Our client is a family-run business specialising in total waste management. Their operation has a significant export market that trades ferrous and non-ferrous metals throughout the world resulting in considerable US Dollar revenues.
With revenues in USD, any movements in the GBP/USD exchange rate have a direct impact on their profit margins. Although they have visibility on their USD revenues, the client is unsure of the exact timings of the dollar receipts.
We were able to provide them with competitive spreads when selling USD, but more importantly a hedging strategy that enabled them to protect their profit margins.
Instead of being reactive to the market and our clients needs, we suggested a hedging strategy that enabled them to lock in a favourable exchange rate for selling USD with the added flexibility to sell USD when it suited them.
Our experience and expertise in the market, along with our proactive approach, has not only protected their profit margins but also enhanced their average rate across the year and helped to maximise the GBP from their overseas clients. By delivering on what we have promised and maintaining transparency, Global Reach Partners have developed a successful business relationship with this client who has been trading for over two years.