The directors present the strategic report for the year ended 31 December 2025.
We aim to present a balanced and comprehensive review of the development and performance of our business during the year and its position at the year end. Our review is consistent with the 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 group are insulation and drylining distribution, and builders' and plumbers' merchanting. Additionally, we retail kitchens, bathrooms, and bedrooms 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, during Q1 2026 we have relocated our Bedford branch to a purpose built larger depot in Kempston, this follows the relocation of Ipswich to Colchester late in 2025 which also moved to larger premises. The aim of these relocations is to expand capacity and drive increased turnover at these locations. We continue to remain committed to preserving and nurturing our legacy business as general builders' and plumbers' merchants.
The group'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
Colchester
Bedford
Bridgwater
Gatwick
Wolverhampton
Portsmouth
Kitchen and Bathroom Showrooms
Tideswell
Chesterfield
Outdoor Living Hub
Chesterfield
The Directors announce an increase in turnover of 2.2% to £138.2m in 2025 (2024: £135.5m). This growth has been achieved in the face of the continued industry challenges stemming from economic uncertainty both within our home economy and more recently overseas, which has led to a drop in demand and a decrease in prices, both of which have affected our gross profit. However, our commitment to strategic investment in our operations to drive sustained long-term growth is unwavering. Key initiatives supporting this growth include the contribution from our depot in Portsmouth which opened at the end of 2023 and delivered £8.3m of sales in 2025, an increase of 41% on 2024.
Gross margin declined slightly from 21.8% in 2024 to 21.2% in 2025, reflecting the continued impact of a highly competitive market environment, particularly within the insulation division. Throughout 2025, we continued strategic negotiations with key suppliers to secure improved commercial terms, laying the foundations for stronger margin performance. These initiatives are beginning to deliver results, with an encouraging improvement in margins seen in the early months of 2026. In addition, the decision to close the Gatwick branch from June 2026 and transfer its operations to Portsmouth, Bedford and Colchester has already generated positive early outcomes, supporting both operational efficiency and future profitability.
Operating profit declined from 1.0% in 2024 to 0.5% in 2025, primarily reflecting the impact of increases in the National Minimum Wage and employer National Insurance contributions. These changes have added materially to the cumulative cost pressures arising from successive government-imposed employment cost increases over recent years. The effect is particularly pronounced for our business, where a significant proportion of the workforce is employed in lower-skilled roles. As a result, the business continues to face sustained margin pressure despite ongoing operational efficiencies.
By the end of 2025, the group employed five more people than in December 2024, reflecting continued investment in supporting business growth. Despite the increase in headcount, sales revenue per employee improved to £353.4k (2024: £345.8k), demonstrating enhanced productivity across the business. This improvement is particularly significant given the sharp decline in insulation prices during the year, which reduced overall revenue and created a challenging trading environment. The increase in revenue per employee highlights the effectiveness of our operational improvements and the resilience of the business despite adverse market conditions.
The following are the groups' key performance indicators:
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| YEAR ENDED |
| YEAR ENDED |
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Sales Growth |
| 2.2% |
| 7.4% |
Gross Margin |
| 21.2% |
| 21.8% |
Operating Margin |
| 0.5% |
| 1.0% |
Other standard accounting ratios and KPI’s can be extracted from the accounts.
EMPLOYEE ENGAGEMENT
Our people are our greatest asset and remain fundamental to the success of our business. We are committed to maintaining strong engagement with our workforce of 387 employees and foster a culture that values development, progression and long-term career opportunities. 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. Colleague retention is continually monitored and landmarks of long service are formally recognised and rewarded as part of our appreciation of their dedication. In addition, we are committed to creating a positive learning environment and maintain strong relationships with local further education institutions. Through our annual work experience program, we provide young people with practical skills, knowledge and workplace exposure to support their future career development. This initiative reflects our broader commitment to investing in emerging talent and making a positive contribution to the local community.
We provide access to a comprehensive Employee Assistance Programme (EAP), offering confidential well-being support and resources, including counselling, financial guidance and coaching services for employees and their families. This forms part of our ongoing commitment to supporting the health, well-being and resilience of our people.
Our two owner-directors maintain a visible and approachable leadership style that fosters a culture in which employees feel valued, respected and recognised as an integral part of the business. As a family-owned group, we are guided by a strong commitment to integrity, fairness and mutual respect. These values underpin our decision making, shape our leadership approach and are embedded throughout the organisation, contributing to high levels of employee engagement, loyalty and collaboration.
LESS ABLED EMPLOYEES
The group is committed to providing equal employment opportunities and fostering an inclusive workplace for disabled people and those with long-term health conditions. Recruitment decisions are based on skills, experience and the ability to perform the role, and where appropriate we seek to make reasonable adjustments to support candidates and employees.
Where employees experience a change in their health or capability during their employment, we work collaboratively with them to identify reasonable adjustments that enable them to remain in their existing role wherever practicable. Where this is not possible, we seek suitable alternative opportunities within the business and provide appropriate training and support to facilitate any transition. Although it may not always be possible to accommodate every individual circumstance, the group is committed to supporting affected employees through a collaborative and compassionate approach, including access to our Employee Assistance Programme (EAP) and other wellbeing resources where appropriate.
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 2025, we continued to advance our environmental sustainability objectives, maintaining our focus on waste management initiatives in support of our zero-landfill target. The relocation to new premises in Colchester, equipped with solar panels, increased the number of our sites benefiting from solar power to three.
We continue to monitor the performance of our renewable energy installations at Tideswell and Colchester, assessing their contribution to energy consumption, sustainability objectives and carbon reduction. The insights gained will help inform future investment decisions and the potential wider deployment of renewable energy solutions across additional group-owned properties.
SUPPLIER ENGAGEMENT
2025 was a challenging year for our sector, with declining prices and subdued market demand continuing to place pressure on margins. Despite these headwinds, our strong relationships with key suppliers, further strengthened through our membership of the H&B buying group, enabled us to increase sales volumes during the year. Underlying demand for our products remained resilient, leaving the business well positioned to benefit from any recovery in market pricing and demand as trading conditions improve.
The group 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 group 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). Demand remained subdued as high interest rates, ongoing affordability pressures and cautious levels of construction activity continued to impact the sector. These challenging market conditions, together with sustained pricing pressure, particularly within insulation, created a difficult trading environment throughout much of the year. Despite these headwinds, the business increased sales volumes and remains well positioned to benefit as market activity and pricing recover.
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 group 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 group's financial stability and resilience.
Interest Rate Risk
The group 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 group’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, 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 back-up 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 group undertakes regular cashflow forecasting to ensure that bank invoice finance facilities are sufficient to meet requirements, aided by our long-standing relation with the group bankers NatWest, who continue to be a strong partner to the business.
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Principal Activity Continued investment in the development of our national insulation & drylining distribution network
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| Impact on Long Term Success In support of the Group's long-term strategy to strengthen its market position within the insulation and dry-lining sector, we relocated our Bedford branch to larger, purpose-fit premises in Kempston. The new site provides increased operational capacity, improved accessibility and a stronger platform from which to serve customers across the region more effectively. Alongside this investment, our focus during the year has been on consolidating recent growth and maximising the performance of our existing branch network
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| Stakeholder Considerations By strengthening operational capability and continuing to invest in our people, we aim to enhance customer service, improve efficiency and support sustainable long-term growth. This approach also creates opportunities for employees to develop their skills and careers, helping us attract, retain and develop the talented workforce required to deliver our long-term strategic objectives. |
Environmental Responsibility and Compliance (ESG and ESOS)
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| During the year, the directors continued to oversee the Group's environmental responsibilities, with a focus on maintaining and embedding the initiatives implemented in recent years. Existing investments, including solar generation at our Chesterfield branch and the continued transition to electric forklifts, remain important elements of our approach to reducing environmental impact while improving operational efficiency. We also continued to review the Group's ESG priorities to ensure they remain appropriate for the business, proportionate to our operations and aligned with evolving regulatory requirements. By maintaining this long-term focus, the Group aims to enhance operational resilience, manage environmental risks and support sustainable value creation for customers, employees and stakeholders.
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| In considering environmental matters, the Directors took into account the interests of employees, customers, suppliers and the wider community. Continuing to embed our existing environmental initiatives supports a safer and more efficient working environment, helps meet the increasing expectations of customers and other stakeholders, and ensures the business remains well placed to respond to future regulatory and sustainability requirements. We recognise that environmental improvement is an ongoing process and remains committed to identifying practical opportunities to enhance the Group's environmental performance over time.
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Challenge Derbyshire fund raising
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| The group 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 £2 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
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| We remain committed to supporting the development of our employees by providing meaningful career opportunities that encourage engagement, loyalty and long-term retention. Investing in our people strengthens our organisational capability and helps ensure we have the skills and experience required to support the Group's long-term growth. During the year, we continued to build on our relationships with local schools and colleges, promoting the wide range of career opportunities available within the business. We also maintained our support for work experience placements, providing students with practical insight into our operations and the opportunity to gain a broader understanding of the business. |
| In considering employee development and recruitment initiatives, the Directors recognised the importance of investing in both existing colleagues and the future workforce. Continued engagement with employees supports career progression, skills development and employee retention, while collaboration with local schools and colleges helps raise awareness of career opportunities within the business and contributes to the development of future talent. We believe these activities benefit employees, local communities and educational partners, while ensuring the Group continues to attract, develop and retain the skilled workforce required to support its long-term strategic objectives and deliver value for customers. |
FUTURE DEVELOPMENTS
Looking ahead to 2026, the Group's priority is to build on its strong market position by maximising the performance of its existing branch network and driving operational excellence across the business. Particular focus will be placed on realising the full potential of our insulation and dry-lining centres, while continuing to strengthen our presence within the lintels market and further developing our builders' merchant branches in Sheffield and Chesterfield. Alongside these commercial objectives, the Group will continue to focus on improving operational efficiency, disciplined cost management and enhancing profitability. Through targeted investment, continuous improvement and a strong customer focus, we aim to increase margins, strengthen resilience and deliver sustainable long-term value for customers, employees and other stakeholders.
On behalf of the board
The directors present their annual report and financial statements for the year ended 31 December 2025.
The results for the year are set out on page 15.
Ordinary dividends were paid amounting to £120,000. The directors do not recommend payment of a further dividend.
No preference dividends were paid. The directors do not recommend payment of a final dividend.
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
The group's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.
Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the group's performance.
Below is a brief outline of the methodology used to produce the various figures and identified opportunities for Markovitz Group Holdings Limited.
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.
The group has followed the 2019 HM Government Environmental Reporting Guidelines. The group has also used the GHG Reporting Protocol – Corporate Standard and have used the 2025 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 line with our long-term commitment to sustainability, we continued to make meaningful progress across several key environmental initiatives during 2025. The solar panels installed at our main Chesterfield branch have continued to generate renewable electricity, contributing to reduced carbon emissions and lower energy costs.
During the year, we completed the replacement of a further 13 petrol-powered forklifts with electric models, bringing the total number of electric forklifts to 47. To support the continued electrification of our operations, we have expanded our charging infrastructure across the business, ensuring sufficient capacity to meet the growing demand from electric vehicles and materials handling equipment.
Our Environmental, Social and Governance (ESG) strategy remains an important part of our long-term business approach. During 2025, we continued to review our ESG priorities to ensure they remain appropriate for the business and aligned with evolving regulatory requirements and stakeholder expectations. We remain committed to integrating sustainable practices into our operations over the longer term and will continue to identify opportunities to improve our environmental and social performance where practical.
United Kingdom company law requires the directors to prepare financial statements for each financial year. Under that law, the directors have elected to prepare the group and parent company 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 group and parent company, and of the profit or loss of the group for that period.
In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable United Kingdom 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 group and parent company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and parent company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and parent 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 group and parent company, and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
We have audited the financial statements of Markovitz Group Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2025 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group 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 group's and parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
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 and group's control environment, the significant laws and regulations relevant to the company and group, and the company and group'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 parent 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 parent 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 parent company and the parent company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
As permitted by section 408 of the Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £73,608 (2024 - £370,000 profit).
Markovitz Group Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Commercial Road, Tideswell, Buxton, Derbyshire, SK17 8NY.
The group consists of Markovitz Group Holdings Limited and all of its subsidiaries.
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties at fair value. The principal accounting policies adopted are set out below.
The consolidated group financial statements consist of the financial statements of the parent company Markovitz Group Holdings Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 31 December 2025. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
At the time of approving the financial statements, the directors have a reasonable expectation that the group and parent company have adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
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 recognised in the profit and loss account.
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
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 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 group 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.
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 group 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 group.
The tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
In the application of the group’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 group and 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:
In addition to the amount charged to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:
Land and buildings with a historic cost of £3,204,407 and carrying amount of £2,665,593 were revalued at 2 October 2025 by an independent valuer not connected with the group on the basis of market value. The valuation conforms to International Valuation Standards and was based on recent market transactions on arm's length terms for similar properties.
The directors believe that the cost in the financial statements as at 31 December 2025 is not materially different to market value as at the balance sheet date.
Details of the company's subsidiaries at 31 December 2025 are as follows:
Registered office addresses (all UK unless otherwise indicated):
Other creditors for the company comprise solely of intra-group balances which have been eliminated on consolidation.
Bank overdrafts of £11,174,438 (2024 - £7,102,115) at 31 December 2025 consists entirely of an invoice discounting facility provided by RBS Invoice Financing Limited.
RBS Invoice Financing Limited has a fixed and floating charge over the assets of the group. The floating charge covers all of the property or undertaking of M Markovitz Limited, subsidiary company.
The bank loan is secured by first legal charges over the freehold properties held across the Group and by a debenture granted by the Group companies. The loan is also guaranteed by M Markovitz Limited, a subsidiary undertaking, up to an amount equal to the loan principal.
The following are the major deferred tax liabilities and assets recognised by the group and company:
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
The preference shares in issue are entitled to a fixed cumulative dividend at a rate of 7% per annum. The preference shares do not carry any voting rights and are only redeemable on a return of capital or winding up of the company. The preference shareholder has no rights to redemption.
At the reporting end date the group 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 £189,381 (2024: £197,549) remuneration from the group during the year. Dividends of £120,000 (2024: £320,000) were paid up to the shareholders in the year.
Hopwood Homes Ltd, a Company connected with D J B Hopkins, director, purchased goods totaling £990,504 (2024: £562,445), from the group on normal commercial terms, with a year-end trade balance owing of £33,941 (2024: £94,461).
Other private companies connected with the directors, D J B and R W Hopkins, purchased goods from the group totaling £136,197 (2024: £88,869) on normal commercial terms and owed the group £169,983 (2024: £103,959) at the year end.
The group purchased goods and services from these companies totaling £26,409 (2024: £103,761) on normal commercial terms. Rental income from these companies in respect of property occupied by the group amounted to £nil (2024: £8,000) and sponsorship costs paid out to connected companies in the year, totaled £63,000 (2024: £49,070). Amounts owed to these companies as at the year-end totaled £4,141 (2024: £nil).
At the year end, the following balances were owed to the group by companies connected with D J B Hopkins; Hopwood Homes Ltd £757,000 (2024: £1,485,000), Richard Lane Holdings Limited £900,000 (2024: £nil) and The Merchant's Yard Ltd £86,000 (2024: £5,000).
The group's small self administered pension scheme, The Hopkins Trust, received rent at full commercial value of £453,250 (2024: £415,208) from M Markovitz Ltd for property occupied by the company. There was no balance outstanding at the year end (2024: £58,600). The Hopkins Trust also purchased goods totaling £285,636 (2024: £112,296) on normal commercial terms and owed the group £119,587 (2024: £134,735) at the year end. The directors of the group are members of the scheme.