A Welsh exporter, whose unique product is in demand all over the world, is confident that business growth will not be slowed due to the continued political and economic uncertainty, as a result of establishing a robust foreign exchange strategy.
With currency markets having been so volatile Post-Referendum, GlassTech Recycling Ltd, like many British exporters, has been faced with immense uncertainty, making pricing exports difficult to manage.
However, by using forward contracts as part of a hedging strategy, GlassTech can budget and forecast each job with certainty and their profit margins are protected against any currency movements.
Brett Thomas, Head of Dealing at Godi, explains:
“Like all exporters, GlassTech faces a degree of foreign exchange exposure in the window between taking an order from abroad, manufacturing the goods and actually shipping them. That’s why a robust foreign exchange strategy is advisable to hedge against the risk of fluctuation.
“We suggested GlassTech use a time-option forward, which secures an exchange rate for a future date, but with the flexibility to draw down any value up to the settlement date. That gave them the ability to budget with certainty about the costs of shipping and the money coming in.”
Paul Langley, Managing Director of Godi, added:
“Unlike a bank, which deals with one transaction at a time, Godi consider its clients’ long-term interests. We also educate clients through taking the time to explain how foreign exchange works. GlassTech now has the confidence to price exports globally, secure in the knowledge there is a strategy available that will protect it from adverse currency fluctuations.”
Learn more about how GlassTech has managed their foreign exchange risk here.
“I know all there is to know about glass. But foreign exchange is a different matter. It’s completely alien to me. I would never take on the FX market – ever. I dread to think what decisions I would have made without Godi’s support!” – Karen John, Managing Director GlassTech Recycling
Protect your business against the risk of currency volatility.
At Godi we specialise in helping SMEs put in place the right currency hedging strategies while also reducing the costs and fees of FX transactions
Request a free review of your currency exposure
To help protect your business against the risk of currency volatility and take control of the costs of your international payments, take advantage of our complimentary foreign exchange review.
This review can help you better understand the effects of exchange rate fluctuations on your specific business operations.
The no-obligation currency strategy review includes:
- An assessment of your foreign exchange risk and cash flow.
- A price comparison versus your bank or current foreign exchange provider – this is a useful way to uncover the true cost of FX transactions and any additional & unnecessary fees charged.
- Recommendations and strategies to help to reduce your currency exposure.