The Great Central Railway runs on an eight mile stretch between Loughborough and Quorn, in Leicestershire.

Its future looked bleak last year after the death of its president, David Clarke, who had guaranteed the company's £50,000 overdraft.

However the company says its finances are stable after selling two carriages, reducing operating costs and receiving donations from supporters.

It has now cleared the overdraft and paid off a loan, meaning the railway is clear of debts to the bank for the first time in its 25 year history.

In addition, the Loughborough Building Society has now agreed a sponsorship package.

The railway is also looking to expand its operations and hopes to further guarantee its future by becoming a branch of York's national rail museum.