West Somerset Railway General Discussion

Well, it might come to pass that they can't pay at some point in the future. But had a deal not been done, it may equally have come to pass that they couldn't find the wherewithal to restore the loco at their own expense before 2030, which is hardly any better. Equally, they might be just fine with the staged payments.

I doubt there is a single railway in the country that could confidently assert it will still be a going concern in 5 years time. That doesn't mean I'm expecting mass failures in the next five years, just that business is never certain and the structural problems in the sector are well known. But my sense is that for both parties, this is a sensible deal that allows each to plan budgets and maintenance plans in a realistic way.

I get the sense there are some who will not be happy unless the WSR is seen to suffer in atonement for past sins. But I'd suggest that is hardly in anyone's interest.

Tom

 

I suspect of course that the S&DRT were looking for a deal they could realistically expect to get .

 

Here’s the important page from this week’s West Somerset Free Press.



You really need to read the auditor’s comments in the last column first and then see if the Chairman’s comments which make up the bulk of the report are founded in reality or fantasy.

If the plane is flying at a mountain and the pilot is saying ‘what mountain?’ it doesent generate confidence.

Bizarrely, the front page and supporting story in the same edition are:



If you read the text, it is a story utterly without substance and has a significant ‘oh look, there’s a squirrel’ character about it, designed to distract. You will form your own view about what someone is attempting to distract you from.

Personally, I can only think that the WSR needs a superhero or a fairy godmother to save it:



Or, just possibly, a joint effort under a new combined charitable structure.

I hope those at the helm have the personal courage to recognise the truths. It is easier to repair the aircraft before it hits the mountain.

 

It sounds a bit like the conservative party just before the last election...

 

Robin, I note you have not included in your copies from the West Somerset Free Press page
9 article under “County News” “All aboard the panto train “.

First para QUOTE “ WEST Somerset Railway is offering the opportunity for visitors to take
part in a brand-new interactive Christmas event for 2024 “ END QUOTE.

The current management and staff (paid and volunteers ) are IMHO more focused on achieving
the overall best end result for the Railway that I have observed in 30 years.

Robin, it would indeed be good if we had an overarching WSR Charity but we do not.
The “ If I was going to London I would not start from here “ approach

The chaos and internecine positioning that attempting to implement such a change
currently might occur seems to me the last thing the Railway needs.

I do think the current Plc Board and the Charity(s) Trustees need to be more proactive in
searching out “Benefactors, Covenanters, legacies and donations” as I suggested at the
recent AGM. I also think, and I recognise the concern of demotivating management and
staff, the Public pronouncements should not seek to minimise the difficulties and the
nature of the challenge, ( Sniping from the wings by some, who are not volunteers,
is also unhelpful)

Michael Rowe

 

I freely admit I missed that as I was just too shocked by the other juxtapositions.

I do find the ‘sniping from the sidelines’ comment rather rich given my contribution in the past and the reasons (well rehearsed elsewhere) why I am in that position and the disgusting behaviour and methods used to achieve that.

The railway I have know since I was 14, is, frankly, heading for financial disaster with no visible plan to avoid that or apparent acknowledgement of the seriousness of the position from those in charge.

Or am I wrong to view it so?

Robin

 

Yes !

Michael Rowe

 

Why?

Do you disagree with any of the following propositions, and if so how?

(1) The financial trajectory of the railway is to dwindle its cash reserves.

(2) When those reserves fall sufficiently, the railway will no longer be able to trade lawfully.

(3) There is no plan visible (at the very least to shareholders) to rectify the above?

(4) There is no public acknowledgement by the WSR plc Directors of the seriousness of the position.

 

Robin, You will never win, in the eyes of some, you could be the most experienced person, on earth, but in their eyes, you were a problem to be silenced, How ever that's now water under the bridge, my advice is just wait and see, if your right, and i believe you are, then at some point the railway will collapse, and the reputations of those who did the damage, as well as those who enabled it, will have to accept responsibility, at least they won't be able to blame you, but of course they will try to somehow, Michael ROWE has in his own posts admitted that finding the sums of money to meet all the liabilities is going to be difficault, and I think he is being truthfull, more so than say some others on the board, who are in denial of the many chickens now coming home to roost,

 

Martin.

it’s not about ‘winning’ or seeing others punished or being proved right.

If change doesn’t come, the railway cannot survive. The only question is how low a base it has to fall to before the need for change is recognised and those standing as obstacles to that stand aside.

As you say, time will tell.

 

In at least one respect the WSR is suffering for past sins; namely the alienation of grant-awarding bodies.

 

I'd just like to focus on this one statement. Just taking the figures stated in the Free Press, and stripping out the distortion of the £210k for 53808, those numbers imply that £365k of additional revenue has been earned at a cost of £365k in additional operational costs. That gives a slight improvement in underlying margin (the loss of 7.9% in 2022 was "only" 6.8% in 2023), but feels a bit pyhrric to me.

 

Before the WSR Plc AGM in September I made, what I considered key, notes based on
reading the report and accounts, particularly the comprehensive notes.

Positives.

Pax revenues kept pace with rising costs ( primarily inflation )
Food and retail, after all associated costs, generated an extra £75K to the ‘bottom line’
an inprovement of c. 25%.
Capital expenditure on rolling stock and infrastructure rose from £326K in 2023 to
£540K in 2024. ( Splendid but more is needed )


It was based on this level of performance and observations at my weekly stint in the
Information Office that occasioned my comment re the management and staff.

Downsides
Both donations and share sales were down; c. £100K in total.
Cash reserves down from £470K to £400K

I had one question for the excellent financial director.
What is the £30K impairment loss ? Answer : It relates to a previous allocation
made for work carried out on 53808.

Conclusion.
In approximate terms ; 2024 compared with 2023.
240K written off against 53808, additional £214K spent on capital works.

My own conclusion . Operation of Railway is good, indeed compares in terms
of financial outcomes very well with the Heritage Railway Sector.

The Board, led by the Chairman, needs to spearhead a search for “Benefactors,
Covenanters, legacies and donations” A point of view I made at the AGM.

A “pyrrhic victory” yes, but not quite as simple as per the West Somerset Free Press.

Michael Rowe.

ps “Martin 1656” Please note, as I have stated to you on NP previously, I have
never been a member of the WSR Plc Board. My views are based on regular
contact with the Railway as a volunteer, careful reading of accounts and as
much as possible “activity “ Why you would think the WSR Plc filing for
bankruptcy might apparently represent some sort of success I find bewildering.

 

Disclaimer, I am not an accountant but the Auditor has doubts about the Railway continuing as a 'going concern'. Normally a red flag to investors etc.

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I do not think any Heritage Railway ( other than arguably the P&D ) can be considered an investment.

IMHO the majority of Heritage Railways perhaps should be considered as working Museums.

Hence my use of “ Benefactors, Covenanters, Legacies and Donations “

The WSR with cash at financial year end 2024 of only £400K undoubtedly merited an Auditor
caution. As I have said if this had had to include £42K for 53808, then perilously close to being unable
to cover three months. Not merely a couched warning then !

The challenge for the WSR “family” is to raise more “gift” money whilst continuing the assiduous
monitoring of costs, outcomes etc whilst strengthening its market presence.

Michael Rowe.

ps Personally I would have been very concerned if the auditor had not emphasised her concerns
re the long term sustainability of the WSR Plc.

Michael Rowe


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But...why would 'Benefactors, Covenantors, Legacies and Donations' be given to the WSR if there is a doubt about its future?
If I was making a substantial donation to a railway I would want to know that (as far as it is possible to predict the future), it's going to be around in 12 months, and not that my donation will be used to pay off the auditors when they're winding up the railway.

 

The very reason to give to many museums is to save them;if the WSR was flourishing
then perhaps I give to another Heritage Railway, the National Trust, Somerset Museum
at Taunton etc.

As an aside the auditor signed up to 12 months, it is the long term viability she is
rightly concerned about. ( Does that not apply throughout the Heritage Railway
sector ? )

Sorry about duplication of posts, Senior Moment with the Technology

I do not consider any Heritage Railway ( with the possible exception of the P&D ) can
Be considered an investment.

IMHO the majority of Heritage Railways should be regarded as working Museums.
They are seeking ‘gifts’ not ‘investments’ hence my “Benefactors, Covenanters, legacies
and donations “

With cash of only £400K ( if year end 2024 had had to include £42K for 53808 £ 358K)
then scarcely enough as I have said previously to cover the statutory three months.
In such circumstances I personally would have been very concerned if there was not
a clear expression of concern from the auditor. This she has done at least twice.

Confirmation, if any is needed that “gifts” must be sought to ensure the continuation
of inter alia a major West Somerset tourist attraction let alone a museum to 1950/1960s
rail operation with particular emphasis to the Western Division of BR.

Michael Rowe

 

First, I'd like to thank you for your full answer to my question - it provides colour that helps understand the position.

Benefactors give where they have confidence that their donations can be put to use; a "going concern" flag on an audit raises material doubt about the viability of that donation. If I were will writing now, such a flag would cause me to doubt whether the cause would be around by the time my executors would need to distribute my estate.

In the context of the WSR, I am left wondering how the WSR plc and supporting organisations are placed to drive grants and donations given recent history. Even without the feathers ruffled in connection with Hinckley Point, there are then the structural issues that constrain some givers. I err towards the pessimism of others, being unable to see where genuine sustainability will come from. I hope that if/when bank managers are consulted over loan facilities, there are good reasons for greater optimism.

 

Out of curiosity do other heritage railways etc have their accounts qualified in the same way?

 

I support two Heritage Railway's in different parts of the country and different client bases, neither have had their 23/24 accounts qualified by their accountants.

Sunnie

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