A CASH-strapped railway company, which last week announced it was laying off all its staff, has ended its first winter service on a positive note.

The Weardale Railway Ltd, in County Durham, ended its first winter service yesterday after attracting nearly 1,000 passengers.

The five-mile stretch of railway between Wolsingham and Stanhope was open for nine days over the winter period.

Last week, The Weardale Railway Ltd announced all of its 36 staff were being made redundant because of delays in accessing grants.

As well as the near-1,000 passengers who travelled on the railway during the winter service, 18,000 passengers have already travelled on the trains during the summer season and on Santa Specials, which were sold out during the run up to Christmas.

A company spokesman said: "This has to be a positive signal to those supporting our plans to press ahead with an extension of the railway, despite the financial difficulties we are trying to overcome at present."

Until the redundancies take effect, on January 26, work will continue on maintaining the rolling stock and clearing the line westwards to Eastgate, which is the next target for the company.

The company had to make the redundancies after it only received £1.4m from £3.5m of grants.

If the financial problems are resolved shortly, the company intends to re-employ part of the redundant workforce.