SCOTTISH Leather Group has said it has started a Brexit risk register noting the significant impacts the United Kingdom’s departure from the European Union could have on the firm.
The Bridge of Weir-based company, which describes itself as the largest manufacturer of leather in the UK, includes Brexit in a list of the principal risks and uncertainties facing the business in its latest accounts.
In these the privately-owned group noted it broadly maintained turnover and profitability during the year to March 31 although it was operating in what directors described as a challenging business environment.
Scottish Leather Group made £8.4 million profit before tax on sales of £145.6m.
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.
The company noted it remains a significant exporter from Scotland.
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 fall in the value of the pound since the Brexit vote in 2016, which has put up the cost of imports in sterling terms.
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 countries will be maintained.
Directors said: “the group remains in an enviably strong position in terms of its balance sheet, liquidity, products and people”. It made £8.8m profit on £144.5m sales in the year to March 2017
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