial statements of The Diesel and Electric Preservation Group Ltd (the Charity) for the year ended 31 December 2025.
Having satisfied myself that the financial statements of the Charity are not required to be audited under Part 16 of the Companies Act 2006 and are eligible for independent examination, I report in respect of my examination of the Charity’s financial statements carried out under section 145 of the Charities Act 2011. In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the Charities Act 2011.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
accounting records were not kept in respect of the Charity as required by section 386 of the Companies Act 2006.
the financial statements do not accord with those records; or
the financial statements do not comply with the accounting requirements of section 396 of the Companies Act 2006 other than any requirement that the financial statements give a true and fair view, which is not a matter considered as part of an independent examination; or
the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
The statement on financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.
The Diesel and Electric Preservation Group Ltd is a private company limited by guarantee incorporated in England and Wales. The registered office is The Old Goods Shed, Williton Station, Williton, SOMERSET, TA4 4RQ. |
The financial statements have been prepared in accordance with the Charity's Memorandum and Articles of Association, the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). The Charity is a Public Benefit Entity as defined by FRS 102.
The Charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.
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, modified to include the revaluation of heritage assets. 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. There are no material uncertainties which may create significant doubt over the chairty's ability to continue as a going concern.
Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives.
The revaluation reserve represents the net (unrealised) gain arising on the revaluation of the heritage assets.
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.
Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the item of income have been met, 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.
Membership subscriptions are credited to the Statement of Financial Activities in the year to which they relate. Life membership subscriptions are credited to the Statement of Financial Activites in the year they are received, as no refunds are given for unused portions of membership.
Income received in advance of provision of a sevice is deferred until criteria for income recognition are met.
Donated professional services and donated facilities are recognised as income when the charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use by the charity of the item, is probable and the economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), general volunteer time is not recognised.
On receipt, donated professional services and donated facilities are recognised on the basis of value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity: this is normally upon notification of the interest paid or payable by the bank.
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.
Irrecoverable VAT is charged at cost against the activity for which the expenditure was incurred.
Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost 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.
Items of equipment are capitalised where the purchase price exceeds £1,000.
The charity owns various locomotives and freight vehicles which are held and maintained for their historical and cultural value. Such assets are classified as heritage assets within the financial statements. A full description of the heritage assets is set out in Note 12.
Heritage assets are valued at their most recent valuation, which is currently 2020. Additions between valuations are stated at cost. Heritage assets are not depreciated as the trustees consider that they are artefacts of intrinsic value. Heritage assets are periodically reviewed for impairment, with any necessary impairment losses being taken to the Statement of Financial Activities.
The charitable company holds shares in an unquoted company, West Somerset Railway plc. The shares confer voting rights only and are held primarily to further the Charity's charitable objectives, rather than for financial return. As such, they are classified as programme-related investments on the balance sheet and measured at cost less impairment.
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).
Stock includes spare parts and scrap which have been donated to the charity or acquired over a number of years to provide spare parts for the charity's locomotives and restoration work. Much of the stock is unique and as such there is no readily available market value. Donated stock is valued at an estimate of its fair value.
Stocks purchased by the Charity are measured at the lower of cost and net realisable value.
Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.
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.
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.
Provisions are recognised when the Charity has a legal or constructive present obligation as a result of a past event, it is probable that the Charity will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in net income/(expenditure) in the period in which it arises.
In the application of the Charity’s accounting policies, the members 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 estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities include the inputs and estimates used in determining the valuation of heritage assets and the estimates used in determining the repair provision for the Old Goods Shed.
Locomotive hire
Direct costs
Support costs
Governance costs
Direct costs
Support costs
Governance costs
Maintenance and restoration costs
Rent
Utilities
Property and site maintenance
Purchases
Postage and stationery
Newsletter and publicity
Telephone
Insurance
Miscellaneous costs
Legal and professional
None of the Trustees (or any persons connected with them) received any remuneration during the year. No trustees were reimbursed expenses during the year (2024- A trustee was reimbursed expenses for vehicle hire of £233).
The average monthly number of employees during the year was:
The charitable company does not have any employees (2024: none). Trustees do not receive any remuneration as a result of their office. Total benefits paid to key management personnel were £nil (2024 - £nil).
The charity is exempt from corporation tax as all its income is charitable and is applied for charitable purposes.
Tangible fixed assets consist of ISO containers used for the storage of spare parts, other fixed storage facilities (oil store), maintenance access staging and equipment used in the overhaul and restoration of railway vehicles.
The valuation of the locomotives was reassessed by the trustees as at 31 December 2025 with regard to recent market sales of similar locomotives and their current condition and are satisfied there is no material change from the prior year.
The historical cost of the heritage assets is £137,746 (2024: £90,471). Heritage assets are not depreciated.
Heritage assets owned by the Charity comprise the following:
Locomotives:
Class 14 0-6-0 D.H. Nos. D9518 & D9526
Class 35 "Hymek" D.H. Nos. D7017 & D7018
Class 47/8 "Brush" D.E. No. D1661 "North Star"
Class 52 "Western" D.H. No. D1010 "Western Campaigner"
Class 09 Shunter D4107 (09019)
Class 08 08401 (D3516)
Freight vehicles:
Brake van No. B952527
Ferry van No. B787158
Lowmac No. B904146
Open wagon No. GW118904
Vanwide No. B784676
The charitable company also enters into agreements with the owners of diesel locomotives wherein the charitable company becomes the custodian of those locomotives for a specified period. Under the agreements the charitable company is responsible for the administration of the locomotives, their maintenance and operation whilst on West Somerset Railway. The charitable company does not recognise these locomotives as assets on its balance sheet. The agreements in force at 31 December 2025 were:
Clive Burrows: Class 33 x 2 Nos. D6566 & D6575 both for the fifteen years expiring 29th August 2029.
West Somerset Railway: Andrew Barclay 0-4-0DH 578 for ten years expiring on 01st May 2031.
The shares were purchased in 1995. Since 2002, West Somerset Railway plc has had a nil dividend policy, which has meant that the shares have no readily ascertainable market value. Accordingly the trustees have written the value of the shares down to £1.
The Old Goods Shed at Williton Station was built in 1862 to a Brunel broad gauge design by the Bristol & Exeter Railway. The stone-built slate-roofed building has been the home of the DEPG since 1980 and became a Grade II listed building in 1984 (listing number 1345661). The DEPG entered into a 35-year lease agreement with the West Somerset Railway for the Williton Goods Yard site in 1994 and the Old Goods Shed is included within the boundary of the Goods Yard. The building has since fallen into disrepair but the lease includes obligations for the DEPG to maintain the building, so remedial work will need to take place before the end of the lease term (29th August 2029).
The building was vacated at the end of 2020 due to concerns about the structural safety. The estimated cost of the remedial work depends on the planned future use of the building. The previous use of the building as a locomotive repair bay cannot justify the repair cost, so work is taking place to establish a plan for a community use facility that would be funded by multiple parties. The repair cost for the roof structure is estimated at approximately £150,000 with a further £100,000 needed for additional woodwork.
Restricted funds relate to funds raised specifically for the restoration of the D1010, D9518, D7017 & D3516 locomotives.
At the reporting end date the Charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
There were no disclosable related party transactions during either the current or the prior year.