Concerns for financial future of heritage railway

The heritage line made a financial loss in the year 2022 to 2023

Concerns have been raised about the financial position of a heritage railway in North Yorkshire.

Auditors looking into the finances of the North Yorkshire Moors Railway (NYMR) said it made a loss of over £500,000 in the year ending February 2023.

In a report, they stated they had "significant doubt" on the NYMR's ability to operate as a going concern.

NYMR said it had a number of initiatives in place to ensure it remained financially sustainable.

The auditors' report was part of the NYMR's yearly accounts submitted to the Charities Commission in December.

The report highlights the organisation's financial statement for the year ending 28 February 2023 and the areas of ongoing concern it outlines.

It stated visitor numbers in 2022 had not returned to expected levels and costs had "increased dramatically" due to high inflation and supply issues with coal due to the war in Ukraine.

"These events or conditions, along with the other matters, indicate that a material uncertainty exists that may cast significant doubt on the Group's and the parent charitable company's ability to continue as a going concern," the auditors' added.

The report also revealed the 18-mile (29km) line had made a loss of £519,000 in the year to February 2023. The previous year it had a surplus of £2.4m.

The heritage railway said rising costs had impacted its finances

Garry Mumford, NYMR's finance director, said the report reflected the situation at the time it was compiled.

"However, between February 2023 and February 2024, we have made some huge changes resulting in a positive movement in profitability of around half a million pounds," he said.

Mr Mumford added he was "extremely positive" about the 2024 season and was forecasting a further improvement in the organisation's finances.

"The reality is, through good management over the 2023 year, we have come through the winter with cash headroom, so any potential problem has gone away," he added.

The charity's acting chief executive Laura Strangeway said they had a "robust plan" in place.

"Like all businesses and even individuals, we are having to prioritise and look at how we can make efficiency savings to reduce costs and look at opportunities for generating additional income to cover core costs."