The directors present the strategic report for the year ended 31 December 2024.
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 a dedicated showroom at Tideswell, as well as via our builders' and plumbers' merchants’ branches. In line with our growth strategy, we continue to grow sales within our existing Insulation and Drylining distribution division. Looking ahead, building plans are ongoing to relocate our Chesterfield insulation branch to a larger purpose built site with hopes for completion in 2026. We are actively exploring opportunities to relocate our Bedford and Ipswich depots to larger premises, with the aim of expanding capacity and driving increased turnover at these locations. As we continue to expand, 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
Sheffield
Civils Merchants
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
Outdoor Living Hub
Chesterfield
The Directors announce an increase in turnover of 7.4% to £135.2m in 2024 (2023: £125.9m). This growth has been achieved in the face of continued industry challenges stemming from economic uncertainty and the cost of living crisis. It underscores our commitment to strategic investment in our operations to drive sustained future growth. Key initiatives supporting this growth include the contribution from our new depot in Portsmouth which opened at the end of 2023 and has performed well in year one, and the growth of sales across the insulation division as we continue to develop this part of the business.
Gross margin declined in the year to 21.8% from 22.6% for 2023, reflecting the impact of a highly competitive market environment, particularly within the insulation division. In response, strategic negotiations to secure improved supplier rates, along with a focused initiative launched in early 2025, are underway to strengthen margin performance moving forward.
By the end of 2024, the company employed 10 fewer people compared to 2023, reflecting the successful implementation of operational efficiencies across the business. These improvements contributed to a higher sales revenue per employee of £345.8k (2023: £335.8k), demonstrating enhanced productivity, although part of this increase reflects general price movements..
|
| YEAR ENDED |
| YEAR ENDED |
|
|
|
|
|
Sales Growth |
| 7.4% |
| 16.1% |
Gross Margin |
| 21.8% |
| 22.6% |
Operating Margin |
| 1.0% |
| 2.5% |
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 382 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 of talent are fundamental to our long-term success. To support this, we have established programmes designed to provide colleagues with relevant and high-quality skill enhancement opportunities. Periodic communications from our two owning directors are shared at key moments, ensuring our people are kept well informed, whilst reinforcing their visible, approachable leadership style to ensure that our people always feel, personally, an integral part of the business. As a family owned company we are guided by a strong ethos of integrity and fairness, values which are consistently reflected by our leadership team and embedded across all levels of our 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 try and 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.
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. Throughout 2024, we advanced our waste management initiatives toward achieving our zero-landfill target. Concurrently, we collaborated with a leading assessor to complete our inaugural Environment Saving Opportunities Scheme (ESOS) report. This process significantly deepened our insights into critical Environmental, Social, and Governance (ESG) matters. Additionally, our continued partnership with H&B has strengthened efforts within our supply chain, focusing specifically on the role we play on eradicating modern slavery and ensuring future products align fully with our ESG commitments.
During the year, we expanded renewable energy capacity by installing solar panels at our main Chesterfield site, marking the second location powered by solar energy. We will closely monitor these installations to evaluate their impact on our carbon footprint, informing future decisions regarding broader deployment across additional company-owned properties.
SUPPLIER ENGAGEMENT
2024 presented considerable challenges in our sector, characterised by rising procurement costs and diminished demand, limiting our ability to fully transfer these price increases to 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 increased gross profits.
The company is primarily exposed to market fluctuations in the construction industry, which remains a key driver of demand of our products and services. In addition, we are mindful of potential risks arising from credit exposure, interest rate volatility, cyber security threats, fraud and liquidity constraints.
Our risk management framework is designed to proactively identify, assess, and mitigate these risks. The overarching objective is to minimise any potential adverse impacts on our operations, financial performance, and long-term profitability. We continue to strengthen our controls and resilience in response to an evolving risk landscape, ensuring the company remains well-positioned to navigate future challenges.
Market Risk
The business’s performance remains closely tied to the broader economic health of the house building and repairs, maintenance and improvement market (RMI). During the year, market uncertainty remained post general election, combined with pressures from the ongoing cost-of-living crisis, contributed to a sector-wide softening in demand.
These external challenges were felt most acutely in the third quarter, placing downward pressure on both turnover and profitability. However, strong trading performance during the first half of the year provided a solid foundation, enabling the business to conclude the year with an overall increase in sales.
Looking ahead, we remain focused on maintaining resilience and agility in response to market volatility, while continuing to capitalise on growth opportunities across our core sectors.
Credit Risk
Extending credit to customers is an integral part of our business model and enables us to support growth. However, this naturally exposes the company to the risk of potential bad debts. We mitigate this risk through a diversified customer base, with no undue reliance on any single client.
Our approach to credit risk management remains disciplined and proactive. We actively monitor the company’s debtor ledger, regularly review customer credit limits, and maintain appropriate credit insurance coverage to further reduce potential exposure. These measures ensure that the impact of any individual credit event is minimised, supporting the company's financial stability and resilience.
Interest Rate Risk
The company continues to utilise an invoice finance facility with the Royal Bank of Scotland, structured on a floating rate of interest and settled daily. Our strong balance sheet and longstanding relationship with the bank have enabled us to secure favorable terms that support the company’s financial flexibility.
This arrangement remains well-aligned with our business objectives, providing efficient working capital support for current operations and facilitating investment in medium-term growth initiatives. We remain committed to ongoing evaluation of our financial policies to ensure they continue to meet the needs of the business as it evolves and grows.
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.
We recognise the transformative potential of Artificial Intelligence (AI) and its growing impact on our operations and competitive positioning. We are actively exploring how AI can enhance efficiency across the business — particularly through the automation of routine administrative tasks — freeing our teams to focus on higher-value strategic initiatives. As AI capabilities continue to evolve, we are committed to leveraging these advancements to drive productivity gains, achieve cost efficiencies, and reinforce our competitive edge in the marketplace.
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.
|
|
|
|
|
Principal Activity Continued expansion of the business particularly pertaining to wider national geographical coverage of insulation & drylining depots
|
| Impact on Long Term Success In line with the company’s strategic objective to achieve national coverage within our Insulation and Dry-Lining division, the business opened a new depot in Portsmouth during the final quarter of 2023. The successful launch of this new facility has further strengthened the company’s reputation and presence within the sector, supporting both customer confidence and supplier relationships.
|
| Stakeholder Considerations Our ongoing expansion, has reinforced our commitment to sustainable long-term growth, providing employment opportunities locally and enhancing our service offering to customers nationwide. Whilst creating an environment where our people can continue to develop their careers and broaden their skills. This approach not only helps us to attract and retain talented individuals but also ensures that we continue to build a highly capable and motivated workforce to support the company's long-term success. |
Environmental Responsibility and Compliance (ESG and ESOS)
|
| As part of our wider ESG commitments, we place strong emphasis on energy efficiency and compliance with relevant regulatory frameworks. During the reporting period, the company completed its latest ESOS (Energy Savings Opportunity Scheme) audit, identifying further opportunities to improve energy efficiency across our operations. The actions identified will help us to reduce energy consumption and lower associated carbon emissions. These initiatives complement our broader environmental programme, which includes investment in solar energy, electrification of our vehicle fleet and plant, and optimisation of our logistics operations. Through these combined efforts, we aim to contribute to a more sustainable future while driving long-term value for our stakeholders..
|
| We recognise that our ESG commitments have a direct impact on a wide range of stakeholders. Regulators expect us to align our ESG strategy with current and emerging standards, while customers increasingly look to us to support their own sustainability objectives. Our approach also helps us to attract and retain talent, as employees value working for a responsible and forward-thinking business.
|
|
|
|
|
|
Challenge Derbyshire fund raising
|
| The company takes great pride in its role as founder of the Challenge Derbyshire charitable trust, which supports two leading end-of-life care organisations: Ashgate Hospicecare and Blythe House Hospice. Our active involvement in this initiative helps to deliver essential services to the local community and strengthens our relationships with key stakeholders. We have helped raised over £1.85 million to date — a milestone that reflects both our ongoing commitment to social responsibility and the strong engagement of our employees and business partners. We remain committed to supporting these vital services in the years ahead. |
| Our ongoing fundraising efforts through Challenge Derbyshire have a meaningful impact on the local communities we serve. The additional support made possible through these contributions enables the charity to extend vital care services to more individuals and families in need. Beyond financial support, our involvement helps to raise awareness of the hospice organisations’ work, encouraging broader community engagement and support. This not only strengthens our local presence but also reinforces our role as a socially responsible business committed to making a positive difference. |
Recruitment and Development
|
| We are committed to genuine career development, providing meaningful opportunities for employees and potential recruits that foster loyalty, engagement, and long-term retention. This, in turn, strengthens our organisational capability and supports sustainable growth. Our ongoing investment in people also delivers positive outcomes for local communities and institutions through employment opportunities and skills development. This year, we deepened our engagement with local education partners by collaborating with a nearby college and school to showcase the diverse career opportunities within our business. As part of this initiative, we welcomed four work experience students, for one week, offering them valuable insights into our operations — including time spent with company directors to provide a broader understanding of leadership and strategic decision-making. These efforts not only contribute to our long-term growth strategy but also enhance our profile as an employer. |
| Our approach to career development and community engagement directly supports the interests of key stakeholders. Employees and potential recruits benefit from meaningful development opportunities, which foster loyalty and support long-term retention. Local communities gain through employment and skills development initiatives, helping to build a stronger regional workforce. Educational institutions value our active collaboration and the practical opportunities we provide for students. Through these efforts, we contribute positively to local economic and social outcomes while supporting the company’s long-term success and reputation as a responsible and valued employer. |
FUTURE DEVELOPMENTS
In 2025, our primary objective is to continue 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 develop our 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
The directors present their annual report and financial statements for the year ended 31 December 2024.
The results for the year are set out on page 14.
Ordinary dividends were paid amounting to £370,000. The directors do not recommend payment of a final dividend.
No preference dividends were paid.
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Below is a brief outline of the methodology used to produce the various figures and identified opportunities for Markovitz.
This methodology provides standardised results allowing more effective benchmarking. Carbon emissions are measured as CO2e which includes secondary contributors such as transmission losses and other greenhouse gases rather than simply CO2.
Data was collected in respect of all energy usage from all the branches and passenger transport fuel.
We have followed the 2019 HM Government Environmental Reporting Guidelines. We have also used the GHG Reporting Protocol – Corporate Standard and have used the 2020 UK Government’s Conversion Factors for Company Reporting.
The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per £1M turnover.
In alignment with our long-term commitment to sustainability, we have made tangible progress across several key initiatives. Solar panels installed at our main Chesterfield branch are now generating consistent and satisfactory levels of renewable energy, contributing to our decarbonisation goals.
We are also accelerating the transition to a more environmentally responsible operational fleet. This year, we replaced 20 petrol-powered forklifts with electric models, with an additional 20 electric forklifts scheduled for delivery in 2025. To support this shift, we are expanding our charging infrastructure to ensure capacity meets growing demand from electric vehicles and plant.
Our Environmental, Social, and Governance (ESG) strategy continues to be a central pillar of our corporate agenda. It remains under active review and refinement to ensure alignment with evolving best practices and stakeholder expectations. We are making strong progress towards our long-term sustainability objectives, driven by the collective commitment and collaboration of our teams across the organisation.
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 UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
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.
We have audited the financial statements of M Markovitz Limited (the 'company') for the year ended 31 December 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including 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).
Basis for 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
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our 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.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
In identifying and assessing risks of material misstatements in respect of irregularities (including fraud) we considered the following:
The nature of the industry, the company’s control environment, the significant laws and regulations relevant to the company, and the company’s policies on detection of fraud;
Results of our enquiries of management and of those charged with governance;
Our review of disclosures included in the financial statements, and
Engagement team discussions in respect of any potential indicators of non-compliance or fraud.
We have also performed specific procedures to consider the risk of management override and of fraud arising in significant transactions outside the normal course of business.
We did not identify a material risk of non-compliance with laws and regulations or of fraud.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Use of our report
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
The profit and loss account has been prepared on the basis that all operations are continuing operations.
M Markovitz Limited is a private company limited by shares incorporated in England and Wales. The registered office is Commercial Road, Tideswell, Buxton, Derbyshire, SK17 8NY.
The financial statements are prepared in sterling, which is the functional currency of the company.
Goodwill, being the amount paid in connection with the acquisition of a business in 2001, has now been fully amortised.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
The average monthly number of persons (including directors) employed by the company during the year was:
Their aggregate remuneration comprised:
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
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.
Bank overdrafts of £7,102,115 at 31 December 2024 (2023 - £5,509,258) consists entirely of an invoice discounting facility provided by RBS Invoice Financing Limited.
RBS Invoice Financing Limited has a fixed and floating charge. The floating charge covers all the property or undertaking of the company.
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
Close family members of the key management personnel received £197,549 (2023: £188,333) remuneration from the company during the year.
The shareholders received dividends of £370,000 (2023: £420,000).
The directors, D J B and R W Hopkins, and separate private companies in which they are involved bought goods totaling £8,000 (2023: £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 totaling £88,869 (2023: £92,909) at normal commercial terms from the company during the year, and owed the company £121,130 (2023: £73,579) at the year end under normal trade terms.
The company bought goods and services during the year totaling £103,761 (2023: £193,231) 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 (2023 - £nil) at the year end.
Hopwood Homes Ltd (a company in which David Hopkins is a director) owes £1,485,000 (2023: £1,415,000) to the company at the year end, repayable within one year. Hopwood Homes Ltd also bought goods totaling £562,445 (2023: £545,590) net at normal commercial terms from the company during the year and owed the company £94,461 (2023: £116,146) gross at the year end.
Markovitz Group Holdings Ltd (the parent company) owes £2,249,500 (2023: £nil) to the company at the year end, repayable within one year.
The company's small self administered pension scheme, The Hopkins Trust, received rent at full commercial value of £415,208 (2023: £382,917) from M Markovitz Ltd for property occupied by the company. There was £58,600 (2023: £nil) gross, outstanding at the year end. Hopkins Trust also bought goods totaling £112,296 (2023: £475,042) net at normal commercial terms from the company during the year and owed the company £134,735 (2023: £75,372) gross at the year end. The directors of the company are members of the scheme.