Muirhead Leather wins British Airways deal

Muirhead Leather: 'Incredibly proud to be working with BA'. Picture: PA

The Glasgow-based company, which won its original contract from BA in 2008, will supply leather for 130 aircraft and is due to complete the work with contractor BE Aerospace by the end of the year.

BA manager Paul Taylor said: “We have been very impressed with the leather and the length of time it has lasted on a very busy fleet.”

Archie Browning, sales director at Muirhead Leather, added: “BA is a brand we are incredibly proud to be working with and to have been chosen by them once again.

“The initial leather used has been in continuous service for over ten years and we are certain the refurbishment will match that, or even last longer.”

Earlier this month, Muirhead sealed a “six-figure” deal to supply Singapore Airlines’ latest business-class cabins.

The firm said it is already the largest supplier of leather to the aviation industry, working with more than 130 airlines.

News of the latest deals came as accounts being filed at Companies House showed the Scottish Leather Group – the UK’s largest producer and the owner of Muirhead – posted a 20 per cent drop in turnover for the year to 31 March to £95 million.

The group said that the predicted fall in turnover came after major clients, including Ford, Jaguar and Land Rover, had launched cars in the previous 12 months, which always leads to a spike in revenues.

Operating profits at the group – which also lists Emirates, Hilton Hotels, Morgan Cars, Virgin and Vertu among its clients – plunged to £4.3m from £8.5m.

Chairman Jonathan Muirhead said: “Continuing global raw hide price rises and slower customer acceptance of the full extent of necessary price increases were the principal features influencing the year’s trading performance.

“With the economic woes in southern Europe impacting on sales volumes, particularly in the automotive sector, it was inevitable that pressure on margins would result in a lower operating profit.

“Despite this major difficulty, the company has won business with a number of high-profile, successful companies.”