Llangollen balanced on financial knife-edge

SIGNIFICANT DEBT and urgent track/bridge repairs are two of the many pressing problems facing the Llangollen Railway – on top of having no revenue due to COVID-19. Its two boards have told members they “are committed to finding ways to prevent insolvency, but there is a real risk that this may happen”. It comes after a torrid time for the line, which saw the entire board resign in late summer, along with General Manager Liz McGuinness.

The sudden resignation of Mrs McGuinness follows allegations of bullying over the canopy design at the new-build Corwen station, the opening of which has been delayed. On top of this the new board revealed that £15,000 of repairs are required on the Dee Bridge, close to Llangollen station. This was scheduled for January/February 2021 but the “financial position puts this at risk” and an appeal has been launched. Also, the track in Berwyn Tunnel is in “very poor state and needs urgent attention”. The board’s wording suggests that trains cannot run until this has been rectified.

The PLC’s £600,000 debts include steaming fees for two locos over the last three years, various loans, creditors and the Trust. The Trust is not believed to have any significant liabilities. The board has set out an 18-point plan of priorities, split into the next three, six and 12 months, designed to enable a return to running trains and financial recovery, while reflecting lower revenues due to its inability to continue contract engineering.