REGISTERED NUMBER: 02071143 (England and Wales)

Strategic Report,

Report of the Directors and

Financial Statements

for the Year Ended 31 December 2025

for

Peak Rail Limited (formerly Peak Rail

Plc)

Page

Company Information

1

Strategic Report

2

Report of the Directors

5

Report of the Independent Auditors

7

Statement of Comprehensive Income

11

Balance Sheet

12

Statement of Changes in Equity

13

Cash Flow Statement

14

Notes to the Cash Flow Statement

15

Notes to the Financial Statements

16

DIRECTORS:

R M Hallatt

M E Sealey

J J Short

SECRETARY:

Mrs H I Evans

REGISTERED OFFICE:

Rowsley South Station Harrison Way

Darley Dale

Matlock

Derbyshire

DE4 2LF

REGISTERED NUMBER:

02071143 (England and Wales)

AUDITORS:

Mabe Allen LLP

Chartered Accountants

Statutory Auditors

50 Osmaston Road

Derby

DE1 2HU

BANKERS:

Cooperative Bank

1 Balloon Street

Manchester

M60 4EP

The Directors present their strategic report for the year ended 31st December 2025.

REVIEW OF BUSINESS

In 2025 the company again increased its turnover and profit, with catering and the Santa Specials both doing particularly well. Shop turnover increased again, notably in the sale of gift items, and it made a small trading profit in the year. Turnover from footplate experiences and group travel (mainly coach parties) was a little disappointing.

Increases in turnover also mean increases in cost of sales, with the increases in minimum wage and employment costs being significant. As a consequence of the latter, the directors have reviewed how part-time and casual staff, most of which are part of the catering division, are utilised.

At the end of the year Peak Rail de-registered as a plc and re-registered as a private company. As it was a plc for all but three weeks of 2025 it is required to undertake a statutory audit, but in future years the additional regulations for public companies will not apply and costs, particularly relating to production of formal accounts, should reduce. The change also affects the ways in which shares can be sold, and this will be monitored to ensure compliance with the law.

PRINCIPAL RISKS AND UNCERTAINTIES

Peak Rail will always be reliant on tourism as a major source of income, and it faces similar risks to other tourist attractions. The directors are mindful of tourist taxes imposed in parts of the UK. The concern is that such taxes dissuade potential visitors to an area, reducing income for local retail and leisure businesses. Whilst national parks currently cannot levy such charges, the chief executive of the Peak District National Park has suggested that visitors to the area could be charged in the future, ostensibly to help fund costs because government grants have reduced a good deal in real terms over the years. There are obstacles to be overcome before charges could be implemented.

Increases in the cost of living and personal taxation continue to affect the economy and the leisure sector. Consumers have less disposable income for visiting attractions and spending whilst there. The directors have mitigated some of the cost of visiting Peak Rail for families with the popular "kids go free" offer; they acknowledge, however, that it does not help couples and solo visitors, particularly amongst younger age groups. Winter viruses, including Covid, can potentially disrupt pre-Christmas trading, potentially affecting both visitors and available volunteers.

The railway is reliant on volunteers and staff in order to operate and trade. Recruitment and retention of volunteers remains difficult for many organisations, not least for the reasons above and volunteers' increasing age profile. Peak Rail is doing quite well at attracting and retaining younger volunteers in particular.

As a heritage railway Peak Rail operates older locomotives reliant on fossil fuels. Coal and oil prices have been less volatile more recently but increasing awareness of the environmental impact of and sensitivity surrounding the use of such fuels may affect public attitudes in the future.

Climate change and increased frequency of severe weather events pose a risk to the operation of the railway. It has been affected by severe flooding in the past, but prolonged and/or excessive heat is potentially as damaging. Extreme conditions also discourage visitors and can cause operating problems or even damage the infrastructure.

The company, along with its supporting groups, works hard to minimise risks within its direct control.

FUTURE PROSPECTS

With cash flow and trading in 2025 remaining good, the company was able to utilise some of the legacy monies for the purchase of equipment to make jobs quicker to complete and volunteers' lives easier.

In 2025 the Night Shift, which was an evening gala to celebrate the 200th anniversary of railways, was extremely successful in terms of both income and publicity. The event will continue in the future, although the directors are likely to move it to the autumn in order to relieve pressure on maintenance work which is undertaken early in the year, during the closed period.

Work on Royal Pioneer's boiler is underway, thanks in good part to the support of shareholders and the fund-raising efforts of the Peak Railway Association. The boiler has been sent to Western Steam Engineering Ltd at The Forrest of Dean Railway for rebuilding, a new firebox has been manufactured by the South Devon Railway engineering and sent to the Forrest of Dean. Once work has progressed on the boiler , the completed loco frames will join it for final assembly and testing, before returning to Peak Rail.

Peak Rail continues to retain advisers and specialists to assist with compliance, particularly in the fields of health and safety and regulation. It is a necessity in view of continual legislative and regulatory changes.

Work on the new lease has stalled due to staffing at the council, however the directors continue to work with DDDC towards either a lease or the purchase of the freehold of the railway land.

We also welcome the new directors to posts on the board of Peak Rail Ltd.

Richard Newman joins us as Estates Director, responsible for project management of the various building and infrastructure projects planned for the next few years, Richard joins us as an accomplished Civil Engineer having run his own successful building company until his retirement.

Andrew Howard joins the board as Finance Director, responsible for the safe management of the financial aspect of the railway, a post which has been vacant for a number of years. Andrew joins the Board of Directors and brings with him Accountancy qualifications from AAT levels to CIMA qualifications, he holds a number of voluntary positions, Treasurer of the Engine shed society and secretary of Mead Business Centre Management Ltd and Director and secretary of Mead Lane Management Ltd.

The Railway continues to grow year on year both on a business front and a railway operational basis, development of the new sidings at Rowsley for the bay platform, and the reconstruction of the footbridge at Darley Dale will show how we have been able to invest in infrastructure to develop the railway for the future.

KEY PERFORMANCE INDICATORS

The table below gives some insight to performance over recent years.

2025

2024

2023

2022

2021

£

£

£

£

£

Turnover

765,618

678,619

458,705

295,581

256,065

Other operating income

119,488

275,614

89,800

26,970

179,358

Gross profit

478,455

437,827

292,320

184,094

166,037

Net profit/(loss)

46,143

266,916

(1,225

)

(125,758

)

81,431

In order to ensure the ongoing financial well being of the company, key elements of our business are still carefully monitored:

Bank borrowing

Cash flow

Passenger numbers

On going costs in all sections of the business

The continuous analysis of these figures enables the company to make adjustments in its day to day performance where problems are identified and enables forward planning to ensure that any significant improvements necessary can be made and implemented.

PLEASE SEND IN YOUR PROXY FORM.

ON BEHALF OF THE BOARD:

M E Sealey - Director

25 September 2026

The directors present their report with the financial statements of the company for the year ended 31 December 2025.

The company has received legacies totalling £40,000 in 2025.

On the whole the year 2025 was a great improvement over the previous one. The railway continues to make small steps in the right direction and is slowly getting back on its feet. Being cautious around spending will ensure that the board is able to meet any further issues that may come its way. It is essential that the company restructures to meet the challenges to be fit for the 21st century with all its new ways of working.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of a Heritage Railway.

DIVIDENDS

No dividends will be distributed for the year ended 31 December 2025.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2025 to the date of this report.

R M Hallatt

M E Sealey

J J Short

Other changes in directors holding office are as follows:

G Bennett - resigned 15 October 2025

A W Civil - resigned 15 October 2025

Ms S S Morgan - resigned 15 October 2025

G L Caro ceased to be a director after 31 December 2025 but prior to the date of this report.

RE-REGISTRATION AS A PRIVATE COMPANY

During the year the company re registered from a public limited company to a private limited company under section 97 of the Companies Act 2006. The directors considered that the public company structure was no longer required for the company's operations. The re registration does not affect the company's ongoing activities, governance arrangements or the rights of shareholders. The company continues to operate as a going concern and there has been no impact on the financial statements.

DIRECTORS INDEMNITIES

Directors and officers' insurance cover has been established for all of the Directors to provide appropriate cover for their reasonable actions on behalf of the Company. The indemnities, which constitute a qualifying third-party indemnity provision as defined by section 234 of the Companies Act 2006, were in force during the 2024 financial year and remain in force for all current and past Directors of the Company.

DISCLOSURE IN THE STRATEGIC REPORT

The company has chosen in accordance with section 414C(11) of the Companies Act 2006 (Strategic Report and Directors Report) Regulations 2013 to set out in the company's Strategic Report information required by schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008. The review of the company and a discussion of the principle risks and uncertainties faced by the company has been included in the Strategic Report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

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

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

-	select suitable accounting policies and then apply them consistently;

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

-	state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

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

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

ON BEHALF OF THE BOARD:

M E Sealey - Director

25 September 2026

Opinion

We have audited the financial statements of Peak Rail Limited (formerly Peak Rail Plc) (the 'company') for the year ended 31 December 2025 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including 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:

-	give a true and fair view of the state of the company's affairs as at 31 December 2025 and of its profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

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

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

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

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 this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

-	the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

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

-	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-	the financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

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

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page six, 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 necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

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 a Report of the Auditors 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.

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 fraud

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:

- The nature of the industry and sector, control environment and business performance including targets for income and net profit;

- Results of our enquiries of management and the directors about their own identification and assessment of the risks of irregularities;

- Any matters we identified having obtained and reviewed the company's documentation of their policies and procedures relating to:

- Identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance, including any related to the General Data Protection Regulations or Bribery Act 2010.

- Detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;

- The internal controls to mitigate risks of fraud or non-compliance with laws and regulations;

- The matters discussed among the audit engagement team and including relevant internal tax specialists regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.

As a result of these procedures, we considered the opportunities and incentives that may exist within the company for fraud and identified the greatest potential for fraud in the ability of management to manipulate revenue recognition. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

We also obtained an understanding of the legal and regulatory frameworks that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the Company Act 2006 and the Financial Reporting Standard 102.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company's ability to operate or to avoid a material penalty. These include The General Data Protection Regulations, the Bribery Act 2010 and Health and Safety policies.

Audit response to risks identified

Our procedures to respond to risks identified above include the following:

- Reviewing the financial statements disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements.

- Enquiring of management and directors concerning actual and potential litigation and claims;

- Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;

- Reading minutes to meetings of those charged with governance and reviewing relevant correspondence from regulatory bodies;

- In addressing the fraud risk in revenue recognition at an analytical review level, we developed an expectation of the revenue with reference to our experience of the client and discussions on the recognition and volatility of revenue in the year; and

- In addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

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 a Report of the Auditors 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.

Neil Higgins FCCA (Senior Statutory Auditor)

for and on behalf of Mabe Allen LLP

Chartered Accountants

Statutory Auditors

50 Osmaston Road

Derby

DE1 2HU

29 September 2026

TURNOVER

4

765,618

678,619

Cost of sales

287,163

240,792

GROSS PROFIT

478,455

437,827

Administrative expenses

551,069

445,671

(72,614

)

(7,844

)

Other operating income

5

119,488

275,614

OPERATING PROFIT

8

46,874

267,770

Interest payable and similar expenses

10

731

854

PROFIT BEFORE TAXATION

46,143

266,916

Tax on profit

11

-

-

PROFIT FOR THE FINANCIAL YEAR

46,143

266,916

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

46,143

266,916

FIXED ASSETS

Tangible assets

12

1,104,793

1,090,497

CURRENT ASSETS

Stocks

13

22,583

22,910

Debtors

14

39,970

39,234

Cash at bank and in hand

202,547

225,230

265,100

287,374

CREDITORS

Amounts falling due within one year

15

138,205

170,356

NET CURRENT ASSETS

126,895

117,018

TOTAL ASSETS LESS CURRENT LIABILITIES

1,231,688

1,207,515

CREDITORS

Amounts falling due after more than one year

16

20,674

45,299

NET ASSETS

1,211,014

1,162,216

CAPITAL AND RESERVES

Called up share capital

20

855,485

852,830

Revaluation reserve

21

156,770

156,770

Retained earnings

21

198,759

152,616

SHAREHOLDERS' FUNDS

1,211,014

1,162,216

The financial statements were approved by the Board of Directors and authorised for issue on 25 September 2026 and were signed on its behalf by:

M E Sealey - Director

Called up

share

Retained

Revaluation

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 January 2024

850,504

(114,300

)

156,770

892,974

Changes in equity

Issue of share capital

2,326

-

-

2,326

Total comprehensive income

-

266,916

-

266,916

Balance at 31 December 2024

852,830

152,616

156,770

1,162,216

Changes in equity

Issue of share capital

2,655

-

-

2,655

Total comprehensive income

-

46,143

-

46,143

Balance at 31 December 2025

855,485

198,759

156,770

1,211,014

Cash flows from operating activities

Cash generated from operations

1

47,407

256,304

Interest paid

(731

)

(854

)

Net cash from operating activities

46,676

255,450

Cash flows from investing activities

Purchase of tangible fixed assets

(74,712

)

(74,497

)

Sale of tangible fixed assets

-

4,000

Net cash from investing activities

(74,712

)

(70,497

)

Cash flows from financing activities

Loan repayments in year

(5,480

)

(5,356

)

Share issue

2,655

2,326

Government grant income

8,178

8,178

Net cash from financing activities

5,353

5,148

(Decrease)/increase in cash and cash equivalents

(22,683

)

190,101

Cash and cash equivalents at beginning of year

2

225,230

35,129

Cash and cash equivalents at end of year

2

202,547

225,230

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2025

2024

£

£

Profit before taxation

46,143

266,916

Depreciation charges

60,417

44,998

Profit on disposal of fixed assets

-

(4,000

)

Government grants

(8,178

)

(8,178

)

Finance costs

731

854

99,113

300,590

Decrease/(increase) in stocks

327

(7,037

)

Increase in trade and other debtors

(736

)

(18,213

)

Decrease in trade and other creditors

(51,297

)

(19,036

)

Cash generated from operations

47,407

256,304

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2025

31.12.25

1.1.25

£

£

Cash and cash equivalents

202,547

225,230

Year ended 31 December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

225,230

35,129

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.25

Cash flow

At 31.12.25

£

£

£

Net cash

Cash at bank and in hand

225,230

(22,683

)

202,547

225,230

(22,683

)

202,547

Debt

Debts falling due within 1 year

(5,479

)

(127

)

(5,606

)

Debts falling due after 1 year

(26,280

)

5,606

(20,674

)

(31,759

)

5,479

(26,280

)

Total

193,471

(17,204

)

176,267

1.	STATUTORY INFORMATION

Peak Rail Limited is a public company, limited by shares, registered in England and Wales. The company's registered number and registered office can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	STATEMENT OF COMPLIANCE

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" and the Companies Act 2006.

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

Going Concern

The directors have assessed the company's ability to continue as a going concern and have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, the financial statements have been prepared on the going concern basis.

Change in legal status

On 2nd December 2025, the company re registered from a public limited company to a private company limited by shares under section 97 of the Companies Act 2006. The re registration does not affect the continuity of the company and has no impact on the carrying amounts of assets or liabilities recognised in these financial statements.

The company's name has been updated to Peak Rail Limited and all references to the former public limited company status have been removed. No changes were made to the rights attached to the company's share capital as part of the re registration.

Significant judgements and estimates

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Significant Judgements

The judgements (apart from those involving estimations) that management had made in the process of applying the entity's accounting policies and that have the most significant effect on the amounts recognised in the financial statements are as follows:

- Determination of whether there are indicators of impairment of the company's tangible fixed assets. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset.

- Revaluation of freehold property. The company carries its freehold property at fair value with changes in fair value being recognised in the statement of comprehensive income. The directors assessment and current valuation made use of the most recent valuation report prepared by independent valuation specialists to determine fair value at 31 December 2023. The valuer used a valuation technique which expressed an opinion on the property market value as defined by RICS Valuation - Global Standards 22: UK National Supplement (The Red Book).The members have continued with this approach for the valuation in the current period, taking into account an analysis of the subject property, size, condition, situation and other factors affecting the value.

Key Sources of Estimation Uncertainty

Accounting estimates and assumptions are made concerning the future and, by their nature will rarely equal the related actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing material adjustment to the carrying amounts of assets and liabilities within the next financial year as follows:

-Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.

Cost of living crisis and economic uncertainty in the UK

The impact following the cost of living crisis and the recent changes to employment taxation will continue to cause disruption to and create uncertainty around the business, not least with regard to its working capital and the ability of its customers to pay now and into the future, and whether it needs to impair its assets. Any further disruption or uncertainty could have an adverse effect on the business, financial results and operations.

The full impact of the economic uncertainty in the United Kingdom is still to be determined and the directors continue to assess and monitor the potential risks and impacts on Peak Rail Limited's customers and major stakeholders, whilst taking appropriate mitigation measure to address challenges including logistics, staff and supply.

Turnover

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

Revenue from the sale of goods is recognised when the sufficient risks and rewards of ownership of the goods have transferred to the buyer, usually on despatch of the goods, the amount of revenue can be measured reliably, it is probable that the associated economic benefits will flow to the entity, and the costs incurred or to be incurred in respect of the transactions can be measured reliably.

When the outcome of a transaction involving the rendering of services can be reliably estimated, revenue from the rendering of services is measured by reference to the stage of completion of the service transaction at the end of the reporting period.

When the outcome of a transaction involving the rendering of services cannot be reliably estimated, revenue is recognised only to the extent that expenses recognised are recoverable.

Services supplied may include those associated with the preservation, operation, restoration, maintenance and protection of locomotives, rolling stock, railway track and equipment.

Turnover comprises rent, fares, shop sales and buffet and restaurant sales. Rental income is recognised in accordance with the terms of the agreements in place. Ticket sales for fares are recognised in the period to which they relate. Shop, buffet and restaurant sales are recognised as they occur.

Tangible fixed assets

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

Railway line

-

2% on cost

Leasehold property

-

4% on reducing balance

Plant and machinery

-

25% on cost

Fixtures and fittings

-

25% on cost

Rolling stock

-

10% on cost

Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended.

An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.

Stocks

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

Financial instruments

A financial asset or financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument.

Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Debt instruments are subsequently measured at amortised cost.

Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in the profit and loss immediately.

Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, 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.

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.

Other operating income

Other operating income comprises grant income, donations, legacies and sundry income which are accounted for on a received/receivable basis.

Capitalisation of labour

Labour costs incurred that are directly attributable to bringing assets into working condition are capitalised.

4.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by class of business is given below:

2025

2024

£

£

Sale of goods

298,017

237,226

Rendering of services

467,601

441,393

765,618

678,619

An analysis of turnover by geographical market is given below:

2025

2024

£

£

United Kingdom

765,618

678,619

765,618

678,619

5.	OTHER OPERATING INCOME

2025

2024

£

£

Rents received

31,722

14,343

Legacies

40,226

228,274

Donations received

35,990

19,762

Sundry income

3,372

5,057

Government grants

8,178

8,178

119,488

275,614

6.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

202,914

163,257

Other pension costs

2,164

2,097

205,078

165,354

The average number of employees during the year was as follows:

2025

2024

Marketing staff

1

1

Shop/buffet staff

18

14

Carriage maintenance staff

1

1

Directors

1

1

21

17