Moulded Foams lands BGF funding to pump up growth plans

Moulded Foams, the Scottish registered foam products producer, is eyeing further expansion after securing a funding deal from BGF.

Paddy Graham, head of central Scotland and Northern Ireland for BGF, called Moulded Foams a 'success story'. Picture: Contributed
Paddy Graham, head of central Scotland and Northern Ireland for BGF, called Moulded Foams a 'success story'. Picture: Contributed

The firm, which describes itself as the UK’s largest independent manufacturer of moulded foam products, landed the financial boost from the growth investor, formerly known by its full name Business Growth Fund.

As part of the funding agreement, the details of which were not disclosed, Edinburgh-based BGF investor Euan Baxter will join the board of Moulded Foams.

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BGF, which has funds of £2.5 billion, typically provides long-term capital to UK businesses with revenues between £5 million and £100m in exchange for a minority, non-controlling stake.

Moulded Foams was founded in Cumbernauld and retains its presence in the North Lanarkshire town, with further bases in Peterhead, Lincolnshire and Blackwood in South Wales.

MD John Thornberry led a management buy-out of the business in 2006, which has boosted turnover from £2m to almost £20m during that time.

Thornberry said innovation has been key to the firm’s recent expansion. He said: “We have grown the business through innovation – we work closely with our customers to develop products that meet their needs.

“Having factories close to our customers’ sites allows us to maintain a high level of customer service whilst ensuring costs are managed.

“So far, we’ve expanded our operations through a mixture of organic growth and targeted acquisitions.

“With BGF’s investment and broad network, we hope to continue Moulded Foams’ growth trajectory.”

The business has played a key role in the success of Scotland’s salmon industry, according to BGF, as its 98 per cent air-based foams help to preserve energy and protect the longevity of goods for export and domestic markets.

Paddy Graham, head of central Scotland and Northern Ireland for BGF, said: “Not only is [Moulded Foams] a success story in its own right, it’s also a business that reflects and underpins the success of British exporting – more than 40 per cent of the foams it produces are used by other businesses to sell their wares overseas.

“The company has been a key part of the Scottish salmon industry’s growth, which saw exports to leap to a record £600m last year.”

Last year BGF invested £6.75m in Glasgow-based manufacturer Walker Precision Engineering.