Severn Valley Railway unveils plans for ‘bold’ restructure

It describes this as a ‘bold and essential move’, which will bring multiple benefits. The plan is to bring together the three separate companies that currently make up the SVR, into a new ‘One Railway’ structure. The aim is to create a stronger, more vibrant and efficient operation, and to secure a robust future for the leading heritage line.

Chris Walton, the chair of Severn Valley Railway (Holdings) Plc said:

‘For the past two years, a working party of people who care deeply about the future of the SVR has been carrying out a strategic review of how the railway might be better organised and positioned. Its conclusion is that the SVR urgently needs a new type of company structure, to ensure it’s in the best possible position to survive and thrive in the years to come.’

In the plan set out by the SVR, the first step would see the conversion of the company that owns and operates the railway, Severn Valley Railway (Holdings) Plc, into a Charitable Community Benefit Society, or CCBS.

The newly formed CCBS would then amalgamate with the Severn Valley Railway Company Limited, the sister organisation that looks after membership and provides volunteers to help run the railway.

The third member of the SVR family, the Severn Valley Railway Charitable Trust, is fully supportive of the plan, but cannot commit to the process at present, because it is itself in a period of transition. The plan provides for the inclusion of the SVRCT with the CCBS as soon as its circumstances allow.

‘There’s no doubt that what we’re planning is bold,’ added Chris Walton, chair of SVR(H). ‘But it’s something that we consider to be absolutely essential, to ensure our railway survives and prospers.

‘In common with others in the heritage railway sector, we’ve faced a long and arduous struggle over the past few years, made worse by a number of factors. We’ve seen huge increases in costs, falls in income because of the Covid lockdown, followed by continuing reduced passenger numbers because of inflationary pressures on leisure spending, and a detrimental effect on membership and volunteering generally.’

Diane Malyon, the chair of the Severn Valley Railway Company Limited, said:

‘The tough times we’ve faced have highlighted significant weaknesses in our current structure that we can no longer ignore. As we look towards 2025 when we will celebrate our 60th year as a heritage railway, it’s clear that this is the time to change. We’re mindful of our proud past, but we need to look with confidence to the future.

Jonathan ‘Gus’ Dunster, the managing director of SVR (Holdings) explained:

‘A CCBS will bring us many benefits. It should mean the SVR could claim Gift Aid on a large proportion of ticket sales. There’ll be significant savings in both compliance and administration costs. We’ll be able to avoid prospectus costs on any future share issues and potentially avoid having to pay business rates. These factors will add up to hundreds of thousands of pounds every year that can instead go to maintaining and improving the railway itself.

‘The boards of SVR(H) and the SVR Company Limited are united in the belief that converting to a Charitable Community Benefit Society is the right way forward for the Severn Valley Railway. Together, we are asking for the support of our shareholders, members and volunteers to bring about this much-needed change.’

The SVR is writing to its 12,800 active shareholders and 9,750 members to explain why it believes the changes are needed. It’s providing an in-depth information pack on the rationale for the plan to convert to a CCBS, and what the implications are for all the railway’s stakeholders.

The SVR is to set up a series of meetings with shareholders, members and volunteers in early 2025 to discuss the plans. Voting on the two stages described in the railway’s restructure plan will take place at separate Extraordinary General Meetings of SVR (Holdings) Plc and the SVR Company Limited later in the year.