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CHANDLERS (FARM EQUIPMENT) LIMITED
Company Information
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CHANDLERS (FARM EQUIPMENT) LIMITED
Contents
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CHANDLERS (FARM EQUIPMENT) LIMITED
Group strategic report
for the year ended 31 December 2025
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.
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, provide vehicle servicing and repairs and sells spare parts for a range of manufacturers and has operated throughout the year from sixteen separate main depot 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 and country stores products
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. The UK market is impacted by global factors and global demand for farm machinery.
We are fortunate to have a strong working relationship with our key suppliers AGCO Ltd (supplying Massey Ferguson, Fendt and Valtra brands) and JCB Ltd (supplying agricultural telehandlers and wheel loaders). AGCO and JCB are both profitable businesses that are performing strongly on a worldwide basis, as well as in our local markets, and continually investing in both their production facilities and new innovative and market leading products in the agricultural machinery sector. Our success is linked to this continued development and maintaining and growing our market shares. The substantial increase in the cost of funding through worldwide increases in central bank interest rates in recent years and its knock on effect on both our own running costs as well as capital investment plans of our customers is a significant risk factor to our business. Prudent management of stock levels will be important in adjusting to a higher cost base, as well as suitable financing availability for our customers to continue to invest in their businesses with new machinery.
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 decreased from £3,564,000 to £2,447,000 and profit before tax has fallen from £1,372,000 to £699,000. After taxation, £649,000 (2024: £939,000) has been retained to be added to reserves.
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CHANDLERS (FARM EQUIPMENT) LIMITED
Group strategic report (continued)
for the year ended 31 December 2025
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 principal business is the supply and aftersales service of new and used Agricultural Tractors and Farm Equipment to the Farming Industry. The Group continues to be controlled and run by the Pell Family. We are proud of the ways in which, over the past 88 years the Group 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.
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CHANDLERS (FARM EQUIPMENT) LIMITED
Group strategic report (continued)
for the year ended 31 December 2025
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.
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CHANDLERS (FARM EQUIPMENT) LIMITED
Directors' report
for the year ended 31 December 2025
The directors present their report and the financial statements for the year ended 31 December 2025.
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.
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.
The profit for the year, after taxation, amounted to £649 thousand (2024 - £939 thousand).
No dividends have been recommended.
The directors who served during the year were:
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CHANDLERS (FARM EQUIPMENT) LIMITED
Directors' report (continued)
for the year ended 31 December 2025
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
The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per £1m of turnover: 14.4 for the year (2024: 12.6).
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CHANDLERS (FARM EQUIPMENT) LIMITED
Directors' report (continued)
for the year ended 31 December 2025
The auditors, PKF Smith Cooper Audit Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board on
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CHANDLERS (FARM EQUIPMENT) LIMITED
Independent auditors' report to the members of Chandlers (Farm Equipment) Limited
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 2025, which comprise the Consolidated statement of comprehensive income, the Consolidated analysis of net debt, the Consolidated balance sheet, the Company balance sheet, the Consolidated statement of cash flows, the Consolidated statement of changes in equity, the 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 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.
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CHANDLERS (FARM EQUIPMENT) LIMITED
Independent auditors' report to the members of Chandlers (Farm Equipment) Limited (continued)
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.
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.
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.
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CHANDLERS (FARM EQUIPMENT) LIMITED
Independent auditors' report to the members of Chandlers (Farm Equipment) Limited (continued)
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. 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:
Based on our understanding of the group and industry, we identify the key laws and regulations affecting the company. 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.
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CHANDLERS (FARM EQUIPMENT) LIMITED
Independent auditors' report to the members of Chandlers (Farm Equipment) Limited (continued)
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.
for and on behalf of
Statutory Auditors
2 Lace Market Square
NG1 1PB
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CHANDLERS (FARM EQUIPMENT) LIMITED
Consolidated statement of comprehensive income
for the year ended 31 December 2025
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CHANDLERS (FARM EQUIPMENT) LIMITED
Registered number: 01683985
Consolidated balance sheet
as at
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 9 July 2026.
The notes on pages 19 to 39 form part of these financial statements.
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CHANDLERS (FARM EQUIPMENT) LIMITED
Registered number: 01683985
Company balance sheet
as at
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
The notes on pages 19 to 39 form part of these financial statements.
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CHANDLERS (FARM EQUIPMENT) LIMITED
Registered number: 01683985
Company balance sheet (continued)
as at 31 December 2025
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CHANDLERS (FARM EQUIPMENT) LIMITED
Consolidated statement of changes in equity
for the year ended 31 December 2025
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CHANDLERS (FARM EQUIPMENT) LIMITED
Company statement of changes in equity
for the year ended 31 December 2025
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CHANDLERS (FARM EQUIPMENT) LIMITED
Consolidated statement of cash flows
for the year ended 31 December 2025
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CHANDLERS (FARM EQUIPMENT) LIMITED
Consolidated analysis of net debt
for the year ended 31 December 2025
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CHANDLERS (FARM EQUIPMENT) LIMITED
Notes to the financial statements
for the year ended 31 December 2025
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
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.
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.
In preparing the financial statements on a going concern basis, the directors have paid due regard to relevant forecast financial information including cash flows. The directors have also considered the challenges of the agricultural sector and uncertainty in the UK economy in general, including but not limited to inflation levels, wage rises and higher interest rates, and more recently a change in government. Notwithstanding many prevailing factors, the directors consider the Group to be in a strong position to withstand economic pressures and changes in the market, not least due to its positive relationships with its various stakeholders, the debt facility levels it has secured and if necessary, availability for further funding. 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.
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CHANDLERS (FARM EQUIPMENT) LIMITED
Notes to the financial statements
for the year ended 31 December 2025
2.Accounting policies (continued)
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:
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 - 10 years
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CHANDLERS (FARM EQUIPMENT) LIMITED
Notes to the financial statements
for the year ended 31 December 2025
2.Accounting policies (continued)
Depreciation is provided on the following basis:
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CHANDLERS (FARM EQUIPMENT) LIMITED
Notes to the financial statements
for the year ended 31 December 2025
2.Accounting policies (continued)
Functional and presentation currency
Transactions and balances
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.
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.
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CHANDLERS (FARM EQUIPMENT) LIMITED
Notes to the financial statements
for the year ended 31 December 2025
2.Accounting policies (continued)
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.
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CHANDLERS (FARM EQUIPMENT) LIMITED
Notes to the financial statements
for the year ended 31 December 2025
2.Accounting policies (continued)
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.
Analysis of turnover by country of destination:
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CHANDLERS (FARM EQUIPMENT) LIMITED
Notes to the financial statements
for the year ended 31 December 2025
Page 25
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CHANDLERS (FARM EQUIPMENT) LIMITED
Notes to the financial statements
for the year ended 31 December 2025
Page 26
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CHANDLERS (FARM EQUIPMENT) LIMITED
Notes to the financial statements
for the year ended 31 December 2025
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 £
Page 27
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CHANDLERS (FARM EQUIPMENT) LIMITED
Notes to the financial statements
for the year ended 31 December 2025
Page 28
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CHANDLERS (FARM EQUIPMENT) LIMITED
Notes to the financial statements
for the year ended 31 December 2025
Page 29
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CHANDLERS (FARM EQUIPMENT) LIMITED
Notes to the financial statements
for the year ended 31 December 2025
Page 30
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CHANDLERS (FARM EQUIPMENT) LIMITED
Notes to the financial statements
for the year ended 31 December 2025
Page 31
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CHANDLERS (FARM EQUIPMENT) LIMITED
Notes to the financial statements
for the year ended 31 December 2025
Page 32
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CHANDLERS (FARM EQUIPMENT) LIMITED
Notes to the financial statements
for the year ended 31 December 2025
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.
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CHANDLERS (FARM EQUIPMENT) LIMITED
Notes to the financial statements
for the year ended 31 December 2025
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 34
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CHANDLERS (FARM EQUIPMENT) LIMITED
Notes to the financial statements
for the year ended 31 December 2025
Page 35
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CHANDLERS (FARM EQUIPMENT) LIMITED
Notes to the financial statements
for the year ended 31 December 2025
Page 36
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CHANDLERS (FARM EQUIPMENT) LIMITED
Notes to the financial statements
for the year ended 31 December 2025
During the year, the company issued 459,920 shares of £1 each to existing shareholders in proportion to their prior holdings, so that for every 1 share held, an additional 2 shares were received. All shares have been fully paid, with the consideration of £1 per share being satisfied by the capitalisation of £459,920 from the profit and loss reserve.
The 229,960 of Ordinary shares were redesignated as A, B, C, D, E, F and G shares in the proportions shown in the table above. Each of the share categories A to G have equivalent rights as follows: Each share carries one vote, is entitled to dividends when declared on this share category and has the right to participate in a distribution arising on winding up. These shares are non-redeemable. The 459,920 share capital issued in the year has been split between the share categories below, the rights of which differ from categories A to G as follows: H shares: these shares carry no entitlement to vote, each share is entitled to dividends when declared on this share category and has the right to participate in a distribution arising on winding up. These shares are non-redeemable. I shares: each share carries one vote, is entitled to dividends when declared on this share category and has the right to participate in a distribution arising on winding up. These shares are non-redeemable. J shares: these shares carry no entitlement to vote, each share is entitled to dividends when declared on this share category and has the right to participate in a distribution arising on winding up. These shares are non-redeemable.
Page 37
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CHANDLERS (FARM EQUIPMENT) LIMITED
Notes to the financial statements
for the year ended 31 December 2025
Capital redemption reserve
Investment property revaluation reserve
Profit and loss account
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 £392k (2024: £402k).
Contributions totalling £104k (2024: £104k) were payable to the scheme at the end of the year.
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 Group is committed to buy the vehicles directly from the finance provider at the end of the contract hire period. At the year end the Group is committed to purchase vehicles to the value of £7,680k (2024: £5,639k) which equates to the anticipated residual values of the stock.
Page 38
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CHANDLERS (FARM EQUIPMENT) LIMITED
Notes to the financial statements
for the year ended 31 December 2025
The Company and Group are controlled by J H Pell due to his majority shareholding.
Page 39
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