Spa Valley Railway - Latest News

They returned in early January.

 

The following is a copy of an email I have just sent to our volunteers, and is a great piece of news from the Spa Valley Railway.

"Good evening, everyone,

I have some extremely good news that I am delighted to pass on. I've just got off the phone with Stewart Robinson, the Managing Director of Sonic Rail Services (SRS) and the owner of Class 33/2 33202 'Dennis. G. Robinson, BR Standard 4MT 80078. Both locomotives have visited us on several occasions, starting way back in 2014.

Aside from the usual conversation about life, the world and railways, Stewart took me by great surprise to say that Sonic Rail Services is gifting all the recent track work, materials and labour costs for the track that SRS replaced at Broom Lane to the Spa Valley Railway. The machines, track, and material costs total approximately £60,000; this enormous saving and generosity cannot be underestimated, and I was taken aback by his and Alex Robinson's kindness. This gift also extends to the Volker Rail tamper, which Stewart arranged through SRS. The cost savings for this and the work it did were in the thousands of pounds range, slotting into the tampers' extremely busy mainline schedule.

I've personally had the pleasure of knowing Stewart for around 12 years, and he is a preservationist through and through. Always available on the phone and a person to call upon for anything infrastructure or railway-related. This isn't the first time he has supported our railway, and I am sure it won't be the last. He is taking a look at his yard tomorrow for a new set of points to help rectify the infrastructure issues we currently have with the platform line points at Tunbridge Wells West!

I am sure you will all join me in passing this enormous thank you to Sonic Rail Services, and long may our relationship continue.

Kind regards,

Jonnie Pay
General Manager
Spa Valley Railway"

 

I wonder if someone might be able to help please. I took a photo of a steam loco (no 6) I think pretending to be Percy at Tunbridge in April 2025 - could do with some help as to the locomotive details please! Thanks in advance

 

It’s ‘Kilmersdon’ No. 1788 from the Mid Hants. Visited to be Percy at our Thomas event.

 

Hello everyone,

It has been a while since the last finance update, and the hot summer has impacted every heritage railway and tourist attraction that I have spoken to. So, how are we performing?

So far this year, we have carried 21,717 passengers, compared with 24,838 during the same period last year (1st February to 31st August). This represents a 12.69% decrease.

Total turnover for the year to date stands at £486,720.76 (although this does not yet include the most recent weeks of August), compared with £661,745.39 for the same period last year. This is a reduction of £175,024.63, or 26.45%.

However, careful management of our expenditure has helped to mitigate some of this impact. Our gross profit currently stands at £112,586.22, compared with £147,982.55 for the same period last year. Administrative costs have also reduced significantly, helped substantially by our change of electricity provider in January. This has reduced the cost of electricity at Tunbridge Wells West from 72p per kWh to 23p per kWh. Total administrative costs for the year currently stand at £201,133.27, compared with £229,343.52 for the same period last year.

As a result, our operating profit currently stands at -£88,547.05, compared with -£81,360.97 at the same point last year. Overall, this means the difference between this year and last year is just £7,186.08, which, all things considered, is a positive outcome.

It is worth noting that these figures do not yet include the whole of August 2026, whereas they do include the whole of August 2025.

It is also worth noting, particularly for those who are newer volunteers, that our busier period tends to be from September through to May rather than during the summer months. During that period this year, we had no choice but to replace Broom Lane Bridge. Whilst this meant that we were unable to operate over the full line during Easter, it allowed us to address the railway's most significant infrastructure risk before further operational restrictions, or potentially complete closure, became a reality.

For context, in the last financial year The Wealden Railway Company Limited achieved a turnover of £1,284,154, a gross profit of £450,057, and a profit after taxation of £72,837. Profits generated are reinvested back into the railway throughout the year. We are not simply left with this amount sitting in the bank at year end, particularly when significant investments are required. For example, more than £30,000 was invested last year in the design work for the new Broom Lane Bridge. Profit and loss and cash flow are very different things.

Overall, the picture is reasonable. Whilst the railway is certainly not flush with cash, it remains in a fair position, particularly given the recent hot weather, which has affected not only us but tourist attractions across the country.

The recent Alice's Wonderland Express event, another partnership with PNP Events over the August Bank Holiday weekend, performed exceptionally well. Across the three services, we welcomed 505 visitors and generated £8,873 in ticket sales. After event-related costs, this produced a profit of more than £3,500. Combined with our Cream Tea offering and standard steam train services, revenue for the August Bank Holiday weekend totalled £20,898, with 1,087 visitors carried across the railway.

For comparison, during the same weekend last year we carried 1,144 visitors and generated revenue of £24,793.30. However, costs were significantly higher due to the visits of Bluey, Peppa Pig and the Class 47. As a result, overall profitability for this year's August Bank Holiday weekend was considerably stronger than in 2025.

Alice's Wonderland Express returns again this weekend and will also be back next Easter.

Looking ahead, there is a fantastic selection of layouts and traders booked for the Model Railway Weekend. The Dinosaurs return towards the end of September, and planning for the Beer Festival is well underway. This year's event is shaping up to offer an even more diverse range of ales, ciders, food stalls and live music, taking the festival to a level it has not previously reached.

Finally, sales of Polar Express tickets continue to increase steadily with an exceptional number of ticke. We are rapidly approaching the period when sales traditionally accelerate in the lead-up to the event.

Behind the scenes, we are continuing to explore options for repairing the points at Tunbridge Wells West, and the draft timetable for the first six months of 2027 is nearing completion.

Thank you all for your ongoing support, dedication and hard work in ensuring that the Spa Valley Railway continues to operate successfully. Everything we achieve is made possible by the commitment of our volunteers. Your efforts are greatly appreciated by all the Directors and Trustees and play a vital role in securing the railway's future.

Best wishes,

Jonnie Pay
General Manager

 

Thanks again Jonnie for your interesting and informative updates (in a much more formal tone than some of your most recent Instagram videos but just as interesting!)
Out of curiosity - what kind of taxes do you have to pay which means a turnover of £1.2 million and a £450k gross profit is cut down to a £72k profit after taxation? Presumably the tax is calculated on the total turnover, not the gross profit?

 

From what I understand (not being an accountant!), 'Gross profit' is just income less the immediate cost of the things sold (so in a railway's case I guess coal/Diesel, stock for the catering, etc). 'Operating Profit' is then this less the administrative costs (salaries, energy, rent, etc), and then "Net Profit" is then this less tax, interest, debt payments etc.

 

Given what’s been thrown at you this year that’s not bad. In the sort of temperatures we’ve seen this summer I’ve noticed that people don’t go out so much so the downturn won’t be entirely to the lack of steam.

 

I tend to keep my emails fairly formal so that they're clear and easy for everyone to understand. The Instagram and TikTok content is much closer to how I am as a person day-to-day. It's definitely not an act!

In our accounts, turnover is split across a number of income streams. The main categories are Beer Festivals and Polar Express, as these are our two largest events and are reported separately. Other income streams include catering, driver experiences, engineering, hire for rail training, retail, and train operations (including dining trains).

We then account for cost of sales, which includes expenses directly attributable to generating that income. These costs include plant and equipment hire, locomotive hire charges, tools and lubricants, rolling stock movements, catering purchases, coal and diesel purchases, retail stock purchases, and purchases associated with Beer Festivals and other special events.

Administrative costs are reported separately and include items such as accountancy fees, marketing, bank charges, IT support and maintenance, Wi-Fi charges, credit card fees and expenses, equipment repairs, health and safety costs, cleaning, insurance, licences, lighting and heating, postage and stationery, professional fees, online transaction charges, waste disposal, and other sundry expenses.

In terms of taxation, we are liable for Corporation Tax and submit VAT returns on a monthly basis.

That's a simplified overview, but essentially we separate income streams, identify the direct costs associated with generating that income, and then account for the overheads required to run the railway and its associated activities.