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REGISTERED NUMBER: SC311076 (Scotland)















Moulded Foams (Scotland) Ltd

Group Strategic Report, Report of the Directors and

Audited Consolidated Financial Statements for the Year Ended 31 December 2021






Moulded Foams (Scotland) Ltd (Registered number: SC311076)






Contents of the Consolidated Financial Statements
for the Year Ended 31 December 2021




Page

Company Information 1

Group Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 4

Consolidated Statement of Comprehensive Income 6

Consolidated Balance Sheet 7

Company Balance Sheet 8

Consolidated Statement of Changes in Equity 9

Company Statement of Changes in Equity 10

Consolidated Cash Flow Statement 11

Notes to the Consolidated Cash Flow Statement 12

Notes to the Consolidated Financial Statements 13


Moulded Foams (Scotland) Ltd

Company Information
for the Year Ended 31 December 2021







Directors: Mr J R Thornberry
Mr E J Baxter
Mr M Maher



Registered office: 1 Wardpark Road
Wardpark South
Glasgow
G67 3EX



Registered number: SC311076 (Scotland)



Auditors: Haines Watts Wales LLP, Statutory Auditors
7 Neptune Court
Vanguard Way
Cardiff
CF24 5PJ



Bankers: National Westminister
Ely Valley Road
Talbot Green
Pontyclun
CF72 8GL



Solicitors: ISW Legal
26 Netherpark Avenue
Glasgow
G44 3XW

Moulded Foams (Scotland) Ltd (Registered number: SC311076)

Group Strategic Report
for the Year Ended 31 December 2021

The directors present their strategic report of the company and the group for the year ended 31 December 2021.

Review of business
The company has continued its commitment to machinery replacing and research and development projects in 2021. Both projects will continue into 2022.

Profitability has remained consistent year on year with margins being maintained from new product ranges and savings made from efficiencies achieved across the sites.

The profit for the year, after taxation, amounted to £3,738,851 (2020: £3,576,908).


The company's key financial and other performance indicators during the year were as follow:

2021 2020 2019
Turnover £ 26,621,142 19,035,050 20,412,824
Gross Profit £ 8,965,979 7,884,123 8,422,976
EBITDA £ 5,183,993 5,067,300 5,380,393
Profit/(Loss) before Taxation £ 4,041.705 4,047,813 4,413,315

Principal risks and uncertainties
The company carries out a regular review of the risks to which it is exposed through a process of internal control as well as evaluation of external factors. In particular, the provision of a safe working environment for all employees and the control of manufacture of any food related products is of paramount importance.

Future developments
The group continues to be outward looking for further opportunities. The company continues to invest in fixed assets
to grow capacity and the existing business, with further research and development activities maturing in 2021.

Impact of covid-19
Covid-19 pandemic, Brexit and the current economic upturn have presented many challenges to the business in the past 12 months. All employees have made substantial efforts to maintain supplies through these difficulties whilst observing social restrictions. Business levels now exceed 2021 levels and management see the business well positioned to gain from market expansion.

On behalf of the board:





Mr J R Thornberry - Director


4 July 2022

Moulded Foams (Scotland) Ltd (Registered number: SC311076)

Report of the Directors
for the Year Ended 31 December 2021

The directors present their report with the financial statements of the company and the group for the year ended 31 December 2021.

Principal activity
The principal activity of the group in the year under review was that of the production of engineered foam products for the food, pharmaceutical, construction and leisure sectors.

Dividends
The total distribution of dividends to A Ordinary shareholders was £232,823 (2020; £251,054).

Directors
The directors shown below have held office during the whole of the period from 1 January 2021 to the date of this report.

Mr J R Thornberry
Mr E J Baxter

Other changes in directors holding office are as follows:

Mr M J Stansfield - resigned 31 January 2021
Mr M Maher - appointed 31 January 2021

Statement of directors' responsibilities
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 the group 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;
- 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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 group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

Auditors
The auditors, Haines Watts Wales LLP, Statutory Auditors, will be proposed for re-appointment at the forthcoming Annual General Meeting.

On behalf of the board:





Mr J R Thornberry - Director


4 July 2022

Report of the Independent Auditors to the Members of
Moulded Foams (Scotland) Ltd

Opinion
We have audited the financial statements of Moulded Foams (Scotland) Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2021 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated 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 group's and of the parent company affairs as at 31 December 2021 and of the group's 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 group 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 group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, 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 Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

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

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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
- the parent company 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.

Report of the Independent Auditors to the Members of
Moulded Foams (Scotland) Ltd


Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page three, 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 group's and the parent 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 group or the parent 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:

Our planning procedures identify the legal and regulatory frameworks applicable to the operations and financial statements of the company. These are reviewed internally with the audit team including relevant industry experience and expectations as well as externally with the client management. The key laws and regulations we considered in this context were the UK Companies Act 2006, UK GAAP (FRS 102) and relevant tax legislation.

Once identified, we assess the risks of material misstatements in relation to the laws and regulations, irregularities, including fraud and adjust our testing accordingly. Our audit procedures include:



o Discussing with those charged with governance and management which areas of the business they
believe to be more susceptible to fraud, and whether they have any knowledge or suspicion of fraudulent
activities

o Obtaining an understanding of the key controls put in place by the partnership to address risks identified,
assessing the effectiveness of those and discussing how these are maintained and monitored internally

o Assessing the risk of management override and review and testing of journal entries made into the
accounting system
o Challenging assumptions and judgements made by the company in relation to the significant accounting
estimates employed in the preparation of the financial statements

o Discussing with Directors and management the legal and regulatory obligations of the business and
whether they have any knowledge or suspicion of non-compliance.
Despite the audit being planned and conducted in accordance with ISAs (UK) there remains an unavoidable risk that material misstatements in the financial statements may not be detected owing to inherent limitations of the audit, and that by their very nature, any such instances of fraud or irregularities likely involve collusion, forgery, intentional misrepresentation, or the override of internal controls.

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.

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.




Stephen Lucey (Senior Statutory Auditor)
for and on behalf of Haines Watts Wales LLP, Statutory Auditors
7 Neptune Court
Vanguard Way
Cardiff
CF24 5PJ

11 July 2022

Moulded Foams (Scotland) Ltd (Registered number: SC311076)

Consolidated
Statement of Comprehensive
Income
for the Year Ended 31 December 2021

2021 2020
Notes £    £   

Turnover 26,621,142 19,035,050

Cost of sales (17,655,163 ) (11,150,927 )
Gross profit 8,965,979 7,884,123

Distribution costs (3,531,181 ) (2,907,097 )
Administrative expenses (1,399,057 ) (969,570 )
4,035,741 4,007,456

Other operating income - 17,063
Operating profit 4,035,741 4,024,519

Interest receivable and similar income 5,964 28,200
4,041,705 4,052,719

Interest payable and similar expenses 4 - (4,906 )
Profit before taxation 5 4,041,705 4,047,813

Tax on profit 6 (302,854 ) (470,905 )
Profit for the financial year 3,738,851 3,576,908

Other comprehensive income
Purchase of own shares - (1,342,995 )
Cancellation of shares - 8,189
Income tax relating to components of other
comprehensive income

-

-
Other comprehensive income for the year,
net of income tax

-

(1,334,806

)
Total comprehensive income for the year 3,738,851 2,242,102

Profit attributable to:
Owners of the parent 3,738,851 3,576,908

Total comprehensive income attributable to:
Owners of the parent 3,738,851 2,242,102

Moulded Foams (Scotland) Ltd (Registered number: SC311076)

Consolidated Balance Sheet
31 December 2021

2021 2020
Notes £    £   
Fixed assets
Intangible assets 9 (143,212 ) (168,966 )
Tangible assets 10 8,182,635 8,042,181
Investments 11 107,999 107,999
8,147,422 7,981,214

Current assets
Stocks 12 2,519,983 2,221,447
Debtors 13 6,253,794 3,756,023
Cash at bank 9,804,732 8,201,923
18,578,509 14,179,393
Creditors
Amounts falling due within one year 14 (3,321,953 ) (2,298,764 )
Net current assets 15,256,556 11,880,629
Total assets less current liabilities 23,403,978 19,861,843

Provisions for liabilities 17 (537,636 ) (501,528 )
Net assets 22,866,342 19,360,315

Capital and reserves
Called up share capital 18 99,188 99,188
Share premium 19 107,675 107,675
Revaluation reserve 19 368,633 368,633
Capital redemption reserve 19 97,203 97,203
Retained earnings 19 22,410,506 18,904,479
Shareholders' funds 23,083,205 19,577,178

Non-controlling interests (216,863 ) (216,863 )
Total equity 22,866,342 19,360,315

The financial statements were approved by the Board of Directors and authorised for issue on 4 July 2022 and were signed on its behalf by:





Mr J R Thornberry - Director


Moulded Foams (Scotland) Ltd (Registered number: SC311076)

Company Balance Sheet
31 December 2021

2021 2020
Notes £    £   
Fixed assets
Intangible assets 9 - -
Tangible assets 10 - -
Investments 11 1,236,999 1,236,999
1,236,999 1,236,999

Creditors
Amounts falling due within one year 14 - 9,195
Net current assets - 9,195
Total assets less current liabilities 1,236,999 1,246,194

Creditors
Amounts falling due after more than one
year

15

(932,933

)

(942,128

)
Net assets 304,066 304,066

Capital and reserves
Called up share capital 18 99,188 99,188
Share premium 19 107,675 107,675
Capital redemption reserve 19 97,203 97,203
Shareholders' funds 304,066 304,066

Company's profit for the financial year 232,823 1,594,020

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Board of Directors and authorised for issue on 4 July 2022 and were signed on its behalf by:





Mr J R Thornberry - Director


Moulded Foams (Scotland) Ltd (Registered number: SC311076)

Consolidated Statement of Changes in Equity
for the Year Ended 31 December 2021

Called up
share Retained Share Revaluation
capital earnings premium reserve
£    £    £    £   

Balance at 1 January 2020 107,377 16,921,590 107,675 368,633

Changes in equity
Issue of share capital (8,189 ) - - -
Dividends - (251,024 ) - -
Total comprehensive income - 2,233,913 - -
Balance at 31 December 2020 99,188 18,904,479 107,675 368,633

Changes in equity
Dividends - (232,824 ) - -
Total comprehensive income - 3,738,851 - -
Balance at 31 December 2021 99,188 22,410,506 107,675 368,633
Capital
redemption Non-controlling Total
reserve Total interests equity
£    £    £    £   

Balance at 1 January 2020 89,014 17,594,289 (216,863 ) 17,377,426

Changes in equity
Issue of share capital - (8,189 ) - (8,189 )
Dividends - (251,024 ) - (251,024 )
Total comprehensive income 8,189 2,242,102 - 2,242,102
Balance at 31 December 2020 97,203 19,577,178 (216,863 ) 19,360,315

Changes in equity
Dividends - (232,824 ) - (232,824 )
Total comprehensive income - 3,738,851 - 3,738,851
Balance at 31 December 2021 97,203 23,083,205 (216,863 ) 22,866,342

Moulded Foams (Scotland) Ltd (Registered number: SC311076)

Company Statement of Changes in Equity
for the Year Ended 31 December 2021

Called up Capital
share Retained Share redemption Total
capital earnings premium reserve equity
£    £    £    £    £   

Balance at 1 January 2020 107,377 - 107,675 89,014 304,066

Changes in equity
Issue of share capital (8,189 ) - - - (8,189 )
Dividends - (251,024 ) - - (251,024 )
Total comprehensive income - 251,024 - 8,189 259,213
Balance at 31 December 2020 99,188 - 107,675 97,203 304,066

Changes in equity
Dividends - (232,823 ) - - (232,823 )
Total comprehensive income - 232,823 - - 232,823
Balance at 31 December 2021 99,188 - 107,675 97,203 304,066

Moulded Foams (Scotland) Ltd (Registered number: SC311076)

Consolidated Cash Flow Statement
for the Year Ended 31 December 2021

2021 2020
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 3,463,088 4,501,301
Interest element of hire purchase payments
paid

-

(4,906

)
Tax paid (317,801 ) (263,124 )
Net cash from operating activities 3,145,287 4,233,271

Cash flows from investing activities
Purchase of intangible fixed assets - 88,965
Purchase of tangible fixed assets (1,319,944 ) (1,248,424 )
Sale of tangible fixed assets 32,300 3,532
Purchase tangible assets on acquisition - (373,854 )
Revaluation of goodwill (25,757 ) -
Interest received 5,964 28,200
Net cash from investing activities (1,307,437 ) (1,501,581 )

Cash flows from financing activities
Hire purchase (2,217 ) 2,217
Cancellation of shares - (8,189 )
Capital redemption reserve - 8,189
Purchase of own shares - (1,342,996 )
Equity dividends paid (232,824 ) (251,024 )
Net cash from financing activities (235,041 ) (1,591,803 )

Increase in cash and cash equivalents 1,602,809 1,139,887
Cash and cash equivalents at beginning
of year

2

8,201,923

7,062,036

Cash and cash equivalents at end of year 2 9,804,732 8,201,923

Moulded Foams (Scotland) Ltd (Registered number: SC311076)

Notes to the Consolidated Cash Flow Statement
for the Year Ended 31 December 2021

1. Reconciliation of profit before taxation to cash generated from operations
2021 2020
£    £   
Profit before taxation 4,041,705 4,047,813
Depreciation charges 1,148,252 1,047,064
(Profit)/loss on disposal of fixed assets (1,062 ) 3,502
Government grants - (17,063 )
Finance costs - 4,906
Finance income (5,964 ) (28,200 )
5,182,931 5,058,022
Increase in stocks (298,536 ) (462,500 )
Increase in trade and other debtors (2,497,772 ) (1,079,725 )
Increase in trade and other creditors 1,076,465 985,504
Cash generated from operations 3,463,088 4,501,301

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 2021
31.12.21 1.1.21
£    £   
Cash and cash equivalents 9,804,732 8,201,923
Year ended 31 December 2020
31.12.20 1.1.20
£    £   
Cash and cash equivalents 8,201,923 7,062,036


3. Analysis of changes in net funds

At 1.1.21 Cash flow At 31.12.21
£    £    £   
Net cash
Cash at bank 8,201,923 1,602,809 9,804,732
8,201,923 1,602,809 9,804,732
Debt
Finance leases (2,217 ) 2,217 -
(2,217 ) 2,217 -
Total 8,199,706 1,605,026 9,804,732

Moulded Foams (Scotland) Ltd (Registered number: SC311076)

Notes to the Consolidated Financial Statements
for the Year Ended 31 December 2021

1. Statutory information

Moulded Foams (Scotland) Ltd is a private company, limited by shares , registered in Scotland. The company's registered number and registered office address can be found on the General Information page.

2. Accounting policies

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

The financial statements have been prepared on a going concern basis. The Directors have reviewed and considered relevant information, including the annual budget and future cash flows in making their assessment. In particular, in response to the COVID-19 pandemic, the Directors have tested their cash flow analysis to take into account the impact on their business of possible scenarios brought on by the impact of COVID-19, alongside the measures that they can take to mitigate the impact. Based on these assessments, given the measures that could be undertaken to mitigate the current adverse conditions, and the current resources available, the Directors have concluded that they can continue to adopt the going concern basis in preparing the annual report and accounts.

Basis of consolidation
The group financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 31 December 2021. No profit and loss account is presented for the company as permitted by Section 408 of the Companies Act 2006.

Subsidiary undertakings are included using the acquisitions method of accounting. Under this method the group profit and loss account and statement of cashflows include the results and cashflows of subsidiaries from the date of acquisition and to the date of sale outside the group in the case of disposals of subsidiaries. The purchase consideration has been allocated to the assets and liabilities on the basis of fair value at the date of acquisition.

Turnover
Turnover represents amounts chargeable, net of value added tax, in respect of the sale of foam products to customers.

Goodwill
Goodwill is the difference between the fair value of consideration paid for an acquired entity and the aggregate of the fair value of that entity's identifiable assets and liabilities.

Positive goodwill is capitalised, classified as an asset on the balance sheet and amortised on a straight line
basis over its useful economic life of 10 years. It is reviewed for impairment at the end of the first full financial year following the acquisition and in other years if events or changes in circumstances indicate that the carrying value may not be recoverable.

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.

Development costs are being amortised evenly over their estimated useful life of nil years.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life.
Freehold property - 5% on cost
Plant and machinery - 2 to 10 years straight line
Fixtures and fittings - 1 to 3 years straight line
Motor vehicles - Straight line over 3 years

Depreciation is not applied to Freehold Land and Buildings as all assets within the class are carried at valuation in line with the requirements of Financial Reporting Standards.

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


Moulded Foams (Scotland) Ltd (Registered number: SC311076)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2021

2. Accounting policies - continued
Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated 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.

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.

Research and development
Expenditure on research and development is written off in the year in which it is incurred.


Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments
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 group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate.

3. Employees and directors
2021 2020
£    £   
Wages and salaries 4,493,635 4,099,460
Social security costs 301,271 266,743
Other pension costs 169,704 146,397
4,964,610 4,512,600

The average number of employees during the year was as follows:
2021 2020

Operational 121 115
Administration 33 33
154 148

2021 2020
£    £   
Directors' remuneration 106,332 89,862

Moulded Foams (Scotland) Ltd (Registered number: SC311076)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2021

4. Interest payable and similar expenses
2021 2020
£    £   
Hire purchase - 4,906

5. Profit before taxation

The profit is stated after charging/(crediting):

2021 2020
£    £   
Hire of plant and machinery 62,260 48,631
Depreciation - owned assets 1,148,252 1,056,515
(Profit)/loss on disposal of fixed assets (1,062 ) 3,502
Auditors' remuneration 9,735 7,902
Foreign exchange differences 22,660 28,117

6. Taxation

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2021 2020
£    £   
Current tax:
UK corporation tax 266,746 383,335

Deferred tax 36,108 87,570
Tax on profit 302,854 470,905

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

2021 2020
£    £   
Profit before tax 4,041,705 4,047,813
Profit multiplied by the standard rate of corporation tax in the UK of 19 %
(2020 - 19 %)

767,924

769,084

Effects of:
Expenses not deductible for tax purposes 758 5,956
Capital allowances in excess of depreciation (133,808 ) (77,552 )
Losses (10,237 ) -
Deferred tax 36,108 87,580
Enhanced R&D relief (339,057 ) (267,986 )
(Profit)/Loss on disposal of assets (202 ) 655
Patent box deduction (17,279 ) (22,458 )
Grants released to P & L - (3,242 )
Balancing allowance (1,353 ) -
Acquisition of subsidiary - (21,132 )
Total tax charge 302,854 470,905

Tax effects relating to effects of other comprehensive income

There were no tax effects for the year ended 31 December 2021.


Moulded Foams (Scotland) Ltd (Registered number: SC311076)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2021

6. Taxation - continued
2020
Gross Tax Net
£    £    £   
Purchase of own shares (1,342,995 ) - (1,342,995 )
Cancellation of shares 8,189 - 8,189
(1,334,806 ) - (1,334,806 )

7. Individual statement of comprehensive income

As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent company is not presented as part of these financial statements.


8. Dividends
2021 2020
£    £   
Ordinary A shares of £1.00 each
Interim 232,824 251,024

9. Intangible fixed assets

Group
Development
Goodwill costs Totals
£    £    £   
Cost
At 1 January 2021 (168,966 ) 97,990 (70,976 )
Revaluation 25,754 - 25,754
At 31 December 2021 (143,212 ) 97,990 (45,222 )
Amortisation
At 1 January 2021
and 31 December 2021 - 97,990 97,990
Net book value
At 31 December 2021 (143,212 ) - (143,212 )
At 31 December 2020 (168,966 ) - (168,966 )

Moulded Foams (Scotland) Ltd (Registered number: SC311076)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2021

10. Tangible fixed assets

Group
Fixtures
Freehold Plant and and
property machinery fittings
£    £    £   
Cost
At 1 January 2021 3,165,621 12,624,996 81,587
Additions - 1,259,411 23,055
Disposals - (4,500 ) -
Reclassification/transfer - - 6,623
At 31 December 2021 3,165,621 13,879,907 111,265
Depreciation
At 1 January 2021 (117,977 ) 7,935,269 60,752
Charge for year - 1,103,136 18,274
Eliminated on disposal - (4,500 ) -
Reclassification/transfer - - 5,218
At 31 December 2021 (117,977 ) 9,033,905 84,244
Net book value
At 31 December 2021 3,283,598 4,846,002 27,021
At 31 December 2020 3,283,598 4,689,727 20,835

Motor Computer
vehicles equipment Totals
£    £    £   
Cost
At 1 January 2021 81,981 6,623 15,960,808
Additions 37,478 - 1,319,944
Disposals (38,978 ) - (43,478 )
Reclassification/transfer - (6,623 ) -
At 31 December 2021 80,481 - 17,237,274
Depreciation
At 1 January 2021 35,365 5,218 7,918,627
Charge for year 26,842 - 1,148,252
Eliminated on disposal (7,740 ) - (12,240 )
Reclassification/transfer - (5,218 ) -
At 31 December 2021 54,467 - 9,054,639
Net book value
At 31 December 2021 26,014 - 8,182,635
At 31 December 2020 46,616 1,405 8,042,181

Moulded Foams (Scotland) Ltd (Registered number: SC311076)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2021

10. Tangible fixed assets - continued

Group

Reclassification/transfer

The stock and fixed assets of Polybox Limited were integrated into the balance sheet of Moulded Foams Limited from the 1 January 2021. Upon transfer, the directors have considered it appropriate to reallocate assets with a net book value of £1,405 from computer equipment to fixtures & fittings, as shown in the above table.

Revaluations

The Freehold Land and Buildings (Cumbernauld) was revalued on 3 April 2013 by Graham & Sibbald who are external to the company. The basis of this valuation was open market value. This class of asset has a current value of £760,000 (2020 - £760,000) and a carrying amount at historical cost of £371,424 (2020- £371,424). The cumulative depreciation that would be charged on this historical cost is £89,142 (2020 - £81,716).

The Freehold Land and Buildings (Blackwood) was revalued on 29 April 2013 by Alder King LLP who are external to the company. The basis of this valuation was open market value. This class of asset has a current value of £1,300,000 (2020 - £1,300,000) and a carrying amount at historical cost of £981,950 (2020- £981,950). The cumulative depreciation that would be charged on this historical cost is £196,390 (2020 - £176,751).

The Freehold Land and Buildings (Scunthorpe) was valued on 1 March 2015 by Howells who are external to the company. The basis of this valuation was open market value. This class of asset has a current value of £894,520 (2020 - £894,520). The cumulative depreciation that would be charged on this historical cost is £107,342 (2020 - £89,452).

Included within the transfer of assets from Polybox Limited to Moulded Foams Limited on 1 January 2021 is freehold property of £275,000, the valuation attributed to the Stornoway site at 31 December 2020.

11. Fixed asset investments

Group
Unlisted
investments
£   
Cost
At 1 January 2021
and 31 December 2021 107,999
Net book value
At 31 December 2021 107,999
At 31 December 2020 107,999
Company
Shares in
group Other
undertakings investments Totals
£    £    £   
Cost
At 1 January 2021
and 31 December 2021 1,129,000 107,999 1,236,999
Net book value
At 31 December 2021 1,129,000 107,999 1,236,999
At 31 December 2020 1,129,000 107,999 1,236,999

Moulded Foams (Scotland) Ltd (Registered number: SC311076)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2021

11. Fixed asset investments - continued

The group or the company's investments at the Balance Sheet date in the share capital of companies include the following:

Subsidiaries

Moulded Foams Limited
Registered office: 1 Wardpark Road, Wardpark South, Cumbernauld, Glasgow, G67 3EX
Nature of business: Manufacture of engineered foam.
%
Class of shares: holding
Ordinary class A 100.00
Ordinary class B 100.00
2021 2020
£    £   
Aggregate capital and reserves 23,674,820 20,175,845
Profit for the year 3,797,209 3,571,912

Peterhead Box Company Limited
Registered office: 1 Wardpark Road, Wardpark South, Cumbernauld, Glasgow, G67 3EX
Nature of business:
%
Class of shares: holding
Ordinary class A 100.00
Ordinary class B 100.00
2021 2020
£    £   
Aggregate capital and reserves 17,816 17,816

Polybox Limited
Registered office: 1 Wardpark Road, Wardpark South, Cumbernauld, North Lanarkshire, Scotland, G67 3EX
Nature of business: Manufacture of plastic packing goods
%
Class of shares: holding
Ordinary 100.00
2021 2020
£    £   
Aggregate capital and reserves 674,715 667,663
Profit for the year 7,052 104,326


12. Stocks

Group
2021 2020
£    £   
Stocks 2,519,983 2,221,447

13. Debtors: amounts falling due within one year

Group
2021 2020
£    £   
Trade debtors 6,102,258 3,551,062
Amounts owed by group undertakings - 1,505
Other debtors 151,536 199,074
Prepayments - 4,382
6,253,794 3,756,023

Moulded Foams (Scotland) Ltd (Registered number: SC311076)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2021

14. Creditors: amounts falling due within one year

Group Company
2021 2020 2021 2020
£    £    £    £   
Hire purchase contracts (see note 16) - 2,217 - -
Trade creditors 2,554,834 1,722,321 - -
Tax 146,040 197,095 - -
Social security and other taxes - 25,332 - -
VAT 229,395 88,027 - -
Other creditors - 56,366 - (9,195 )
Accrued expenses 391,684 207,406 - -
3,321,953 2,298,764 - (9,195 )

15. Creditors: amounts falling due after more than one year

Company
2021 2020
£    £   
Amounts owed to group undertakings 932,933 942,128

16. Leasing agreements

Minimum lease payments fall due as follows:

Group
Hire purchase contracts
2021 2020
£    £   
Net obligations repayable:
Within one year - 2,217

17. Provisions for liabilities

Group
2021 2020
£    £   
Deferred tax 537,636 501,528

Group
Deferred
tax
£   
Balance at 1 January 2021 501,528
Charge to Statement of Comprehensive Income during year 36,108
Balance at 31 December 2021 537,636

18. Called up share capital




Allotted, issued and fully paid:
Number: Class: Nominal 2021 2020
value: £    £   
13,897 Ordinary A £1.00 85,291 85,291
85,291 Ordinary Shares £1.00 13,897 13,897
99,188 99,188

Moulded Foams (Scotland) Ltd (Registered number: SC311076)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2021

18. Called up share capital - continued

Ordinary shares have equal voting rights and equal rights to dividends.

19. Reserves

Group
Capital
Retained Share Revaluation redemption
earnings premium reserve reserve Totals
£    £    £    £    £   

At 1 January 2021 18,904,479 107,675 368,633 97,203 19,477,990
Profit for the year 3,738,851 3,738,851
Dividends (232,824 ) (232,824 )
At 31 December 2021 22,410,506 107,675 368,633 97,203 22,984,017

Company
Capital
Retained Share redemption
earnings premium reserve Totals
£    £    £    £   

At 1 January 2021 - 107,675 97,203 204,878
Profit for the year 232,823 232,823
Dividends (232,823 ) (232,823 )
At 31 December 2021 - 107,675 97,203 204,878