Spa Valley Railway - Latest News

They returned in early January.

 

The following is a copy of an email I have just sent to our volunteers, and is a great piece of news from the Spa Valley Railway.

"Good evening, everyone,

I have some extremely good news that I am delighted to pass on. I've just got off the phone with Stewart Robinson, the Managing Director of Sonic Rail Services (SRS) and the owner of Class 33/2 33202 'Dennis. G. Robinson, BR Standard 4MT 80078. Both locomotives have visited us on several occasions, starting way back in 2014.

Aside from the usual conversation about life, the world and railways, Stewart took me by great surprise to say that Sonic Rail Services is gifting all the recent track work, materials and labour costs for the track that SRS replaced at Broom Lane to the Spa Valley Railway. The machines, track, and material costs total approximately £60,000; this enormous saving and generosity cannot be underestimated, and I was taken aback by his and Alex Robinson's kindness. This gift also extends to the Volker Rail tamper, which Stewart arranged through SRS. The cost savings for this and the work it did were in the thousands of pounds range, slotting into the tampers' extremely busy mainline schedule.

I've personally had the pleasure of knowing Stewart for around 12 years, and he is a preservationist through and through. Always available on the phone and a person to call upon for anything infrastructure or railway-related. This isn't the first time he has supported our railway, and I am sure it won't be the last. He is taking a look at his yard tomorrow for a new set of points to help rectify the infrastructure issues we currently have with the platform line points at Tunbridge Wells West!

I am sure you will all join me in passing this enormous thank you to Sonic Rail Services, and long may our relationship continue.

Kind regards,

Jonnie Pay
General Manager
Spa Valley Railway"

 

I wonder if someone might be able to help please. I took a photo of a steam loco (no 6) I think pretending to be Percy at Tunbridge in April 2025 - could do with some help as to the locomotive details please! Thanks in advance

 

It’s ‘Kilmersdon’ No. 1788 from the Mid Hants. Visited to be Percy at our Thomas event.

 

Hello everyone,

It has been a while since the last finance update, and the hot summer has impacted every heritage railway and tourist attraction that I have spoken to. So, how are we performing?

So far this year, we have carried 21,717 passengers, compared with 24,838 during the same period last year (1st February to 31st August). This represents a 12.69% decrease.

Total turnover for the year to date stands at £486,720.76 (although this does not yet include the most recent weeks of August), compared with £661,745.39 for the same period last year. This is a reduction of £175,024.63, or 26.45%.

However, careful management of our expenditure has helped to mitigate some of this impact. Our gross profit currently stands at £112,586.22, compared with £147,982.55 for the same period last year. Administrative costs have also reduced significantly, helped substantially by our change of electricity provider in January. This has reduced the cost of electricity at Tunbridge Wells West from 72p per kWh to 23p per kWh. Total administrative costs for the year currently stand at £201,133.27, compared with £229,343.52 for the same period last year.

As a result, our operating profit currently stands at -£88,547.05, compared with -£81,360.97 at the same point last year. Overall, this means the difference between this year and last year is just £7,186.08, which, all things considered, is a positive outcome.

It is worth noting that these figures do not yet include the whole of August 2026, whereas they do include the whole of August 2025.

It is also worth noting, particularly for those who are newer volunteers, that our busier period tends to be from September through to May rather than during the summer months. During that period this year, we had no choice but to replace Broom Lane Bridge. Whilst this meant that we were unable to operate over the full line during Easter, it allowed us to address the railway's most significant infrastructure risk before further operational restrictions, or potentially complete closure, became a reality.

For context, in the last financial year The Wealden Railway Company Limited achieved a turnover of £1,284,154, a gross profit of £450,057, and a profit after taxation of £72,837. Profits generated are reinvested back into the railway throughout the year. We are not simply left with this amount sitting in the bank at year end, particularly when significant investments are required. For example, more than £30,000 was invested last year in the design work for the new Broom Lane Bridge. Profit and loss and cash flow are very different things.

Overall, the picture is reasonable. Whilst the railway is certainly not flush with cash, it remains in a fair position, particularly given the recent hot weather, which has affected not only us but tourist attractions across the country.

The recent Alice's Wonderland Express event, another partnership with PNP Events over the August Bank Holiday weekend, performed exceptionally well. Across the three services, we welcomed 505 visitors and generated £8,873 in ticket sales. After event-related costs, this produced a profit of more than £3,500. Combined with our Cream Tea offering and standard steam train services, revenue for the August Bank Holiday weekend totalled £20,898, with 1,087 visitors carried across the railway.

For comparison, during the same weekend last year we carried 1,144 visitors and generated revenue of £24,793.30. However, costs were significantly higher due to the visits of Bluey, Peppa Pig and the Class 47. As a result, overall profitability for this year's August Bank Holiday weekend was considerably stronger than in 2025.

Alice's Wonderland Express returns again this weekend and will also be back next Easter.

Looking ahead, there is a fantastic selection of layouts and traders booked for the Model Railway Weekend. The Dinosaurs return towards the end of September, and planning for the Beer Festival is well underway. This year's event is shaping up to offer an even more diverse range of ales, ciders, food stalls and live music, taking the festival to a level it has not previously reached.

Finally, sales of Polar Express tickets continue to increase steadily with an exceptional number of ticke. We are rapidly approaching the period when sales traditionally accelerate in the lead-up to the event.

Behind the scenes, we are continuing to explore options for repairing the points at Tunbridge Wells West, and the draft timetable for the first six months of 2027 is nearing completion.

Thank you all for your ongoing support, dedication and hard work in ensuring that the Spa Valley Railway continues to operate successfully. Everything we achieve is made possible by the commitment of our volunteers. Your efforts are greatly appreciated by all the Directors and Trustees and play a vital role in securing the railway's future.

Best wishes,

Jonnie Pay
General Manager

 

Thanks again Jonnie for your interesting and informative updates (in a much more formal tone than some of your most recent Instagram videos but just as interesting!)
Out of curiosity - what kind of taxes do you have to pay which means a turnover of £1.2 million and a £450k gross profit is cut down to a £72k profit after taxation? Presumably the tax is calculated on the total turnover, not the gross profit?

 

From what I understand (not being an accountant!), 'Gross profit' is just income less the immediate cost of the things sold (so in a railway's case I guess coal/Diesel, stock for the catering, etc). 'Operating Profit' is then this less the administrative costs (salaries, energy, rent, etc), and then "Net Profit" is then this less tax, interest, debt payments etc.

 

Given what’s been thrown at you this year that’s not bad. In the sort of temperatures we’ve seen this summer I’ve noticed that people don’t go out so much so the downturn won’t be entirely to the lack of steam.

 

I tend to keep my emails fairly formal so that they're clear and easy for everyone to understand. The Instagram and TikTok content is much closer to how I am as a person day-to-day. It's definitely not an act!

In our accounts, turnover is split across a number of income streams. The main categories are Beer Festivals and Polar Express, as these are our two largest events and are reported separately. Other income streams include catering, driver experiences, engineering, hire for rail training, retail, and train operations (including dining trains).

We then account for cost of sales, which includes expenses directly attributable to generating that income. These costs include plant and equipment hire, locomotive hire charges, tools and lubricants, rolling stock movements, catering purchases, coal and diesel purchases, retail stock purchases, and purchases associated with Beer Festivals and other special events.

Administrative costs are reported separately and include items such as accountancy fees, marketing, bank charges, IT support and maintenance, Wi-Fi charges, credit card fees and expenses, equipment repairs, health and safety costs, cleaning, insurance, licences, lighting and heating, postage and stationery, professional fees, online transaction charges, waste disposal, and other sundry expenses.

In terms of taxation, we are liable for Corporation Tax and submit VAT returns on a monthly basis.

That's a simplified overview, but essentially we separate income streams, identify the direct costs associated with generating that income, and then account for the overheads required to run the railway and its associated activities.

 

As I know some on this forum appreciate the open book policy on how we’re doing at Spa Valley, this is the latest finance report I sent out to volunteers last night.

Good evening everyone,

I wanted to share some excellent news about the Model Railway Weekend.

The event welcomed 1,322 visitors, generated £18,817.00 in ticket revenue, and achieved secondary spend across catering and retail outlets of £7,554.75. Total weekend revenue therefore amounted to £26,371.75. At the 2025 event, we welcomed 1,385 visitors, generated ticket revenue of £18,651.25, and achieved secondary spend of £6,199.35 across catering and retail outlets. Total revenue for the 2025 event therefore amounted to £24,850.60. This represents a revenue increase of £1,521.15, or approximately 6%, despite a slight reduction in visitor numbers. Given the current financial challenges, it was fantastic to see the Spa Valley Railway so busy and to receive such positive feedback from both visitors and volunteers.

An enormous thank you must go to Richard Arding for arranging the layouts and traders, Levi Reid for fitting everything into the shed, and Connor Eaton and the team from Swanley and Grace's Little Railway for providing the 7¼-inch miniature railway in the yard. Thank you also to all the other volunteers whose hard work helped make the weekend such a great success. The Model Railway Weekend has become a significant part of our annual events calendar, and we intend to host two events in 2027; the Autumn show will take place around the same weekend on 18th and 19th September. We are still discussing dates for a Spring one, subject to shed availability, etc.

So far this year, we have carried 24,031 passengers, compared with 27,231 during the same period last year (1 February to 21 September). This represents a decrease of 3,200 passengers, or 11.75%.

Given the summer we have experienced, it is perhaps not surprising that passenger numbers are down. However, this is by no means unprecedented, nor is it the most challenging situation the railway has faced.

Total turnover for the year to date stands at £572,819.36, compared with £664,490.15 for the same period last year. This is a year-on-year difference of £91,670.79.

Those of you who read my August finance report may recall that the difference between 2025 and 2026 then stood at £175,024.63. It is therefore fair to say that we have clawed back a significant proportion of that deficit and, despite the challenges we face, the railway's financial performance is moving in the right direction. A strong end to August and start to the Autumn has helped, driven by both the Alice in Wonderland Express event and the Model Railway Weekend.

Our gross profit currently stands at £132,475.11 (up from £112,586.22 last month), compared with £122,311.77 for the same period last year. Total cost of sales, the direct costs of operating the railway, stands at £413,972.45, compared with £542,178.38 for the same period last year.

The largest saving has come from the absence of locomotive lorry movements, which are still at an all-time high. Fuel costs remain high, with red diesel increasing from £0.70 per litre last year to £1.24 per litre this year. Our administrative costs have increased from £259,492.24 last year to £274,090.48 this year, mainly due to higher insurance costs.

However, thanks to efforts to spend carefully, attract additional visitors after the hot summer period, and increase secondary spend, our operating deficit currently stands at £141,220.85. At the same point last year, the deficit stood at £136,652.22, a year-on-year difference of £4,568.63.

The upcoming Beer Festival continues to gather momentum, and the latest list of beers and ciders is now available on Untappd. This presents the most diverse range of beers we have ever been able to offer our visitors. A meeting last week also brought encouraging news about the live music programme, with several well-known bands from across the South East expected to perform and help attract additional visitors.

Polar Express bookings currently stand in excess of at 27,000 passengers, and this figure will continue to increase as we move closer to Christmas.

It is often easy to lose sight of what the railway continues to achieve, and it is thanks to the dedication and hard work of our volunteers that this remains possible. There is no doubt that 2026 has been one of the most challenging years we have faced, with the replacement of Broom Lane Bridge taking place alongside significant cost increases across virtually every area of the business.

Despite these challenges, we are currently trading within £4,568.63 of last year's position. Given the economic environment in which we are operating, that is a significant achievement, and everyone involved should be proud.

On behalf of all the directors, trustees, and managers, we'd like to say a huge thank you for your continued support of the Spa Valley Railway. We really appreciate everything you do, the time you give, and your outstanding hard work to ensure the railway, despite the challenges it faces, continues to operate successfully.

Thank you and best wishes,

Jonnie Pay
General Manager

 

Very informative, thank you.

This bit jumped out to me "Our administrative costs have increased from £259,492.24 last year to £274,090.48 this year, mainly due to higher insurance costs". In fact, if that's all insurance has gone up by, that's impressive in itself

I think a lot of people don't appreciate the costs of things like insurance, which simply cannot be replaced by volunteers, but are equally not immediate running costs.

Equally, it's easy to descend into vagueness on these matters that can be (or the give the impression of being) hiding matters. This seems a good balance between confidentiality and openness

I think certain other railways should take note of this.

 

Your openness with all this detail is greatly appreciated. To me, perhaps the most important detail was this one:

I know that I keep going on about how heritage lines aren't 'ordinary' businesses, but they of course have business aspects - one of which is to make sure the money coming in and going out match. You all seem to be fairly successful at keeping your eye on this particular ball, as shown by the above. In the current hard times for heritage lines, pennies have to be watched very carefully.

I expect that that gaining that drop may have involved some difficult and painful decisions. If so, I hope you all aren't too upset by the need to take them. The resulting relatively good financial news is down, in good part, to the willingness to take those difficult and painful decisions - so put that in the scales, along with any distress caused by those decisions.

Well done - although the final bottom line number was probably not what you all wished.

Noel

 

Thank you. Something that has contributed to our lower income is the closure of the railway for 8-weeks between 22nd February and 18th April whilst we replaced Broom Lane Bridge, that has had a significant impact on income. Also, last year we held a large event to commemorate 60 years since the Cuckoo Line closed. This had higher train fares associated with it and that would impact on the ticket revenue, however, that event did have huge costs associated with it so in proportion we are doing very similarly to this time last year.