th

Your committee has pleasure in submitting its report and financial statements for the year ended 30th June
2014.
The Directors of the Company at the date of this report were as follows:-
Honorary Officers Mr L Bevis-Smith
Mr A Cox
Revd D Aplin
Chairman
Deputy Chairman & Acting Secretary
Treasurer
Revd D Aplin was co-opted by the committee on 23 rd January 2014 to fill a casual vacancy for treasurer following the resignation of Mr S Black at the AGM 5 th December 2013. Mr N Simpson also resigned as Secretary on 5 th December 2013 but as no-one has volunteered for this role it has been covered by Mr A Cox in an acting capacity additional to his role as Deputy Chairman. Mr P Chappell,
Mr R Fagarazzi, Mr M Lloyd, Mr H Smith, Mr G Thomas, Mr E Thompson and Mr E Tomiak served the committee throughout the year. Mr R Rattray served the company from 5 th December 2013 until he resigned on 22 nd October 2014. Mr C White, Mr C Ibbotson, Dr D Redford and Mr I Brown resigned at the AGM on 5 th December 2013.
The principal activity of The Model Railway Club Limited is promotion of the interest in the hobby of model railways. At 30th June the membership of the club was 224 (2013 220). This year there was a profit after tax of £3,288 (2013 £3,456) which is taken to the profit and loss account. Cash at bank increased by £ 4,060 to £52,831 (2013 £48,771). The Directors are satisfied with the results and they intend to continue to manage the club in a way that consolidates its sound financial situation and maintains its assets and facilities.
Information relating to fixed assets is set out in note 4 to the financial statements. In the opinion of the Directors the open market value of the freehold land and buildings is significantly in excess of the value stated in the balance sheet.
Company law requires the directors to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing those financial statements directors are required to :-
• select suitable accounting policies and then apply them consistently
• make judgements and estimates that are reasonable and prudent
• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. The directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the company and to enable them to ensure that the financial statements comply with the Companies
Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud or other irregularities.
The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476, Companies Act 2006.
By order of the Committee 29 October 2014
A Cox
Deputy Chairman and Acting Secretary
Keen House,
4 Calshot Street,
London N1 9DA
1

th
TURNOVER
Cost of sales
Gross profit
Administrative expenses
Operating loss
Property income
Bank interest
Profit on ordinary activities before tax
Tax on ordinary activities
Profit for the financial year
3
2
Notes
1e
1f
11
2014
£
29,649
8,871
20,778
33,477
(12,699)
17,351
763
18,113
5,415
(2,127)
3,288
2013
£
25,573
6,674
18,899
32,883
(13,984)
18,834
958
19,792
5,808
(2,352)
3,456
All items dealt with in arriving at the operating profit relate to continuing operations.
The Company has no recognised gains and losses other than those included in the profit and loss account above, and therefore no separate statement of total recognised gains and losses has been presented.
Note of historical cost profits and losses
There is no material difference between the profit on ordinary activities before taxation and the retained profit for the year as stated in the profit and loss account above, and their historical cost equivalents.
The notes on pages 4 to 6 form part of these financial statements.
2

th
FIXED ASSETS
Tangible assets
CURRENT ASSETS
Stocks
Debtors
Cash at bank and in hand
CREDITORS (amounts falling due within one year)
Creditors and accruals
Deferred income (annual members)
NET CURRENT ASSETS
TOTAL ASSETS LESS
CURRENT LIABILITIES
CREDITORS (amounts falling due after more than one year)
Deferred income (life members)
NET ASSETS
Notes
1b, 4
1d, 6
7
8
1e, 9
CAPITAL AND RESERVES
Revaluation reserve
Profit and loss account
11
11
78,726
1,275
77,451
8,800
68,651
77,451
2014
£
30,039
600
3,291
52,831
56,722
5,094
2,941
8,035
48,687
2013
£
32,480
780
616
48,771
50,167
4,146
2,858
7,004
43,163
75,643
For the year ending 30th June 2014 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The financial statements on pages 3 to 8 were approved by the committee on 29 October 2014 and signed by:
L Bevis-Smith (Hon. Chairman) D Aplin (Hon. Treasurer)
1,480
74,163
9,275
64,888
74,163
The notes on pages 4 to 6 form part of the financial statements.
3

th
a)
These accounts have been prepared in accordance with the provisions applicable to b) c) companies subject to the small companies’ regime.
The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain freehold land and buildings.
Tangible fixed assets are stated at historical cost with the exception of Keen House which is stated at the open market value prevailing in 1971. Depreciation is provided to write off the cost less estimated residual value of all fixed assets ( with the exception of freehold land) on a straight line basis over the useful lives which are as follows: d) e) f) g)
Freehold buildings
Computers
Equipment
Furniture
25 years
3 years
5 years
5 years
Bar stocks and items held for sale by the shop are stated at the lower of cost and net realisable value
Turnover consists of income arising from subscriptions, donations, bars, exhibitions, shop, events and other fund raising activities. Subscriptions are credited to turnover in the year to which they relate, with those relating to subsequent accounting periods being carried forward as deferred income.
Cost of sales consists of the direct costs relating to bars, exhibitions, shop, events, and other fund raising activities.
The cost of publications and other items purchased for the library is written off to the profit and loss account in the accounting period in which the expenditure is incurred.
Operating profit is stated after charging depreciation of £4,346 (2013: £4,326)
UK Corporation tax at 20% (2012: 20%)
2014
£
2,127
2,127
Factors affecting the tax charge for the current year
The current tax charge for the year is less than 2013: the small companies rate of corporation tax in the UK 20% (2013: 20%).
4
2013
£
2,352
2,352

Current tax reconciliation
Profit on ordinary activities before tax
Current tax charge at 20% (2012: 20%)
Net club (income)/expenses from members not subject to corporation tax
Depreciation in excess of capital allowances
Utilisation of tax losses brought forward
Adjustment in respect of prior periods
2014
£
5,415
1,082
1,401
679
(1,035)
-
Total current tax charge 2,127 2,352
There is a charge for corporation taxation .arising on the net property income and interest earned during the year. The specific income received from, and expenditure for, members is exempt from corporation tax.
Other trading activities generated a profit which has been offset by the use of losses brought forward from previous years. Tax losses carried forward amount to approximately £28,348 (2013 £33,524)
Total
Cost / valuation at 1st July 2013
Additions at cost
Disposals & Write-offs
Cost / valuation at 30th June 2014
Depreciation at 1st July 2013
Charge for the year
Depreciation on assets scrapped
Depreciation at 30th June 2014
Net book amount at 30th June 2014
Freehold land and buildings
£
42,040
-
-
42,040
16,040
1,000
-
17,040
25,000
Computers and equipment
£
14,603
964
(13,211)
2,357
14,042
476
(13,211)
1,307
1,050
Furniture fixtures and fittings
£
29,245
942
(8,218)
21,968
23,327
2,870
(8,218)
17,979
3,989
£
85,888
1,906
(21,429)
66,365
53,409
4,346
(21,429)
36,326
30,039
Net book amount at 30th June 2013 26,000 562 5,918 32,480
Keen House was revalued in 1971 to £32,000. The garage at Islington is included at cost of £10,040
2013
£
5,808
1,162
1,350
538
(698)
-
The committee had decided to upgrade the toilets, redecorate the common areas and carry out some necessary repairs at Keen House at an estimated cost of £17,000. At 30th June 2014 the club had committed £15,000 of this expenditure. At the date of this report the works are largely complete. Therefore future commitments at 30 th June 2014 were £ 15,000 (2013: None)
Bar and tea bar stocks
2014
£
600
2013
£
780
5

Debtors net of bad debt provision and prepayments
2014
£
1,825
1,466
2013
£
616
-
616
Creditors
Corporation Tax
Accruals and income in advance
3,291
2014
£
600
2,127
2,367
5,094
This represents income relating to subsequent accounting periods. For subscriptions paid annually half the subscription is deferred to the second half of the year and treated as creditors falling due in less than one year. For life members the whole of the unamortised amount is treated as creditors falling due in more than one year. For property hire the sum is deferred until the date for which accommodation is booked.
The Model Railway Club Limited is limited by guarantee and has no share capital. The company is registered in England with membership not exceeding 750. The liability of members is limited to 25p each in the event of a winding- up.
Revaluation reserve
Total reserves
At 1st July 2013
Profit for financial year
Release from revaluation reserve
At 30th June 2014
£
9,275
-
(475)
8,800
Profit and loss account
£
64,888
3,288
475
68,651
£
74,163
3,288
-
77,451
The release from the revaluation reserve is in respect of the depreciation charge on the revaluation uplift of Keen House.
2013
£
600
2,352
1,194
4,146
6