Annual Reports of heritage railways/tramways FY 24

[railfan99]

The Severn Valley Railway's financial year 2023-2024 ended on 7 January 2024 so its annual report is available on the Companies House site.

The link is too long to post (several lines of text) but if you search for Severn Valley Railway (Holdings) plc it can be found:

https://s3.eu-west-2.amazonaws.com/document-api-images-live.ch.gov.uk/docs/TrcF262MhT20SzN_XfHmTHRnQ8s_QhUBGANoLO5zo00/application-pdf?X-Amz-Algorithm=AWS4-HMAC-SHA256&X-Amz-Credential=ASIAWRGBDBV3CSX4KEHT%2F20240725%2Feu-west-2%2Fs3%2Faws4_request&X-Amz-Date=20240725T093713Z&X-Amz-Expires=60&X-Amz-Security-Token=IQoJb3JpZ2luX2VjEOH%2F%2F%2F%2F%2F%2F%2F%2F%2F%2FwEaCWV1LXdlc3QtMiJHMEUCIQCrHoAjp3fPb7kOhkOncsvkzG8PAwsaNYRZ9EfbcYNOvAIgTO7FIgR8Q0wIQSQ533hFK8yWrotFI45i%2BhvgEf2xuWoqxAUIuv%2F%2F%2F%2F%2F%2F%2F%2F%2F%2FARAFGgw0NDkyMjkwMzI4MjIiDDNir5CKVf%2FEXq1e7CqYBQhO9%2FA6EpYs%2FNNDKxargB2LJXY97Zb9of%2FhY5g%2FZP4jXmSu2nH1x5sV86iTacoJn%2FcmDepXLmrJiB21OZXaa8u%2BhOgMAR88UsP88x%2FmbErxKy8QGqyPEpyQNizPdil%2BjQg0A0SZnORZpsD0kZ4n7LbXK068BH7djpcS23Qh9J0cD5S7pd1jgiN8uzRiiZkXlcJgNz9sb2QAs95yXeOg6qh2YB4emdRMnp0wD8XxbBiVBcJCRu82hZVqWS%2Bd0b7HD6hI8HPRq2dDrCNhpRvGFDBcDb0gIp8hhRZMbzl848ypwGai%2BE0%2BO6SgrUXR%2BDT4DrWmbfyTfWQC2V36nQ94FcZ4rb3bA%2Fvt%2BfuEX57kvt%2FvPX1r6T5Mar8Uz0P4RbzlfnHQQr7VSA5IcMApk3e1Y8iEhuISSuakl%2Fd88gS9lAgut3aDhuaT78RWZkF2pCthyw3H9C51mOQx9waLEMvHUlrpN41U25M8eSx8mrl5ztOH4uILwMMCpAo8eHgGXoRTrz1OGxOog4eNmZLakpFNitkJjwsHKMvy%2Fw9dSKaAHGyR8re1vcdWsl99JlijFuhaBSHdlUe%2FHfycYGObtDOmpOQ1JMZBSC4z5dFMEusq9T%2FUW7mBU1UO9momQukUi3ff8xONPaMayDS%2FxP7LVyc9RGEUDkP%2F%2FpYrrSuKVqb9yJQQtFN4VPG2Nkao5e0AjEcCTwc1L7NWBnWpDcCaitA1wjW8%2FYrPGAbu64U1%2BumTLzvFxgpMyNHQGTOtPDlrFLkCLVZGs5kWuVaw3sLaI86MsfxhgZuxy8gApeTvc8%2F%2B5ndyagSxLSLx6ZoJUKpsWqXc5EL94Lko5c9qmOvHVvSI%2BDDL%2FOF922%2FQY3x9eNnnyzJ2RpjzK%2F%2BTun4w6Z6ItQY6sQGNpChH%2FSWzXcG1herRk5aDxMJk76DRSo9BNZwGboYx7YzEed5AVy7jrilSj5jsZskfjphK4Yndl8LaSl4oqEKJbOcGPL3nzNSKxuJjacY%2Boq9q%2BjZFI3KC67e3YA5HTZ735eQLP233CE33oU%2FT40hR%2BWUTrTgqA%2B2xc8gsLWiYq8RLCmn24r4yG4nIwaP5dQQ01XDJYAEUM9h1kGHkbAyo6Fw1ZOLPBip36WXrnRnp%2F0g%3D&X-Amz-SignedHeaders=host&response-content-disposition=inline%3Bfilename%3D%22companies_house_document.pdf%22&X-Amz-Signature=ebecd504f3b85aeb6ff87a8d0360e7ff63ad6c066e9d9e7b0b69f9795d94b1f4

It reveals a loss of £641,000 for the year but this was after charging non-cash depreciation of £914,000 compared with the previous FY's charge of £831,000.

It also has a Coronavirus Business Interruption Loan with an outstanding balance of above £840,000. It's extended the loan's term to 10 years. That's a bit of a millstone, but the bank agreed to extend the term and hasn't called in the loan.

Passenger numbers were slightly down at 128,000. Given what one kept reading about the UK economy, a four per cent decline is quite good, albeit not ideal.

As many would know, it announced redundancies during the year., the first time it had to adopt such a course of action. The appeal that was the subject of a previous RailUK thread raised £413,000, way short of the target of £1.5 million.

Purchased coal tons dropped significantly from 928 in the previous FY to 796, showing good cost control.

Page 29 shows SVR reduced staff numbers from 157 (a high number) to 90 although wages/salaries did not drop by the same percentage, presumably due to paying out retrenched employees. Full time staff dropped from 85 to 69 but the biggest drop was in casuals, from 48 down to 6.

The report reveals the loco SVR sold raised £250,000, far more than I'd have guessed. You locals will recall what loco that was.

Catering revenue did very well but non-catering shop sales were badly down. A "restructure" occurred with the latter, implying redundancies.

The Directors commented some (not all) Santa specials were quieter so timetables were adjusted on such days to save money. However a 1940s weekend brought in an amazing £152,000 in revenue.

They also discuss at length contracts with Network Rail and others.

Note 28 mentions ORR prosecuting SVR for an alleged safety-related incident of 2021, but no court date has been set. It'd be good if SVR could find pro bono or reduced rate solicitors and a barrister as legal expenses in Western nations are otherwise high per hour or day.

All in all an instructive, detailed report well worth spending a few minutes on.

 

[SussexMan]

Link to the report here.

 

[YorkshireBear]

Do all heritage railways report their finances in such detail?

 

[D Williams]

Selling the family silver to stay afloat. Sometimes this has to be done. Since the new leadership has arrived I understand that a more positive attitude prevails.

 

[D Williams]

Do all heritage railways report their finances in such detail?

Have a look on the Companies House website, it's all there; https://www.gov.uk/government/organisations/companies-house

Or if the organisation is a registered charity it will be here; https://www.gov.uk/government/organisations/charity-commission

 

[railfan99]

Do all heritage railways report their finances in such detail?

All are required to submit detailed accounts although the extent to which Directors report on operations varies.

A year ago, many did not disclose how many passengers travelled during the financial year. Nor did they state average revenue per passenger.

The SVR one is the first time I've seen the tonnage of coal purchased quantified.

Given the varying structures and often multiple companies/entities, sometimes you have to search. The giveaway is usually the report with the most pages.

 

[simonw]

Do all heritage railways report their finances in such detail?

Depends on their structure and turnover; and also how much they are their annual accounts as an opportunity to connect with people.

The statutory requirements are set out in the companies act and the various reporting standards, but some go beyond these.

 

[railfan99]

Selling the family silver to stay afloat. Sometimes this has to be done. Since the new leadership has arrived I understand that a more positive attitude prevails.

The GM/CEO has an excellent presentation style if the YouTube videos are any guide.

The Gloucestershire Warwickshire Steam Railway PLC's FY ended on 31 January 2024, so it's another that has filed accounts:

GLOUCESTERSHIRE WARWICKSHIRE STEAM RAILWAY PLC filing history - Find and update company information - GOV.UK

GLOUCESTERSHIRE WARWICKSHIRE STEAM RAILWAY PLC - Free company information from Companies House including registered office address, filing history, accounts, annual return, officers, charges, business activity

find-and-update.company-information.service.gov.uk

The tone is optimistic despite Directors commenting on how fewer passengers makes maintaining a heritage railway like this quite long one challenging.

Passenger numbers rose from 97,000 in 2022 to 102,000 in 2023, but in common with perhaps almost all UK preserved railways, remained below pre-Covid years. In 2019, the railway carried 125,000, so 102,000 is a drop of 18.2 per cent.

The railway recorded a loss of £122,000.

Fares brought in £1449000 compared with £1233000 the previous year, while revenue from Santa specials also increased, from £188000 to £239000.

The railway has a minimal number of staff: only 12, with about half being part time. Salaries and wages were only £401000 including pension entitlements.

It therefore relies very heavily on volunteers but was able to operate all timetabled running days in 2023.

Directors commented that the cost of imported coal was triple what they used to be able to obtain Welsh coal for per tonne. That won't surprise, but the positive is inflation (not just re coal) was suggested as moderating and passenger numbers were good over Easter 2024.

Unlike many others, GWSR PLC doesn't own any locos: it hires them in, another interesting fact I learnt. Directors said this avoids liability for maintenance costs. I don't know how much it costs per month to hire a steam loco: presumably widely varying by type. There wasn't any mention that obtaining locos was difficult, so it's an interesting discussion as to whether this is a better model than directly owning steam and diesel locos as well as 'units' (railcars).

The non-cash item of depreciation was £139000, much lower than SVR above.

This is one of the few substantial preserved railways in England I've yet to do. It's on the list.

 

[paul1609]

Unlike many others, GWSR PLC doesn't own any locos: it hires them in, another interesting fact I learnt. Directors said this avoids liability for maintenance costs. I don't know how much it costs per month to hire a steam loco: presumably widely varying by type. There wasn't any mention that obtaining locos was difficult, so it's an interesting discussion as to whether this is a better model than directly owning steam and diesel locos as well as 'units' (railcars).

I think to a large extent availability of locos depends on the length of the hire period. Long term rents probably arent yet affected by the pandemic hiatus on restoration/ maintenance which I think affects all of the heritage railway industries. Short term hires (less than a season) are I understand very difficult and expensive but it still depends on the loco type.

 

[railfan99]

Bluebell Railway (plc) is another to have filed recent accounts for the financial year ending on 31 December 2023:

BLUEBELL RAILWAY PLC filing history - Find and update company information - GOV.UK

BLUEBELL RAILWAY PLC - Free company information from Companies House including registered office address, filing history, accounts, annual return, officers, charges, business activity

find-and-update.company-information.service.gov.uk

Pleasingly, ticket and shop sales plus catering increased by between 27 and 30 per cent while costs only rose a little above five per cent. Unless I missed it, they did not state exactly how many passengers were carried during the financial year but it would be substantial given the proximity to London and the railway's longstanding reputation: easily over 100,000 I'd suggest.

Filming revenue rose from £81,000 in FY 22 to more than £300,000 in FY 23, a huge rise. This may reflect that subsector gradually finding its straps after the lockdowns.

However the railway made a loss of £315,000. This was after incurring £330,000 in the non-cash item of depreciation (I am not an accountant).

Directors commented that the cost of coal rose (way?) above inflation but utility costs (i.e. electricity) were expected to be lower in FY 24. They would want to be, given what I gather has been significant increases since COVID.

Note 20 to the accounts suggests that a loan of £300,000 was converted during the year to share capital, which as many know for heritage railways typically does not give voting rights and nor do shareholders ever receive dividends. As I understand it (I'm a shareholder of another UK railway), essentially it's a gift, although it often comes with privileges such as one or two annual free trips on the relevant railway.

This pioneer heritage railway seems to be in a good financial position but Directors cautioned that the cost of restoration and maintenance of locomotives, carriages and wagons is substantially increasing, in part due to the ageing of these assets. That won't be news to anyone involved with such railways worldwide but it is good to state in the information attached to yearly accounts as it is a 'risk' for this beloved sector.

It must be gradually harder to find employees or contractors with the desired 'old school' skills but hopefully experienced hands can gradually train motivated individuals who are in their very late teens or early 20s through apprenticeships or similar schemes. (These vary by nation: I'm not aware of the fine detail of this in the UK: apologies).

 

[paul1609]

This website maybe of interest https://www.bestt.org.uk/ it details the organistation set up by the heritage railways to safeguard engineering and particularly boilermaking skills in the UK Heritage sector.

 

[railfan99]

This website maybe of interest https://www.bestt.org.uk/ it details the organistation set up by the heritage railways to safeguard engineering and particularly boilermaking skills in the UK Heritage sector.

Excellent initiative.

It's never going to provide thousands of jobs but it's imperative these skills are not lost.

I wonder what happened to the 50 per cent of trainees who have not obtained employment with a heritage organisation? I suppose it's normal to have dropouts or people who go off and do something else.: similar to university courses.

 

[Highview]

Excellent initiative.

It's never going to provide thousands of jobs but it's imperative these skills are not lost.

I wonder what happened to the 50 per cent of trainees who have not obtained employment with a heritage organisation? I suppose it's normal to have dropouts or people who go off and do something else.: similar to university courses.

Agree looks excellent, although it appears this website is infrequently updated and the business seems to be operating on a shoestring budget (c£22K annual income in last reported year).

 

[En]

Do all heritage railways report their finances in such detail?

given they will be almost certainly Companies and or Charities they will have to comply with the most onerous of their registrations for their turnover

Excellent initiative.

It's never going to provide thousands of jobs but it's imperative these skills are not lost.

I wonder what happened to the 50 per cent of trainees who have not obtained employment with a heritage organisation? I suppose it's normal to have dropouts or people who go off and do something else.: similar to university courses.

'over half' per their materials and i suspect some will have found work with in other 'none heritage' engineering settings

 

[railfan99]

The North Norfolk Railway (Sheringham to Holt) is another that's filed accounts for FY 2023:

NORTH NORFOLK RAILWAY PUBLIC LIMITED COMPANY filing history - Find and update company information - GOV.UK

NORTH NORFOLK RAILWAY PUBLIC LIMITED COMPANY - Free company information from Companies House including registered office address, filing history, accounts, annual return, officers, charges, business activity

find-and-update.company-information.service.gov.uk

Passenger numbers in 2023 were 148,801 compared to 152,322 in 2022, but there were 20 fewer running days so this is an excellent performance.

While the operation incurred a small statutory loss of £24,791, in 2022 the loss had been a far larger £267,494.

Operating profit was £58,798. Net cash generated was £470,000 compared to net cash outflows of £3,000 in 2022.

Pleasingly, when the accounts were prepared in May 2024, Directors said passenger journeys were at a similar level to 2023's.

The railway charged depreciation of £146,000 in FY 2023, a non-cash item.

Importantly, capital expenditure rose from £89,000 in FY 2022 to £350,000 in 2023. This was said to be largely due to replacement of points at the intermediate station of Weybourne. Presumably pointwork had deteriorated. Weybourne is often used for crossing trains.

Total turnover rose to £3.8 million compared to £3.2 million in FY 2022, so receipts rose more than overall inflation that IIRC at one stage in the UK was running at 11 per cent (although it's since moderated to about four per cent).

There were 55 employees compared to 59 in 2022, which is a sizeable number given the relatively short length of this excellent railway that I had the pleasure of travelling on in 2023. On the day I used it, there was an historic ex-GER loco on a set of passenger cars plus a terrific 1960s era railcar/unit, and on top of that a special steam train (BR Standard class black loco IIRC) so the railway was busy. Most passengers joined at Holt as apparently car parking is far easier than at the seaside resort town of Sheringham.

The railway also has issued bonds but these are not immediately repayable.

This preserved operation seems to be well run and while I am no expert, its accounts suggest it's fairly financially secure, although I lack knowledge as to what capex is required in the next few years.

It's surprising that mainline tour operators don't seem to often (or ever?) operate through trains as The Railway Touring Ciompany does to the West Somerset Railway. I'd have thought a day out at Sheringham with a quick trip to Holt and back would sell well.

 

[andyjhatton]

It's surprising that mainline tour operators don't seem to often (or ever?) operate through trains as The Railway Touring Ciompany does to the West Somerset Railway. I'd have thought a day out at Sheringham with a quick trip to Holt and back would sell well.

I believe there is a limited number of uses of the level crossing at Sheringham.

There's also the need for the train to reverse at Cromer.

And finally there is/was an issue with a weak bridge somewhere between Norwich and Cromer, which might curtail the use of locomotive hauled services.

 

[railfan99]

And finally there is/was an issue with a weak bridge somewhere between Norwich and Cromer, which might curtail the use of locomotive hauled services.

Is this one of the historic swing bridges?

 

[Dave S 56F]

Is this one of the historic swing bridges?

Think the Last kettle mainline registered on the bittern line was possibly 76084 back in 2017 after it had been restored to mainline running and previously been on 2 railway touring Co tours operated by W.C.R.C. also in early 2017 to Buxton and Whitby and was moved to THE N.N.R by rail.
I could be wrong B.R. 7mt 70000 Britannia or B1 61306 Mayflower may have also transversed the bittern line as well.

 

[railfan99]

The Kent and East Sussex Railway Company Limited has also filed its accounts, but rather than through Companies House, as a registered charity it does so through the Charities Commission:

THE KENT AND EAST SUSSEX RAILWAY COMPANY LIMITED - Charity 262481

Charity details for THE KENT AND EAST SUSSEX RAILWAY COMPANY LIMITED - Charity 262481

register-of-charities.charitycommission.gov.uk

There were 686 volunteers at the end of October 2023, a good number considering the operation isn't the length of say the WSR.

The Railway has 26 staff, with all but four being specified as 'office staff'. I assume it's largely volunteers who undertake trackwork.

In FY 23, the cost of coal, oil, other fuel and water rose to £235,000 from £174,000. This 35 per cent increase won't be news to other heritage railway operators, almost all of whom will have faced this. K&ESR didn't say how many miles or kilometres steam and diesel locos covered during the year, so I've assumed it was similar to FY 22. Thankfully for FY 24, coal costs along with utility (i.e. electricity et al) costs should have somewhat declined. I don't know by how much.

Locomotive hire costs rose from £133.000 to £193,000. This might not be inflation per se but at a guess could represent more special event days or a change in the mix of locos hired.

Its trading subsdiary is named Colonel Stephens Railway Enterprises Limited, which is responsible for catering including dining on board trains. It also operates a small gift shop.

On 105 days, the charity charged the CSREL £2,000 for train operation. This is an arrangement I've not come across before but no doubt @paul1609 will proffer the reason. It was stated that £2,000 was considered 'reasonable'.

Passenger numbers rose 7.5 per cent to 64,000 (including those who dined), which is encouraging but remain below the 80,000 to c.90,000 enjoyed in pre-Covid times. With this railway only operating on a minority of days in any calendar year, to my mind 64,000 is good going, but Directors with their intimate knowledge of the railway state that 80,000 to 90,000 passengers annually would return the railway to a net profit. People like me have to be aware of the huge fixed costs preserved railways cope with before a single farepaying passenger travels.

The deficit for the year to 31 October 2023 was £42,000 compared to a much higher £384,000 in FY 22.

Since the end of FY 23, the railway has been disappointed by numbers patronising Santa Specials, with family groups in standard class being the ones who didn't turn up as expected. However, more positively, it has arrangements with a new, unspecified third party (cruise line?) I got the impression Directors were cautiously optimistic moving into FY (and calendar!) 2024.

Creditably, the charity reduced its bank loans from £297,000 to £249,000.

Cash on hand reduced from £802,000 to £607,000.

Overall this is thankfully another preserved railway that looks to be in a reasonable to very good financial position.

I can recommend a visit: K&ESR dining trains are popular, but even on regular trains there can sometimes be ancient rollingstock in use that not every heritage railway possesses. Bodiam Castle that I've yet to visit is a short walk from the eponymous station, while the town of Tenterden has good dining options. The railway also has interesting operations that will be further enhanced within a few short years when the already planning-approved, exciting extension to Robertsbridge commences operation.

As an aside, it's great how the K&ESR and Rother Valley Railway have worked together to achieve planning permission.

 

[D Williams]

The Kent and East Sussex Railway Company Limited has also filed its accounts, but rather than through Companies House, as a registered charity it does so through the Charities Commission:

THE KENT AND EAST SUSSEX RAILWAY COMPANY LIMITED - Charity 262481

Charity details for THE KENT AND EAST SUSSEX RAILWAY COMPANY LIMITED - Charity 262481

register-of-charities.charitycommission.gov.uk

There were 686 volunteers at the end of October 2023, a good number considering the operation isn't the length of say the WSR.

The Railway has 26 staff, with all but four being specified as 'office staff'. I assume it's largely volunteers who undertake trackwork.

In FY 23, the cost of coal, oil, other fuel and water rose to £235,000 from £174,000. This 35 per cent increase won't be news to other heritage railway operators, almost all of whom will have faced this. K&ESR didn't say how many miles or kilometres steam and diesel locos covered during the year, so I've assumed it was similar to FY 22. Thankfully for FY 24, coal costs along with utility (i.e. electricity et al) costs should have somewhat declined. I don't know by how much.

Locomotive hire costs rose from £133.000 to £193,000. This might not be inflation per se but at a guess could represent more special event days or a change in the mix of locos hired.

Its trading subsdiary is named Colonel Stephens Railway Enterprises Limited, which is responsible for catering including dining on board trains. It also operates a small gift shop.

On 105 days, the charity charged the CSREL £2,000 for train operation. This is an arrangement I've not come across before but no doubt @paul1609 will proffer the reason. It was stated that £2,000 was considered 'reasonable'.

Passenger numbers rose 7.5 per cent to 64,000 (including those who dined), which is encouraging but remain below the 80,000 to c.90,000 enjoyed in pre-Covid times. With this railway only operating on a minority of days in any calendar year, to my mind 64,000 is good going, but Directors with their intimate knowledge of the railway state that 80,000 to 90,000 passengers annually would return the railway to a net profit. People like me have to be aware of the huge fixed costs preserved railways cope with before a single farepaying passenger travels.

The deficit for the year to 31 October 2023 was £42,000 compared to a much higher £384,000 in FY 22.

Since the end of FY 23, the railway has been disappointed by numbers patronising Santa Specials, with family groups in standard class being the ones who didn't turn up as expected. However, more positively, it has arrangements with a new, unspecified third party (cruise line?) I got the impression Directors were cautiously optimistic moving into FY (and calendar!) 2024.

Creditably, the charity reduced its bank loans from £297,000 to £249,000.

Cash on hand reduced from £802,000 to £607,000.

Overall this is thankfully another preserved railway that looks to be in a reasonable to very good financial position.

I can recommend a visit: K&ESR dining trains are popular, but even on regular trains there can sometimes be ancient rollingstock in use that not every heritage railway possesses. Bodiam Castle that I've yet to visit is a short walk from the eponymous station, while the town of Tenterden has good dining options. The railway also has interesting operations that will be further enhanced within a few short years when the already planning-approved, exciting extension to Robertsbridge commences operation.

As an aside, it's great how the K&ESR and Rother Valley Railway have worked together to achieve planning permission.

Lots of things to do at this railway but the passenger figures remain disappointingly low. I wonder if there has been any increase in this year? It is to be hoped that the great effort and expense being put into the extension to Robertsbridge will result in an economically sustainable future.

 

[railfan99]

Lots of things to do at this railway but the passenger figures remain disappointingly low.

Directors also mentioned K&ESR competing against other unspecified tourist attractions.

The adjacent Bodiam Castle's visitor numbers are about 150,000 annually at present, but IIRC were higher pre-2020.

In K&ESR's defence, many non-railway English attractions are still only achieving 20 per cent fewer paying visitors than pre-COVID. Cost of living and for older folk, a seeming reluctance to 'get out and about' as much as they used to are some of the suggested reasons.

K&ESR had reduced its running days by c.15 per cent so this will account for some of the 'lower' number of passengers carried in FY 23. I assume this was because those days were unprofitable.

One pleasing factor is that cruise ships are doing well, and apparently some patrons enjoy a trip on K&ESR by prearranged group tours. I don't know how often this occurs.

We can show our support by purchasing a ticket or where offered, an annual or other pass at as many heritage railways as possible. Those who can afford it might also choose to donate some 'hard earned'.