North Yorkshire Moors Railway heading for 'cashflow challenge' this winter, accounts reveal

The organisation has cut 10 jobs as part of a £400,000 cost savings programme, while visitor revenue declined despite a 10 per cent increase in ticket prices. It has dropped an annual pass offer allowing for free return trips and also cut running days.

Recently-published accounts for NMYR Plc for the year ending February 28, 2025 state a loss of £278,869 was recorded, following on from a £633,118 loss the year before.

A strategic report by finance director Garry Mumford said visitor numbers have been affected by cost of living challenges and added “we expect the situation to continue to be challenging over the next 12 months”. It said this was occurring as costs, including for coal, have increased.

The report added: “Cash reserves saw the group through the low seasonal cashflow during late winter and the following spring of 2025, but continuing challenges with income and costs are likely to impact us over the winter of 2025/26.

“The cashflow challenge will be at the end of the winter period in early 2026, the traditional low point in the cash cycle.

"Present projections give very reasonable expectations that any resulting cash shortfall will be manageable, and this will continue to be reviewed during the year.”

The report said the railway is aiming to break even in the current financial year, with an ambition to build back up visitor numbers and build secondary revenue streams in areas like retailing and catering.

In a statement to The Yorkshire Post, chief executive Laura Strangeway said the accounts “are now already six months out of date” but added that “this year’s trading continues to be challenging with the extremely dry and hot weather impacting our ability to run steam”.

She said: “Despite this, the overall position is manageable and a number of new initiatives helping to mitigate that are in place including reduced running days and the visit of the world-famous Flying Scotsman in October/November which has already brought in over £500,000 in advanced bookings. At this stage we are not directly concerned about our ability to manage the winter cashflow.

“The NYMR is always exploring avenues to use economies of scale to deliver an experience which gives the best value for money, whilst both preserving the past and protecting the legacy of steam travel for future generations.”

The financial report said there is “increased confidence that it is possible to get nearer to breakeven in the new year”.

The results also reveal that £100,000 of loan repayments which had been due to be repaid have been deferred until 2026 – allowing for the accounts to be prepared on a “going concern” basis.

The money is part of £400,000 owed in interest-free loans to North Yorkshire Council, under a previous arrangement with the now defunct North Yorkshire Local Enterprise Partnership.

But the report added: “Despite this, the directors recognise that there is still some element of uncertainty, and the trading climate remains challenging, although much improved.

“Constant work is focussed on seeking new operating income opportunities and other funding options, but these take time to reap benefits.

“Whilst the directors recognise the challenges and uncertainties that the railway faces, the directors believe that with continued support from the bank, the actions already implemented, and continued scrutiny by the board, the company will continue as a going concern.”

Ms Strangeway said there are "no immediate plans to further reduce costs”.

“At the end of the season, we will carry out a full review of both the financial impact of the service changes and carefully monitor how we have performed in terms of visitors and income streams to see what has worked for us and what hasn’t.”

The trust is due to publish a new strategic plan later this year.

Chairman resigns from post

The chair of NMYR Plc Chris Gee has recently resigned from his post.

Chief executive Laura Strangeway thanked him for this work with the organisation.

She said: “Since joining the PLC Board as a volunteer director in November 2021, Chris has given his time and energy with great commitment.

"We are extremely grateful for his valuable contribution, particularly his efforts to strengthen communication across the organisation, a focus the board remains committed to building upon as a key priority.

"In the interim, Colin Martin, vice-chairman of the PLC, will assume the responsibilities of chair until a permanent appointment is confirmed.”

Ms Strangeway was made chief executive in June 2024 having served in the role on an acting basis.

It followed previous boss Chris Price leaving to take up a new job in Dorset in December 2023.