West Somerset Railway bosses explain £800,000 loss

From December 31 2017 to March 31 2019, the West Somerset Railway plc has reported losses of £807,909 for the 15-month period.

The WSR annual general meeting was held on December 14 in Minehead, where the current financial situation was discussed.

Around 128 shareholders were present at the meeting, which involved a question and answer session that lasted for an hour and a half.

The four directors, including chairman Jonathan Jones-Pratt, explained to the shareholders why the accounts showed the significant losses.

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The railway had been hit by an extended closure period, after the rail authority suggested they make a series of improvements.

Mr Jones-Pratt said the losses can be put down to four reasons: the extended accounts period, wage costs increasing, a loss made from terminating a hire of a locomotive, and turnover decreasing.

He said: “The 2019 accounts are for an extended period.

“The year end was changed, purely for commercial reasons, so that the AGM did not fall during the height of the season.

“This though has meant the 15 month period includes two fallow periods, nearly six months when the trains were not running, instead of two and a half months.”

REPORT: Jonathan Jones-Pratt

Mr Jones-Pratt also explained how wages now cost double than they did in 2009, and that this was one of the first areas identified by the new management team of needing ‘drastic action’.

He added: “Despite the fact that action was taken prior to March 31, the damage was already done and the benefit is being felt in the current year.”

During the 15 months in question, the decision was made to terminate the long-term hire of the 44422 locomotive. WSR said ‘significant work’ would be needed to restore it, in the region of £450,000.

But, as £142,000 had already been spent, this added to the losses.

The final issue was down to turnover.

Mr Jones-Pratt said: “It can be seen that turnover has decreased during the period by £85,000.

“This is not a true reflection of year-on-year activities as last year’s turnover was enhanced by the visit of the Flying Scotsman, which increase last year’s turnover by some £430k on fares alone.

“However, turnover in the 15 month period fell short of the budget set by more than £250k.

“Turnover, and therefore patronage, was lower than anticipated.

“In fact, throughout the 15 month period, the trading performance fell well short of that originally budgeted.

“The reality of this 15 month period is that turnover was too low and costs were too high throughout.”

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But Mr Jones-Pratt is hopeful WSR can be a sustainable business, and it has just seen a boost with Great Western Railway running a trial shuttle linking Taunton Railway Station to the heritage line through Bishops Lydeard.