The directors present the strategic report for the year ended 31 December 2025.
We are pleased to present to you the Bluebell Railway Preservation Society Consolidated Accounts for 2025.
Our membership’s numbers have remained steady around the 9,300 mark, which, on reflection is actually quite healthy when you take into account natural losses, non-renewals which in these uncertain times is perfectly reasonable. Nonetheless, it is still important we ALL do what we can to try and promote the Railway in terms of the benefits of being a member and the contribution that can be made and indeed going forward, the impact members will be able to exert in the running of the railway.
Membership support is as important now as it was in 1959.
Change is always difficult to introduce and if we are honest not everyone embraces change but sometimes out of necessity, change can benefit an organisation in many important ways but that’s depending on how well the change implementation is managed. Whether it’s improved efficiency, adaptation to external pressures, improved collaboration within the organisation and its effectiveness, we must look at streamlining through cost reductions and long-term sustainability.
For this to succeed there has to be good leadership, effective planning, members involvement and the most important element, clear and concise communication. It would be poor management through ignorance or neglect that creates resistance or confusion so the message must be clear with a defined path of implementation and clarity of direction.
All the Trustees have carried out their duties by acting in the Society’s best interests by actively participating, monitoring performance and supporting - and challenging where necessary - in order to achieve our aims and objectives.
Support and challenge can be against any part of the Railway structure to ensure goals; values and the long-term strategic plans succeed in their purpose without detriment to the organisation or individual.
Despite inconvenient distractions or external influence, our strengths lie within the members, staff and supporters who seek nothing more than success. But it is important not to lose sight of the core aims of running a safe and sustainable heritage railway that delivers for everyone.
Strategic Report of the PLC directors
Fair review of the PLC
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).
We are very grateful to these funders – with the majority of the Bluebell Railway Trust grants being funded by legacies that people interested in the Railway have very generously left to the Railway when they died. Without those legacies, the railway could not exist in its present form.
It is important to remember that these grants can only be used for the restoration of heritage assets and major infrastructure repairs and cannot be used to offset trading losses.
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.
| What we planned to do | What we achieved |
1 | The directors are hopeful that the significant events planned for 2025 will prove to be successful with increased visitor numbers. Of particular note are the Rail 200 event showcasing nationally a celebration of Britain’s railway history as well as the Bluebell’s 65th anniversary celebrations in August 2025. | Both of these events proved very successful and profitable, and we have been shortlisted for a National Railway Award for Rail200
For the 65th Anniversary event, while the budget was £23.5k, we took £47.9k
|
2 | A working party was set up to look at ways to increase revenue in the medium term | A specific working party was not established; however, progress has been made on two key items which will bring benefits for the future:
|
3 | Finding some savings in the current budget | Some savings were made, and the underspend in Carriage and Wagon and Infrastructure made a material difference to the result for the year - albeit that some of those savings were just timing differences |
4 | Work with the BRPS to agree the sale of some property assets to generate around £700,000 in cash by the end of 2025. This could include the sale and lease back of a working locomotive to the Bluebell Trust | We worked closely with the BRPS and the Bluebell Railway Trust and in the end agreed to sell two locomotives to the Trust for £275k. Work is ongoing on releasing an additional £600k of cash in 2026. |
5 | An urgent review of the corporate structure of the railway so that gift aid can be claimed on qualifying fares (other heritage railways have done this and derive significant amounts of gift aid from fares). However, although we are treating this matter with urgency, it could take up to 24 months before a new structure is in place. | This initiative has been very successful. The matter has been thoroughly investigated, and the restructuring process has started. Early indications are that the process can be complete in well under the 24 months originally anticipated. |
6 | Investigate a proposal to appoint a joint fundraising manager who would work for the company, The BRPS and The Bluebell Trust | Roger Kelly has been appointed and has been working hard on a number of projects. Such projects take a long time to bear fruit, but considerable progress has already been made.
We are supporting this work by defining an initial 5-year Capital Expenditure plan, which will be expanded to 15 years. This plan enables us to prioritise the work, and develop the necessary information required by potential funding sources. |
7 | Investigate charging the Bluebell Trust and other funders a market rate for overheads on capital and other projects they fund | This work is ongoing - but working with the Trust we have identified that Plc staff are working on a number of Trust-based projects where the Plc, not the Trust, is bearing the cost of their work. We are investigating whether the Trust can make grants to cover the cost of that work |
Principal Risks and Uncertainties
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:
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.
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.
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.
On behalf of the Society's board
The directors present their annual report and financial statements for the year ended 31 December 2025.
The results for the year are set out on page 14.
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
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.
We have audited the financial statements of Bluebell Railway Preservation Society (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2025 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company 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).
Basis for opinion
Conclusions relating to going concern
Other information
Opinions on other matters prescribed by the Companies Act 2006
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 parent 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 parent company or to cease operations, or have no realistic alternative but to do so.
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.
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £78,100 (2024 - £78,099 profit).
Bluebell Railway Preservation Society (“the company”) is a private company limited by guarantee domiciled and incorporated in England and Wales. The registered office is Sheffield Park Station, Sheffield Park, Uckfield, East Sussex, TN22 3QL.
The group consists of Bluebell Railway Preservation Society and all of its subsidiaries.
These financial statements have been prepared in accordance with FRS 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. 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.
The consolidated group financial statements consist of the financial statements of the parent company Bluebell Railway Preservation Society together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 31 December 2025. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases. The group has been controlled by the Society for many years but because it was unincorporated group accounts have never been required or prepared. To reflect the control of the Society these accounts present the results of the consolidated group throughout the period of control not just from the date of incorporation of the Society.
The group made a profit for the year ended 31 December 2025 and had net assets at that date amounting to £23,059,306. A loss is forecast for the forthcoming year.
The group 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 is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
All membership subscriptions including life subscriptions are credited to the Income and Expenditure Account in full as they are received not withstanding the periods to which they relate.
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.
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 profit and loss account.
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.
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. 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 period end date, the group 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.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
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 at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and 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.
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
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 group 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 group 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 group's contractual obligations expire or are discharged or cancelled.
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 group’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, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
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.
The Bluebell Railway Plc operates a group personal pension scheme for staff. The scheme provides money purchase and lump sum benefits payable to members on their retirement from Bluebell Railway Plc or its subsidiaries or to their dependents on death before retirement. The assets of the scheme are held separately from those of the company in an independently administered fund. Contributions to the defined contribution scheme are charged to the profit and loss account when they become payable.
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 leased 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 group’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 company exercises 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.
The average monthly number of persons employed by the group and 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 actual (credit)/charge for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:
The Plc 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.
Heritage Asset management policy
The Railway maintains a collection of rolling stock which reflects the history of steam trains. These are in use on the line or awaiting repair at the Railway. The land and buildings are held to showcase and maintain the permanent railway between Sheffield Park and East Grinstead. Acquisitions are made by purchase and maybe funded or donated by The Bluebell Railway Trust. There has been three disposals of rolling stock during the year.
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.
Details of the company's subsidiaries at 31 December 2025 are as follows:
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 and assets recognised by the group and 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).
Other reserves are made up of capital funds for various projects as stated below:-
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.
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
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).
Members should be aware that a potentially significant tribunal claim has been brought against the Plc and the Society by a Society Member and former volunteer, claiming – amongst other things – worker status. If it were successful, this could have a wide-ranging impact on not just Bluebell Railway but also other heritage railways around the UK – as workers are entitled to both National Minimum Wage and holiday pay. The Society and the Plc are incurring significant legal and professional costs and time in dealing with this matter to the detriment of the railway but having taken professional advice the Trustees believe this claim is without any merit and have made no provision in the accounts for any obligation or liability.