SCOTTISH Leather Group has achieved a rise in annual pre-tax profits from £7.75 million to £8.79m on the back of a jump in turnover, with its workforce showing significant growth.

Bridge of Weir-based Scottish Leather Group, which names luxury car marque Aston Martin, airline Emirates, the Houses of Parliament, automotive group Volvo, and British Airways among current and past customers, posted turnover of £144.5m for the year to March 31. This was up 12 per cent from £128.6m in the prior 12 months, accounts at Companies House show.

The directors of the leather manufacturer, in their strategic report, say overall profitability benefited from increased turnover, and was “achieved at margin levels comparable with the previous year”.

They add: “Despite the challenging business environment over the past 12 months, the group remains in an enviably strong position in terms of its balance sheet, its products and its people.”

Equity shareholders’ funds were nearly £53m at March 31, up from £51.4m a year earlier.

The average number of people employed by Scottish Leather Group during the year to March 31 was 646, up from 599 in the prior 12 months. Production staff numbers averaged 556 in the 12 months to March, up from 507 in the prior financial year.

Sales per employee rose to around £224,000 in the 12 months to March 31, from about £215,000 in the prior financial year.

Scottish Leather Group’s operating profit rose from £8.06m to £8.996m. Operating profit per employee was around £13,900 in the year to March 31, up from about £13,500 in the prior 12 months.

Directors’ emoluments totalled £1.31m in the 12 months to March 31, up from £1.175m in the previous financial year.

The remuneration of the highest-paid director, including amounts receivable under long-term incentive schemes, was £329,137 in the year to March 31. In the prior 12 months, the highest-paid director received £187,582.

Scottish Leather Group made a return on capital of 16.6 per cent in the year to March. This was up from the 15.1 per cent recorded in the prior 12 months.

The directors say: “Work continued to improve operational efficiency and to ensure that focus is retained on adding value to our raw material. Despite significant investment in buildings, plant and equipment during the year, the group’s cash position remained strong.”