REGISTERED NUMBER: |
Strategic Report, Directors' Report and |
Financial Statements for the Year Ended 31 December 2023 |
for |
M Markovitz Limited |
REGISTERED NUMBER: |
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: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants |
Statutory Auditor |
Hazlemere |
70 Chorley New Road |
Bolton |
Lancashire |
BL1 4BY |
BANKERS: |
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: |
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 £ |
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 |
- | - |
1,000 | 1,000 |
1,000 | 1,000 |
Preference shares of £1 each |
- | - |
299,000 | 299,000 |
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: |
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. |
for and on behalf of |
Chartered Accountants |
Statutory Auditor |
Hazlemere |
70 Chorley New Road |
Bolton |
Lancashire |
BL1 4BY |
M Markovitz Limited (Registered number: 00627513) |
Statement of Comprehensive |
Income |
for the Year Ended 31 December 2023 |
2023 | 2022 |
Notes | £ | £ |
TURNOVER |
Other operating income |
125,960,329 | 108,521,813 |
Raw materials and consumables | ( |
) | ( |
) |
28,544,078 | 23,653,084 |
Staff costs | 3 | ( |
) | ( |
) |
Depreciation | ( |
) | ( |
) |
Other operating expenses | ( |
) | ( |
) |
OPERATING PROFIT | 4 |
Interest payable and similar expenses | 5 | ( |
) | ( |
) |
PROFIT BEFORE TAXATION |
Tax on profit | 6 | ( |
) | ( |
) |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
M Markovitz Limited (Registered number: 00627513) |
Balance Sheet |
31 December 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 8 |
Tangible assets | 9 |
Investments | 10 |
CURRENT ASSETS |
Stocks | 11 |
Debtors | 12 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 13 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
14 |
( |
) |
PROVISIONS FOR LIABILITIES | 18 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 19 |
Retained earnings | 20 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
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 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 December 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 December 2023 |
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 |
Interest paid | ( |
) | ( |
) |
Tax paid | ( |
) | ( |
) |
Net cash from operating activities |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Sale of tangible fixed assets |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
Loans - capital repayments | ( |
) | ( |
) |
HP contracts - capital repayments | ( |
) |
Equity dividends paid | ( |
) | ( |
) |
Net cash from financing activities | ( |
) | ( |
) |
Decrease in cash and cash equivalents | ( |
) | ( |
) |
Cash and cash equivalents at beginning of year |
2 |
(2,798,112 |
) |
(1,238,424 |
) |
Cash and cash equivalents at end of year |
2 |
( |
) |
( |
) |
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 |
Depreciation charges |
(Profit)/loss on disposal of fixed assets | ( |
) |
Finance costs | 309,329 | 175,587 |
4,077,815 | 3,600,179 |
Increase in stocks | ( |
) | ( |
) |
Increase in trade and other debtors | ( |
) | ( |
) |
Increase in trade and other creditors |
Cash generated from operations |
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 | ( |
) | ( |
) |
(5,419,124 | ) | (2,798,112 | ) |
Year ended 31 December 2022 |
31.12.22 | 1.1.22 |
£ | £ |
Cash and cash equivalents | 44,989 | 72,977 |
Bank overdrafts | ( |
) | ( |
) |
(2,798,112 | ) | (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 | ) | ( |
) | (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 |
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. |
Tangible fixed assets |
Freehold property | - |
Improvements to property | - |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Computer equipment | - |
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 |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2023 | 2022 |
Distribution | 335 | 299 |
Administration | 40 | 34 |
The directors are the only key management personnel and their remuneration is disclosed below. |
2023 | 2022 |
£ | £ |
Directors' remuneration |
4. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2023 | 2022 |
£ | £ |
Depreciation - owned assets |
Depreciation - assets on hire purchase contracts |
(Profit)/loss on disposal of fixed assets | ( |
) |
Computer software amortisation |
Auditors' remuneration |
Operating lease payments |
Pension contributions |
Cost of stock recognised as an expense |
5. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Bank interest |
Loan interest |
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 |
Deferred tax |
Tax on profit |
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 |
Profit multiplied by the standard rate of corporation tax in the UK of |
Effects of: |
Expenses not deductible for tax purposes |
Capital allowances in excess of depreciation | ( |
) | - |
Depreciation in excess of capital allowances | - |
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 |
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 |
AMORTISATION |
At 1 January 2023 |
Amortisation for year |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
9. | TANGIBLE FIXED ASSETS |
Improvements |
Freehold | Short | to | Plant and |
property | leasehold | property | machinery |
£ | £ | £ | £ |
COST |
At 1 January 2023 |
Additions |
Disposals | ( |
) | ( |
) |
At 31 December 2023 |
DEPRECIATION |
At 1 January 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
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 |
Additions |
Disposals | ( |
) | ( |
) | ( |
) |
At 31 December 2023 |
DEPRECIATION |
At 1 January 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) | ( |
) |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
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 |
Reclassification/transfer | ( |
) | ( |
) | ( |
) |
At 31 December 2023 |
DEPRECIATION |
At 1 January 2023 |
Reclassification/transfer | ( |
) | ( |
) | ( |
) |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
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 |
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 |
Other debtors |
Prepayments and accrued income |
13. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Bank loans, overdrafts and invoice discounting advance (see note 15) |
Hire purchase contracts (see note 16) |
Trade creditors |
Tax |
Social security and other taxes |
Other creditors |
Accrued expenses |
14. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2023 | 2022 |
£ | £ |
Bank loans (see note 15) |
Hire purchase contracts (see note 16) |
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 |
Bank loans |
Amounts falling due between one and two years: |
Bank loans - 1-2 years |
Amounts falling due between two and five years: |
Bank loans - 2-5 years |
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 |
Between one and five years |
Non-cancellable | operating leases |
2023 | 2022 |
£ | £ |
Within one year |
Between one and five years |
In more than five years |
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 |
Bank loans |
Hire purchase contracts | - | 294,237 |
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 |
Charge to Statement of Comprehensive Income during year |
Balance at 31 December 2023 |
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: | £ | £ |
Ordinary | £1 | 2,000 | 2,000 |
Allotted and issued: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
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 |
Profit for the year |
Dividends | ( |
) |
At 31 December 2023 |
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. |