ACCOUNTS - Final Accounts

An analysis of turnover by class of business is as follows:

CHANDLERS (FARM EQUIPMENT) LIMITED - Company Information

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Registered number: 01683985

CHANDLERS (FARM EQUIPMENT) LIMITED

Annual report and financial statements

for the year ended 31 December 2021

CHANDLERS (FARM EQUIPMENT) LIMITED

Company Information

Directors	Mr J H Pell
	Mrs R J Pell
	Mr G M Sharp
	Mrs R J Sharp
	Ms H J Glenn
	Ms F Hart
	Mr G Pell


Company secretary	Mr D A Burrows


Registered number	01683985


Registered office


Independent auditors	PKF Smith Cooper Audit Limited
	Statutory Auditors
	2 Lace Market Square
	Nottingham
	NG1 1PB

CHANDLERS (FARM EQUIPMENT) LIMITED

Contents

	Page
Group strategic report	1 - 3
Directors' report	4 - 6
Independent auditors' report	7 - 10
Consolidated statement of comprehensive income	11
Consolidated balance sheet	12
Company balance sheet	13
Consolidated statement of changes in equity	14
Company statement of changes in equity	15
Consolidated Statement of cash flows	16
Consolidated analysis of net debt	17
Notes to the financial statements	18 - 36

CHANDLERS (FARM EQUIPMENT) LIMITED

Group strategic report

for the year ended 31 December 2021

Introduction

We aim to present a balanced and comprehensive review of the development and performance of our business during the year and its position at the year end. Our review is consistent with the size and nature of our business and is written in the context of the risks and uncertainties we face.

Business review

As a main dealer for agricultural and horticultural machinery and motor vehicles, the Group continues to deal in new and used agricultural equipment and motor vehicles, to provide vehicle servicing and repairs and sells spare parts for a range of manufacturers and has operated throughout the year from twelve separate locations with one additional service workshop.
The Group's activities are organised into the following five categories:
Sales of new vehicles
Sales and hire of used vehicles
Servicing and repairs
Sales of spare parts
Sales of equine products

Principal risks and uncertainties

The agricultural industry is very seasonal and weather dependent, our food producing customers are subject to erratic crop and harvesting conditions which affect yield, their costs and farm gate prices. Our geographical territory covers a wide range of farming types so we are generally protected from a particular failure, however farming can still have bad years which has a direct effect on our business.
We are fortunate that due to the nature of our business primarily supplying the ‘Key Industry’ of Agriculture, we have not and do not anticipate any significant repercussions for our business due to the Covid-19 pandemic, farming has been largely unaffected.
The Russian invasion of Ukraine at the start of 2022 has negatively impacted supply of agricultural machinery in Europe with many suppliers affected with component shortages. Our main suppliers have in the main been only moderately affected and while supply has been slower than predicted our strong stocking commitment and positive mitigation by our suppliers means this has not had and is not predicted to have a material affect on future performance as the current situation stands.

Financial key performance indicators

We consider that our key performance indicators are those that communicate the financial performance and strength of the Group as a whole, these being turnover and gross margin.
Overall operating profit has increased from £3,379,000 to £5,628,000 and profit before tax has increased from £3,051,000 to £5,026,000. After taxation, £3,908,000 (2020: £2,445,000) has been retained to be added to reserves.

Page 1

CHANDLERS (FARM EQUIPMENT) LIMITED

Group strategic report (continued)

for the year ended 31 December 2021

Directors' statement of compliance with duty to promote the success of the Group

Chandlers (Farm Equipment) Ltd: Stakeholder Engagement
As the board at Chandlers (Farm Equipment) Ltd, we have a legal responsibility under section 172 of the Companies Act 2006 to act in a manner which we consider, in good faith, would be the most likely to promote the Group's success for the benefit of its members as a whole, and to have regard to the long-term effect our decisions have on the group and its stakeholders. This statement addresses the ways in which we as a board carry out this responsibility.
Promoting the Group's Success for its Members
Chandlers (Farm Equipment) Ltd is a 3rd generation family business established in Grantham in 1935. The principle business is the supply and aftersales service of new and used Agricultural Tractors and Farm Equipment to the Farming Industry. The company continues to be controlled and run by the Pell Family. We are proud of the ways in which, over the past 85 years the company has provided the highest levels of customer service and satisfaction, and consider our business a key partner alongside our customers in the food supply chain, an industry recognised by Government as a Key UK industry. We have consistently provided stable employment, training and financial reward for its owners and employees, and act as a valued business partner for its franchise suppliers and customers.
We aim to be the largest and most successful Agricultural Machinery Retail Supply business in the UK, recognised for industry leading service and spare parts supply. We aim to achieve this through long-term and mutually beneficial partnerships with our main franchises, along with geographic and market share growth through acquisition, organic growth and strategic partnerships as appropriate. We have established over many years long-term relationships with the majority of our customers, and aim to foster close working and the most efficient practices for all parties at every opportunity, based on strong communication and a close understanding of our customers' requirements. We continue to explore all possibilities and new technology requirements in the mechanisation and in the future robotization of farming. In doing so, our twin aims are to maximise the group's ability to grow profits and market share whilst returning the highest possible value to the family shareholders.
Strategic decisions are made based on long-term objectives, in particular this has meant significant investment in capital projects, including investment in the most modern and well equipped premises and facilities, tooling and service training, and IT/Dealer Management Software systems that are bespoke for our industry and fully integrated with our suppliers.
Engaging with Stakeholders
Our Key Stakeholders, and the ways we engage with them are as follows;
Our employees
We invest in the very best team available to us at all times in our industry. We recognise that many of the advantages our customers have in trading with our business, comes from the strong work ethic and positive highly motivated attitude of our team. We foster at all opportunities staff retention and achieve this through the training and opportunities for personal career development for all of our team. We invest for the future with a large intake annually in our industry leading apprenticeship scheme for our service technicians. We involve staff from all departments and at all levels in meetings with senior management, and gain from the insight this provides on industry trends and innovation.
Our suppliers
We form long-term mutually beneficial partnerships with our franchise suppliers, where their business objectives are aligned with ours – providing the focus on together achieving the best market share and financial performance, while at the same time continuing to enhance the experience of the customer in every aspect of their relationship with our business and the manufacturer.
Our customers
We deal with our customers in a friendly, fair, professional and transparent manner, with a focus on understanding the needs of the farming customer, establishing efficient working practices, and adopting the latest innovations and technology to best support the needs of their businesses. We aim to provide market leading products that enhance our customers' businesses and increase their profitability by providing the most appropriate solution to their needs.

Page 2

CHANDLERS (FARM EQUIPMENT) LIMITED

Group strategic report (continued)

for the year ended 31 December 2021

Our planet
We are an equal opportunity and ethical employer and act in a responsible manner to our environment, adopting environmentally friendly practices wherever possible, including the disposal of all waste in an environmentally responsible manner; with waste streams optimised for the maximum level of recycling. We generate a significant percentage of our daily power requirements from solar PV. We are committed to tackling climate change, and as technology and process allow, we will adopt best practice in our long term goal of achieving net carbon zero.

This report was approved by the board and signed on its behalf.

Mr G Pell

Director

Date: 20 July 2022

Page 3

CHANDLERS (FARM EQUIPMENT) LIMITED

Directors' report

for the year ended 31 December 2021

The directors present their report and the financial statements for the year ended 31 December 2021.

Directors' responsibilities statement

The directors are responsible for preparing the Group strategic report, the Directors' report and the consolidated financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and the Group and of the profit or loss of the Group for that period.

In preparing these financial statements, the directors are required to:

∙select suitable accounting policies for the Group's financial statements and then apply them consistently;

∙make judgments and accounting estimates that are reasonable and prudent;

∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Principal activity

The principal activity of the group is motor vehicle, agricultural, and horticultural distributors and engineers, and the operation of country stores.

Results and dividends

The profit for the year, after taxation, amounted to £3,908 thousand (2020 - £2,445 thousand).

No dividends have been recommended.

Directors

The directors who served during the year were:

Mr J H Pell

Mrs R J Pell

Mr G M Sharp

Mrs R J Sharp

Ms H J Glenn

Ms F Hart

Mr G Pell

Page 4

CHANDLERS (FARM EQUIPMENT) LIMITED

Directors' report (continued)

for the year ended 31 December 2021

Future developments

Chandlers remain committed to the long-term growth of the business in a close working partnership with AGCO and our customers, both organically and via strategic acquisition where appropriate.
This aligns Chandlers and AGCO long term strategy and provides a sound footing for further potential growth.

Greenhouse gas emissions, energy consumption and energy efficiency action

The Group's greenhouse gas emissions and energy consumption are as follows:
				2021	2020

Emissions resulting from activities for which the Group is responsible involving the combustion of gas or consumption of fuel for the purposes of transport (in tonnes of CO2 equivalent)	1,818	944
Emissions resulting from the purchase of the electricity by the Group for its own use, including the purposes of transport (in tonnes of CO2 equivalent)	206	116
Energy consumed from activities for which the Group is responsible involving the combustion of gas, or the consumption of fuel for the purposes of transport, and the annual quantity of energy consumed resulting from the purchase of electricity by the Group for its own use, including for the purposes of transport, in kWh	7,820,737	4,098,217

The above figures have been calculated using fuel receipts, monthly utility bills and estimates including:
- burning a litre of diesel produces approximately 2.62kg of CO2
- burning a litre of petrol produces approximately 2.39kg of CO2
- 0.233kg of CO2e per KWH of electricity
- 1 litre of diesel = 38MJ = 10KWH
- 1 litre of petrol = 32.6MJ = 9.1KWH

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:

∙so far as the director is aware, there is no relevant audit information of which the Company and the Group's auditors are unaware, and

∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Group since the year end.

Auditors

The auditors, PKF Smith Cooper Audit Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

Page 5

CHANDLERS (FARM EQUIPMENT) LIMITED

Directors' report (continued)

for the year ended 31 December 2021

This report was approved by the board and signed on its behalf.

Mr G Pell

Director

Date: 20 July 2022

Page 6

CHANDLERS (FARM EQUIPMENT) LIMITED

Independent auditors' report to the members of Chandlers (Farm Equipment) Limited

Opinion

We have audited the financial statements of Chandlers (Farm Equipment) Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2021, which comprise the Group Statement of comprehensive income, the Group and Company Balance sheets, the Group Statement of cash flows, the Group and Company Statement of changes in equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

∙give a true and fair view of the state of the Group's and of the parent Company's affairs as at 31 December 2021 and of the Group's profit for the year then ended;

∙have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

∙have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's or the parent Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Page 7

CHANDLERS (FARM EQUIPMENT) LIMITED

Independent auditors' report to the members of Chandlers (Farm Equipment) Limited (continued)

Other information

The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinion on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

∙the information given in the Group strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

∙the Group strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group strategic report or the Directors' report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

∙adequate accounting records have not been kept by the parent Company, or returns adequate for our audit have not been received from branches not visited by us; or

∙the parent Company financial statements are not in agreement with the accounting records and returns; or

∙certain disclosures of directors' remuneration specified by law are not made; or

∙we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Directors' responsibilities statement set out on page 4, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the Group's and the parent Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or the parent Company or to cease operations, or have no realistic alternative but to do so.

Page 8

CHANDLERS (FARM EQUIPMENT) LIMITED

Independent auditors' report to the members of Chandlers (Farm Equipment) Limited (continued)

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Group financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. Based on our understanding of the Group and industry, we identify the key laws and regulations affecting the Group. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We identified that the principal risk of fraud or non-compliance with laws and regulations related to:

∙management bias in respect of accounting estimates and judgements made;

∙management override of control;

∙posting of unusual journals or transactions.

We focussed on those areas that could give rise to a material misstatement in the financial statements. Our procedures included, but were not limited to:

∙enquiry of management and those charged with governance around actual and potential litigation and claims, including instances of non-compliance with laws and regulations and fraud;

∙reviewing legal expenditure in the year to identify instances of non-compliance with laws and regulations and fraud;

∙reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;

∙performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias. In particular, review of stock provisions.

It is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' report.

Page 9

CHANDLERS (FARM EQUIPMENT) LIMITED

Independent auditors' report to the members of Chandlers (Farm Equipment) Limited (continued)

Use of our report

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.

Sarah Flear (Senior statutory auditor)

for and on behalf of

PKF Smith Cooper Audit Limited

Statutory Auditors

2 Lace Market Square

Nottingham

NG1 1PB

21 July 2022

Page 10

CHANDLERS (FARM EQUIPMENT) LIMITED

Consolidated statement of comprehensive income

for the year ended 31 December 2021

	2021	2020
Note	£000	£000


Turnover	4	129,013	75,113
Cost of sales		(113,522)	(66,441)
Gross profit		15,491	8,672
Administrative expenses		(9,938)	(5,462)
Other operating income	5	75	169
Operating profit	6	5,628	3,379
Interest payable and similar expenses	10	(602)	(328)
Profit before tax		5,026	3,051
Tax on profit	11	(1,118)	(606)
Profit for the financial year		3,908	2,445

Profit for the year attributable to:
Owners of the parent company		3,908	2,445

There were no recognised gains and losses for 2021 or 2020 other than those included in the consolidated statement of comprehensive income.

There was no other comprehensive income for 2021 £Nil (2020:£000).

The notes on pages 18 to 36 form part of these financial statements.

Page 11

CHANDLERS (FARM EQUIPMENT) LIMITED

Registered number: 01683985

Consolidated balance sheet

as at 31 December 2021

		2021		2020
Note		£000		£000


Fixed assets
Intangible assets	13		1,033		-
Tangible assets	14		7,805		5,826
			8,838		5,826
Current assets
Stocks	16	64,949		35,786
Debtors: amounts falling due within one year	17	19,368		7,290
Cash at bank and in hand	18	20		7,478
		84,337		50,554
Creditors: amounts falling due within one year	19	(63,755)		(31,298)
Net current assets			20,582		19,256
Total assets less current liabilities			29,420		25,082

Creditors: amounts falling due after more than one year	20		(5,368)		(5,322)
			24,052		19,760
Provisions for liabilities
Deferred taxation	24	(592)		(208)

Net assets			23,460		19,552

Capital and reserves
Called up share capital	25	230	230
Other reserves	26	70	70
Profit and loss account	26	23,160	19,252
		23,460	19,552

The financial statements were approved and authorised for issue by the board and were signed on its behalf by:

Mr G Pell

Director

Date: 20 July 2022

The notes on pages 18 to 36 form part of these financial statements.

Page 12

CHANDLERS (FARM EQUIPMENT) LIMITED

Registered number: 01683985

Company balance sheet

as at 31 December 2021

		2021		2020
Note		£000		£000

Fixed assets
Intangible assets	13		1,033		-
Tangible assets	14		7,805		5,826
Investments	15		1,071		1,071
			9,909		6,897
Current assets
Stocks	16	64,949		35,786
Debtors: amounts falling due within one year	17	19,368		7,289
Cash at bank and in hand	18	20		7,478
		84,337		50,553
Creditors: amounts falling due within one year	19	(67,267)		(34,810)
Net current assets			17,070		15,743
Total assets less current liabilities			26,979		22,640

Creditors: amounts falling due after more than one year	20		(5,368)		(5,322)
Provisions for liabilities
Deferred taxation	24	(592)		(208)
Net assets			21,019		17,110

Capital and reserves
Called up share capital	25	230	230
Other reserves	26	70	70
Profit and loss account	26	20,719	16,810
		21,019	17,110

The financial statements were approved and authorised for issue by the board and were signed on its behalf by:

Mr G Pell

Director

Date: 20 July 2022

The notes on pages 18 to 36 form part of these financial statements.

Page 13

CHANDLERS (FARM EQUIPMENT) LIMITED

Consolidated statement of changes in equity

for the year ended 31 December 2021

	Called up share capital	Capital redemption reserve	Profit and loss account	Total equity
	£000	£000	£000	£000
At 1 January 2020	230	70	16,807	17,107
Comprehensive income for the year
Profit for the year	-	-	2,445	2,445

At 1 January 2021	230	70	19,252	19,552
Comprehensive income for the year
Profit for the year	-	-	3,908	3,908
At 31 December 2021	230	70	23,160	23,460

The notes on pages 18 to 36 form part of these financial statements.

Page 14

CHANDLERS (FARM EQUIPMENT) LIMITED

Company statement of changes in equity

for the year ended 31 December 2021

	Called up share capital	Capital redemption reserve	Profit and loss account	Total equity
	£000	£000	£000	£000
At 1 January 2020	230	70	14,365	14,665
Comprehensive income for the year
Profit for the year	-	-	2,445	2,445

At 1 January 2021	230	70	16,810	17,110
Comprehensive income for the year
Profit for the year	-	-	3,909	3,909
At 31 December 2021	230	70	20,719	21,019

The notes on pages 18 to 36 form part of these financial statements.

Page 15

CHANDLERS (FARM EQUIPMENT) LIMITED

Consolidated statement of cash flows

for the year ended 31 December 2021

			2021	2020
			£000	£000

Cash flows from operating activities
Profit for the financial year	3,908	2,445
Adjustments for:
Amortisation of intangible assets	115	-
Depreciation of tangible assets	779	455
Profit on disposal of tangible assets	(30)	(24)
Interest paid	601	327
Taxation charge	1,118	606
(Increase) in stocks	(29,163)	(800)
(Increase) in debtors	(12,078)	(945)
Increase in creditors	25,481	5,703
Corporation tax (paid)	(718)	(291)
Net cash generated from operating activities	(9,987)	7,476

Cash flows from investing activities
Purchase of intangible fixed assets	(1,148)	-
Purchase of tangible fixed assets	(2,908)	(1,197)
Sale of tangible fixed assets	181	41
HP interest paid	(321)	(268)
Net cash from investing activities	(4,196)	(1,424)
Cash flows from financing activities
New secured loans	1,271	5,535
Repayment of other loans	(740)	(1,036)
Repayment of/new finance leases	2,029	(896)
Interest paid	(280)	(59)
Net cash used in financing activities	2,280	3,544
Net (decrease)/increase in cash and cash equivalents	(11,903)	9,596
Cash and cash equivalents at beginning of year	7,478	(2,118)
Cash and cash equivalents at the end of year	(4,425)	7,478

Cash and cash equivalents at the end of year comprise:
Cash at bank and in hand	20	7,478
Bank overdrafts	(4,445)	-
	(4,425)	7,478

Page 16

CHANDLERS (FARM EQUIPMENT) LIMITED

Consolidated Analysis of Net Debt (continued)

for the year ended 31 December 2021

Consolidated Analysis of Net Debt

for the year ended 31 December 2021


At 1 January 2021	Cash flows	New finance leases	Other non-cash changes	At 31 December 2021
£000	£000	£000	£000	£000

Cash at bank and in hand	7,478	(7,458)	-	-	20
Bank overdrafts	-	(4,445)	-	-	(4,445)
Debt due after 1 year	(5,060)	(338)	-	740	(4,658)
Debt due within 1 year	(1,222)	(193)	-	(740)	(2,155)
Finance leases	(1,706)	1,248	(3,277)	-	(3,735)
	(510)	(11,186)	(3,277)	-	(14,973)

The notes on pages 18 to 36 form part of these financial statements.

Page 17

CHANDLERS (FARM EQUIPMENT) LIMITED

Notes to the financial statements

for the year ended 31 December 2021

1.	General information

Chandlers (Farm Equipment) Limited is a private company limited by shares incorporated in England within the United Kingdom. The address of the registered office is given in the company information of these financial statements. The company's registration number is 01683985. The principal activity of the company is detailed in the Directors' Report.

2.Accounting policies

2.1

Basis of preparation of financial statements

The financial statements have been prepared in accordance with applicable accounting standards including Financial Reporting Standard 102 The Financial Reporting Standard Applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. The financial statements have been prepared on a going concern basis under the historical cost convention.
The financial statements are prepared in Sterling which is the functional currency of the Group and rounded to the nearest £1,000.
The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

2.2

Basis of consolidation

The Group financial statements consolidate the financial statements of the Company and its subsidiary undertakings drawn up to 31 December each year.
Subsidiary undertakings are included using the acquisition method of accounting. Under this method the Group profit and loss account and statement of cashflows include the results and cashflows of subsidiaries from the date of acquisition to the date of sale outside the Group in the case of disposals of subsidiaries. The purchase consideration has been allocated to the assets and liabilities on the basis of fair value at the date of acquisition.
No profit and loss account is presented for the Company as permitted by Section 408 of the Companies Act 2006.

2.3

Going concern

In preparing the financial statements on a going concern basis, the directors have paid due regard to relevant forecast financial information, including cash flows. In the directors' opinion, the Group is a going concern for a minimum of twelve months from the date of the approval of the financial statements.

Page 18

CHANDLERS (FARM EQUIPMENT) LIMITED

Notes to the financial statements

for the year ended 31 December 2021

2.Accounting policies (continued)

2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:

∙the Group has transferred the significant risks and rewards of ownership to the buyer, usually on the despatch of goods;

∙the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

∙the amount of revenue can be measured reliably;

∙it is probable that the Group will receive the consideration due under the transaction; and

∙the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Rendering of services

Revenue in respect of maintenance agreements with customers is deferred in the balance sheet and released to the profit and loss in line with the costs incurred. Where one-off services are undertaken on vehicles, revenue is recognised on completion of the work.
Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:

∙the amount of revenue can be measured reliably;

∙it is probable that the Group will receive the consideration due under the contract;

∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and

∙the costs incurred and the costs to complete the contract can be measured reliably.

2.5

Government grants

Grants of a revenue nature are recognised in the Consolidated statement of comprehensive income in the same period as the related expenditure.

2.6

Intangible assets

Goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Consolidated statement of comprehensive income over its useful economic life.

The estimated useful lives range as follows:

Goodwill

years

Page 19

CHANDLERS (FARM EQUIPMENT) LIMITED

Notes to the financial statements

for the year ended 31 December 2021

2.Accounting policies (continued)

2.7

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is provided on the following basis:

Freehold property	-	Straight line 1% - 2%
Long-term leasehold property	-	Straight line over the lease term
Plant and machinery	-	Straight line and reducing balance 10% - 33%
Fixtures and fittings	-	Straight line and reducing balance 10% - 33%

2.8

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

2.9

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Second hand machinery is stated at the directors' estimate of net realisable value.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

Consignment stock held by the group which is considered in substance to be an asset of the group is recognised as such on the balance sheet, together with the corresponding liability.

2.10

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Consolidated statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

2.11

Short term debtors and creditors

Debtors and creditors with no stated interest rate or that are receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses.

Page 20

CHANDLERS (FARM EQUIPMENT) LIMITED

Notes to the financial statements

for the year ended 31 December 2021

2.Accounting policies (continued)

2.12

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the Consolidated statement of comprehensive income except when deferred in other comprehensive income as qualifying cash flow hedges.

2.13

Operating leases: the Group as lessee

Rentals paid under operating leases are charged to the Consolidated statement of comprehensive income on a straight line basis over the lease term.

2.14

Leased assets: the Group as lessee

Assets acquired under finance leases are capitalised and depreciated over the shorter of the lease term and the expected useful life of the asset. Minimum lease payments are apportioned between the finance charge and the reduction of the outstanding lease liability using the effective interest method. The related obligations, net of future finance charges, are included in creditors.
Rentals payable and receivable under operating leases are charged to the Consolidated statement of comprehensive income on a straight line basis over the period of the lease.

2.15

Employee benefits

Short-term benefits
Short-term benefits, including holiday pay, annual bonus arrangements and other non-monetary benefits are recognised as an expense in the period in which the service is received.

Defined contribution pension plan

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.

The contributions are recognised as an expense in the Consolidated statement of comprehensive income when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Group in independently administered funds.

Page 21

CHANDLERS (FARM EQUIPMENT) LIMITED

Notes to the financial statements

for the year ended 31 December 2021

2.Accounting policies (continued)

2.16

Loans and borrowings

Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest method. Loans and borrowings that are receivable within one year are not discounted. If an arrangement constitutes a finance transaction it is measured at present value of future payments discounted at a market rate of interest for a similar loan.

2.17

Provisions

Provisions are made where an event has taken place that gives the Group a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to the Consolidated statement of comprehensive income in the year that the Group becomes aware of the obligation, and are measured at the best estimate at the Balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Balance sheet.

2.18

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in the Consolidated statement of comprehensive income except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:

∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits;

∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and

∙Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Page 22

CHANDLERS (FARM EQUIPMENT) LIMITED

Notes to the financial statements

for the year ended 31 December 2021

3.	Judgments in applying accounting policies and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgments, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. Management consider stock provisions to be significant accounting estimates:
Stock provisions
There is a higher degree of inherent risk due to the subjectivity and uncertainty involved in the estimation of the value of stock at the year end. The directors include provisions against stocks where necessary, using industry knowledge and judgment to arrive at a reasonable valuation based on goods of a similar age and condition.

Sale of goods	120,229	70,373
Rendering of services	8,784	4,740
	129,013	75,113

Analysis of turnover by country of destination:

					2021	2020
					£000	£000

United Kingdom	124,873	73,304
Rest of Europe	2,722	1,576
Rest of the world	1,419	233
	129,014	75,113

5.	Other operating income
		2021	2020
		£000	£000

Other operating income	-	94
Net rents receivable	75	75
	75	169

Page 23

CHANDLERS (FARM EQUIPMENT) LIMITED

Notes to the financial statements

for the year ended 31 December 2021

Depreciation of tangible fixed assets	779	455
Amortisation	115	-
Defined contribution pension cost	208	152

7.	Auditors' remuneration
		2021	2020
		£000	£000

Fees payable to the Group's auditor and its associates for the audit of the Group's annual financial statements

	Fees payable to the Group's auditor and its associates in respect of:
	All other services	5	5

8.	Employees
	Staff costs, including directors' remuneration, were as follows:
		2021	2020
		£000	£000

Wages and salaries	11,688	6,914
Social security costs	1,123	652
Cost of defined contribution scheme	208	152
	13,019	7,718

The average monthly number of employees, including the directors, during the year was as follows:

	2021	2020
	No.	No.

Workshop	131	66
Stores	85	68
Sales and administration	141	93

	357	227

Page 24

CHANDLERS (FARM EQUIPMENT) LIMITED

Notes to the financial statements

for the year ended 31 December 2021

9.	Directors' remuneration
		2021	2020
		£000	£000

Directors' emoluments	454	414
Group contributions to defined contribution pension schemes	97	78
	551	492

	During the year retirement benefits were accruing to 5 directors (2020 - 5) in respect of defined contribution pension schemes.
	The highest paid director received remuneration of £138 thousand (2020 - £124 thousand).
	The value of the Group's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £12 thousand (2020 - £12 thousand).

10.	Interest payable and similar expenses
		2021	2020
		£000	£000

Bank interest payable	27	18
Other loan interest payable	253	41
Finance leases and hire purchase contracts	322	269
	602	328

Page 25

CHANDLERS (FARM EQUIPMENT) LIMITED

Notes to the financial statements

for the year ended 31 December 2021

Corporation tax
Current tax on profits for the year	726	442
Adjustments in respect of previous periods	9	-

Total current tax	735	442

Deferred tax
Origination and reversal of timing differences	383	164
Total deferred tax	383	164


	Taxation on profit on ordinary activities	1,118	606

Profit on ordinary activities before tax

5,027

3,052

Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2020 - 19%)	955	580
Effects of:
Expenses not deductible for tax purposes, other than goodwill amortisation and impairment	69	(4)
Capital allowances for year in excess of depreciation	(298)	(134)
Adjustments to tax charge in respect of prior periods	9	-
Deferred tax - origination and reversal of temporary timing differences	383	164
Total tax charge for the year	1,118	606

Factors that may affect future tax charges

In April 2023, the rate of corporation tax will increase to 25%, a 6% increase from the current 19%.

Page 26

CHANDLERS (FARM EQUIPMENT) LIMITED

Notes to the financial statements

for the year ended 31 December 2021

12.	Parent company profit for the year

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements. The profit after tax of the parent Company for the year was £3,909 thousand (2020 - £2,445 thousand).

13.	Intangible assets
	Group and Company

		Goodwill
		£000
	Cost
	Additions	1,148
	At 31 December 2021	1,148
	Amortisation
	Charge for the year	115
	At 31 December 2021	115
	Net book value
	At 31 December 2021	1,033
	At 31 December 2020	-

Page 27

CHANDLERS (FARM EQUIPMENT) LIMITED

Notes to the financial statements

for the year ended 31 December 2021

14.	Tangible fixed assets
	Group and Company

	Freehold property	Long-term leasehold property	Plant and machinery	Fixtures and fittings	Total
	£000	£000	£000	£000	£000
Cost
At 1 January 2021	4,562	479	5,852	510	11,403
Additions	82	80	2,730	16	2,908
Disposals	-	-	(305)	-	(305)
At 31 December 2021	4,644	559	8,277	526	14,006
Depreciation
At 1 January 2021	686	318	4,154	418	5,576
Charge for the year	52	41	649	37	779
Disposals	-	-	(154)	-	(154)
At 31 December 2021	738	359	4,649	455	6,201
Net book value
At 31 December 2021	3,906	200	3,628	71	7,805
At 31 December 2020	3,876	161	1,698	91	5,826

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:
	2021	2020
	£000	£000


	Plant and machinery	2,278	57

Page 28

CHANDLERS (FARM EQUIPMENT) LIMITED

Notes to the financial statements

for the year ended 31 December 2021

15.	Fixed asset investments

	Company

		Investments in subsidiary companies
		£000
	Cost or valuation
	At 1 January 2021	1,071
	At 31 December 2021	1,071

	Net book value
	At 31 December 2021	1,071
	At 31 December 2020	1,071

Subsidiary undertakings
The following were subsidiary undertakings of the Company:
Name	Registered office	Principal activity	Class of shares	Holding

Pell of Belton Limited	Belton, Grantham, Lincolnshire NG32 2LX	Dormant	Ordinary shares	100%
Chandlers of Grantham Limited	Belton, Grantham, Lincolnshire NG32 2LX	Dormant	Ordinary shares	100%
Chandlers (Farm Vehicles) Limited	Belton, Grantham, Lincolnshire NG32 2LX	Dormant	Ordinary shares	100%
Chandlers (Mechanised Farming) Limited	Belton, Grantham, Lincolnshire NG32 2LX	Dormant	Ordinary shares	100%

Chandlers (Farm Vehicles) Limited and Chandlers (Mechanised Farming) Limited are not included in the consolidated accounts to 31 December 2021 as both companies were dormant and therefore immaterial to the consolidation.

Page 29

CHANDLERS (FARM EQUIPMENT) LIMITED

Notes to the financial statements

for the year ended 31 December 2021

16.	Stocks
		Group	Group	Company	Company
		2021	2020	2021	2020
		£000	£000	£000	£000

Work in progress (goods to be sold)	1,568	507	1,568	507
Finished goods and goods for resale	63,381	35,279	63,381	35,279
	64,949	35,786	64,949	35,786

The difference between purchase price or production cost of stocks and their replacement cost is not material.

Finished goods and goods for resale included £32,638k (2020: £16,959k) of consignment stock. An equivalent amount is included within other creditors. Under the terms of the arrangements between the group and the suppliers, the stock is typically held free of charge for a period of time, after which the stock is purchased outright or financing charges are incurred. Stock is rarely returned to the suppliers either at the choice of the group or at the request of the suppliers.
Included within the value of stocks is an amount of £1,280k (2020: £2,486k) in respect of stock items held under finance leases. These items are used by the group in the ordinary course of business and their values are written down accordingly. Such stock is available for resale.

17.

Debtors

Group	Group	Company	Company
2021	2020	2021	2020
£000	£000	£000	£000


Trade debtors	15,995	5,940	15,995	5,940
Other debtors	291	10	291	10
Prepayments and accrued income	3,082	1,340	3,082	1,339
	19,368	7,290	19,368	7,289

18.	Cash and cash equivalents
		Group	Group	Company	Company
		2021	2020	2021	2020
		£000	£000	£000	£000

Cash at bank and in hand	20	7,478	20	7,478
Less: bank overdrafts	(4,445)	-	(4,445)	-
	(4,425)	7,478	(4,425)	7,478

Page 30

CHANDLERS (FARM EQUIPMENT) LIMITED

Notes to the financial statements

for the year ended 31 December 2021

19.	Creditors: Amounts falling due within one year
		Group	Group	Company	Company
		2021	2020	2021	2020
		£000	£000	£000	£000

Bank overdrafts	4,445	-	4,445	-
Bank loans	919	740	919	740
Other loans	1,236	482	1,236	482
Trade creditors	13,968	8,524	13,968	8,524
Amounts owed to group undertakings	-	-	3,516	3,516
Corporation tax	452	435	452	435
Other taxation and social security	370	1,314	370	1,314
Obligations under finance lease and hire purchase contracts	3,025	1,444	3,025	1,444
Other creditors	35,653	18,091	35,653	18,091
Accruals and deferred income	3,687	268	3,683	264
	63,755	31,298	67,267	34,810

The following liabilities were secured:
	Group	Group	Company	Company
	2021	2020	2021	2020
	£000	£000	£000	£000

Bank overdrafts	4,445	-	4,445	-
Bank loans	919	740	919	740
Other loans	1,236	482	1,236	482
Obligations under finance lease and hire purchase contracts	3,025	1,444	3,025	1,444
	9,625	2,666	9,625	2,666

Details of security provided:

The facilities and loans provided by HSBC Bank are secured by a debenture including a fixed charge over all present freehold and leasehold property, a fixed and floating charge over all assets of the undertaking and its subsidiary undertakings, both present and future dated.
The finance leases and hire purchase contracts are secured against the assets to which they relate.
The other loans are secured against the stocks to which they relate.
There is an unlimited cross guarantee dated 11 July 1983 between Chandlers (Farm Equipment) Limited, Pell of Belton Limited and Chandlers of Grantham Limited.

Page 31

CHANDLERS (FARM EQUIPMENT) LIMITED

Notes to the financial statements

for the year ended 31 December 2021

20.	Creditors: Amounts falling due after more than one year
		Group	Group	Company	Company
		2021	2020	2021	2020
		£000	£000	£000	£000

Bank loans	4,658	5,060	4,658	5,060
Net obligations under finance leases and hire purchase contracts	710	262	710	262
	5,368	5,322	5,368	5,322

The following liabilities were secured:
	Group	Group	Company	Company
	2021	2020	2021	2020
	£000	£000	£000	£000


Bank loans	4,658	5,060	4,658	5,060
Net obligations under finance leases and hire purchase contracts	710	262	710	262
	5,368	5,322	5,368	5,322

Details of security provided:

Page 32

CHANDLERS (FARM EQUIPMENT) LIMITED

Notes to the financial statements

for the year ended 31 December 2021

21.	Loans

		Group	Group	Company	Company
		2021	2020	2021	2020
		£000	£000	£000	£000

Amounts falling due within one year
Bank loans	919	740	919	740
Other loans	1,236	482	1,236	482
	2,155	1,222	2,155	1,222
Amounts falling due 1-2 years
Bank loans	919	740	919	740
Amounts falling due 2-5 years
Bank loans	3,739	4,320	3,739	4,320
	6,813	6,282	6,813	6,282

22.	Hire purchase and finance leases
	Minimum lease payments under hire purchase fall due as follows:
		Group	Group	Company	Company
		2021	2020	2021	2020
		£000	£000	£000	£000

Within one year	3,025	1,444	3,025	1,444
Between 1-5 years	710	262	710	262
	3,735	1,706	3,735	1,706

Page 33

CHANDLERS (FARM EQUIPMENT) LIMITED

Notes to the financial statements

for the year ended 31 December 2021

23.	Financial instruments
		Group	Group	Company	Company
		2021	2020	2021	2020
		£000	£000	£000	£000

Financial assets
Financial assets that are debt instruments measured at amortised cost	16,286	5,950	16,286	5,950
Financial liabilities
Financial liabilities measured at amortised cost	(28,961)	(16,512)	(32,477)	(20,028)

Financial assets measured at amortised cost comprise trade debtors and other debtors.
Financial liabilities measured at amortised cost comprise bank loans and overdrafts, other loans, trade creditors, net obligations under finance leases and hire purchase contracts and amounts owed to group undertakings.

24.	Deferred taxation
	Group

		2021
		£000

	At beginning of year	(208)
	Charged to profit or loss	(384)
	At end of year	(592)

Group	Group	Company	Company
2021	2020	2021	2020
£000	£000	£000	£000

Accelerated capital allowances	(644)	(212)	(644)	(212)
Other timing differences	52	4	52	4
	(592)	(208)	(592)	(208)

25.	Share capital
		2021	2020
		£000	£000

Allotted, called up and fully paid

229,960 (2020 - 229,960) Ordinary shares of £1.00 each	230	230

Page 34

CHANDLERS (FARM EQUIPMENT) LIMITED

Notes to the financial statements

for the year ended 31 December 2021

26.

Reserves

Capital redemption reserve

This reserve records the nominal value of shares repurchased by the company.

Profit and loss account

Includes all current and prior period retained profits and losses.

27.	Capital commitments
	At 31 December 2021 the Group and Company had capital commitments as follows:
		Group	Group	Company	Company
		2021	2020	2021	2020
		£000	£000	£000	£000

Contracted for but not provided in these financial statements

333

328

333

328

28.	Pension commitments

The Group operates a money-purchase pension scheme for the benefit of employees who wish to make provisions for pensions. The pension cost charge for the year represents contributions payable by the Group to the scheme and amounted to £208k (2020: £152k).
Contributions totalling £77k (2020: £54k) were payable to the scheme at the end of the year.

29.	Commitments under operating leases
	At 31 December 2021 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
		Group	Group	Company	Company
		2021	2020	2021	2020
		£000	£000	£000	£000

Not later than 1 year	536	120	536	120
Later than 1 year and not later than 5 years	1,979	479	1,979	479
Later than 5 years	3,029	474	3,029	474
	5,544	1,073	5,544	1,073

30.Other financial commitments

Some customers take contract hire agreements out directly with independent finance providers and at that point the risks and rewards of ownership pass to the customer therefore no asset or liability is recognised in the balance sheet in respect of these vehicles. At the end of the contract hire period, the Company is committed to buy the vehicles directly from the finance provider at the end of the contract hire period. At the year end the Company are committed to purchase vehicles to the value of £2,587k (2020: £2,936k) which equates to the anticipated residual values of the stock.

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CHANDLERS (FARM EQUIPMENT) LIMITED

Notes to the financial statements

for the year ended 31 December 2021

31.

Related party transactions

The Company has taken advantage of the exemption in section 33.1A of FRS 102 from disclosing transactions entered into between two or more members of the Group as all subsidiaries are wholly owned.
During the year, goods and services with a value of £16,985 (2020: £18,597) were purchased from the Group by the directors. At the balance sheet date the amount due from the directors in relation to these purchases was £1,919 (2020: £2,976).
During the year, amounts totalling £Nil (2020: £Nil) were advanced to a director of the group. Repayments totalling £Nil (2020: £15,000) were made in the year. At the balance sheet date an amount of £Nil (2020: £Nil) was due from the director of the group which is included in other debtors. No interest is paid on these amounts.
All directors who have authority and responsibility for planning, directing and controlling the activities of the group are considered to be key management personnel. Total remuneration of these individuals is £531,243 (2020: £492,673).

32.	Controlling party

The Company and Group are controlled by J H Pell due to his majority shareholding.

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