The Bridge of Weir-based company, and self-professed largest manufacturer of leather in the UK, has included Britain’s exit from the EU in a list of the principal risks and uncertainties facing the business in its latest accounts.
The privately-owned group made it known it has broadly maintained turnover and profitability during the year to 31 March, even though it was operating in what company directors described as a ‘challenging business environment’.
The group supplies leather used by firms involved in the production of passenger jets and cars. Its operations include Bridge of Weir Leather Company and Glasgow-based Andrew Muirhead.
In Scottish Leather Group’s accounts directors said: “The group maintains a dedicated risk register documenting the significant impacts that may result from the final shape of the United Kingdom’s exit from the European Union.”
Exporters have benefited from the drop in the value of the pound since 2016’s Brexit vote, which has put up the cost in sterling of imports.
The value of the pound has moved in response to developments in the long preparations for the UK’s expected departure from the EU in March 2019.
Importers and exporters alike are waiting to see whether the tariff free movement of goods and services between the UK and EU member countries will be retained.
Directors said: “the group remains in an enviably strong position in terms of its balance sheet, liquidity, products and people”. It made £8.8 million profit on £144.5 million sales in the year to March 2017.