1. Legal and Administrative information

Custodial Trustees
D Milton M J Beale

Dr P J C Trenchard J Edwards

Trust Committee (Management Trustees)

Officers
Dr P E Cattermole (Chairman) M Gates (Museum Curator)

I M Young (Secretary) E Melville (Treasurer) [appt. 20.4.02]

Members
G R Baker G Moon [appt. 20.4.02]

G Hooper R W Pitman

Mrs R Jacob B R J Smith

J Lock J M Smith

Principal Location The Railway Station Washford Watchet Somerset TA23 0PP

Bankers HSBC, Loughton; NatWest, Midsomer Norton

Solicitors Stephens & Scown, Exeter

Hon Curatorial Adviser D Dawson, Somerset County Museum Service

Insurance Brokers Griffin Commercial, Exeter

2 Status

The Somerset & Dorset Railway Trust (the Trust ) is a Registered Charity number 265098. It is governed by a Constitution which was last amended by the members of the Trust in General Meeting on 20 April 2002. Trustees are appointed and elected in accordance with the Constitution. The Trust is a Registered Museum, No. 851.

3 Organisation, Management and Decision-Making Structure

The property of the Trust is held by the Custodial Trustees in trust for the Trust in accordance with Clause 6J of the Constitution. The management of the Trust is vested in the Trust Committee which is responsible for the administration of the Trust affairs and for the general policy of the Trust in accordance with Clause 3B of the Constitution. During 2002, the Trust Committee met formally on six occasions: 12 January, 17 March, 11 May, 7 July, 8 September and 10 November. One Custodial Trustee attended the meeting of 17 March. One Custodial Trustee and the Curatorial Adviser attended the meeting of 11 May and the Senior Custodial Trustee attended the meetings of 7 July & 10 November.

Approximately one week in advance of every meeting, all Trustees are sent an agenda and other papers for the meeting. Responses to matters arising are made in writing. At the meeting, any Trustee may speak, but decisions are made by majority vote. Implementation of the decision is usually assigned to an individual, with a duty to report at a future meeting. Sub-committees are set up to report to the Trust Committee on more complex matters.

4 Membership

As at 1 August 2002 ( 2001 numbers in parenthesis ), there were 367( 400 ) Ordinary, 191( 208 ) Family, 237( 206 ) Senior, 2( 1 ) Junior and 6( 7 ) Corporate Members, total 803( 822 ). The increase in number of Senior members seen in previous years was repeated. The continuing reduction in the number of ordinary members is seen as a cause for concern for the future age profile of the Trust.

5 Objects

The Objects of the Trust are for the public benefit as defined in its Constitution.

A To form and maintain a museum for the exhibition of items of historic interest formerly belonging to old railways and in particular, but not exclusively, the Somerset and Dorset Joint Railway, including signs, signals, posters, records and books, photographs, machinery, models, rolling stock, locomotives and buildings, such museum to be open to the public.

B To educate the general public in old railways, railway history and in particular, but not exclusively, the Somerset and Dorset Joint Railway and to show how these railways affected the industry of the area.

6 Co-operation with other charities and related parties

Informal liaison took place during 2002 with the West Somerset Railway Association (Reg. No. 1041901). There are no relationships between the Trust and related parties that fall within the requirements for disclosure under Charity SORP 2000.

7 Review of Activities in 2002

a) Management changes

The appointment of Edmund Melville as Trust Treasurer has strengthened the treasury function of the management team. The addition of a new Management Trustee has been welcome, as has been the renewed stability within the composition of the committee.

b) Publications

The policy for the Trust's regular publications (journals) which was introduced in 2000 has been further strengthened during 2002. Both journals have appeared on or slightly before pre-announced publication dates throughout 2002.

Pines Express Bulletin

It has been another successful year of the Pines Express Bulletin publications in the second year of the capable hands of the volunteer Editor. The magazine has been well received by SDRT members, maintaining the high standards expected by everyone, with the initial quality problem from 2001 being left well behind.

The aim of Pines Express Bulletin is to provide members with as much fact, detail and information on the former Somerset and Dorset Railway as possible. However, it is becoming increasingly difficult to maintain the themed approach to Pines Express Bulletin . This has resulted in the four issues of 2002 being split equally, two themed issues; Aspects of the Branch and Wagons and Freight and two miscellany issues. This two way split will continue throughout the coming year. Articles are still being received, for which the Editor is extremely grateful. However there is still a need for in-depth well-researched articles to ensure the themed approach can continue. The subjects for on-going issues are continually detailed in Pines Express editorial pages well ahead of the publication date. Trust archives are available for research so the message for members is clear: practical support is particularly vital.

There is an increasing number of S&D modellers, so the Editor is looking at ways to include articles on aspects of modelling the S&D into the Pines Express . Initial thoughts are that it is not intended that articles would be a blow-by-blow account of how the item was made but rather how the item was researched. A modelling questionnaire is being prepared and will be sent out during 2003.

Swift & Delightful Newsletter

Two issues of the Newsletter appeared in 2002. The spring edition reported fully, in colour centre-pages, on the Model Railway Display, as well as informing members of events and activities in the UK and abroad. The autumn edition contained a most welcome variety of articles submitted by members. It was pleasing to the Acting Editor that nearly all contributions were in electronic form, thus making his task of compiling the issue much easier. However, there has been no volunteer offering his or her services as Editor in place of the Chairman.

Other

During 2002, the Trust extended the range of archival reprints from its extensive collection of Working Time Tables. These have been appreciated and sought after. Further reprints are to be released in 2003. The annual calendar, containing historic photographs, and the Christmas card received good reviews and sold widely. It brought the S & D to the attention of many.

c) Electronic services

Through the generous permission of the owner, digital copies of Alfred Whitaker's albums have been procured. The Photographic Curator has continued to supply scanned copies of other photographs from within the Trust's extensive collections.

There have been several genealogical enquiries made by members of the public during 2002. The continuing painstaking work carried out by a Trust volunteer in constructing a database from the information contained in the the Highbridge Registers has proved to be of considerable value in answering these enquiries.

Most members will be familiar that we have a regularly updated website promoting the Trust's activities at http://www.sdrt.org.uk/ On the website can be found the latest events calendar and selected reports, usually profusely illustrated along with much other Trust related information and data. Care is however taken to ensure that the website does not take the place of Trust's periodicals.

This past year has seen an increasing number of contributions from several members. The advent of the cheap digital camera and widespread use of email has really aided this. Frequently pictures and reports are online for all to see within a few hours of the actual event.

The website is proving very popular. The month of December, for example, bought forth 1200 or so unique hits. This can only increase. It is planned to take advantage of this by being able to offer Trust Membership and Trust Sales via the website. Other societies and trusts already offering these facilities have seen a tremendous increase in both membership and sales. Obviously to support this some extra backup will be needed from keen volunteers with a little time on their hands.

There has been a welcome increase in the number of email enquiries received via the website on a variety of topics. Quite often, these are forwarded to members of the Trust for comment, often through the electronic discussion group. This group (open to members and invitees only) SDJR@yahoogroups.com has 50 (2001:45, 2000:18) members. There have been 413 (2001: 328, 2000:107) postings during the year. The range of topics discussed has been considerable, and has led to useful contributions to the Bulletin . Useful cross-postings are made with the independent public discussion group SDJR-elist .

d) Exhibitions, Events, Meetings and Publicity

The twenty-eigth Annual Model Railway Display, held at Edington, was very successful with a large number of the public attending. Several layouts of S&D interest were featured.

An exhibition of photographs and solid objects illustrating The Branch and the Bridgwater Railway was mounted at the Blake Museum, Bridgwater in the early spring. The Exhibition was incorporated into the Blake Museum's educational programme. An accompanying video evening attracted a sizable audience. Also in the early spring, members of the Trust collaborated with Highbridge Express in mounting a one-day exhibition in Highbridge. An illustrated talk and a video presentation attracted an audience of 120 people in the evening.

A photographic and three-dimensional exhibition entitled Victorian Enterprise & Invention was mounted in Wells Museum during November. An accompanying video presentation was given to a capacity audience on 22 November.

Members of the Trust, in collaboration with the Wells Railway Fraternity, helped arrange the placing and unveiling of a marker stone for the former Wells (Priory Road) Station on 6 March 2002.

A special train organised by Trust volunteers under the 2-8-0 Hire Agreement ran on the West Somerset Railway on 15 June. The opportunity to travel on the railway at a subsidised rate was taken up by nearly 300 people. The occasion enabled the Trust to further one of its constitutional objects by illustrating the operation and style of an old railway.

Over the weekend of 29/30 June, the Trust's sidings were used to provide entertainment and an educational experience for many family visitors. The newly-overhauled Peckett locomotive, Kilmersdon , was in disguise as Percy , a friend of Thomas the Tank Engine . Two days were spent shunting The Troublesome Trucks , all disguised from the restored wagons in the Trust's collections. Young visitors were able to participate in the event under close supervision.

On 15 September 2002, volunteers from the Trust organised a reunion of approximately 100 former employees of the S&D railway at Bath Green Park station. The opportunity for renewing acquaintances and for learning from the two speakers was much appreciated.

Educational meetings have been held on a regular basis by the four Area Groups of the Trust. Illustrated talks formed the backbone of the meetings.

These events were fully reported to members by the Swift & Delightful newsletter and the Trust's website. All events were organised by volunteers. However, most of them have been initiated and led by the same people. A larger number of volunteers and some new blood is essential for the future if a good variety of activities is to be maintained.

e) Washford Museum

In 2002, the poor weather in the early part of the year and the difficulties of maintaining opening resulting from the lack of volunteer input, contributed to the decline in the number of visitors to the Washford Museum to 2351 (2726 in 2001).

Donations to the Museum Collections included carriage maker's tools from Highbridge and a large collection of paperwork once in the possession of Alwyn Hannam, S&D Driver. Near the end of the year, the Trust was able to purchase the smokebox door & re-builder's plate from 58086, the last locomotive to work the Wells Branch. A substantial collection of important original Highbridge and Derby drawings, held safely in store by a senior member of the Trust for many years, has been accessed and arrangements are being made for conservation and for copies to be made.

Members are encouraged to contact the Museum Curator in 2003 if they have items they wish to dispose of by gift, loan, purchase or bequest. Older members may wish to consider securing a proper future for objects from the old railway by making a specific bequest in their will. Such a bequest to the Trust will normally be free of inheritance tax. Details may be obtained from the Chairman or Secretary.

The programme of refurbishment of Museum displays in 2002 was minimal, owing to the unfortunate ill-health of the Museum Curator. Little work took place on the location index. Similarly, regular spring maintenance of the gardens, lawns and banks was delayed owing to the absence of volunteers. Emergency weedkilling and cutting back was undertaken by a Trust Officer, and followed up by volunteers from within the Locomotive 5542 Ltd group. It is most regrettable that simple grounds maintenance has to be undertaken by the skilled engineering and management volunteers. It is hoped that new volunteers will come forward to undertake the vital maintenance required to provide a tidy and pleasing landscape for those visiting Washford, by perpetuating the excellent standard that has been consistently achieved for so long by those volunteers who are now more elderly and infirm.

General maintenance of stock and fixtures has fared better than the maintenance of the grounds. A new set of replica gates at the entrance of the sidings was fabricated by a Somerset craftsman and hung & painted in time for the opening season. A MR-style platform seat was reconstructed by a member for use outside the Wells hut. Track maintenance was assisted by a welcome visit by the volunteers from the West Somerset Railway Association in the summer. A new volunteer helped greatly by overcoming a backlog of painting of rolling stock.

Coach Restoration

Only limited progress has been possible with the restoration of S&D First class Coach No. 4, owing to the availability of the two volunteers involved. Third class Coach No. 98 was returned to under cover storage in the existing shed in late autumn, but no work has been carried out on it. Coach No. 114 remains in store under tarpaulins.

Wells Brakevan, No. 9

Advice is yet to be received from a conservator. The components of the van remain undercover.

S & D Locomotive, No. 88

The Management Committee, in conjunction with its Solicitors, had taken steps in 2001 to safeguard the interests and resources of the Trust in the matter of the extended overhaul of the principal working museum exhibit represented by No. 88. The delay in steaming this exhibit was proving to be a drain on the management time of Trust Officers. During the first eight months of 2002, the 2001 settlement with the WSR plc did enable Trust Officers to concentrate their efforts more effectively on matters of greater immediate benefit to the furthering the Trust's Objects. However, by the late summer, the WSR plc revealed that further delays were likely which would continue the overhaul into 2004, well beyond the revised target date of 30 April 2003, and trigger further compensation payments. It has become apparent that further delays have been encountered subsequently, though information from the WSR plc on the nature and consequence of these has been very difficult to obtain. Further valuable management time has been diverted into pursuing our proper enquiries of the WSR plc.

It is the Management Committee's earnest wish to see this exhibit working at the earliest opportunity. The Committee believe that the delays which have extended a programmed two-year overhaul into its eighth year are unreasonable. It is therefore possible during 2003 that the Management Committee may find it necessary to seek recovery of its exhibit should it be shown that return to steam is not expected before the end of 2004.

Mineral wagon

Good progress was made throughout 2002 on this special project, being undertaken by a small team of dedicated & skilled volunteers. Work on the new oak frames was largely complete by early spring 2002. Refitting of the wheels and running gear has proved challenging, with problems caused by scarcity of components and defects in those recovered. However, the dedicated team has found novel and innovatory ways around the difficulties.

By the end of the year, the drop-down doors and the new floor had been laid, and the knees to support the sides had been fixed with countersunk bolts fabricated by members of the team. Timber for the sides and ends had been sourced ready for construction work to be completed during the first half of 2003.

8 Plans for the Future

The reluctance of members to give greater practical volunteer support despite every encouragement to do so has made the Management Committee increasingly cautious in initiating new projects. During the early part of 2002, it became clear that the national and international financial outlook was becoming increasingly gloomy, and that the Trust's costs were likely to rise. Further problems arose with the overhaul contract on locomotive No. 88, referred to above. The currently unincorporated nature of the Trust body has become an increasing concern in terms of risk perception. Accordingly, it was agreed that capital projects under consideration (such as the Carriage storage shed) would be deferred and that other planned expenditure would be reduced. These decisions proved to wise with hindsight.

Future strategy is being actively considered by the Management Committee. In 2003, there will be a developments in the range and scope of the electronic services provided. This initiative has already gained the support from a number of new volunteers.

At Washford, a solid framework of co-operation between the Trust and Locomotive 5542 Ltd has been established, and will be strengthened in 2003.

9 Fund Raising and the work of volunteers

Fund Raising

In addition to the events on the West Somerset Railway, the 200 Club donated a welcome sum through its fund-raising efforts. The Annual Raffle generated a profit, but the response from members and supporters was not as generous as in the past. It is considered that the decline in this traditional source of additional finance is mirrored by a similar decline in the National Lottery. The 2003 raffle will be more closely targeted and costs will be reduced.

As the tax-efficient covenant scheme draws to a close, it is felt that many more members could make donations by Gift Aid , a method of giving which results in additional revenue to the Trust through the reclaiming of tax paid.

Promotional Sales

The Sales team has worked very hard during 2002 in order to augment the Trusts' funds. The net profit has increased by 70% over 2001, thereby returning to near that last seen in 1996. Stock levels have been reduced, all obsolescent stock written off, and margins have improved.

Sales in the Washford Shop plus donations and income from the second-hand Collectors' Corner increased by £500 in 2002 over 2001, despite the reduced volunteer input. The donation of a number of high-quality second-hand books for sale has been most welcome.

After the slow start to the year, postal sales were fairly steady throughout the year due mainly to the early arrival of calendars and cards and also a good stream of new items being available. Up to the beginning of December, the long-serving Postal Sales volunteer had dealt with 200 customers, grossing over £4000.

10. Policy Statements

(a) Reserves

The Reserves of the Trust are the resources from income it has or can make available to spend at the Trustees' discretion in furtherance of the Trust's Objects once it has met its commitments and covered its planned expenditure. The Trustees direct that sums are to be held as reserves when it is their considered view that it is in the charity's best interest to do so. A review is made at least annually, normally at the time of the Budget meeting, and at other times as the Trustees consider prudent. The Trustees consider that the long-term and specialised nature of conservation and restoration work of the Museum rolling stock (especially the S&D carriages and building, Wells Brakevan, and locomotives) justifies the level of reserves currently maintained in order to facilitate progress when suitable skills become available. The Trustees recognise that reserves will need to be maintained at the current level and enhanced by further fund-raising if future plans to improve the housing and display of archives, rolling stock and museum items are to be realised.

(b) Investments

Investments are made in accordance with CC14. Several of the Trustees have wide investment experience and the Trustees do not consider it necessary to appoint an investment adviser. During 2002, all investments have been placed on deposit with diversified institutions to which Section 67 of the Banking Act applied.

(c) Grant-making & prizes

Grants are only made in exceptional circumstances in furtherance of the Charity's Objects, and will not be in total in excess of 5% of annual resources expended. They will only be awarded after due consideration by the Management Trustees. No grants were made in 2002. A monetary educational prize in memory of the late MJ Palmer was awarded to two schools in 2002.

11. Risk Analysis

The Trustees have conducted an analysis of the major risks to which the charity is exposed. At most meetings of the Management Trustees, time is given to a review of the risks associated with the operations at Washford. Close liaison is maintained with the West Somerset Railway plc, the Heritage Railway Association and the Trust's Insurance Companies and Brokers. Officers of the Trust maintain procedures to control financial risks, and report to the Management Trustees.

The Trustees have become aware of the very substantial increases in insurance premiums in 2002 and for 2003. These increases are outside the control of the Trustees. Only limited action has proved possible in order to reduce the financial burden on the resources of the Trust.

Active consideration is being given to the Government's proposals for forms of Charitable Incorporated Organisation. As soon as the legislation is approved, Trust members will be informed of the Management Committee's decision on the appropriateness or otherwise of any change they propose for the status of the Trust. However, it is certain that if the present Trustees are to continue in post, their joint & several exposures to personal risk must be reduced.

The Trustees are concerned to note that the level of volunteer activity, already low, continues to decline and that all essential activities of the Trust have become dependent on a few key people of increasing age and frailty. The negligible response of members to all appeals for practical help poses an increasingly large single risk for the furtherance of the Trust's Objects. The Management Trustees keep this risk under constant review and are expected to approve action to reduce the level of activities of the Trust in 2003. This Report and the Annual Accounts which appear on pages A1a to A3a following were approved by the Management Trustees at a duly convened meeting held on Saturday 15 March 2003

Signed P E Cattermole Chairman