West Somerset Railway 'recovering' after £800k loss

The railway company says it is recovering from the financial mismanagement of the past

A heritage railway says it has brought itself back from the brink of insolvency after reporting an £800,000 trading loss last year.

Since April, West Somerset Railway plc's £1m in cash reserves had "eroded away" over five years. To curb this 16 jobs were cut, saving £340,000.

Chairman Jonathan Jones-Pratt said: "By March (2019) there was zero money in the bank so that was the reality."

He said the company was on track to recoup all of its losses by August.

The trading loss covered January 2018 to March 2019 and was reported in the annual general meeting in November.

Mr Jones-Pratt said that 12 months ago they were at the point of seeking insolvency advice: "Looking at where we were as a business, should we fold this? Because there was no facility to pay the creditors, provision which was sat at £500,000, but secondly to pay the wages."

The railway cottage at Bishops Lydeard is being turned into a holiday let

He added that loaning the Odney Manor engine to create a £200,000 overdraft, as a buffer if needed.

Selling another for an undisclosed sum has raised extra funds.

The company is now re-investing money into maintaining and overhauling the tracks and its engines.

Other plans include refurbishing the disused railway cottage into a holiday home at Bishops Lydeard.

The chairman has also said the company is due to publish a 10-year plan for the railway in July to set out its future sustainability, aspirations and growth.

Part of the plans are being implemented now is to get younger people involved as volunteers and future staff.

"With the carriage painting, we've got a gang of 20 people mainly volunteers, youngsters - it's the first time ever they've been ever encouraged or allowed to work on our carriages," he added.

Apprenticeships are also being developed so that newcomers can consider working at the railway as a viable career.