UK importer of access lifts
Specialist importer of lifts from Scandinavia.
The challenge for this business was to protect their budget level between the point of sale and the time they had to settle for goods with their Scandinavian supplier. The British Pound (GBP)/Swedish Krona (SEK) rate regularly fluctuated above and below the budget level of the business. This often had a negative impact on their net income and their profit margin was affected when the rate for SEK costed more than they had expected.
The client needed a foreign currency strategy that would protect them from these market movements whilst still keeping them competitive in the market place.
Global Reach Partners developed a Forward strategy for the client which allowed them to fix a GBP/SEK rate for a specific order. Stephen was able to fix a rate on the day his order was agreed with his Scandinavian supplier and therefore his costs were locked in and his profit protected.
This soon extended to purchasing larger volumes of currency when the rate was above budget level and doing so for an even longer period of time. As a result, the company’s budget levels were protected for orders he received later in the year. This also meant that any future movements in the exchange rate would not affect the pricing or profit margins of the company and they could then offer consistency to their customers while guaranteeing profitability.
A personal service
While he is often on the road travelling on business, Stephen has direct access to his Commercial dealers and is able to make decisions based on the market information we provide him with. The personal service from Global Reach Partners allows him to make an instant decision while on the move.
As a result of working with Global Reach Partners, Stephen was happy to have achieved a “break-even” on what had previously been a loss-making foreign exchange requirement. He is currently working with his Commercial dealers to turn this break-even into profit.