West Somerset Railway

West Somerset Railway plc

West Somerset Railway

Stakeholder Meeting

21 February 2015

Late 2014 Review & 2015 Preview

West Somerset Railway plcWest Somerset Railway plc

Agenda & Introduction

1. Welcome & introduction John Irven/Steve Williams

2. 2014 operational update Paul Conibeare

3. Chairman’s update John Irven

4. Partnerships & Stakeholders Steve Williams

5. WSSRT Chris Austin

6. Coastal Erosion Andrew Young

7. Q&A session All


2 Operational update

Oct 2014 - present

Paul Conibeare


October• Shed scene at Bishops Lydeard at Autumn Steam Gala – in commeration

of closure of Taunton Steam shed 83B in October 1964

• John Osman – Leader of SCC visited WSR (including footplate ride and

tour ‘behind the scenes’)4


November• Inaugural Minehead Xmas market hailed a success.

• Chris Bolt is the new Finance Director of WSR PLC.

5


December• West Somerset Railway supports the December Drink Drive campaign

• The loop extension project at Williton gets underway.

• Santa train income up by 10% on 2013 with over 9,500 passengers

carried.

6


January 2015• Heavy goods 2-8-0T no 4270 added to Spring Steam Gala, joining 'Small

Prairie' no 5542 and 56xx Class 0-6-2T no 6695.

• Awarded Days Out With Thomas Award – 2014 1st Prize Best Overall

Event

• John Simms – Finalist in Group Leisure Magazine Awards 2014

7


Look ahead to 2015

• Six steam hauled railtours from Paddington to Minehead for summer

2015

• The Third Transport Literature Festival at Minehead Station 27-29 March

now postponed to Autumn Gala.

• HOBC train due to restart April 2015

• LMS 4F no 44422 to move to WSR for long term hire.

• Chris Brown started in January as our new Head of Commercial

Services.

• New Abbey and Apple Experience to include entry to Cleeve Abbey &

Torre Cider Farm at Washford.

• 3 year agreement for Quantock Belle dining train

8


Planned Winter

works 2014/15

including……….

• Williton Loop Project – bridge

foundations in at Easter.

• Flailing, fishplate oiling & Bridge

inspections/assessment.

• Rerailing & Tree Felling – various

sites.

• Doniford relay complete (250m).

• Tidy train – booked for March.9


Fares & Pax figures for 2014

10

December

pax in

month

pax

cum

fares -

month

budget -

month

fares -

cum

budget -

cum

+/-

budget

2014 14,123 195,228 168,425 159,000 1,981,128 2,191,000

2013 12,746 197,816 150,460 149,000 2,066,291 2,015,000

Difference 1377 -2588 17,965 -85,163 -209,872

Performance to

budget 105.9% 90.4%

Performance to

2013 110.8% 98.7% 111.9% 95.9%


Steam Coast Trail # 1


Steam Coast Trail # 2

The Steam Coast Trail is a

multi-user path planned

for West Somerset.

It will be open to

pedestrians, cyclists,

wheelchair-users and

mobility scooters.

Designed to improve

sustainable transport

between Minehead,

Watchet and Williton

The Steam Coast Trail aims to boost tourism, create around 140 direct and indirect jobs and generate around £7million of economic benefit every year.

The Friends of the Steam Coast Trail have received £637,000 from the Coastal Communities Fund to build a dedicated path.


3 Chairman’s Update

& Budget 2015

John Irven


2014: a difficult year

Big shortfall against budget on passenger numbers and revenue: fares income 10%

below budget and 5% down on 2013

Performing close to budget at the end of the year, but never made up of the

impact of Somerset flooding at the beginning of the year

Retail: Turntable cafe out-performed 2013, small shortfall on Minehead shop, but

significant drop in on-train buffet profits

Expect to show an accounting profit of about £60,000, but accounting rules treat

donations towards capital projects as revenue; would otherwise have shown

significant loss

This result was only achieved through very tight control on costs; but some of these

costs have only been deferred and need to be incurred this year


Analysis of 2014 performance

Budget 2014 Actual 2014 Delta Delta % Notes

Total Revenue - fares + retail/catering £2,546 £2,335 -£211 -8.3% We underperformed revenue budget by 8.3%

Op costs £2,567 £2,450 -£117 -4.6% We saved on budgetted costs by 4.6%; but only by deferal

Operational Loss -£21 -£115

Other one off income inc donations £16 £178 Special one off income

Net loss after taxation; note none payable 2013/14 -£5 £63 We only made a profit after donations/legacies, which

have to pay deferred costs in 2015, and cannot be used for

capital projects.

Amounts in £000

DRAFT


Challenges for 2015 Budgeting for higher revenue reflecting increase in fares

Continuing upward pressure on costs, in particular to maintain the infrastructure; have also allowed for costs of professional ground investigation survey to help plan future capital programmes

Targeting break-even in 2015

Budgets accommodate increased track maintenance and renewal - including Donifordrelay - as well as loco overhaul and Williton loop project

Limited scope for ‘new’ projects, but have approved first phase of a canopy for the loco compound at Bishops Lydeard

Working group chaired by Steve Williams will look at overall plan for BL, which will involve significant costs in 2016 and beyond


Charles Dickens on money

19.9

19.92

19.94

19.96

19.98

20

20.02

20.04

20.06

20.08

Income Expenditure

Happiness

19.9

19.92

19.94

19.96

19.98

20

20.02

20.04

20.06

20.08

Income Expenditure

Misery


Project prioritisation process - ‘Needs’ & ‘Wants’

Simple traffic light system

We have to separate ‘needs’ from ‘wants’ and ‘wishes’.

- a ‘must have’ for safety/operational/commercial

reasons -we have to find the money

- a ‘like to have’

if we have the money and all needs have been met

- a ‘nice to have’ if there was no limit to available funds,

no competing projects, or if we ‘win the lottery’.

NEEDS

WANTS

WISHES

gets

immediate go ahead

requires

more work

is ‘no’ unless and

until specially justified


Operating budget 2015

In £000 2013 2014 budget 2014 actual 2015 budget Delta

Total railway operating income 2317.0 2421.0 2247.0 2419.5 7.7%

Retail/catering contribution 123.0 141.5 91.0 116.0 27.5%

Total income 2440.0 2562.5 2338.0 2535.5 8.4%

Total operating costs 2400.0 2557.0 2442.0 2582.0 5.7%

Budgetted gain/loss 40.0 5.5 -104.0 -46.5 55.3%

Exceptional items income 31.0 50.0 137.0 56.0

Exceptional items expenditure -34.0 -37.0 -32.0 0.0

Profit/Loss 37.0 18.5 1.0 9.5

DRAFT in £000


Capital budget 2015 £000

Earmarked Unallocated Notes

Locomotive dept

Locos 9351; 88; 44422; D03

Shed & canopy

Sub total locomotive 397 48

Infrastructure dept

Williton loop; Doniford relay; groundworks

Electrical & safety testing

Sub total infrastructure 253 127

Other

Computers; shelving shop

Garden & station maintenance

Station maint (FOWS)

CH shed To be repaid by CH friends in 2016

Sub total 22 16

Total capital 672 191 TOTAL CAPITAL £863k

DRAFT CAPITAL BUDGET 2015 in £000

TOTAL £863000


BenchmarkingComparisons with other peer performers in the Heritage Railways Sector


Benchmarking of Heritage Railway pricing

£0.41

£0.53

£0.56

£0.58

£0.63

£0.70

£0.75

£0.80

£0.91

£0.92

£0.93

£0.96

£1.04

£1.10

£2.87

£0.00 £0.50 £1.00 £1.50 £2.00 £2.50 £3.00 £3.50

WSR

NYMR

SEVERN VALLEY

EAST LANCS

GWR

STRATHSPEY

BLUEBELL

MID HANTS

GCR

SOUTH DEVON

RAVENGLASS/ES

SWANAGE

DARTMOUTH

NORTH NORFOLK

SNOWDON MOUN

£ per mile

Cost £ per mile rover ticket

Increase Rover from

£17.00 to £18.50

(8.8%) in 2015


A sample review

“Time Capsule on wheels.” 5 of 5 stars Reviewed 13 January 2015

This is one of those fun activities that are a "Must Do" on a trip to the Minehead, Dunster, Blue

Anchor and Watchet area especially if you have kids or grandparents with you. The Steam Railway is

run entirely by volunteers and you will not believe how authentic the experience. It is quite hard to

describe, and you must ride the train for yourself to get it, but you are literally transported back to

the early 1900s. If you were wearing the right era clothing you would be easily tricked into thinking

you have travelled back in time. The sounds, the smells, the penny needed to enter the toilet

(penny provided), the antique luggage stacked on the porter trolleys. It's better than Disneyland!

Visited December 2014

Overall TripAdvisor rating - 97% excellent/very good

Excellent 623

Very Good 135

Average 15

Poor 4

Terrible 7

Total 784


57%

65%

66%

81%

82%

82%

82%

83%

85%

87%

87%

87%

87%

88%

90%

90%

91%

91%

92%

92%

92%

93%

93%

93%

94%

94%

94%

94%

95%

95%

95%

96%

96%

97%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Midland Railway – ButterleyThe Battlefield Line

East Somerset RailwayLakeside & Haverthwaite Steam Railway

Churnet Valley RailwayDean Forest Railway

Isle of Wight Steam RailwayMid-Norfolk RailwayNene Valley RailwayAvon Valley Railway

Epping Ongar RailwayThe Mid Hants Railway Watercress Line

Strathspey Steam RailwayBluebell Railway

Barrow Hill Roundhouse Railway CentreNorth Yorkshire Moors Railway

Great Central RailwayLlangollen Railway

Severn Valley RailwaySwindon & Cricklade Railway

Welsh Highland Heritage RailwayBo'ness and Kinneil Railway

East Lancashire RailwayKeighley and Worth Valley Railway

Kent & East Sussex RailwayFfestiniog & Welsh Highland Railways

Romney, Hythe and Dymchurch RailwaySouth Devon Railway

Dartmouth Steam Railway and River Boat CompanyNorth Norfolk Railway

Swanage RailwayGloucestershire Warwickshire Railway

Talyllyn RailwayWest Somerset Railway

TripAdvisor Customer Satisfaction ratings Heritage Railways


Freehold/SCC/WSRA/PDG Update

John Irven


WSRA negotiations

PLC

Parallel to PDG discussions of strategic plans

Commercial discussions PLC-WSRA via intermediary group

Successfully negotiated QB agreement for 3 years

Continue into

Stone trains

Bishop’s Lydeard site

Concessionary fares

Williton

Reform group

Discussions are between members and WSRA trustees, not PLC, where we

continue to take a neutral public position


SCC Position

Having been offered an extended lease with right of first refusal on the freehold

were it ever to become available in 2011-2013, which was overtaken by the

WSRA bid supported by Cll Huxtable, we wish to resume these negotiations with

SCC now the freehold is no longer for sale in immediate term

Any lease is solely a commercial matter between SCC and PLC, which would

allow us to sub-lease to other railway groups

John Osman confirmed in answer to my question at public scrutiny meeting, that

the freehold would not be sold outside of the family

Any potential for pre-emption or future freehold sale would involve consultation

with whole WSR family via PDG

Inquiry into Cll Huxtable complaints is scheduled for 6th March 2015

I cannot make any comment on the investigation or report prior to the actual

hearing


Partnership Development Group (PDG)

Members of PDG Stakeholder group

1 WSR PLC Steve Williams

2 WSRA David Williams

3 DEPG John Cronin

4 S&D Trust Godfrey Baker

5 WSSRT Chris Austin

6 Friends of Stations groups Tim Stanger

7 Staff (employees & volunteers) Martyn Snell

8 SCC James Stubbs

9 TDBC Jean Adkins

10 WSDC Karen MIlls

John Irven as guest


4 West Somerset Railway PLC

Stakeholder MeetingStrategy, Planning and Partnerships-An Update

Steve Williams


Corporate-Planning and Organizational Development

Three-year business plan development underway. To be launched at the AGM

Corporate review of the PLC organization making good progress

- Director profiles

- Committee membership and terms of reference

- Implementation ongoing


Partnership Development Group (PDG)

Overall Purpose - act as a discussion forum and information exchange

across the WSR.

To enable each participant to influence and inform plans and projects of

the other stakeholders & ensure such plans are mutually compatible

Platform for the dissemination and sharing of knowledge and expertise.

Chairmanship will be agreed annually/biannually and rotate between

the various bodies, meeting as frequently as PDG determines.

If vote required – minimum of 75% of those present must be in favour. A

proxy can be counted if the issue concerned is known in advance.

SCC will use the group to consult on freehold if needed

Overall aim to ensure whole railway family are given a voice and

presence


Projects and Partnerships

Partnership Development Group-first two meetings very positive and have already influenced thinking and approaches within participating organization’s

Station farm project group is now Bishops LydeardDevelopment Group-first meeting shortly

Williton site development-working group ofkeyorganizations to be established

Taunton to Bishops Lydeard-initial scoping/appraisal document drafted and going to working group


5 WSSRT

Chris Austin


Steam

Trust

Report

Chris Austin OBE,

MA, FCILT

Chairman, WSSRT

WSR Stakeholder

Meeting Minehead

21 February 2015

"Welcome ye friends of progress"


Rolling stock provision


Sleeping car restored


Interpretation and engagement


Blue Anchor Museum


Gauge Museum


Archives


Heritage Carriages Project


Happy Band of Pilgrims


Inside 3639?


6705 - back behind a King


6705 – The Last Window


Protect and display


The Vision...

...and The End


6 Coatal Erosion

Andrew Young


DONIFORD BEACH

Bristol UWE Students Site Visit for

their Final Year Design Project


Erosion is not as fast as first

thought.

Extending the Rock Armour will

help.

The geology suggests we should

keep an eye on land drainage.


Realignment proposal not a practical option– estimated cost £10m to £15m



- John Buttivant (EA) on Doniford Beach:

“This seems less urgent, but some strategically placed Rock

Armour would probably buy you some considerable extra

time.”

“...if you are able to put the rock there and monitor it, moving

it and recharging it as necessary, this should provide a low

tech and manageable way forward.”

- Estimated cost of works in the region of £250,000 to £320,000

- Working with EA, Marine Management Org, NE and West

Somerset Council


BLUE ANCHOR BEACH - BEFORE


BLUE ANCHOR BEACH AFTER

- Completed ditching work

- Recharged crest of beach

- Highest tide today for 18 years

- Track is 1.4m (4ft) above high tide


t

CASTLE HILL – Doniford Stream Erosion

Bank protection will cost in the region of £60,000


7 Question & Answer Session

Any questions ?


West Somerset RailwayLate 2014 Review & 2015 Preview

Documents

West Somerset Railway