Imagro UK - Case Study

In the plastics and rubber industry even the smallest margin can have an enormous knock-on effect on all areas of the business. This makes it vitally important to have an effective currency strategy in place in order to limit loss and allow focus to remain on maximising profit.

Imagro UK formed back in 2009 following the acquisition of LG International UK’s polymer division. As they specialise in importing polymers from the Far East and from across Europe, each month they need to transfer large sums of US dollars, sterling and euro to pay their various suppliers and offices around the globe. Only a few short years after inception, Imagro UK had established themselves as a major partner for the sales of LG Chemicals and a number of leading polymer producers. With this success came the need to implement an effective currency transfer strategy and that’s where Smart Currency Business could help.

Managing Director, Matthew Sydenham revealed how Imagro UK came to enlist Smart’s services: “We weren’t getting great rates from any of the three or four banks that we were using back then and they were never able to tell us when our contracts would be finalised. This meant that it was a case of placing an order for a currency exchange and then sitting around, twiddling our thumbs and waiting with baited breath to discover what rate we had been lumped with when they finally got around to dealing with it. That just wasn’t going to work for us so after I was recommended Smart by a contact; we got in touch and have been working with them for almost a year now”.

You might wonder how exactly Smart can help with the tight margins experienced throughout the supply manufacturing industry. Matthew continued: “We need to make sure that we’re constantly focused on limiting our losses. We do this by setting a target exchange rate for each month that we would like to achieve. If we have time, Alex Bennett, Head of Sales, will lock in the rate with a Forward Contract or he will watch the rate until it reaches a satisfactory level that we are happy to trade at”.

Matthew elaborated on Alex’s personal service: “Alex calls us regularly with interesting ideas about how he can help us further and how we can improve the ways that we operate. It’s good having someone like that working to help you. The proactive relationship management that we enjoy from Smart is refreshing when you are used to encountering FX companies who are all about getting your business but who have no interest in dealing with you in the professional, efficient and accessible way that the Smart team do”.

Managing your foreign currency exposure effectively is a vital requirement of any business that deals internationally. For more information, get in touch with the team at Smart Currency Business on 0207 898 0500.

For more information on Smart Currency Business call: 0845 638 0571 (or +44 (0)207 898 0541 from outside the UK) or visit our website at: SmartCurrencyBusiness.com

Robust currency strategy a ‘must have’ for businesses wanting to protect their international trade

The Chancellor of the Exchequer, George Osborne has set a target of one trillion – or one thousand billion – for the value of UK exports by 2020. Some might say this is an overly ambitious target, especially as recent figures showed that UK exports actually fell for June amid ongoing global uncertainty.

However, while the Chancellor’s target may well have been set with headline writers in mind, I also happen to think that putting exports at the heart of economic strategy and raising the profile of exporting generally sends out exactly the right signal to UK companies right now. In an era of globalisation, countries that have buoyant exports sectors are better placed to improve living standards as a whole – just ask Germany, the world's third largest exporter with $1.408 trillion exported in 2011.

In many industries in the UK, where local markets are becoming increasingly saturated and demand is – in many cases - contracting, having an international arm is now a necessity.

The only note of caution I would sound with regards to exporting is the issue of foreign exchange. As currencies around the world continue to fluctuate significantly, a robust currency strategy is becoming a ‘must have’ for those of you engaged in international trade. The likes of the Indian rupee, the US dollar, the euro and UK sterling are all seeing ongoing volatility as authorities around the world continue to scratch their heads about the issue of debt. Implementing a currency strategy can negate the currency fluctuation risks for companies engaged in international trade.

At Smart Currency we adopt a range of techniques such as forward contracts and spot contracts to provide stability to UK exporters and importers. We also help exporters to maximise margins by offering significantly better-than-bank currency exchange rates.

Until worrying debt issues in the likes of Greece, Spain and Italy are resolved, we can expect to see more currency swings in the coming months. Whether you import or export, now is the time to hedge your bets by adopting a sensible currency strategy to protect yourself from further market volatility.

For more information on Smart Currency Business call: 0845 638 0571 (or +44 (0)207 898 0541 from outside the UK) or visit our website at: SmartCurrencyBusiness.com