Hi Ian,
I have industrial experience with that foam, and I would not recommend using it as you have indicated.
It is extremely toxic while it cures, which can take 14 days if the air is dry.
It will break down under temperatures of 60C, and behind the cladding of a shed that is easily reached.
It is a sensitiser, so while you may not have experienced any toxicity symptoms yet, you will eventually.
I have seen rats eat burrows into it for nesting.
Please read the MSDS here:
http://msds.orica.com/pdf/shess-en-cds- ... 010756.pdf
Shed suppliers can provide you with ember and vermin guards of suitable profile for your cladding which you might be able to retrofit.
Concrete against colorbond will accelerate rusting, if you take this path use a permanent membrane like forticon to keep moisture holding concrete away from the steel.
Hope this helps.