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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 2023






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






Contents of the Consolidated Financial Statements
for the Year Ended 31 December 2023




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 2023







Directors: Mr J R Thornberry
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 2023

The directors present their strategic report of the company and the group for the year ended 31 December 2023.

Review of business
The 2023 budget was achieved and the group benefited from previous years successful product development and the renewal of factory equipment.

2023 saw the successful installation of solar arrays in our key plants locations, with the objective of halving our power consumption. The customer base remains diverse, and we remain positive about the outlook for 2024.

The profit for the year, after taxation, amounted to £4,950,002 (2022: £3,083,270).

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

2023 2022 2021
Turnover £ 26,366,308 29,636,523 26,621,142
Gross Profit £ 11,545,375 9,706,996 8,965,979
EBITDAE £ 7,671,540 5,675,364 5,183,993
Profit/(Loss) before Taxation £ 5,922,386 3,875,044 4,041,705

EBITDAE relates to expenditure before; interest, tax, depreciation, amortisation and exceptional items. Exceptional items incurred in the year end 31 December 2023 and 31 December 2022.

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 2024.

On behalf of the board:





Mr J R Thornberry - Director


19 June 2024

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

Report of the Directors
for the Year Ended 31 December 2023

The directors present their report with the financial statements of the company and the group for the year ended 31 December 2023.

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 £250,000 (2022: £268,277).

Directors
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report.

Mr J R Thornberry
Mr M Maher

Other changes in directors holding office are as follows:

Mr E J Baxter - resigned 22 December 2023

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


19 June 2024

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 2023 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 2023 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:

- Discussing with Directors 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.
- Discussing with Directors and management the legal and regulatory obligations of the business and whether they
have any knowledge or suspicion of non-compliance.
- Obtaining an understanding of the key controls put in place by the company to address risks identified,
assessing the effectiveness of those and discussing how these are maintained and monitored internally.
- Assessing the risk of management override and review and testing of journal entries made into the accounting
system.
- Challenging assumptions and judgements made by the company in relation to the significant accounting
estimates employed in the preparation of the financial statements.

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.




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

5 July 2024

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

Consolidated
Statement of Comprehensive
Income
for the Year Ended 31 December 2023

2023 2022
Notes £    £   

Turnover 26,366,308 29,636,523

Cost of sales (14,820,933 ) (19,929,527 )
Gross profit 11,545,375 9,706,996

Distribution costs (4,013,388 ) (3,532,115 )
Administrative expenses (2,156,487 ) (2,337,609 )
Operating profit 5,375,500 3,837,272

Impairment of Goodwill 4 220,890 -
5,596,390 3,837,272

Interest receivable and similar income 325,996 40,297
5,922,386 3,877,569

Interest payable and similar expenses 5 - (2,525 )
Profit before taxation 6 5,922,386 3,875,044

Tax on profit 7 (972,383 ) (791,774 )
Profit for the financial year 4,950,003 3,083,270

Other comprehensive income - -
Total comprehensive income for the year 4,950,003 3,083,270

Profit attributable to:
Owners of the parent 4,950,003 3,083,270

Total comprehensive income attributable to:
Owners of the parent 4,733,140 3,083,270
Non-controlling interests 216,863 -
4,950,003 3,083,270

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

Consolidated Balance Sheet
31 December 2023

2023 2022
Notes £    £   
Fixed assets
Intangible assets 10 - (220,889 )
Tangible assets 11 9,398,289 8,059,168
Investments 12 107,999 107,999
9,506,288 7,946,278

Current assets
Stocks 13 2,879,400 2,607,270
Debtors 14 4,707,798 5,126,982
Cash at bank 8,050,778 13,964,750
15,637,976 21,699,002
Creditors
Amounts falling due within one year 15 (2,238,124 ) (3,009,030 )
Net current assets 13,399,852 18,689,972
Total assets less current liabilities 22,906,140 26,636,250

Provisions for liabilities 17 (1,219,740 ) (954,915 )
Net assets 21,686,400 25,681,335

Capital and reserves
Called up share capital 18 85,291 99,188
Share premium 19 107,675 107,675
Revaluation reserve 19 368,633 368,633
Capital redemption reserve 19 111,100 97,203
Retained earnings 19 21,013,701 25,225,499
Shareholders' funds 21,686,400 25,898,198

Non-controlling interests - (216,863 )
Total equity 21,686,400 25,681,335

The financial statements were approved by the Board of Directors and authorised for issue on 19 June 2024 and were signed on its behalf by:





Mr J R Thornberry - Director


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

Company Balance Sheet
31 December 2023

2023 2022
Notes £    £   
Fixed assets
Intangible assets 10 - -
Tangible assets 11 - -
Investments 12 1,296,999 1,296,999
1,296,999 1,296,999

Creditors
Amounts falling due within one year 15 (18,050 ) -
Net current liabilities (18,050 ) -
Total assets less current liabilities 1,278,949 1,296,999

Creditors
Amounts falling due after more than one
year

16

(974,883

)

(992,933

)
Net assets 304,066 304,066

Capital and reserves
Called up share capital 18 85,291 99,188
Share premium 19 107,675 107,675
Capital redemption reserve 19 111,100 97,203
Shareholders' funds 304,066 304,066

Company's profit for the financial year 8,944,936 268,277

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 19 June 2024 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 2023

Called up
share Retained Share Revaluation
capital earnings premium reserve
£    £    £    £   
Balance at 1 January 2022 99,188 22,410,506 107,675 368,633

Changes in equity
Dividends - (268,277 ) - -
Total comprehensive income - 3,083,270 - -
Balance at 31 December 2022 99,188 25,225,499 107,675 368,633

Changes in equity
Reduction in share capital (13,897 ) - - -
Dividends - (250,002 ) - -
Total comprehensive income - (3,961,796 ) - -
Balance at 31 December 2023 85,291 21,013,701 107,675 368,633
Capital
redemption Non-controlling Total
reserve Total interests equity
£    £    £    £   
Balance at 1 January 2022 97,203 23,083,205 (216,863 ) 22,866,342

Changes in equity
Dividends - (268,277 ) - (268,277 )
Total comprehensive income - 3,083,270 - 3,083,270
Balance at 31 December 2022 97,203 25,898,198 (216,863 ) 25,681,335

Changes in equity
Reduction in share capital - (13,897 ) - (13,897 )
Dividends - (250,002 ) - (250,002 )
Total comprehensive income 13,897 (3,947,899 ) 216,863 (3,731,036 )
Balance at 31 December 2023 111,100 21,686,400 - 21,686,400

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

Company Statement of Changes in Equity
for the Year Ended 31 December 2023

Called up Capital
share Retained Share redemption Total
capital earnings premium reserve equity
£    £    £    £    £   
Balance at 1 January 2022 99,188 - 107,675 97,203 304,066

Changes in equity
Dividends - (268,277 ) - - (268,277 )
Total comprehensive income - 268,277 - - 268,277
Balance at 31 December 2022 99,188 - 107,675 97,203 304,066

Changes in equity
Reduction in share capital (13,897 ) - - - (13,897 )
Dividends - (250,000 ) - - (250,000 )
Total comprehensive income - 250,000 - 13,897 263,897
Balance at 31 December 2023 85,291 - 107,675 111,100 304,066

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

Consolidated Cash Flow Statement
for the Year Ended 31 December 2023

2023 2022
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 5,789,149 5,697,671
Interest paid - (2,525 )
Tax paid (391,691 ) (316,408 )
Net cash from operating activities 5,397,458 5,378,738

Cash flows from investing activities
Purchase of intangible fixed assets - 77,677
Purchase of tangible fixed assets (2,479,565 ) (1,171,379 )
Sale of tangible fixed assets 7,962 195,288
Purchase tangible assets on acquisition - (92,326 )
Impairment of goodwill (220,885 ) -
Interest received 325,996 40,297
Net cash from investing activities (2,366,492 ) (950,443 )

Cash flows from financing activities
Purchase of own shares (8,694,936 ) -
Equity dividends paid (250,002 ) (268,277 )
Net cash from financing activities (8,944,938 ) (268,277 )

(Decrease)/increase in cash and cash equivalents (5,913,972 ) 4,160,018
Cash and cash equivalents at beginning
of year

2

13,964,750

9,804,732

Cash and cash equivalents at end of year 2 8,050,778 13,964,750

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

Notes to the Consolidated Cash Flow Statement
for the Year Ended 31 December 2023

1. Reconciliation of profit before taxation to cash generated from operations
2023 2022
£    £   
Profit before taxation 5,922,386 3,875,044
Depreciation charges 1,132,484 1,192,133
Profit on disposal of fixed assets - (250 )
Finance costs - 2,525
Finance income (325,996 ) (40,297 )
6,728,874 5,029,155
Increase in stocks (272,130 ) (87,287 )
Decrease in trade and other debtors 419,181 1,126,813
Decrease in trade and other creditors (1,086,776 ) (371,010 )
Cash generated from operations 5,789,149 5,697,671

2. Cash and cash equivalents

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2023
31.12.23 1.1.23
£    £   
Cash and cash equivalents 8,050,778 13,964,750
Year ended 31 December 2022
31.12.22 1.1.22
£    £   
Cash and cash equivalents 13,964,750 9,804,732


3. Analysis of changes in net funds

At 1.1.23 Cash flow At 31.12.23
£    £    £   
Net cash
Cash at bank 13,964,750 (5,913,972 ) 8,050,778
13,964,750 (5,913,972 ) 8,050,778
Total 13,964,750 (5,913,972 ) 8,050,778

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

Notes to the Consolidated Financial Statements
for the Year Ended 31 December 2023

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.

Basis of consolidation
The group financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 31 December 2023. 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 - 20% on reducing balance and 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.

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.


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

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023

2. Accounting policies - continued
Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

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
2023 2022
£    £   
Wages and salaries 4,622,971 4,565,866
Social security costs 374,990 438,132
Other pension costs 225,208 171,045
5,223,169 5,175,043

The average number of employees during the year was as follows:
2023 2022

Operational 140 113
Administration 12 39
152 152

The key management for the group is considered to be the directors.

2023 2022
£    £   
Directors' remuneration 125,561 114,180

4. Exceptional items
2023 2022
£    £   
Impairment of Goodwill 220,890 -

Goodwill has been written off due to an impairment review completed on a subsidiary.

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

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023

5. Interest payable and similar expenses
2023 2022
£    £   
Interest payable - 2,525

6. Profit before taxation

The profit is stated after charging/(crediting):

2023 2022
£    £   
Hire of plant and machinery 55,187 53,725
Depreciation - owned assets 1,132,483 1,192,132
Loss/(profit) on disposal of fixed assets 5,460 (250 )
Auditors' remuneration 11,683 9,735
Foreign exchange differences (10,409 ) 51,455

7. Taxation

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2023 2022
£    £   
Current tax:
UK corporation tax 707,558 391,691

Deferred tax 264,825 400,083
Tax on profit 972,383 791,774

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:

2023 2022
£    £   
Profit before tax 5,922,386 3,875,044
Profit multiplied by the standard rate of corporation tax in the UK of 25 %
(2022 - 19 %)

1,480,597

736,258

Effects of:
Expenses not deductible for tax purposes 37,521 47,805
Income not taxable for tax purposes - 7,187
Capital allowances in excess of depreciation (428,405 ) (82,437 )
Charges paid - (1,441 )
Deferred tax 264,825 400,082
Enhanced R&D relief (259,614 ) (301,152 )
(Profit)/Loss on disposal of assets 134,581 (48 )
Patent box deduction (24,178 ) (11,576 )
Group relief - 4,752
Loan write off (215,902 ) -
Deposit account Interest - (7,656 )
Change in tax rate (17,042 ) -

Total tax charge 972,383 791,774

8. 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.


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

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023

9. Dividends
2023 2022
£    £   
Ordinary shares of £1.00 each
Interim 250,002 268,277

10. Intangible fixed assets

Group
Development
Goodwill costs Totals
£    £    £   
Cost
At 1 January 2023 (220,889 ) 97,990 (122,899 )
Impairments 220,889 - 220,889
At 31 December 2023 - 97,990 97,990
Amortisation
At 1 January 2023
and 31 December 2023 - 97,990 97,990
Net book value
At 31 December 2023 - - -
At 31 December 2022 (220,889 ) - (220,889 )

11. Tangible fixed assets

Group
Fixtures
Freehold Plant and and Motor
property machinery fittings vehicles Totals
£    £    £    £    £   
Cost
At 1 January 2023 3,283,597 12,857,960 140,021 75,401 16,356,979
Additions - 2,340,718 106,626 32,221 2,479,565
Disposals - (291,060 ) (15,330 ) (23,398 ) (329,788 )
At 31 December 2023 3,283,597 14,907,618 231,317 84,224 18,506,756
Depreciation
At 1 January 2023 - 8,189,852 43,405 64,554 8,297,811
Charge for year - 1,055,240 58,341 18,902 1,132,483
Eliminated on disposal - (283,099 ) (15,330 ) (23,398 ) (321,827 )
At 31 December 2023 - 8,961,993 86,416 60,058 9,108,467
Net book value
At 31 December 2023 3,283,597 5,945,625 144,901 24,166 9,398,289
At 31 December 2022 3,283,597 4,668,108 96,616 10,847 8,059,168

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

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023

11. Tangible fixed assets - continued

Group

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 (2022 - £760,000) and a carrying amount at historical cost of £371,424 (2022- £371,424). The cumulative depreciation that would be charged on this historical cost is £95,570 (2022 - £89,142).

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 (2022 - £1,300,000) and a carrying amount at historical cost of £981,950 (2022- £981,950). The cumulative depreciation that would be charged on this historical cost is £216,029 (2022 - £196,930)..

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 (2022 - £894,520). The cumulative depreciation that would be charged on this historical cost is £125,233 (2022 - £107,342).

The Freehold Land and Buildings (Stornoway) was valued on 30 September 2020, the basis of this valuation was open market value. This class of asset has a current value of £275,000.

12. Fixed asset investments

Group
Unlisted
investments
£   
Cost
At 1 January 2023
and 31 December 2023 107,999
Net book value
At 31 December 2023 107,999
At 31 December 2022 107,999
Company
Shares in
group Other
undertakings investments Totals
£    £    £   
Cost
At 1 January 2023
and 31 December 2023 1,189,000 107,999 1,296,999
Net book value
At 31 December 2023 1,189,000 107,999 1,296,999
At 31 December 2022 1,189,000 107,999 1,296,999

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

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023

12. 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
2023 2022
£    £   
Aggregate capital and reserves 22,589,405 27,283,460
Profit for the year 5,230,085 4,164,175

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
2023 2022
£    £   
Aggregate capital and reserves (5,637 ) 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
2023 2022
£    £   
Aggregate capital and reserves (12,435 ) 672,842
Loss for the year - (1,873 )

Combined Thermal Solutions Limited
Registered office: 4 Hawtin Park, Gellihaf, Blackwood, Wales, NP12 2EU
Nature of business: Agents involved in the sale of materials
%
Class of shares: holding
Ordinary 100.00
2023 2022
£    £   
Aggregate capital and reserves - 137,677
Loss for the year - (10,952 )


13. Stocks

Group
2023 2022
£    £   
Stocks 2,879,400 2,607,270

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

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023

14. Debtors: amounts falling due within one year

Group
2023 2022
£    £   
Trade debtors 4,635,753 4,940,180
Other debtors 17,999 186,802
VAT 54,046 -
4,707,798 5,126,982

15. Creditors: amounts falling due within one year

Group Company
2023 2022 2023 2022
£    £    £    £   
Trade creditors 1,590,116 2,338,066 - -
Tax 519,993 204,126 - -
Other Taxes 27,946 91,513 - -
VAT - 57,778 - -
Other creditors - 1 - -
Accrued expenses 100,069 317,546 18,050 -
2,238,124 3,009,030 18,050 -

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

Company
2023 2022
£    £   
Amounts owed to group undertakings 974,883 992,933

17. Provisions for liabilities

Group
2023 2022
£    £   
Deferred tax 1,219,740 954,915

Group
Deferred
tax
£   
Balance at 1 January 2023 954,915
Provided during year 264,825
Balance at 31 December 2023 1,219,740

18. Called up share capital

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
85,291 Ordinary £1.00 85,291 85,291
13,897 Ordinary Shares A £1.00 - 13,897
85,291 99,188

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

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023

18. Called up share capital - continued

During the year 13,897 shares were repurchased by Moulded Foams (Scotland) Ltd and subsequently cancelled.

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 2023 25,225,499 107,675 368,633 97,203 25,799,010
Profit for the year 4,950,003 4,950,003
Dividends (250,002 ) (250,002 )
Purchase of own shares (8,694,936 ) - - 13,897 (8,681,039 )
Non Controlling Interest remov
al (216,863 ) - - - (216,863 )
At 31 December 2023 21,013,701 107,675 368,633 111,100 21,601,109

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

At 1 January 2023 - 107,675 97,203 204,878
Profit for the year 8,944,936 8,944,936
Dividends (250,000 ) (250,000 )
Purchase of own shares (8,694,936 ) - 13,897 (8,681,039 )
At 31 December 2023 - 107,675 111,100 218,775