DERBYSHIRE’S Peak Rail has told its shareholders the railway made a financial loss in excess of £110,000 during the year up to December 31, 2017.
In the Peak Rail plc summary financial statements for the year, which have been issued to shareholders ahead of the June 28 AGM, joint managing directors Roger Hallatt and Jackie Statham said: “The accounts presented to you do not, unfortunately, make for good reading. You will see that the company made a loss for the year of £111,466.”
Much of the loss can be attributed to costs connected with the legal case between Peak Rail plc and Grinsty Holdings Ltd, which concerned the unauthorised use of the latter’s Hunslet ‘Austerity’ 0-6-0ST Lord Phil (3883/1962), resident on the line between 2011 and 2016.
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The loco, which now resides at the Epping Ongar Railway, had been contracted for 75 steamings per year at Peak Rail, but Grinsty Holdings director (and former Peak Rail engineering director) Mike Thompson claims the railway steamed the ‘Austerity’ on more than 260 additional occasions without authorisation.
Legal action began in September 2016, and ultimately resulted in Peak Rail making an out of court settlement of £130,000 (£108,000 plus VAT) plus costs in September last year.
While this chapter is now behind the company, and the railway is pushing ahead with studies for a northern extension into the Peak District National Park to serve locations such as Bakewell and Buxton (see The RM, March), the legacy of the case can still be felt.
Read more in the July issue of The RM – on sale now!