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 |
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: |
Registered office: |
Registered number: |
Auditors: |
7 Neptune Court |
Vanguard Way |
Cardiff |
CF24 5PJ |
Bankers: | National Westminister |
Ely Valley Road |
Talbot Green |
Pontyclun |
CF72 8GL |
Solicitors: |
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: |
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. |
Other changes in directors holding office are as follows: |
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: |
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. |
for and on behalf of |
7 Neptune Court |
Vanguard Way |
Cardiff |
CF24 5PJ |
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 |
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 |
Creditors |
Amounts falling due within one year | 14 |
Net current assets |
Total assets less current liabilities |
Creditors |
Amounts falling due after more than one year |
15 |
( |
) |
( |
) |
Net assets |
Capital and reserves |
Called up share capital | 18 |
Share premium | 19 |
Capital redemption reserve | 19 |
Shareholders' funds |
Company's profit for the financial year | 232,823 | 1,594,020 |
The financial statements were approved by the Board of Directors and authorised for issue on |
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 |
Changes in equity |
Issue of share capital | ( |
) | - | - | ( |
) |
Dividends | - | ( |
) | - | - | ( |
) |
Total comprehensive income | - | - |
Balance at 31 December 2020 |
Changes in equity |
Dividends | - | ( |
) | - | - | ( |
) |
Total comprehensive income | - | - |
Balance at 31 December 2021 |
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 |
2. | Accounting policies |
Basis of preparing the financial statements |
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. |
Tangible fixed assets |
Freehold property | - |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
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 |
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 | 1,236,999 |
Net book value |
At 31 December 2021 | 1,236,999 |
At 31 December 2020 | 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 | ( |
) |
Accrued expenses | 391,684 | 207,406 |
3,321,953 | 2,298,764 | ( |
) |
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: | £ | £ |
Ordinary A | £1.00 | 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 | 204,878 |
Profit for the year |
Dividends | ( |
) | ( |
) |
At 31 December 2021 | 204,878 |