West Somerset Railway General Discussion

There was always an expectation that SDRT would contribute to the overhaul (they had previously said they would pay for the tender I believe), but I don’t think that the fees earned at the MHR were contracted to be offset against a notional overhaul liability owed by the WSR, which was in any case somewhat unknowable at that point, rather that at a time when WSR couldn’t use the engine there was an opportunity for it to earn fees fees elsewhere that would help with the overhaul costs SDRT would bear. Anyway it’s hair splitting from me, the important thing is agreement is reached about the future.

 

The Trust’s annual reports to the Charity Commission make it clear the 2020 agreement requires the MHR steaming fees to be “made available for the overhaul of the locomotive.” and “The suspension agreement clarifies WSR’s requirement to provide funding which will reflect WSR’s usage since the previous overhaul.”

The reports also show the tender appeal is a separate fund.

 

From Seb Welsh, WSR. <BJ>

''An extremely successful day today, moving three ex GWR coaches owned by the WSR Heritage Trust from Dunster to Washford for eventual restoration. Pleased to see cross railway collaboration between departments and organisations to make this happen. I hope to one day Guard a train with some of these carriages in again but when they are restored!''

 

Annual Accounts

"The Directors have considered the future trading of the business and are confident that the Company will return to trading profitably in the future and that the Company has adequate cash reserves to continue trading for a period of at least twelve months from the date of approval of these accounts. However, the Railway remains in need of regular and significant capital investment. In recent years, this investment has been financed from cash reserves as the level of profit generated has not been sufficient. In the future, the Company will need to generate more profit or identify other ways to finance this continued investment in the Railway."

"Material uncertainty related to going concern We draw attention to Note 2 in the financial statements which highlights that the company generated an operating loss in the current and preceding financial year, has negative profit and loss reserves at the balance sheet date, and faces continued uncertainty regarding its ability to generate sufficient cash to cover operational and capital expenditure."

No mention of the previously stated necessity of finding £500,000 a year to keep the show on the road.

 

Not in as many words, but that note is pretty blunt about what's required.

 

These are concerning remarks from the auditors.
Of course the directors are confident, what else would they say.
But adequate cash for 12 more months is not what a bank would want to read in the accounts.

 

The directors are only required to comment on the situation forecast for a year's time at which point a new set of accounts will be issued.

Are the remarks from the auditors or from the directors report.

 

How about converting the whole Railway to charitable status? Just a thought.

Robin

 

What, and attract gift aid on ticket sales ? You know where dangerous suggestions can lead, even if they have been tested and implemented elsewhere.

 

And attract all those grants and tax benefits only available to charities? Nah! The quality of present senior management far outweighs those benefits…

 

Or a cyclepath..............

 

Do you know, I read that as psychopath!

 

Just curious what type of coach they are?

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GWR Toplights.

 

I have now had time to read the full annual accounts. I will not be in Somerset for the WSR plc AGM, so I offer these conclusions for other shareholders to ask questions at the AGM. Perhaps that principal shareholders (WSRA and WSHRT) should ask.

We have now had two years of 6-figure operating losses and no plan with any prospect of avoiding that position for the current financial year or into the future.

Reserves ebb ever away.

No reserves are being generated for significant infrastructure renewals or other works (the line of crippled coaches, for example, grows ever longer).

No reserves are being generated for the forthcoming overhauls of WSR plc owned locomotives.

The 'chicken' of the disgusting eviction of the S&DRT has come home to roost with a £200,000 payment towards the overhaul of 53808 that will never be seen in Somerset again.

The accountants' qualification of the accounts is serious.

But otherwise ... all is well.

 

They are the coaches below, moved one by one in this order.

GWR Collett Bow End BTK no.5131
GWR Toplight CK no.7740
GWR Toplight Tri Composite BCK no.7538

7740 is unique, only Toplight CK left. 7538 is one of two remaining, the other at the Swindon and Cricklade - I believe only 15 of this diagram of Tri Composite Brakes were built.

 

Unless one day it pays a visit to Midsomer Norton South One can but hope....

 

I wonder how many heritage railways can really be considered a "going concern" ? It appears to me that most are struggling to exist from year to year.

 

It’s a fair point, but the meaning is technical and about the organisation’s ability to trade.

If annual expenditure is 100 and income 100, things are ok. But if expenditure is 100 and income is consistently 90, then the reserves will run out eventually.


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