The trustees present their annual report and financial statements for the year ended 31 January 2026.
For the purposes of charity law, the directors of the company are the trustees of the Group. The financial statements comply with the Memorandum and Articles of Association by which the company is governed. The company is recognised as a charity by the Inland Revenue and the Scottish charity number is SC016127.
Objectives and activities
The principal activities of the company in the year under review were those of the preservation and restoration of industrial railway heritage and making the experience of the heritage available to the public for education, school parties by arrangement, and entertainment on public open days.
Risk Management
The major strategic, business and operational risks that the company faces, have been examined by the trustees and they are satisfied that the reporting systems are in place to ensure the company meets all its obligations.
In particular, with regard to our Safety Management Systems, a full revision of our Rule Book and Volunteer Certification continues. All our management systems are currently being centralized in Dropbox, where they are shared with all who require access. Use of HOPS (Heritage Operations Processing System) is being introduced currently and will replace Dropbox in due course.
Insurance cover is regularly reviewed and renewed as required. The Group carries Pressure Vessel insurance, Public and Volunteers Liability insurance and Directors Liability insurance. The public liability insurance is for a total indemnity of £10million.
The Board meets monthly. Meetings include regular reviews of safety and risk management, as well as financial management and strategic planning.
Restoration Work
Steam locomotive NCB Ayrshire Area Number 10 (AB 2244/1948) successfully passed its cold exam on time but examination in steam had to be postponed due to an unexpected fault and was rearranged for 13 June 2025. Thereafter the loco was in regular use throughout the 2025 season. In January 2026 the locomotive failed its cold exam, due to the requirement to replace several crown stays in the firebox. A decision was taken to replace all crown stays in the hope of avoiding a further failure later. However, no funding has so far been identified for this work and the locomotive remains in stripped down condition. It is possible that the work might be undertaken in-house but will take time. All passenger services are diesel hauled in the meantime.
Fireless locomotive AB 1952/1928 was only steamed twice in 2025. In 2026 it has not been examined in steam due to the condition of Number 10.
NCB Fife Area No23 0-4-0ST (AB No2260). There has been no further work on this locomotive, but the bunkers, cab, tank and chimney, which had been removed for boiler assessment, have now been placed back on the locomotive, mainly to clear space in the yard.
M731299 LMS 20 Ton Brake Van. Restoration having been completed is now stored outside the locoshed protected by a tarpaulin, pending a move into the new storage shed (qv.)
ARPG Passenger Brake Van no M296676. Work has now begun on restoring this vehicle, with new cladding panels in the veranda area and repairs to the brake system. A complete repaint will follow in due course.
Restoration work on BP Diesel Andrew Barclay No399 has continued and the locomotive has been started on several occasions, in spite of frequent problems with the pneumatic starter motor. The locomotive is currently available for standby duties on open days. Cosmetic restoration continues as time allows.
Sentinel Diesel and North British Diesel locomotives: following management changes at Gibson Engineering, our directors are now involved in protracted negotiations to bring these locomotives back to Dunaskin. At one time progress seemed assured and a positive outcome was expected; however, a further management change at Gibson’s has set things back recently. The Board are prepared to take legal steps if necessary.
The passenger saloon has operated satisfactorily through the 2025 season and into 2026. Occasional problems with the pneumatic system have been repaired by our engineers and are being monitored closely. Repairs to the vehicle’s body work are now urgently needed but the coach cannot be taken out of service yet. The expectation is that it will continue in regular use until the return of our Mk1 coaches from Stainmore; hopefully this will be in early 2027.
Work on restoring the Waggon Repair Shed has unfortunately stalled over the past few months. A contract for new doors has been placed and funding is in place for that work; however, the installation date has been put back several times by the contractor. It is currently hoped that the new doors will be installed in July this year. That will allow track to be laid in the former sawmill bay so that our narrow-gauge collection can be moved under cover. The floor of the main display space remains unpainted; this cannot be done until standard gauge track has been laid and concreting completed to allow the Donelli people mover and selected waggons to be brought in.
Buildings and site
By far the greater part of the time and energy of the directors (and a lot of volunteer time and hard work) has been taken up with arrangements for the construction of our new rolling stock storage shed, which is now complete; snagging issues remain to be resolved before final payment is made to the contractors. At the time of writing there is still no track in the shed or on the approaches, but a new grant of £50k has been obtained for this work, part of which has already happened in the form of ground clearance. The clearing of the ground for the shed raised many unforeseen difficulties and incurred expenditure which had not been allowed for in the budget. If it had not been for many long hours of labour, often late into the evening, by a handful for our own people, the costs would have been even greater and the shed would not have been built in time to meet the funding deadlines laid down by the grant awarding bodies. However, the presence of a large new shed adjacent to the 1964 locoshed fulfils an ambition held by the Group for more than thirty years and must be considered a great achievement.
While our café, shop and bothy buildings have been secured for the Group, as reported last year, the future of the other historic buildings is still uncertain. The former joinery shop and brick store building were sold by the landlord to a third party. This has had implications for access to our land at the back of the buildings; much time and effort has been wasted on trying to resolve these issues.
We continue to occupy the former museum building (which is in fact the former DICo engineering shop) on a temporary basis as the landlord now seems to be in no hurry to sell. However, that situation could change at any time.
After five years of negotiations, our licence to run through to Minnivey has finally come through from the line owners, Hargreaves Ltd. A lot of upgrading of the track will be needed, however, before the line will see regular traffic. The current target is to start running trains through to Minnivey before the end of 2027.
After over a year of negotiation and fund raising, a new brown tourism sign has been erected on the A713 pointing to Doon Valley Railway. Our new identity seems now to be official!
Open Days
The 2025 season opened at Easter with a successful visit from the Easter Bunny and a good number of passengers. Weekly opening began 25th May and a full season of open days followed. Visitor numbers on ordinary running days were at times disappointing, but an end of season classic vehicles day again helped to bring in greater numbers.
Seven days of Santa specials were planned and ran virtually fully sold out, raising a gross total of some £18k; after VAT and expenses a substantial boost to our funds remained.
In 2026 a new venture was to run specials for Mothers’ Day, which was in mid-March. This did not sell out but was considered a successful first attempt.
Easter Day was also a successful open day; now at the time of writing, the summer season of Sunday openings is in full swing, although it is thought that advertising needs to be organised better to bring in more people.
On 23rd June a group of some 65 pupils from Drongan Primary School enjoyed a private visit sponsored by Smith’s Coaches. The pupils had a ride on the train, a visit to the locoshed, an interesting and informative powerpoint presentation and a visit to the “old” museum for a talk on railway heritage and operating. The latter was delivered by two of our teenaged volunteers, who performed excellently well.
Plans are in hand for our most ambitious season of Christmas specials yet, with a total of eight running days over four weekends in the lead up to the festive season. If previous years are anything to go by, this will once again bring a welcome boost to our funds.
Future Plans
In partnership with the Dalmellington Parish Development Trust and the 9CC Group a detailed and wide-ranging tourism development plan for the whole Doon Valley has been drawn up with the Doon Valley Railway at its heart. Among other things, this could see our railway line extended to five miles with new station developments. The funding implications are enormous, of course, but there is a clear expectation that the scheme will be fully funded through the generosity of the local windfarm development companies. An announcement is expected in the autumn.
External Support
The Group wish to acknowledge the financial support from East Ayrshire Council who have granted us 100% exemption on our business rates for both our owned and rented properties on the Dunaskin site.
Coalfield Communities Landscape Partnership (CCLP)
After seven years, this project has now been wound up, but not before ARPG had benefitted to a total of some £130k. Some of this helped pay for Number 10’s last boiler overhaul; it also provided £105k towards the cost of the new shed. We are eternally grateful to East Ayrshire Council for this scheme, and in particular to those council officers who have worked so closely with us over the years to bring things to a successful conclusion.
Other Funding Partners
Under the guidance of our director in charge of fund raising, much effort has been expended in attempting to raise the match funding needed for this project to go ahead. Our gratitude is due to the following funding partners who have awarded grants:
Renewable Energy Fund : two grants of £44,000 and £40,000 respectively
Dalmellington Parish Development Trust : £40,000
9CC : two grants of £11,500 and £16,008 respectively
ARIA: £20,000
PBIP: £22,008
Brockwell Energy Ltd: £15,877
Dividends
No dividends will be distributed for the year ended 31 January 2026.
Under the Articles of Association, no distribution can be made by way of a dividend to the members of the Company, and during the year no such distributions were made.
The company retains sufficient reserves to cover its current liabilities. Board policy currently is not to allow cash reserves to drop below £10,000. Cash not required for current operational purposes is held on deposit with the Royal Bank of Scotland plc.
The results for the year and financial position of the company are as shown in the annexed financial statements.
In 2025/26 total income achieved amounted to £59,874, resulting in a surplus of £1,839. At the end of the year, net assets stood at £181,319 including net cash of £59,508.
Guarantee
In accordance with the Memorandum of the Association, each member undertakes, in the event of a winding up, to contribute up to a maximum of one Pound each to the assets of the Association (if called upon to do so).
Future Developments
Our priorities have been amended as follows, in light of the decision taken at the EGM held on 29 July 2023 and subsequent developments.
Build a new shed for the storage of our restored vehicles, on our land beside the loco shed – achieved.
Confirmation of a new licence to operate on the railway line from Dunaskin to Minnivey platform – achieved.
Redevelop the waggon repair shed as a new narrow-gauge depot and museum, to be available for opening to the public – ongoing.
Undertake outstanding track maintenance work and restore the track from Laight crossing to Minnivey for future passenger operation.
Return two mainline coaches to Dunaskin and start passenger train operations between Dunaskin and Minnivey.
Plan to continue public open days and educational events but taking changing circumstances into account.
Participate in Doon Valley joint tourism plan.
We continue to depend on our loyal volunteers for all of the above to go ahead. It has been extremely gratifying to see the enthusiasm with which our plans for a completely different future have been taken on board by the volunteers, whose numbers continue to grow, and whose unity of purpose is stronger now than for some considerable time. In particular, it has been gratifying to be able to appoint several new directors who have taken on important remits, including engineering, financial management, fund raising, safety and special projects. A vice-chairman has been appointed. The mood of the membership is currently very upbeat as we look to a positive and productive future.
Trustees
The trustees shown below have held office during the whole of the period from 1 February 2025 to the date of this report.
LT Skilton
AR Thom
A Smith
J Wade
B Thomson
S-J Taylor
W Taylor
Other changes in trustees holding office are as follows:
A Wallace – resigned 17 May 2025
J Puncher – appointed 17 May 2025
J Smith - appointed 18 October 2025
C Thom - resigned 19 October 2025
The Company is limited by guarantee and there is no issued share capital at 31 January 2026.
The trustees are elected to office by the members at the Group's Annual General Meeting. In accordance with the Articles of Association, the appointment of Jane Puncher has to be ratified at the forthcoming Annual General Meeting. There are currently no other unfilled directorships.
Day to day management of the group is in the hands of the trustees, with some aspects of the work being delegated to other volunteer members, who are answerable to the Board. All work undertaken by the group is done by volunteer members and there are no paid employees.
New trustees are usually appointed from among the regular volunteers and therefore are familiar with the company's activities. Where necessary, induction to the Board is incorporated in the first meeting following the appointment. The board has the authority to co-opt members to fill vacancies and such appointments are ratified at the next AGM.
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 trustees' report was approved by the Board of Trustees.
I report on the financial statements of the charity for the year ended 31 January 2026, which are set out on pages 8 to 18.
It is my responsibility to examine the financial statements as required under section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and to state whether particular matters have come to my attention.
Our examination is carried out in accordance with Regulation 11 of the 2006 Accounts Regulations. An examination includes a review of the accounting records kept by the charity and a comparison of the financial statements presented with those records. It also includes consideration of any unusual items or disclosures in the financial statements, and seeks explanations from the trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently we do not express an audit opinion on the view given by the financial statements.
In the course of my examination, no matter has come to my attention
1. which gives me reasonable cause to believe that in any material respect the requirements:
to keep accounting records in accordance with Section 44(1)(a) of the Charities and Trustee Investment (Scotland) Act 2005 and Regulation 4 of the Charities Accounts (Scotland) Regulations 2006, and
to prepare financial statements which accord with the accounting records and comply with Regulation 8 of the Charities Accounts (Scotland) Regulations 2006
have not been met, or
2. to which, in my opinion, attention should be drawn 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.
Ayrshire Railway Preservation Group is a private company limited by guarantee incorporated in Scotland. The registered office is Rivermeade, Culdoach Road, Tongland, Kirkcudbright, Dumfries and Galloway, DG6 4LU.
The financial statements have been prepared in accordance with the charity's governing document, the Companies Act 2006 the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006, FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" 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)". 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 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.The principal accounting policies adopted are set out below.
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
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.
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. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.
Properties whose fair value can be measured reliably are held under the revaluation model and are carried at a revalued amount, being their fair value at the date of valuation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. The fair value of the land and buildings is usually considered to be their market value.
Revaluation gains and losses are recognised in other recognised gains and losses and accumulated in equity, except to the extent that a revaluation gain reverses a revaluation loss previously recognised in net income/(expenditure) or a revaluation loss exceeds the accumulated revaluation gains recognised in equity; such gains and loss are recognised in net income/(expenditure) for the year.
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).
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. Items held for distribution at no or nominal consideration are measured the lower of replacement cost and cost.
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 average monthly number of employees during the year was:
The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.
The trustees of the Cummnock & Doon Valley Minerals Trust hold a standard security over the subjects at Dalmellington Road, Waterside.
Deferred income is included in the financial statements as follows:
The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.
The company carries boiler and mechanical insurance for the working exhibits and equipment. No insurance is carried for fire, theft or destruction of fixed assets or stock. Any losses so incurred would be required to be written off to the income and expenditure account in the year which they arose.
The charity occupies premises owned by a trustee. No rent was charged during the year in relation to this. The trustees consider this arrangement to be in the best interests of the charity.
Every member of the Company has undertaken to contribute up to a maximum of £1 to the Company's assets if it should be wound up whilst they are members, or within one year after they cease to be a member, for the payment of the Company's debts and liabilities contracted for before they ceased to be a member, and of the costs, charges and expenses of winding up, and of the adjustment to rights of the contributories amongst themselves.