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Llangollen Railway PLC asks Bank to Appoint Receiver




Llangollen Railway has today, Monday 1st March 2021, issued a formal announcement about its future. It reads: "It is with great regret the directors of Llangollen Railway PLC have had to take the reluctant step of inviting the bank to appoint a receiver. The company’s accounts show pre-tax losses of £330,601 in 2018, £329,175 in 2019 and £258,804 in 2020 (pre-audit).

"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. The claims against the company are compelling and are in excess of £250,000 in total. 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 £350,000 approximately, adjusting for intangible assets also. In such circumstances the company cannot legally continue to trade.

"The directors would like to acknowledge the considerable support of the Welsh Government through two significant grants, and NatWest Bank which, together with furlough payments, have enabled the company to continue to meet its commitments over recent months until now.

"The Trust’s balance sheet remains solvent and there is some cash in hand. The Trust board will need to take steps to negotiate with the receiver to try to secure the line and preserve rolling stock and infrastructure to the extent possible. It is intended to recommence operations in due course but this is dependent upon legal and regulatory approvals, including licencing, all of which will clearly take time.

"The directors very much regret the impact this will have on our staff and employees, customers, suppliers, locomotive owners and their organisations, and anyone else with connections to the Railway. It is hoped to rehire many of our staff and employees and that it will be possible to maintain connections with many longstanding friends.

"Customers who have purchased tickets in advance, including driver experiences, deposits for weddings and gift vouchers, will either be refunded (the monies have been reserved) or will hopefully be able to travel at a future date.

"Where shareholders have ongoing annual ticket entitlements, these will continue to be met through the Trust.

"Anyone wishing to make a claim in the receivership should contact the Railway by e-mail at commercial@llangollen-railway.co.uk and details will be passed to the receiver. Anyone wishing to contact the Trust, please do so at the above e-mail address also."

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