THERE were five basic reasons why West Somerset Railway lost over £807,000 in 15 months, the company’s shareholders were told at their annual meeting in Minehead on Saturday.

But after suffering a trading deficit – unprecedented in the line’s 40-year history – the company’s directors said they were confident it would return to profitability over the next 18 months and had adequate reserves to keep trading.

The 128 shareholders at the meeting were told that in the nine months since March, the railway’s fortunes had improved and projected income for next year suggested that business would increase and the company would remain solvent.

In a financial statement, the directors put the blame for the 15-month downturn up to March this year on five key factors:

* Two periods of limited operation.

* Escalating staff costs.

* Declining passenger revenue.

* The loss of £142,000 on an engine hire contract.

* Masking of the true financial position because of the successful visit of the Flying Scotsman.

Jonathan Jones-Pratt, re-elected chairman at the meeting, said: “The reality of this 15-month period is that turnover was too low and costs were too high.”

The meeting, at the Hobby Horse, accepted the annual accounts and the chairman and three directors – Mark Smith, Martin Brown and Bob Meanley – were re-elected.

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