PLCs 'controlled' by Trusts

Individual shareholders, private individuals, often, but not always members of the RPS.

 

I don't entirely agree because one advantage of having the assets in the operating company is that the value of those assets becomes a very positive addition to the balance sheet. This has two intertwined "upsides": (1) makes the bank happier to extend credit; (2) provides the directors with options when the inevitable happens and cashflow gets "tight". If, as is often the case, the charitable body is the owner of the operating company then the assets may not be entirely protected fully if the latter becomes insolvent, which may be more likely if the operating company is asset poor.

The significant financial risk is not I think generally the operation because barring a series of catastrophes which prevent revenue being earnt, monumental sudden drops in income have not occurred to most heritage railways. Income is predictable within a few % year on year. The SVR and GWSR both had events, and both I think found that insurance did not entirely cover the gaps, but these events (including at least the first at the GWSR) were insured at least in part.

I think that the most significant risks on a day to day basis are in fact the costs associated with overhauls and maintenance. These are not always predictable or avoidable and generally hit when least wanted. It doesn't take much in mid-winter to suddenly discover that the cash position has turned very sour, and that is the point at which having adequate coverage of the risk by assets can come in very handy indeed.