REGISTERED NUMBER:
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STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
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FINANCIAL STATEMENTS |
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FOR THE YEAR ENDED 31ST DECEMBER 2019 |
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FOR |
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LLANGOLLEN RAILWAY PLC |
REGISTERED NUMBER:
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STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
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FINANCIAL STATEMENTS |
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FOR THE YEAR ENDED 31ST DECEMBER 2019 |
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FOR |
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LLANGOLLEN RAILWAY PLC |
LLANGOLLEN RAILWAY PLC (REGISTERED NUMBER: 02716476) |
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CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31ST DECEMBER 2019 |
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Page |
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Company Information | 1 |
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Strategic Report | 2 |
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Report of the Directors | 4 |
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Report of the Independent Auditors | 7 |
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Statement of Comprehensive Income | 9 |
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Balance Sheet | 10 |
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Statement of Changes in Equity | 11 |
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Cash Flow Statement | 12 |
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Notes to the Cash Flow Statement | 13 |
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Notes to the Financial Statements | 15 |
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LLANGOLLEN RAILWAY PLC |
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COMPANY INFORMATION |
FOR THE YEAR ENDED 31ST DECEMBER 2019 |
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DIRECTORS: |
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SECRETARY: |
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REGISTERED OFFICE: |
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REGISTERED NUMBER: |
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AUDITORS: |
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Chartered Accountants |
and Statutory Auditors |
25 Grosvenor Road |
Wrexham |
LL11 1BT |
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BANKERS: |
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33, Lord Street |
Wrexham |
LL11 1LP |
LLANGOLLEN RAILWAY PLC (REGISTERED NUMBER: 02716476) |
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STRATEGIC REPORT |
FOR THE YEAR ENDED 31ST DECEMBER 2019 |
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The directors present their strategic report for the year ended 31st December 2019. |
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The year ended 31st December 2019 showed a similar picture to the previous year in that engineering again showed a |
substantial loss due to two contracts being massively underquoted. One of these contracts has been completed in the year |
and we will resolve the problem with the second contract in early 2020. |
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We have continued to refurbish our carriage to a high standard and so preserve their asset value. We have also |
completed a carriage under contract, and there are other such contracts in the pipeline. |
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Our ordinary passenger numbers have held up well, and we have improved the number and profitability of our special |
events, although we have reduced our gala to one, as these are less popular than previously, and costs particularly |
transport have increased substantially. |
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The new station at Corwen is at an advanced stage with the water tank in place and working. The wheel chair lift has |
been installed and will accommodate one wheelchair user or one seated passenger using the built-in folding seat. We |
hope that the station will be operational in 2020, but as usual we are at the mercy of the weather. We are hugely indebted |
to the team of volunteers who have worked at times in appalling conditions. |
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We are grateful to all the volunteers who give so much of their time to running the railway without whom we would not |
continue to operate. |
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Llangollen Railway PLC has a substantial number of shares from our second issue availability, and we would urge you |
to support this by purchasing shares and own part of the railway. The shareholder benefits of free travel are the same as |
in the original issue, and we look forward to your help in continuing to develop our railway. |
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Principal risks and uncertainties |
The company has undertaken a comprehensive assessment of the risks faced by it and has identified key areas into which |
these can be categorised. These are: |
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People |
- Adequate and appropriate staffing levels both at managerial and operational level. |
- Health and safety issues for staff, volunteers and visitors. |
- Training and assessment requirements. |
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Processes |
- Derailment. |
- Signals passed at danger. |
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Systems |
- Communications and data storage failure. |
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Asset protection and maintenance |
- Infrastructure damage and collapse. |
- Accidental and malicious failure or damage to plant. |
- Withdrawal of operating licence. |
- Lease forfeiture. |
- Theft. |
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Environment |
- Floods/landslides. |
- Bad weather. |
- Pollution. |
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Political and regulatory |
- Industry regulation. |
- EU legislation. |
- Pollutants. |
- Heath and safety. |
LLANGOLLEN RAILWAY PLC (REGISTERED NUMBER: 02716476) |
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STRATEGIC REPORT |
FOR THE YEAR ENDED 31ST DECEMBER 2019 |
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- Employment legislation. |
- National, Local government and Welsh Assembly. |
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Business and commercial |
- Loss of Thomas licence. |
- Decline in passenger numbers. |
- Decrease in commercial engineering and coach work. |
- Rises in energy costs. |
- Community issues. |
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Each of the above has been sub-divided into specific areas, management of which has been delegated to specific and |
competent individuals who have established the controls necessary to identify and proactively deal with the risks. The |
comprehensive risk assessment referred to above is a formal working document approved at Board level. It forms an |
integral part of the regular Directors' board meetings. It constantly undergoes review and amendment to reflect the |
changing environment in which the Railway operates. |
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Future Developments |
The aim for the current year is to continue to develop new revenue streams resulting from the extension to Corwen. |
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COVID 19 |
Llangollen Railway has been affected financially due to COVID 19. As from the 17th of March to the 1st of August we |
were unable to trade which meant we had an estimated loss of income of around £400,000. To try and mitigate our |
losses we have appealed to our shareholders and also to the general public. We have also successfully applied for a |
Welsh Government grant and a bounce back loan. During the closure we were able to reduce our creditors with the |
assistance of the bounce back loan which has placed us in a much better position. |
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We have cut costs by making staff redundant and reducing staffing overall. We have a tighter rein on our expenditure |
and we have now ceased carrying out engineering contract work to cut costs even further. |
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We have been working on specific budgeting for the rest of 2020 moving in to 2021. As we have reduced capacity due |
to the ongoing restrictions we will have further losses to the end of 2020. We are planning to run certain events to bring |
in some additional income to help carry us through the winter closed season. We have secured an emergency Heritage |
Lottery Grant which will give us added security moving forward. |
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This has been and still is and extremely difficult time for Llangollen Railway, we are doing as much as we can to |
mitigate our risks. |
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ON BEHALF OF THE BOARD: |
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LLANGOLLEN RAILWAY PLC (REGISTERED NUMBER: 02716476) |
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REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31ST DECEMBER 2019 |
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The directors present their report with the financial statements of the company for the year ended 31st December 2019. |
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PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of the operation, extension and other matters |
associated with a heritage steam railway. |
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DIVIDENDS |
No dividends will be distributed for the year ended 31st December 2019. |
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FUTURE DEVELOPMENTS |
The company's plans for the forthcoming year are to continue to run a successful heritage railway and in association with |
Llangollen Railway Trust (Limited). |
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EVENTS SINCE THE END OF THE YEAR |
Information relating to events since the end of the year is given in the notes to the financial statements. |
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DIRECTORS |
The beneficial interests of the directors holding office at 31st December 2019 in the shares of the company, according to |
the register of directors' interests were as follows: |
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31.12.19 |
1.1.19 or at date
of appointment |
Ordinary shares of £1 each |
P K Evans | 1,637 | 1,637 |
H J Shipton | 1,500 | 1,500 |
J C Joyce - resigned 06.09.19 | - | 200 |
J R Bearne - appointed 25.06.18 | 1,650 | 1,650 |
R F Gordon | 50 | 50 |
Q D McGuinness | 1,718 | 1,718 |
Mrs E McGuinness | 250 | 250 |
R Bettley - Smith - resigned 31.03.19 | - | 250 |
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FINANCIAL INSTRUMENTS |
The company's operations expose it to a variety of financial risks including credit risk, cash flow risk and liquidity risk. |
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The company does not have material exposure in any of the areas identified above. |
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The company's principal financial instruments comprise sterling cash and bank deposit, together with trade debtors and |
trade creditors that arise directly from operations. |
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Credit and cash flow risk |
The company's credit and cash flow risk is primarily attributable to its trade debtors. Credit and Cash flow risk is |
mitigated by monitoring and management of the credit limits given to its customers. |
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POLITICAL DONATIONS AND EXPENDITURE |
Charitable donations for the year amounted to £3,166 (2018: £4,711). |
No political donations were made. |
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FIXED ASSETS |
In the opinion of the directors there is no significant difference between the present market value of the company's |
properties and the amounts at which they are stated in the accounts. |
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COMPANY'S POLICY ON PAYMENT OF CREDITORS |
It is company policy to follow a standard code on payment practice which is available from the registered office. It is |
company policy, in respect of all its suppliers, to settle the terms of payment when agreeing the terms of each |
transaction, to ensure that suppliers are made aware of the terms of payment, and to abide by the terms of payment. |
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For the year ended 31st December 2019, the average payment period for trade creditors was 154 days (2018: 102 days) |
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LLANGOLLEN RAILWAY PLC (REGISTERED NUMBER: 02716476) |
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REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31ST DECEMBER 2019 |
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MAJOR SHAREHOLDERS |
The company has been notified that the following shareholders held more than 3% of the company's issued share capital |
at the date of this report: |
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Number of |
shares held | % |
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Llangollen Railway Trust Limited | 175,561 | 23.2 |
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GEOGRAPHICAL AREA |
No branches of the company exist outside the United Kingdom. |
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POST BALANCE SHEET EVENTS |
Llangollen Railway has been affected financially due to COVID 19. As from the 17th of March to the 1st of August we |
were unable to trade which meant we had an estimated loss of income of around £400,000. To try and mitigate our |
losses we have appealed to our shareholders and also to the general public. We have also successfully applied for a |
Welsh Government grant and a bounce back loan. During the closure we were able to reduce our creditors with the |
assistance of the bounce back loan which has placed us in a much better position. |
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We have cut costs by making staff redundant and reducing staffing overall. We have a tighter rein on our expenditure |
and we have now ceased carrying out engineering contract work to cut costs even further. |
|
We have been working on specific budgeting for the rest of 2020 moving in to 2021. As we have reduced capacity due |
to the ongoing restrictions we will have further losses to the end of 2020. We are planning to run certain events to bring |
in some additional income to help carry us through the winter closed season. We have secured an emergency Heritage |
Lottery Grant which will give us added security moving forward. |
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This has been and still is and extremely difficult time for Llangollen Railway, we are doing as much as we can to |
mitigate our risks. |
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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. |
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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: |
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- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
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state whether applicable accounting standards have been followed, subject to any material departures disclosed and
explained in the financial statements; |
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will
continue in business. |
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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. |
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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 or she ought to have |
taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the |
company's auditors are aware of that information. |
LLANGOLLEN RAILWAY PLC (REGISTERED NUMBER: 02716476) |
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REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31ST DECEMBER 2019 |
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AUDITORS |
The auditors, M. D. Coxey and Co. Limited, will be proposed for re-appointment at the forthcoming Annual General |
Meeting. |
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ON BEHALF OF THE BOARD: |
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REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
LLANGOLLEN RAILWAY PLC |
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Opinion |
We have audited the financial statements of Llangollen Railway Plc (the 'company') for the year ended |
31st December 2019 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). |
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In our opinion the financial statements: |
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give a true and fair view of the state of the company's affairs as at 31st December 2019 and of its loss 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. |
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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. |
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Conclusions relating to going concern |
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to |
you where: |
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the directors' use of the going concern basis of accounting in the preparation of the financial statements is not
appropriate; or |
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the directors have not disclosed in the financial statements any identified material uncertainties that may cast
significant doubt about the company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue. |
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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. |
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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. |
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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 there is a material misstatement in the financial |
statements or a material misstatement of the other information. 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. |
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Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
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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 |
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the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal
requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
LLANGOLLEN RAILWAY PLC |
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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. |
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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: |
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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. |
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Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page five, 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. |
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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. |
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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. |
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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. |
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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. |
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for and on behalf of
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Chartered Accountants |
and Statutory Auditors |
25 Grosvenor Road |
Wrexham |
LL11 1BT |
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LLANGOLLEN RAILWAY PLC (REGISTERED NUMBER: 02716476) |
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STATEMENT OF COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31ST DECEMBER 2019 |
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31.12.19 | 31.12.18 |
Notes | £ | £ |
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TURNOVER | 3 |
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Cost of sales |
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GROSS PROFIT |
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Administrative expenses |
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(349,256 | ) | (356,861 | ) |
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Other operating income | 4 |
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OPERATING LOSS | 6 | ( |
) | ( |
) |
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Interest receivable and similar income | 7 |
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(318,376 | ) | (325,491 | ) |
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Interest payable and similar expenses | 8 |
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LOSS BEFORE TAXATION | ( |
) | ( |
) |
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Tax on loss | 9 | ( |
) | ( |
) |
LOSS FOR THE FINANCIAL YEAR | ( |
) | ( |
) |
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OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR |
( |
) |
( |
) |
LLANGOLLEN RAILWAY PLC (REGISTERED NUMBER: 02716476) |
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BALANCE SHEET |
31ST DECEMBER 2019 |
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31.12.19 | 31.12.18 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 10 |
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CURRENT ASSETS |
Stocks | 11 |
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Debtors | 12 |
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Cash at bank and in hand |
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CREDITORS |
Amounts falling due within one year | 13 |
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NET CURRENT (LIABILITIES)/ASSETS | ( |
) |
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TOTAL ASSETS LESS CURRENT
LIABILITIES |
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CREDITORS |
Amounts falling due after more than one
year |
14 |
( |
) |
( |
) |
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ACCRUALS AND DEFERRED INCOME | 20 | ( |
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NET ASSETS |
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CAPITAL AND RESERVES |
Called up share capital | 21 |
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Retained earnings | ( |
) | ( |
) |
SHAREHOLDERS' FUNDS |
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The financial statements were approved by the Board of Directors and authorised for issue on
were signed on its behalf by: |
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LLANGOLLEN RAILWAY PLC (REGISTERED NUMBER: 02716476) |
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STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31ST DECEMBER 2019 |
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Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
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Balance at 1st January 2018 |
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( |
) |
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Changes in equity |
Issue of share capital |
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- |
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Total comprehensive income | - | ( |
) | ( |
) |
Balance at 31st December 2018 |
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( |
) |
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Changes in equity |
Issue of share capital |
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- |
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Total comprehensive income | - | ( |
) | ( |
) |
Balance at 31st December 2019 |
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( |
) |
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LLANGOLLEN RAILWAY PLC (REGISTERED NUMBER: 02716476) |
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CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31ST DECEMBER 2019 |
|
31.12.19 | 31.12.18 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | ( |
) | ( |
) |
Interest paid | ( |
) | ( |
) |
Interest element of hire purchase payments
paid |
( |
) |
( |
) |
Net cash from operating activities | ( |
) | ( |
) |
|
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Interest received |
|
|
Net cash from investing activities | ( |
) | ( |
) |
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Cash flows from financing activities |
New loans in year |
|
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Loan repayments in year | ( |
) | ( |
) |
Capital repayments in year | ( |
) |
|
Amount introduced by directors | 92,144 | - |
Amount withdrawn by directors | (22,144 | ) | - |
Share issue |
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Net cash from financing activities |
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Decrease in cash and cash equivalents | ( |
) | ( |
) |
Cash and cash equivalents at beginning of
year |
2 |
(27,377 |
) |
172,356 |
|
Cash and cash equivalents at end of year | 2 | ( |
) | ( |
) |
LLANGOLLEN RAILWAY PLC (REGISTERED NUMBER: 02716476) |
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NOTES TO THE CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31ST DECEMBER 2019 |
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1. | RECONCILIATION OF LOSS BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
31.12.19 | 31.12.18 |
£ | £ |
Loss before taxation | ( |
) | ( |
) |
Depreciation charges |
|
|
Finance costs | 10,799 | 5,110 |
Finance income | (5 | ) | (66 | ) |
(315,573 | ) | (210,190 | ) |
Decrease in stocks |
|
|
Decrease in trade and other debtors |
|
|
Increase/(decrease) in trade and other creditors |
|
( |
) |
Cash generated from operations | ( |
) | ( |
) |
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2. | CASH AND CASH EQUIVALENTS |
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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 31st December 2019 |
31.12.19 | 1.1.19 |
£ | £ |
Cash and cash equivalents | 20,769 | 12,603 |
Bank overdrafts | ( |
) | ( |
) |
(32,759 | ) | (27,377 | ) |
Year ended 31st December 2018 |
31.12.18 | 1.1.18 |
£ | £ |
Cash and cash equivalents | 12,603 | 172,356 |
Bank overdrafts | ( |
) |
|
(27,377 | ) | 172,356 |
|
LLANGOLLEN RAILWAY PLC (REGISTERED NUMBER: 02716476) |
|
NOTES TO THE CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31ST DECEMBER 2019 |
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3. | ANALYSIS OF CHANGES IN NET DEBT |
|
At 1.1.19 | Cash flow | At 31.12.19 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 12,603 | 8,166 | 20,769 |
Bank overdrafts | (39,980 | ) | (13,548 | ) | (53,528 | ) |
(27,377 | ) | ( |
) | (32,759 | ) |
Debt |
Finance leases | (79,262 | ) | 22,737 | (56,525 | ) |
Debts falling due within 1 year | (11,333 | ) | (3,252 | ) | (14,585 | ) |
Debts falling due after 1 year | (34,778 | ) | 4,465 | (30,313 | ) |
(125,373 | ) | 23,950 | (101,423 | ) |
Total | (152,750 | ) | 18,568 | (134,182 | ) |
LLANGOLLEN RAILWAY PLC (REGISTERED NUMBER: 02716476) |
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NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31ST DECEMBER 2019 |
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1. | STATUTORY INFORMATION |
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Llangollen Railway Plc is a private company , registered in England and Wales. The company's registered |
number and registered office address can be found on the Company Information page. |
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2. | ACCOUNTING POLICIES |
|
Basis of preparing the financial statements |
|
|
The financial statements have been prepared on a going concern basis. |
|
For the year ended 31st December 2019, the entity incurred a loss from continuing operations after tax of |
(£270,197) 2018: (£269,657). In the same period the entity had operating cash outflows of (£141,029) 2018: |
operating cash inflows of (£107,858). |
|
This extremely disappointing performance has been discussed in the strategic report page 2. |
|
A cash flow forecast for the next 12 months prepared by management has indicated that the entity, with the |
support of providers of finance, will have sufficient cash assets to be able to meet its debts as and when they are |
due. |
|
No adjustments have been made relating to the recoverability and classification of recorded asset amounts and |
classification of liabilities that might be necessary should the entity not continue as a going concern. |
|
The company's functional and presentational currencies are pounds sterling. |
|
Principal activities |
The principal activity of the company is that of the operation, extension and other matters associated with a |
heritage steam railway. |
|
Significant judgements and estimates |
In the application of the Company’s accounting policies, management are required to make judgements, |
estimates and assumptions about carrying values of assets and liabilities that are not readily available from other |
sources. The estimates and underlying assumptions are based on historical experience and other factors that are |
considered to be relevant. Actual results may differ from these estimates. |
|
The key judgements and sources of estimation uncertainty that have a significant effect on the amounts |
recognised in the financial statements are described below: |
|
- Estimated useful lives and residual values of fixed assets: |
The carrying value of fixed assets are reviewed each year end for indicators of impairment triggers. If such |
triggers exist, management would be required to carry out a formal impairment review using a discounted cash |
flow model to determine their value in use on a cash-generating unit basis. The value in use calculation requires |
management to estimate the future cash flows expected to arise from the cash-generating unit and a sustainable |
discount rate in order to calculate the present value. |
|
Depreciation of tangible fixed assets has been based on estimated useful lives and residual values deemed |
appropriate by the directors. Estimated useful lives and residual values are reviewed annually and revised as |
appropriate. Revisions take into account estimated useful lives used by other companies operating in the sector |
and actual asset lives and residual values, as evidenced by disposals during current and prior accounting periods. |
|
- Revenue recognition: |
In making its judgement, management consider the detailed criteria for the recognition of revenue as set out |
within Section 23 of FRS 102. The directors are satisfied that the recognition point being typically when goods |
are delivered and legal title has passed is correct. |
LLANGOLLEN RAILWAY PLC (REGISTERED NUMBER: 02716476) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2019 |
|
2. | ACCOUNTING POLICIES - continued |
|
Turnover |
Turnover is measured at the fair value of the consideration received or receivable and represents amounts |
receivable for goods supplied and services rendered, stated net of discounts and of Value Added Tax. |
|
Sale of goods |
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods |
have passed to the buyer, the amount of revenue can be measured reliably, it is probable that the economic |
benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect |
of the transaction can be measured reliably. |
|
Rendering of services |
The company recognises revenue when it can be measured reliably. |
Revenue will be recognised by reference to each stage of completion of the transaction at the end of the reporting |
period. Where the contract outcome cannot be measured reliably, revenue is recognised only to the extent of the |
expenses recognised that are recoverable. |
|
Interest income |
Revenue is recognised as interest accrues using the effective interest method. |
|
Tangible fixed assets |
|
Leasehold property | - |
|
Track & rolling stock | - |
|
Fixtures and fittings | - |
|
Computer equipment | - |
|
|
The company has adopted the cost model and as such has measured item's of property, plant and equipment at |
cost less any accumulated depreciation and any accumulated impairment losses. |
|
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 |
Financial assets and financial liabilities are recognised when the company becomes party to the contractual |
provisions of the financial instrument. |
|
Cash and cash equivalents: |
These comprise cash at bank and other short-term highly liquid bank deposits with an original maturity of three |
months or less. |
|
Debtors: |
Debtors do not carry any interest and are stated at their nominal value. Appropriate allowances for estimated |
irrecoverable amounts are recognised in the Profit and Loss account when there is objective evidence that the |
asset is impaired. |
|
Trade creditors: |
Trade creditors are not interest bearing and are stated at their nominal value. |
|
Taxation |
Current tax, including UK corporation tax is provided at amounts expected to be paid (or recovered) using the |
tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
|
LLANGOLLEN RAILWAY PLC (REGISTERED NUMBER: 02716476) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2019 |
|
2. | ACCOUNTING POLICIES - continued |
Deferred tax |
A deferred tax asset or liability is recognised for tax recoverable or payable in future periods in respect of |
transactions and events recognised in the financial statements of current and previous periods. Deferred tax arises |
from timing differences that are differences between taxable profits and accounting profits as stated in the |
financial statements. Timing differences result from the inclusion of income and expenses in tax assessments in |
periods different from those in which they are recognised in the financial statements. |
|
Deferred tax is recognised on all timing differences at the reporting date apart from certain exceptions. |
Unrelieved tax losses and other deferred tax assets are only 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. |
|
Deferred tax is measured using the rates and laws that have been enacted or substantively enacted by the |
reporting date and that are expected to apply to the reversal of the timing differences. |
|
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held |
under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases |
are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
|
The interest element of these obligations is charged to the profit and loss account over the relevant period. The |
capital element of the future payments is treated as a liability. |
|
Rentals paid under operating leases are charged to the profit and loss account on the straight line basis over the |
period of the lease. |
|
Government grants |
Government grants in respect of capital expenditure are credited to a deferred income account and are released to |
profit over the expected useful lives of the relevant assets by equal annual instalments. |
|
Government grants received in respect of revenue are credited to the profit and loss account in the period that the |
revenue and expenditure arises. |
|
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. |
|
Contributions are made to a personal pension plan for the benefit of staff managed by an independent insurance |
company. Contributions are charged to the profit and loss account as they become payable in accordance with |
the rules of the scheme. |
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3. | TURNOVER |
|
The turnover and loss before taxation are attributable to the one principal activity of the company. |
|
An analysis of turnover by geographical market is given below: |
|
31.12.19 | 31.12.18 |
£ | £ |
United Kingdom |
|
|
Europe |
|
|
|
|
LLANGOLLEN RAILWAY PLC (REGISTERED NUMBER: 02716476) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2019 |
|
4. | OTHER OPERATING INCOME |
31.12.19 | 31.12.18 |
£ | £ |
Sundry receipts | 4,645 | - |
Donations received |
|
|
Insurance claim |
|
|
Government grants |
|
|
30,875 | 31,304 |
|
5. | EMPLOYEES AND DIRECTORS |
|
31.12.2019 | 31.12.2018 |
£ | £ |
|
Wages and salaries | 723,257 | 885,949 |
Social security costs | 56,258 | 67,448 |
779,515 | 953,397 |
|
The average monthly number of employees during the year were as follows: |
|
31.12.2019 | 31.12.2018 |
Numbers | Numbers |
Engineering | 32 | 31 |
Administration and sales | 8 | 11 |
40 | 42 |
|
Key management salaries in the year amounted to £146,199 (2018: £179,039). |
|
31.12.19 | 31.12.18 |
£ | £ |
Directors' remuneration |
|
|
|
6. | OPERATING LOSS |
|
The operating loss is stated after charging/(crediting): |
|
31.12.19 | 31.12.18 |
£ | £ |
Depreciation - owned assets | ( |
) |
|
Depreciation - assets on hire purchase contracts |
|
|
Auditors' remuneration |
|
|
Operating lease |
|
|
Government grants |
|
|
|
7. | INTEREST RECEIVABLE AND SIMILAR INCOME |
31.12.19 | 31.12.18 |
£ | £ |
Deposit account interest |
|
|
LLANGOLLEN RAILWAY PLC (REGISTERED NUMBER: 02716476) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2019 |
|
8. | INTEREST PAYABLE AND SIMILAR EXPENSES |
31.12.19 | 31.12.18 |
£ | £ |
Bank interest |
|
|
Bank loan interest |
|
|
Hire purchase interest |
|
|
|
|
|
9. | TAXATION |
|
Analysis of the tax credit |
The tax credit on the loss for the year was as follows: |
31.12.19 | 31.12.18 |
£ | £ |
Deferred tax | ( |
) | ( |
) |
Tax on loss | ( |
) | ( |
) |
|
UK corporation tax has been charged at 19% (2018 - 19%). |
|
Reconciliation of total tax credit included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is |
explained below: |
|
31.12.19 | 31.12.18 |
£ | £ |
Loss before tax | ( |
) | ( |
) |
Loss multiplied by the standard rate of corporation tax in the UK of
(2018 - |
( |
) |
( |
) |
|
Effects of: |
Permanent timing differences | 3,565 | 6,070 |
|
Prior year adjustment | - | (4,200 | ) |
Total tax credit | (58,978 | ) | (60,944 | ) |
LLANGOLLEN RAILWAY PLC (REGISTERED NUMBER: 02716476) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2019 |
|
10. | TANGIBLE FIXED ASSETS |
Track & | Fixtures |
Leasehold | rolling | and | Computer |
property | stock | fittings | equipment | Totals |
£ | £ | £ | £ | £ |
COST |
At 1st January 2019 |
|
|
|
|
|
Additions |
|
|
|
|
|
At 31st December 2019 |
|
|
|
|
|
DEPRECIATION |
At 1st January 2019 |
|
|
|
|
|
Charge for year |
|
( |
) |
|
|
|
At 31st December 2019 |
|
|
|
|
|
NET BOOK VALUE |
At 31st December 2019 |
|
|
|
|
|
At 31st December 2018 |
|
|
|
|
|
|
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Fixtures |
and |
fittings |
£ |
COST |
At 1st January 2019 |
|
Additions |
|
At 31st December 2019 |
|
DEPRECIATION |
At 1st January 2019 |
|
Charge for year |
|
At 31st December 2019 |
|
NET BOOK VALUE |
At 31st December 2019 |
|
At 31st December 2018 |
|
|
11. | STOCKS |
31.12.19 | 31.12.18 |
£ | £ |
Finished goods |
|
|
Materials and consumables | 37,290 | 38,581 |
|
|
|
The amount of stock recognised as an expense in cost of sales during the period was £789,245 (2018: £899,558). |
LLANGOLLEN RAILWAY PLC (REGISTERED NUMBER: 02716476) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2019 |
|
12. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.12.19 | 31.12.18 |
£ | £ |
Trade debtors |
|
|
Other debtors and prepayments |
|
|
VAT |
|
|
Deferred tax asset |
Movement re capital allowances | 98,176 | 39,198 |
Llangollen Railway Trust Ltd |
|
|
|
|
|
13. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.12.19 | 31.12.18 |
£ | £ |
Bank loans and overdrafts (see note 15) |
|
|
Hire purchase contracts (see note 16) |
|
|
Trade creditors |
|
|
Tax |
|
|
Social security and other taxes |
|
|
Other creditors | 26,803 | 24,838 |
Directors' current accounts | 70,000 | - |
Accrued expenses |
|
|
|
|
|
14. |
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR |
31.12.19 | 31.12.18 |
£ | £ |
Bank loans (see note 15) |
|
|
Hire purchase contracts (see note 16) |
|
|
|
|
|
15. | LOANS |
|
An analysis of the maturity of loans is given below: |
|
31.12.19 | 31.12.18 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank overdrafts |
|
|
Bank loans |
|
|
|
|
|
Amounts falling due between one and two years: |
Bank loans - 1-2 years |
|
|
|
Amounts falling due between two and five years: |
Bank loans - 2-5 years |
|
|
LLANGOLLEN RAILWAY PLC (REGISTERED NUMBER: 02716476) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2019 |
|
15. | LOANS - continued |
|
The bank holds the deeds or charge certificate or official copies of the register of properties over which it has a |
first legal mortgage and which would be in the name of the customers unless otherwise stated. |
|
16. | LEASING AGREEMENTS |
|
Minimum lease payments fall due as follows: |
|
Hire purchase contracts |
31.12.19 | 31.12.18 |
£ | £ |
Net obligations repayable: |
Within one year |
|
|
Between one and five years |
|
|
|
|
|
Non-cancellable operating |
leases |
31.12.19 | 31.12.18 |
£ | £ |
Within one year |
|
|
Between one and five years |
|
|
|
|
|
17. | SECURED DEBTS |
|
The following secured debts are included within creditors: |
|
31.12.19 | 31.12.18 |
£ | £ |
Bank overdrafts |
|
|
Hire purchase contracts | 56,525 | 79,262 |
|
|
|
Assets are held as security and are formally charged to the bank in the form of a Debenture. |
LLANGOLLEN RAILWAY PLC (REGISTERED NUMBER: 02716476) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2019 |
|
18. | FINANCIAL INSTRUMENTS |
|
Financial assets |
|
31.12.19 | 31.12.18 |
£ | £ |
Financial assets measured at amortised cost | 139,200 | 313,056 |
139,200 | 313,056 |
|
Financial assets measured at amortised cost comprise cash at bank and in hand, trade and other debtors |
|
Financial liabilities |
|
31.12.19 | 31.12.18 |
£ | £ |
Other financial liabilities measured at fair value through profit and loss | (532,571 | ) | (498,441 | ) |
(532,571 | ) | (498,441 | ) |
|
Financial liabilities measured fair value through profit and loss comprise bank loans, trade and other creditors, |
accruals, bank loans and overdrafts and obligations under finance lease and hire purchase contracts. |
|
19. | DEFERRED TAX |
£ |
Balance at 1st January 2019 | ( |
) |
Movement in the year due to:- |
Changes in tax allowances | 14,067 |
Changes in tax losses | (73,045 | ) |
Balance at 31st December 2019 | ( |
) |
|
20. | ACCRUALS AND DEFERRED INCOME |
31.12.19 | 31.12.18 |
£ | £ |
Deferred government grants | 5,619 | 13,863 |
|
21. | CALLED UP SHARE CAPITAL |
|
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31.12.19 | 31.12.18 |
value: | £ | £ |
|
Ordinary | £1 | 845,821 | 750,842 |
(31.12.18 -
676,903 ) |
|
79,099 Ordinary shares of £1 were issued during the year
|
|
Called up share capital represents the nominal value of shares that have been issued. |
|
The shares allotted will not agree to the share capital value in the accounts as the shares allotted figure is taken |
from the annual returns which are produced 20th May each year. |
LLANGOLLEN RAILWAY PLC (REGISTERED NUMBER: 02716476) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2019 |
|
22. | CAPITAL COMMITMENTS |
31.12.19 | 31.12.18 |
£ | £ |
Contracted but not provided for in the |
financial statements |
|
|
LLANGOLLEN RAILWAY PLC (REGISTERED NUMBER: 02716476) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2019 |
|
23. | RELATED PARTY DISCLOSURES |
|
During the year ended 31st December 2019 the following transactions took place with Llangollen Railway Trust |
Limited and its subsidiary company Llangollen & Corwen Railway (Trading) Limited. Llangollen Railway Trust |
Limited is a shareholder of Llangollen Railway plc. |
|
2019 | 2018 |
£ | £ |
Sales | 78,864 | 78,712 |
Costs recharged | 2,160 | 1,980 |
|
|
As at the 31st December the following balances were outstanding: |
|
2019 | 2018 | 2019 | 2018 |
£ | £ | £ | £ |
Debtors | Debtors | Creditors | Creditors |
|
Llangollen Railway Trust limited | 83,737 | 104,776 | - | - |
|
|
Llangollen Railway plc has provided a guarantee for the company Llangollen Railway Trust Limited up to a |
liability in sum of £125,000. |
|
|
During the year the following transactions took place with: |
|
H J Shipton & Co- H Shipton the director of Llangollen Railway plc is also
the owner of the company H J Shipton & Co. |
2019 |
2018 |
£ | £ |
Sales | 50,795 | 26,003 |
Purchases | 44,040 | 22,080 |
|
|
J Joyce director of Llangollen Railway plc | 2019 | 2018 |
£ | £ |
Sales | 46 | 14,287 |
Purchases | - | - |
|
|
P K Evans the director of Llangollen Railway plc is also a director of the
company 80072 |
2019 |
2018 |
£ | £ |
Sales | 2,507 | - |
Purchases | 39,216 | 64,440 |
|
|
P K Evans the director of Llangollen Railway plc is also a shareholder of the
company Evans Maintenance |
2019 |
2018 |
£ | £ |
Sales | - | - |
Purchases | - | 1,402 |
|
Q D McGuinness, a director of Llangollen Railway plc also has an interest in
Betton Grange (Society) Ltd |
2019 |
2018 |
£ | £ |
Sales | (1,312 | ) | 11,500 |
Purchases | - | - |
|
LLANGOLLEN RAILWAY PLC (REGISTERED NUMBER: 02716476) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2019 |
|
As at the 31st December the following balances were outstanding: |
|
2019 | 2018 | 2019 | 2018 |
£ | £ | £ | £ |
Debtors | Debtors | Creditors | Creditors |
H J Shipton & Co | 31,706 | 2,478 | 68,061 | 24,021 |
S P Jones | 78 | 32 | - | - |
P K Evans - 80072 | - | - | 44,676 | 25,920 |
P K Evans - Evans Maintenance | - | - | - | - |
Q D McGuinness - Betton Grange | - | 1,313 | - | - |
|
24. | POST BALANCE SHEET EVENTS |
|
Llangollen Railway has been affected financially due to COVID 19. As from the 17th of March to the 1st of |
August we were unable to trade which meant we had an estimated loss of income of around £400,000. To try and |
mitigate our losses we have appealed to our shareholders and also to the general public. We have also |
successfully applied for a Welsh Government grant and a bounce back loan. During the closure we were able to |
reduce our creditors with the assistance of the bounce back loan which has placed us in a much better position. |
|
We have cut costs by making staff redundant and reducing staffing overall. We have a tighter rein on our |
expenditure and we have now ceased carrying out engineering contract work to cut costs even further. |
|
We have been working on specific budgeting for the rest of 2020 moving in to 2021. As we have reduced |
capacity due to the ongoing restrictions we will have further losses to the end of 2020. We are planning to run |
certain events to bring in some additional income to help carry us through the winter closed season. We have |
secured an emergency Heritage Lottery Grant which will give us added security moving forward. |
|
This has been and still is and extremely difficult time for Llangollen Railway, we are doing as much as we can to |
mitigate our risks. |