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 2025

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

4

Consolidated Statement of Comprehensive Income

7

Consolidated Balance Sheet

8

Company Balance Sheet

9

Consolidated Statement of Changes in Equity

10

Company Statement of Changes in Equity

11

Consolidated Cash Flow Statement

12

Notes to the Consolidated Cash Flow Statement

13

Notes to the Consolidated Financial Statements

14

Directors:

Mr J R Thornberry

Mr M Maher

Registered office:

1 Wardpark Road

Wardpark South

Glasgow

G67 3EX

Registered number:

SC311076 (Scotland)

Auditors:

Menzies LLP, Statutory Auditors

5th Floor Hodge House

114-116 St Mary Street

Cardiff

CF10 1DY

Bankers:

National Westminister

Ely Valley Road

Talbot Green

Pontyclun

CF72 8GL

Solicitors:

ISW Legal

26 Netherpark Avenue

Glasgow

G44 3XW

The directors present their strategic report of the company and the group for the year ended 31 December 2025.

Review of business

A generally positive result for 2025 given the full effects of the closure of the Stornoway plant mid-2024. It's expected that the prior volume of this plant to be reinstated on mainland Scotland mid 2026 when the transition of processing is complete. Solar arrays are now complete, and this should size ably reduce the energy consumption of the company in 2026.

The customer base remains diverse and steady across many markets, with product development activities during the last 12 months expected to create benefits in 2026.

The Group's balance sheet remains robust, reflecting a strong cash position and prudent financial management throughout the year. The increase in assets is driven primarily by the investment in both new equipment and plant expansion projects to support new business and existing product growth.

The profit for the year, after taxation, amounted to £3,551,454 (2024: £8,045,941).

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

2025

2024

2023

Turnover

£

26,707,437

26,854,715

26,366,308

Gross Profit

£

11,867,692

12,310,503

11,545,375

EBITDAE

£

6,508,619

7,875,974

7,671,540

Profit/(Loss) before Taxation

£

4,557,232

5,904,195

5,922,386

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

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 2025.

On behalf of the board:

Mr J R Thornberry - Director

30 July 2026

The directors present their report with the financial statements of the company and the group for the year ended 31 December 2025.

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 £999,753 (2024: £999,753).

Directors

The directors shown below have held office during the whole of the period from 1 January 2025 to the date of this report.

Mr J R Thornberry

Mr M Maher

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, Menzies 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

30 July 2026

Qualified 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 2025 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, except for the effects of the matters described in the Basis of Qualified Opinion section of our report, 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 2025 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 qualified 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 Company 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 qualified opinion.

As explained in note 2, the financial statements include amounts recognised in respect of the Company's Enterprise Management Incentive ("EMI") share option scheme. However, the financial statements do not include the disclosures required by Section 26 Share-based Payment of FRS 102 relating to the share-based payment arrangement, including the valuation methodology used to determine the fair value of the options granted and the significant assumptions applied in that valuation. Consequently, the financial statements do not comply with FRS 102 and our opinion is qualified because the omission is material but not pervasive to the financial statements as a whole.

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.

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 Menzies LLP, Statutory Auditors

5th Floor Hodge House

114-116 St Mary Street

Cardiff

CF10 1DY

30 July 2026

Turnover

26,707,437

26,854,715

Cost of sales

(14,839,745

)

(14,544,212

)

Gross profit

11,867,692

12,310,503

Distribution costs

(4,620,046

)

(4,124,252

)

Administrative expenses

(3,075,279

)

(2,627,680

)

Operating profit

4,172,367

5,558,571

Interest receivable and similar income

407,107

345,624

4,579,474

5,904,195

Interest payable and similar expenses

4

(22,242

)

-

Profit before taxation

5

4,557,232

5,904,195

Tax on profit

6

(1,005,778

)

(1,464,658

)

Profit for the financial year

3,551,454

4,439,537

Other comprehensive income

-

3,606,404

Income tax relating to other comprehensive income

-

-

Other comprehensive income for the year, net of income tax

-

3,606,404

Total comprehensive income for the year

3,551,454

8,045,941

Profit attributable to:

Owners of the parent

3,551,454

4,439,537

Total comprehensive income attributable to:

Owners of the parent

3,551,454

8,045,941

Fixed assets

Intangible assets

9

-

-

Tangible assets

10

13,658,322

13,321,852

Investments

11

107,999

107,999

13,766,321

13,429,851

Current assets

Stocks

12

2,131,171

2,194,759

Debtors

13

4,813,672

4,564,008

Cash at bank

13,668,749

12,277,258

20,613,592

19,036,025

Creditors

Amounts falling due within one year

14

(1,720,024

)

(2,229,523

)

Net current assets

18,893,568

16,806,502

Total assets less current liabilities

32,659,889

30,236,353

Provisions for liabilities

16

(2,104,561

)

(1,366,607

)

Net assets

30,555,328

28,869,746

Capital and reserves

Called up share capital

17

86,935

86,935

Share premium

18

237,551

237,551

Revaluation reserve

18

2,985,601

3,975,037

Capital redemption reserve

18

111,100

111,100

Other reserves

18

123,316

-

Retained earnings

18

27,010,825

24,459,123

Shareholders' funds

30,555,328

28,869,746

The financial statements were approved by the Board of Directors and authorised for issue on 30 July 2026 and were signed on its behalf by:

Mr J R Thornberry - Director

Fixed assets

Intangible assets

9

-

-

Tangible assets

10

-

-

Investments

11

1,296,999

1,296,999

1,296,999

1,296,999

Total assets less current liabilities

1,296,999

1,296,999

Creditors

Amounts falling due after more than one year

15

(738,096

)

(861,412

)

Net assets

558,903

435,587

Capital and reserves

Called up share capital

17

86,935

86,935

Share premium

237,551

237,551

Capital redemption reserve

111,100

111,100

Other reserves

123,316

-

Retained earnings

1

1

Shareholders' funds

558,903

435,587

Company's profit for the financial year

999,753

999,754

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 30 July 2026 and were signed on its behalf by:

Mr J R Thornberry - Director

Called up

share

Retained

Share

Revaluation

capital

earnings

premium

reserve

£

£

£

£

Balance at 1 January 2024

85,291

21,013,701

107,675

368,633

Changes in equity

Issue of share capital

1,644

-

129,876

-

Dividends

-

(999,752

)

-

-

Total comprehensive income

-

4,445,174

-

3,606,404

Balance at 31 December 2024

86,935

24,459,123

237,551

3,975,037

Changes in equity

Dividends

-

(999,752

)

-

-

Total comprehensive income

-

3,551,454

-

(989,436

)

Balance at 31 December 2025

86,935

27,010,825

237,551

2,985,601

Capital

redemption

Other

Non-controlling

Total

reserve

reserves

Total

interests

equity

£

£

£

£

£

Balance at 1 January 2024

111,100

-

21,686,400

-

21,686,400

Changes in equity

Issue of share capital

-

-

131,520

-

131,520

Dividends

-

-

(999,752

)

-

(999,752

)

Total comprehensive income

-

-

8,051,578

-

8,051,578

Balance at 31 December 2024

111,100

-

28,869,746

-

28,869,746

Changes in equity

EMI scheme

-

123,316

123,316

-

123,316

Dividends

-

-

(999,752

)

-

(999,752

)

Total comprehensive income

-

-

2,562,018

-

2,562,018

Balance at 31 December 2025

111,100

123,316

30,555,328

-

30,555,328

Called up

share

Retained

Share

capital

earnings

premium

£

£

£

Balance at 1 January 2024

85,291

-

107,675

Changes in equity

Issue of share capital

1,644

-

129,876

Dividends

-

(999,753

)

-

Total comprehensive income

-

999,754

-

Balance at 31 December 2024

86,935

1

237,551

Changes in equity

Dividends

-

(999,753

)

-

Total comprehensive income

-

999,753

-

Balance at 31 December 2025

86,935

1

237,551

Capital

redemption

Other

Total

reserve

reserves

equity

£

£

£

Balance at 1 January 2024

111,100

-

304,066

Changes in equity

Issue of share capital

-

-

131,520

Dividends

-

-

(999,753

)

Total comprehensive income

-

-

999,754

Balance at 31 December 2024

111,100

-

435,587

Changes in equity

EMI scheme

-

123,316

123,316

Dividends

-

-

(999,753

)

Total comprehensive income

-

-

999,753

Balance at 31 December 2025

111,100

123,316

558,903

Cash flows from operating activities

Cash generated from operations

1

5,595,186

7,786,068

Interest paid

(22,242

)

-

Tax paid

(1,797,996

)

(1,507,557

)

Net cash from operating activities

3,774,948

6,278,511

Cash flows from investing activities

Purchase of tangible fixed assets

(2,102,738

)

(122,519

)

Sale of tangible fixed assets

188,610

(1,406,904

)

Interest received

407,107

345,624

Net cash from investing activities

(1,507,021

)

(1,183,799

)

Cash flows from financing activities

Share issue

-

1,644

Share Premium

-

129,876

Share based payments

123,316

-

Equity dividends paid

(999,752

)

(999,752

)

Net cash from financing activities

(876,436

)

(868,232

)

Increase in cash and cash equivalents

1,391,491

4,226,480

Cash and cash equivalents at beginning of year

2

12,277,258

8,050,778

Cash and cash equivalents at end of year

2

13,668,749

12,277,258

1.	Reconciliation of profit before taxation to cash generated from operations

2025

2024

£

£

Profit before taxation

4,557,232

5,904,195

Depreciation charges

1,595,408

1,219,065

Profit on disposal of fixed assets

(17,750

)

(6,800

)

Finance costs

22,242

-

Finance income

(407,107

)

(345,624

)

5,750,025

6,770,836

Decrease in stocks

63,588

684,641

(Increase)/decrease in trade and other debtors

(39,154

)

143,787

(Decrease)/increase in trade and other creditors

(179,273

)

186,804

Cash generated from operations

5,595,186

7,786,068

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 2025

31.12.25

1.1.25

£

£

Cash and cash equivalents

13,668,749

12,277,258

Year ended 31 December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

12,277,258

8,050,778

3.	Analysis of changes in net funds

At 1.1.25

Cash flow

At 31.12.25

£

£

£

Net cash

Cash at bank

12,277,258

1,391,491

13,668,749

12,277,258

1,391,491

13,668,749

Total

12,277,258

1,391,491

13,668,749

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 2024. 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.

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.