Llangollen Railway

A receiver has been appointed at the Llangollen Railway in Wales.

In a statement on March 1, Llangollen Railway plc said it had to make the reluctant step of inviting the bank to appoint the receiver. It said that the company’s accounts show pre-tax losses of £330,601 in 2018, £329,175 in 2019, and £258,804 last year (pre-audit).

The statement added: “A number of significant engineering contract disputes, all of which arose in the years prior to the current board taking over in

October 2020, have crystallised in the last few days.”

It said claims against the company are “compelling and are in excess of £250,000 in total”, and that there is no prospect of meeting these liabilities even over an extended period.

As a result, the balance sheet is now insolvent to the extent of approximately £350,000, adjusting for intangible assets. In such circumstances, the company cannot legally continue trading.

The Trust’s balance sheet remains solvent and there is some cash in hand. That board will now take steps to negotiate with the receiver, to attempt to secure the line, infrastructure and rolling stock to the extent possible.

It is hoped operations can restart but that would depend upon legal and regulatory approvals (including licensing). There is no date for this.

Anyone wishing to make a claim in the receivership should contact the Railway by email at commercial@llangollen-railway.co.uk. Details will be passed to the receiver.