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REGISTERED NUMBER: 00627513 (England and Wales)




























Strategic Report, Directors' Report and

Financial Statements for the Year Ended 31 December 2023

for

M Markovitz Limited

M Markovitz Limited (Registered number: 00627513)






Contents of the Financial Statements
for the Year Ended 31 December 2023




Page

Company Information 1

Strategic Report 2

Directors' Report 8

Report of the Independent Auditors 10

Statement of Comprehensive Income 13

Balance Sheet 14

Statement of Changes in Equity 15

Cash Flow Statement 16

Notes to the Cash Flow Statement 17

Notes to the Financial Statements 19


M Markovitz Limited

Company Information
for the Year Ended 31 December 2023







DIRECTORS: Mrs Audrey Hopkins
Mr David John Brian Hopkins
Mr Robert William Hopkins



REGISTERED OFFICE: Commercial Road
Tideswell
Buxton
Derbyshire
SK17 8NY



REGISTERED NUMBER: 00627513 (England and Wales)



AUDITORS: DonnellyBentley Limited
Chartered Accountants
Statutory Auditor
Hazlemere
70 Chorley New Road
Bolton
Lancashire
BL1 4BY



BANKERS: Nat West
Bakewell Branch
1 Water Lane
Bakewell
Derbyshire
DE45 1YY

M Markovitz Limited (Registered number: 00627513)

Strategic Report
for the Year Ended 31 December 2023

The directors present their strategic report for the year ended 31 December 2023.

REVIEW OF BUSINESS

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 scale and characteristics of our business and is framed within the context of the risks and uncertainties inherent to our industry.

The principal activities of the company are insulation and drylining distribution, and builders' and plumbers' merchanting. Additionally, we retail kitchens, bathrooms, and stoves through dedicated showrooms at Tideswell and Chesterfield, as well as via our builders' and plumbers' merchants' branches. In line with our growth strategy, we have expanded our Insulation and Drylining distribution division by establishing a new branch in Portsmouth, thereby enhancing our presence in the South. Furthermore, the relocation of our Lichfield branch to a Wolverhampton super centre has facilitated the expansion of our distribution network across the Midlands. Looking ahead, we will continue to look for growth in this sector by continuing to relocate our existing depots to larger premises and also open new sites as opportunities arise. Plans are already underway to relocate Chesterfield insulation in 2024. As we continue our expansion, we remain committed to preserving and nurturing our legacy business as general builders' and plumbers' merchants.

The company's activities are organised into the following divisions:­

Builders and Plumbers Merchants
Tideswell
Glossop
Darley Dale
Buxton
Leek
Clay Cross
Wigan
Chesterfield

Civils Merchants
Midland Branch, Clay Cross
North West Branch, Wigan
Yorkshire Branch, Sheffield
Humberside, Hull

Insulation and Drylining
Warrington, Manchester
Coatbridge, Glasgow
Chesterfield
Castleford, Leeds
Newcastle-Upon-Tyne
Ipswich
Bedford
Bridgwater
Gatwick
Wolverhampton
Portsmouth

Kitchen and Bathroom Showrooms
Tideswell
Chesterfield


M Markovitz Limited (Registered number: 00627513)

Strategic Report
for the Year Ended 31 December 2023

REVIEW OF BUSINESS (CONTINUED)
The Directors are pleased to announce a significant increase in turnover of 16.1% to £125.9m in 2023 (2022: £108.5m). This substantial growth reflects our dedication to expanding our business operations. Key initiatives supporting this growth include the relocation to larger premises in Wolverhampton, allowing us to gain a greater presence in the West Midlands and the establishment, in the final quarter of 2023, of a new insulation and drylining centre in Portsmouth, bringing our brand to the South Coast.

Gross margin increased compared with the prior year from 21.8% to 22.6%, this is a result of strategic negotiations for higher rebates and a concerted effort to enhance overall margins. By the end of 2023 the company employed 56 additional people, while maintaining sales revenue per employee at similar levels to those of 2022.

The following are the companies' key performance indicators:

Year Ended Year Ended
31 December 2023 31 December 2022

Sales Growth 16.1% 30.5%
Gross Margin 22.6% 21.8%
Operating Margin 2.5% 3.7%


Other standard accounting ratios and KPI's can be extracted from the accounts.

EMPLOYEE ENGAGEMENT
Our people are our greatest asset and the foundation of our business so we ensure we regularly engage with our 397 employees. We pride ourselves on people development and constantly look to promote internally, resulting in many management positions being held by team members who have progressed through our organisation. The performance of all personnel is reviewed by line managers and career progression is actively encouraged. Colleague retention is continually monitored and landmarks of long service are rewarded as part of our appreciation of their dedication. Furthermore, we actively seek apprentices from local further education institutions, providing them with support and opportunities for development within their roles. This initiative underscores our commitment to investing in the next generation of talent and contributing to the broader community.

We recognise that recruitment, training and retention is fundamental to the success of the business. We have established programmes to ensure excellent and relevant skill enhancement is available to all colleagues. Periodic communications are sent from the two owning directors to all team members at key times to ensure everyone is kept well informed and always made to feel, personally, an integral part of the business. As a family owned company we pride ourselves on a strong philosophy and principles of acting with integrity and fairness. This mindset is continually promoted by all levels of management throughout the organisation.


LESS ABLED EMPLOYEES
The company understands its responsibilities in respect of employing less abled people and to this end, applications, when received, are given serious consideration. We do not request this protected personal data, however, should this information come to light, every effort is made to accommodate individual needs. In cases where existing colleagues have experienced diminished capabilities, we have made concerted efforts to adjust their work environment and responsibilities to enable their continued employment. When accommodations have not been feasible, we have collaborated with the affected individuals to identify suitable alternative roles within the organisation and have provided the necessary training to facilitate their transition. However, despite our commitment to support our colleagues, this may not always be possible and other forms of support may be offered.








M Markovitz Limited (Registered number: 00627513)

Strategic Report
for the Year Ended 31 December 2023

ENVIRONMENT
We understand that our products and how we deliver them have a longer-term impact on the environment and whenever viable our goal is to have a positive effect. We continually strive to reduce the environmental impact of our business and to operate in a responsible manner. We hold a Chain of Custody Certification from the Forest Stewardship Council (FSC) and the Programme for Endorsement of Forest Certification (PEFC) which provides reassurance that timber products originate from sustainably managed forests, controlled sources, or reclaimed materials and that they meet legislative requirements. During 2023 we continued our program for waste management with the aim of sending zero to landfill, we also provided support to our fellow members at H&B buying Group, sharing our knowledge to help them understand the Environment, Social and Governance (ESG) issues affecting our industry. We signed an agreement with H&B to work with our supply chain to end slavery in all products and ensure the future of the products we sell meet with our ESG principles. We also installed solar panels at our head office and made plans for a further installment in Chesterfield. Our own strategy continued to gain momentum during the year and we reduced our own carbon footprint by 0.2 tonnes of CO2e per £1m of turnover.


CARBON REPORTING
We have followed the 2019 HM Government Environmental Reporting Guidelines. We have also used the GHG Reporting Protocol - Corporate Standard and have used the 2023 UK Government's Conversion Factors for Company Reporting.

UK Greenhouse Gas Emissions and Energy Use

2023 2022
kWh kWh
Energy consumption used to calculate emissions 16,338,367 14,045,179

Energy consumption breakdown

Gas Consumption 1,038,839 897,437
Purchase Electricity 744,425 519,509
Transport Fuel 14,555,103 12,628,233

Carbon Dioxide Equivalent (CO2e) Tonnes 2023 2022

Emissions from the combustion of gas/oil (Scope 1) 190 164
Emissions from the combustion of fuel for distribution (Scope 1) 3,465 3,034
Emissions from purchased electricity (Scope 2) 154 100
Emissions from business travel 12 11
Total gross emissions (metric tonnes CO2e) 3,821 3,309

Intensity ratio tonnes of CO2e per £1m of turnover 30.3 30.5

Intensity measurement
The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per £1m turnover.

Measures taken to improve energy efficiency
In line with our commitment to sustainability, solar panels have been installed at our head office branch, and we anticipate the installation of additional panels at our Chesterfield branch later this year. Furthermore, the company has expanded its eco-friendly vehicle fleet, leasing an additional 10 electric cars in 2023, bringing our total to 13, alongside the leasing of 14 plug-in hybrid vehicles. We've also taken steps to enhance our internal operations by replacing 10 petrol forklifts with electric counterparts, with an additional 30 electric forklifts on order. This transition is supported by the expansion of our charging infrastructure to accommodate the shift towards electric vehicles and plant. Our Environmental, Social, and Governance (ESG) strategy remains a focal point, with ongoing review and refinement. Progress towards our long-term sustainability objectives is well underway, thanks to the collaborative efforts of individuals across the organisation.


M Markovitz Limited (Registered number: 00627513)

Strategic Report
for the Year Ended 31 December 2023


SUPPLIER ENGAGEMENT
2023 presented significant challenges in our sector, marked by rising purchase prices and diminished demand, consequently, we were unable to fully pass these cost increases onto our customers. Despite these obstacles, our robust relationship with our key suppliers, enhanced by our affiliation with the H&B buying group enabled us to keep costs down and achieve sales growth and profitability.

PRINCIPAL RISKS AND UNCERTAINTIES
The company is primarily exposed to market fluctuations in the construction industry. Additionally, there are potential adverse effects from credit and interest rate risk, cyber security, fraud and liquidity. The overall aim of the company's risk management policies is to minimise any adverse impacts on our operations and profitability.

Market Risk
The business's performance is closely linked to the overall economic health of the house building and repairs maintenance and improvement market (RMI). The uncertainty created by rising interest rates, the anticipation of a general election and the escalating cost of living crisis led to a sector-wide reduction in demand. These challenges impacted us most significantly in the third quarter, placing pressure on our turnover and profit. However, robust performance in the first half of the year ensured that we still concluded the year with an increase in both sales and gross margin.

Credit Risk
Providing credit to customers is a necessary part of the business and as such the company is exposed to potential bad debts. The company has a broad customer base and has no overdue reliance on any single customer. As well as actively monitoring the company's debtor's ledger and reviewing credit limits of customers, we continue to credit insure to further mitigate the risk of the impact of bad debts.

Interest Rate Risk
The company has replaced previous loans and overdrafts with an invoice credit facility with the Royal Bank of Scotland at a floating rate of interest, which is settled daily. Our robust balance sheet and longstanding relationship with the bank have enabled us to secure favorable interest terms. This financial arrangement aligns well with our business objectives, providing support for both our current operational needs and medium-term growth initiatives. Nonetheless, we remain committed to ongoing evaluation of our financial policies to ensure their continued suitability for our evolving requirements.

Information Technology
The escalating threat of cyber-crime poses significant risks to companies across all industries, with opportunistic criminals targeting personal data for financial gain. To mitigate these risks, all of our employees undergo comprehensive training to heighten awareness of cyber threats. In addition to employee education, we have implemented robust processes designed to minimise the likelihood of falling victim to cyber-attacks. Leveraging diverse technologies and off-site backup facilities, we fortify our defenses against these evolving threats. Continuous review and updating of our cyber-security measures ensure that our business remains vigilant and well-protected against potential breaches.

The anticipated effect of AI on IT is transformative, revolutionising how businesses operate and compete. AI is expected to enhance efficiency through automation of routine tasks, enabling administrative teams to focus on strategic initiatives. Advanced AI-driven analytics will provide deeper insights, fostering data-driven decision-making and innovation. As AI continues to evolve, it will drive significant improvements in IT infrastructure management, customer service, and product development, ultimately leading to increased productivity, cost savings, and a competitive edge in the market.

Liquidity and Net Debt
The company undertakes regular cashflow forecasting to ensure that bank invoice finance facilities are sufficient to meet requirements, aided by our long-standing relation with the company bankers NatWest, who continue to be a strong partner to the business.


M Markovitz Limited (Registered number: 00627513)

Strategic Report
for the Year Ended 31 December 2023

SECTION 172(1) STATEMENT
Principal Activity Impact on Long Term Success Stakeholder Considerations
Continued expansion
of the business
particularly pertaining
to wider national
geographical coverage
of insulation & drylining
depots
The Company opened a new insulation
and dry-lining depot in Portsmouth. We
also moved our Lichfield branch to much
larger premises in Wolverhampton to
serve all the West Midlands region, which
will support the business to deliver our
future growth plans.This continues to have
a very positive effect on the company's
standing and image in this sector as we
maintain our ambition of national
coverage in the insulation and drylining
division.
Our expansion has brought 56 new
jobs whilst also creating an
environment where our people can
develop their careers.

Development of an
ESG strategy
We have developed a long term ESG
strategy to help us work towards goals set
in relation to 7 material topics. These will
set the business up to meet future
regulatory requirements and allow us to
obtain funding, win contracts and recruit
the best talent, whilst giving back to the
local community and protecting future
generations from waste and climate
damage.
Regulatory bodies will be
concerned how well the company's
ESG strategy aligns with current
and anticipated laws and
regulations. Customers will expect
a detailed ESG strategy to ensure
they can meet their obligations. Our
ESG commitments can help us
attract and retain talent. Local
communities will be interested in
our positive impact on the local
environment.

Challenge Derbyshire
fund raising
The company takes great pride in
administering the charitable trust
'Challenge Derbyshire' dedicated to
supporting two prominent end of life care
organisations: Ashgate Hospice Care and
Blythe House Hospice, including Helens
Trust. Our active involvement in
fundraising not only enhances our
standing within the local community but
also fosters numerous business
relationships. Proudly, through the
'Challenge Derbyshire' initiative, we have
successfully raised over £1.7million. We
remain steadfast in our pledge to continue
to support these vital services.
The local communities will be
positively impacted by the
additional support the charity can
provide as a result of our
fundraising, they will also benefit
from the additional awareness that
this creates.

Recruitment and
development
We are committed to nurturing home
grown talent, recognising that our
workforce is our most valuable asset. Our
recruitment strategy focuses on attracting
top talent within the regions we operate,
ensuring a robust pipeline for future
leadership and skilled roles. To strengthen
our community ties and enhance our local
recruitment efforts, we have partnered
with the nearby college and school to
showcase the opportunities available
within our company.
Employees and potential recruits
will benefit from the company's
commitment to real career
progression and this may create
loyalty and engagement. Local
communities and institutions will
benefit from our investment in
people. This strategy will support
long term growth plans. Our
engagement will improve our profile
in the local community.



M Markovitz Limited (Registered number: 00627513)

Strategic Report
for the Year Ended 31 December 2023

FUTURE DEVELOPMENTS
In 2023, our primary objective is to solidify our market position by optimising the performance of our existing depots, with a particular emphasis on maximising the potential of our insulation and drylining centres nationwide. Additionally, we intend to pursue continued growth opportunities, with plans to establish a new builders' merchants depot in Sheffield later this year. Moreover, we remain proactive in identifying and capitalising on potential expansion prospects across all segments of our operations as they emerge.

ON BEHALF OF THE BOARD:





Mr David John Brian Hopkins - Director


18 September 2024

M Markovitz Limited (Registered number: 00627513)

Directors' Report
for the Year Ended 31 December 2023

The directors present their report with the financial statements of the company for the year ended 31 December 2023.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of Builders and Plumbers Merchants.

DIVIDENDS
The total distribution of dividends for the year ended 31 December 2023 will be £ 420,000 .

DIRECTORS
The directors set out in the table below have held office during the whole of the period from 1 January 2023 to the date of this report.

The beneficial interests of the directors holding office at 31 December 2023 in the shares of the company, according to the register of directors' interests, were as follows:

31.12.23 1.1.23
Ordinary shares of £1 each
Mrs Audrey Hopkins - -
Mr David John Brian Hopkins 1,000 1,000
Mr Robert William Hopkins 1,000 1,000

Preference shares of £1 each
Mrs Audrey Hopkins - -
Mr David John Brian Hopkins 299,000 299,000
Mr Robert William Hopkins 299,000 299,000

These directors did not hold any non-beneficial interests in any of the shares of the company.

DISCLOSURE IN THE STRATEGIC REPORT
Items required under schedule 7 to be disclosed in the Directors' Report are set out in the Strategic Report.

DIRECTORS' RESPONSIBILITIES STATEMENT
The directors are responsible for preparing the Strategic Report, the Directors' Report and the 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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 of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-state whether applicable 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 company 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 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

M Markovitz Limited (Registered number: 00627513)

Directors' Report
for the Year Ended 31 December 2023


STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS
The auditors, DonnellyBentley Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





Mr David John Brian Hopkins - Director


18 September 2024

Report of the Independent Auditors to the Members of
M Markovitz Limited

Opinion
We have audited the financial statements of M Markovitz Limited (the 'company') for the year ended 31 December 2023 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, 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 company's affairs as at 31 December 2023 and of its 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 company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC'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 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.

Other information
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Directors' Report, but does not include the financial statements and our Report of the Auditors thereon.

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.

In connection with our audit of the financial statements, 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 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.

Opinions 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 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 Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.

Report of the Independent Auditors to the Members of
M Markovitz Limited


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the 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 eight, 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 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 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 company or to cease operations, or have no realistic alternative but to do so.

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 a Report of the Auditors 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 financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

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.

We gained an understanding of the legal and regulatory framework applicable to the company and the sector in which it operates and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognizing that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment, for example, forgery or intentional misrepresentations, or through collusion.

We focused on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006, UK tax legislation, health and safety regulations and employment law. Our tests included agreeing the financial statements disclosures to underlying supporting documentation and enquiries with management. There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. We did not identify any key audit matters relating to irregularities, including fraud.

We also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.

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 Report of the Auditors.

Report of the Independent Auditors to the Members of
M Markovitz Limited


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 a Report of the Auditors 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.




James King Senior Statutory Auditor
for and on behalf of DonnellyBentley Limited
Chartered Accountants
Statutory Auditor
Hazlemere
70 Chorley New Road
Bolton
Lancashire
BL1 4BY

18 September 2024

M Markovitz Limited (Registered number: 00627513)

Statement of Comprehensive
Income
for the Year Ended 31 December 2023

2023 2022
Notes £    £   

TURNOVER 125,921,178 108,460,799

Other operating income 39,151 61,014
125,960,329 108,521,813

Raw materials and consumables (97,416,251 ) (84,868,729 )
28,544,078 23,653,084

Staff costs 3 (13,033,199 ) (10,891,161 )
Depreciation (864,734 ) (798,475 )
Other operating expenses (11,433,064 ) (9,161,744 )
OPERATING PROFIT 4 3,213,081 2,801,704


Interest payable and similar expenses 5 (309,329 ) (175,587 )
PROFIT BEFORE TAXATION 2,903,752 2,626,117

Tax on profit 6 (752,024 ) (696,764 )
PROFIT FOR THE FINANCIAL YEAR 2,151,728 1,929,353

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

2,151,728

1,929,353

M Markovitz Limited (Registered number: 00627513)

Balance Sheet
31 December 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 8 6,692 14,485
Tangible assets 9 8,405,246 6,850,315
Investments 10 1,250 1,250
8,413,188 6,866,050

CURRENT ASSETS
Stocks 11 10,622,429 9,756,755
Debtors 12 26,784,407 24,147,078
Cash at bank 90,134 44,989
37,496,970 33,948,822
CREDITORS
Amounts falling due within one year 13 29,678,797 24,860,400
NET CURRENT ASSETS 7,818,173 9,088,422
TOTAL ASSETS LESS CURRENT
LIABILITIES

16,231,361

15,954,472

CREDITORS
Amounts falling due after more than one
year

14

-

(1,774,457

)

PROVISIONS FOR LIABILITIES 18 (1,070,178 ) (750,560 )
NET ASSETS 15,161,183 13,429,455

CAPITAL AND RESERVES
Called up share capital 19 600,000 600,000
Retained earnings 20 14,561,183 12,829,455
SHAREHOLDERS' FUNDS 15,161,183 13,429,455

The financial statements were approved by the Board of Directors and authorised for issue on 18 September 2024 and were signed on its behalf by:





Mr David John Brian Hopkins - Director


M Markovitz Limited (Registered number: 00627513)

Statement of Changes in Equity
for the Year Ended 31 December 2023

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1 January 2022 600,000 11,320,102 11,920,102

Changes in equity
Dividends - (420,000 ) (420,000 )
Total comprehensive income - 1,929,353 1,929,353
Balance at 31 December 2022 600,000 12,829,455 13,429,455

Changes in equity
Dividends - (420,000 ) (420,000 )
Total comprehensive income - 2,151,728 2,151,728
Balance at 31 December 2023 600,000 14,561,183 15,161,183

M Markovitz Limited (Registered number: 00627513)

Cash Flow Statement
for the Year Ended 31 December 2023

2023 2022
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 4,117,895 1,716,076
Interest paid (309,329 ) (175,587 )
Tax paid (450,511 ) (466,170 )
Net cash from operating activities 3,358,055 1,074,319

Cash flows from investing activities
Purchase of tangible fixed assets (2,821,496 ) (1,581,503 )
Sale of tangible fixed assets 409,624 127,204
Net cash from investing activities (2,411,872 ) (1,454,299 )

Cash flows from financing activities
Loans - capital repayments (2,852,958 ) (766,380 )
HP contracts - capital repayments (294,237 ) 6,672
Equity dividends paid (420,000 ) (420,000 )
Net cash from financing activities (3,567,195 ) (1,179,708 )

Decrease in cash and cash equivalents (2,621,012 ) (1,559,688 )
Cash and cash equivalents at
beginning of year

2

(2,798,112

)

(1,238,424

)

Cash and cash equivalents at end of
year

2

(5,419,124

)

(2,798,112

)

M Markovitz Limited (Registered number: 00627513)

Notes to the Cash Flow Statement
for the Year Ended 31 December 2023

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS
2023 2022
£    £   
Profit before taxation 2,903,752 2,626,117
Depreciation charges 885,756 787,649
(Profit)/loss on disposal of fixed assets (21,022 ) 10,826
Finance costs 309,329 175,587
4,077,815 3,600,179
Increase in stocks (865,674 ) (1,566,016 )
Increase in trade and other debtors (2,637,329 ) (6,756,096 )
Increase in trade and other creditors 3,543,083 6,438,009
Cash generated from operations 4,117,895 1,716,076

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2023
31.12.23 1.1.23
£    £   
Cash and cash equivalents 90,134 44,989
Bank overdrafts (5,509,258 ) (2,843,101 )
(5,419,124 ) (2,798,112 )
Year ended 31 December 2022
31.12.22 1.1.22
£    £   
Cash and cash equivalents 44,989 72,977
Bank overdrafts (2,843,101 ) (1,311,401 )
(2,798,112 ) (1,238,424 )


M Markovitz Limited (Registered number: 00627513)

Notes to the Cash Flow Statement
for the Year Ended 31 December 2023

3. ANALYSIS OF CHANGES IN NET DEBT

At 1.1.23 Cash flow At 31.12.23
£    £    £   
Net cash
Cash at bank 44,989 45,145 90,134
Bank overdrafts (2,843,101 ) (2,666,157 ) (5,509,258 )
(2,798,112 ) (2,621,012 ) (5,419,124 )
Debt
Finance leases (294,237 ) 294,237 -
Debts falling due within 1 year (1,258,510 ) 1,258,510 -
Debts falling due after 1 year (1,594,448 ) 1,594,448 -
(3,147,195 ) 3,147,195 -
Total (5,945,307 ) 526,183 (5,419,124 )

M Markovitz Limited (Registered number: 00627513)

Notes to the Financial Statements
for the Year Ended 31 December 2023

1. STATUTORY INFORMATION

M Markovitz Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention and on a going concern basis.

Turnover
Turnover from a sale is recognised when significant risks and rewards of ownership of the goods have transferred to the buyer, the amount of turnover can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the company and the costs incurred or to be incurred in respect of the transaction can be measured reliably. This is usually on dispatch of the goods.

Goodwill
Goodwill, being the amount paid in connection with the acquisition of a business in 2001, has now been fully amortised.

Intangible assets
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Computer software is being amortised evenly over its estimated useful life of ten years.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Freehold property - 2% or 4% on cost
Improvements to property - 2% or 4% on cost
Plant and machinery - 10% on reducing balance
Fixtures and fittings - 10% on reducing balance
Motor vehicles - 25% on reducing balance
Computer equipment - 25% on reducing balance

Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended.

Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.


M Markovitz Limited (Registered number: 00627513)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

2. ACCOUNTING POLICIES - continued
Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Investments
Fixed asset investments are stated at cost less provision for permanent diminution in value.

Debtors and creditors receivable / payable within one year
Debtors and creditors with no stated interest rate and 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.

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 rate method, less impairment. If an arrangement constitutes a finance transaction it is measured at present value.

Significant judgements and estimates
The preparation of these financial statements requires certain judgements, estimates and assumptions
that affect the reported amounts of assets, liabilities, income and expenses. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Preference shares
The preference shares have been treated as equity as there are no circumstances, other than on the winding up of the company, when the preference shares would be repaid and, even then, it will only be after all other creditors. The dividends on the preference shares are only payable to the extent that there are profits available for distribution. In addition, the holders of the preference shares have, on certain occasions, the right to speak at annual general meetings.

M Markovitz Limited (Registered number: 00627513)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

3. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 11,468,573 9,589,264
Social security costs 1,083,961 926,422
Other pension costs 480,665 375,475
13,033,199 10,891,161

The average number of employees during the year was as follows:
2023 2022

Distribution 335 299
Administration 40 34
375 333

The directors are the only key management personnel and their remuneration is disclosed below.

2023 2022
£    £   
Directors' remuneration 41,472 49,569

4. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2023 2022
£    £   
Depreciation - owned assets 877,963 670,264
Depreciation - assets on hire purchase contracts - 92,795
(Profit)/loss on disposal of fixed assets (21,022 ) 10,826
Computer software amortisation 7,793 24,590
Auditors' remuneration 22,000 22,220
Operating lease payments 2,779,429 2,272,582
Pension contributions 480,665 375,475
Cost of stock recognised as an expense 97,416,251 84,868,729

5. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Bank interest 122,056 55,484
Loan interest 187,273 120,103
309,329 175,587

M Markovitz Limited (Registered number: 00627513)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

6. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2023 2022
£    £   
Current tax:
UK corporation tax 432,406 426,710

Deferred tax 319,618 270,054
Tax on profit 752,024 696,764

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2023 2022
£    £   
Profit before tax 2,903,752 2,626,117
Profit multiplied by the standard rate of corporation tax in the UK of
25% (2022 - 19%)

725,938

498,962

Effects of:
Expenses not deductible for tax purposes 75,113 36,350
Capital allowances in excess of depreciation (21,829 ) -
Depreciation in excess of capital allowances - 171,755

Corporation tax underprovided last year - (10,303 )

Change of rate of tax (27,198 ) -
Total tax charge 752,024 696,764

7. DIVIDENDS
2023 2022
£    £   
Ordinary shares of £1 each
Interim 420,000 420,000

M Markovitz Limited (Registered number: 00627513)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

8. INTANGIBLE FIXED ASSETS
Computer
Goodwill software Totals
£    £    £   
COST
At 1 January 2023
and 31 December 2023 38,209 202,152 240,361
AMORTISATION
At 1 January 2023 38,209 187,667 225,876
Amortisation for year - 7,793 7,793
At 31 December 2023 38,209 195,460 233,669
NET BOOK VALUE
At 31 December 2023 - 6,692 6,692
At 31 December 2022 - 14,485 14,485

9. TANGIBLE FIXED ASSETS
Improvements
Freehold Short to Plant and
property leasehold property machinery
£    £    £    £   
COST
At 1 January 2023 3,478,699 1 862,682 1,220,490
Additions 192,322 - 101,875 700,968
Disposals (223,499 ) - - (117,957 )
At 31 December 2023 3,447,522 1 964,557 1,803,501
DEPRECIATION
At 1 January 2023 460,499 - 242,381 420,892
Charge for year 53,838 - 11,083 100,506
Eliminated on disposal (67,663 ) - - (16,437 )
At 31 December 2023 446,674 - 253,464 504,961
NET BOOK VALUE
At 31 December 2023 3,000,848 1 711,093 1,298,540
At 31 December 2022 3,018,200 1 620,301 799,598

M Markovitz Limited (Registered number: 00627513)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

9. TANGIBLE FIXED ASSETS - continued

Fixtures
and Motor Computer
fittings vehicles equipment Totals
£    £    £    £   
COST
At 1 January 2023 251,987 3,712,487 504,688 10,031,034
Additions 137,963 1,524,972 163,396 2,821,496
Disposals - (427,374 ) (24,461 ) (793,291 )
At 31 December 2023 389,950 4,810,085 643,623 12,059,239
DEPRECIATION
At 1 January 2023 74,238 1,763,126 219,583 3,180,719
Charge for year 22,943 596,443 93,150 877,963
Eliminated on disposal - (304,737 ) (15,852 ) (404,689 )
At 31 December 2023 97,181 2,054,832 296,881 3,653,993
NET BOOK VALUE
At 31 December 2023 292,769 2,755,253 346,742 8,405,246
At 31 December 2022 177,749 1,949,361 285,105 6,850,315

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:
Plant and Motor
machinery vehicles Totals
£    £    £   
COST
At 1 January 2023 209,311 392,865 602,176
Reclassification/transfer (209,311 ) (392,865 ) (602,176 )
At 31 December 2023 - - -
DEPRECIATION
At 1 January 2023 31,920 115,039 146,959
Reclassification/transfer (31,920 ) (115,039 ) (146,959 )
At 31 December 2023 - - -
NET BOOK VALUE
At 31 December 2023 - - -
At 31 December 2022 177,391 277,826 455,217

10. FIXED ASSET INVESTMENTS

All investments held are unlisted shares in Buying Society Companies and have been shown at cost. The directors are of the opinion that this is not materially different from the market value.

11. STOCKS
2023 2022
£    £   
Goods for resale 10,622,429 9,756,755

M Markovitz Limited (Registered number: 00627513)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

12. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 16,254,459 16,587,713
Other debtors 1,473,701 978,136
Prepayments and accrued income 9,056,247 6,581,229
26,784,407 24,147,078

13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Bank loans, overdrafts and invoice discounting advance (see note 15)
5,509,258

4,101,611
Hire purchase contracts (see note 16) - 114,228
Trade creditors 22,245,784 19,240,154
Tax 205,030 223,135
Social security and other taxes 340,999 318,573
Other creditors 236,786 136,213
Accrued expenses 1,140,940 726,486
29,678,797 24,860,400

14. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
2023 2022
£    £   
Bank loans (see note 15) - 1,594,448
Hire purchase contracts (see note 16) - 180,009
- 1,774,457

15. LOANS

An analysis of the maturity of loans is given below:

2023 2022
£    £   
Amounts falling due within one year or on demand:
Bank overdrafts 5,509,258 2,843,101
Bank loans - 1,258,510
5,509,258 4,101,611

Amounts falling due between one and two years:
Bank loans - 1-2 years - 797,224

Amounts falling due between two and five years:
Bank loans - 2-5 years - 797,224

M Markovitz Limited (Registered number: 00627513)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

15. LOANS - continued

The bank loans were held with National Westminster Bank PLC and were all repaid during the year ended 31 December 2023.

Bank overdrafts of £5,509,258 at 31 December 2023 consists entirely of an invoice discounting facility provided by RBS Invoice Financing Limited.

16. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts
2023 2022
£    £   
Net obligations repayable:
Within one year - 114,228
Between one and five years - 180,009
- 294,237

Non-cancellable operating leases
2023 2022
£    £   
Within one year 2,325,591 2,357,005
Between one and five years 6,093,063 5,687,851
In more than five years 2,120,012 2,496,279
10,538,666 10,541,135

M Markovitz Limited (Registered number: 00627513)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

17. SECURED DEBTS

The following secured debts are included within creditors:

2023 2022
£    £   
Bank overdrafts 5,509,258 2,843,101
Bank loans - 2,852,958
Hire purchase contracts - 294,237
5,509,258 5,990,296

Invoice discounting advance
RBS Invoice Financing Limited has a fixed and floating charge. The floating charge covers all the property or undertaking of the company. The charge also contains a negative pledge.

Bank Loans and Overdraft Facility:
National Westminster Bank PLC holds legal charges against the following properties and their associated assets as security against all of the Company's liabilities to the Bank:

7 Barnfield Industrial Estate, Barnfield Close, Leek;
38 High Street West, Glossop;
Lancaster House, Leopold Street, Wigan;
Station Road, Ecclesfield, Sheffield;

National Westminster Bank plc also holds a debenture over all the assets of the company.

National Westminster Bank plc also holds security in the form of a personal guarantee of £600,000 provided by the directors, D J B and R W Hopkins. In addition, the bank also holds a First Legal charge to a maximum of £850,000 against premises at Commercial Road, Tideswell, which are owned by D J B and R W Hopkins personally and leased to the company at full market rent.

18. PROVISIONS FOR LIABILITIES
2023 2022
£    £   
Deferred tax 1,070,178 750,560

Deferred
tax
£   
Balance at 1 January 2023 750,560
Charge to Statement of Comprehensive Income during year 319,618
Balance at 31 December 2023 1,070,178

M Markovitz Limited (Registered number: 00627513)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

19. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
2,000 Ordinary £1 2,000 2,000

Allotted and issued:
Number: Class: Nominal 2023 2022
value: £    £   
598,000 Preference £1 598,000 598,000

The preference shares, which are classified as equity, confer on their holders the right to a fixed cumulative preferential dividend at an original rate of 7% and which is increased each year by the increase in the Index of Retail Prices in the previous twelve months.
The holders of the preference shares are entitled, on a winding up of the company, to repayment of the amounts paid up on the preference shares held by them, in priority to any payment to the holders of any other shares in the capital of the company.

20. RESERVES
Retained
earnings
£   

At 1 January 2023 12,829,455
Profit for the year 2,151,728
Dividends (420,000 )
At 31 December 2023 14,561,183

M Markovitz Limited (Registered number: 00627513)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

21. RELATED PARTY DISCLOSURES

Close family members of the key management personnel received £188,333 (2022: £83,286) remuneration from the company during the year.

The shareholders received dividends of £420,000 (2022: £420,000).

The directors, D J B and R W Hopkins, were paid £96,000 (2022: £96,000) being full commercial rent for property occupied by the company.

The directors, D J B and R W Hopkins, and separate private companies in which they are involved bought goods totalling £92,909 (2022: £42,978) at normal commercial terms from the company during the year, and owed the company £73,579 (2022: £32,445) at the year end under normal trade terms.

The company bought goods and services during the year totalling £193,231 (2022: £105,255) at normal commercial terms from private companies in which the directors, D J B and R W Hopkins, are directors, and owes these private companies £nil (2022: £4,455) at the year end.

Hopwood Homes Ltd (a company in which David Hopkins is a director) owes £1,415,000 (2022: £889,000) to the company at the year end, repayable within one year. Hopwood Homes Ltd also bought goods totalling £545,590 (2022: £1,335,660) net at normal commercial terms from the company during the year and owed the company £116,146 (2022: £611,337) gross at the year end.

The company's small self administered pension scheme, The Hopkins Trust, received rent at full commercial value of £382,917 (2022: £329,250) from M Markovitz Ltd for property occupied by the company. There was £nil (2022: £65,575) outstanding at the year end. Hopkins Trust also bought goods totalling £475,042 (2022: £392,834) net at normal commercial terms from the company during the year and owed the company £75,372 (2022: £53,751) gross at the year end. The directors of the company are members of the scheme.

Securities provided by Related Parties
See note 17 above.

22. ULTIMATE CONTROLLING PARTY

There is no one ultimate controlling party.