international markets 15
Choosing the right FX provider has never been more crucial
With continued volatility in FX markets, UK corporates are under increasing pressure to manage their exposure. Graham Hardisty, financial controller of Bisley, talks about how they manage their FX risk across their growing export market
Q. How do FX fluctuations affect your business?
A. We are heavily dependent on the price of steel, which is by far our largest single commodity. Given market turbulence and today’s uncertain economic outlook, the price of steel has been going up and down like a yo-yo. Clearly, this makes planning and pricing extremely challenging. Stability is one of the bedrocks of our business, and managing FX fluctuations is essential for maximising our stability.
Q. What is your primary FX objective?
A. Protection. For us, there’s no question of speculation – it’s all about protection. We need to protect our margin and budget to provide the stability that enables us to address our ongoing business challenges. Of course, any added performance is a very welcome bonus.
Q. Who is your FX provider and why did you choose them?
About Bisley
Celebrating its 50th anniversary in 2011, Bisley Office Furniture manufactures and exports steel storage office products. Operating from Bisley, Surrey and Newport, South Wales, and employing nearly 1,000 people, the privately- owned company recently invested £80 million in systems and state- of-the-art technology to support its growing export business. Having established subsidiaries in Germany, Benelux, Holland, Ireland and Spain, Bisley is about to start operating in Dubai.
A. RBS. Well, to put it simply, they ticked all our boxes and more. We’re a dynamic business, focused on identifying and exploiting growth opportunities. Right from the start, RBS just “got it“ – they took the time to understand our business, our challenges, our objectives and the way we work. They have lots of pro-active suggestions that would never have occurred to us, they clearly know their stuff inside out and they give us the ideal combination of expertise and flexibility.
Q. Is it important that the FX service is bespoke to your business?
A. Given our priority of protecting margin and budget, it is key that the FX service is bespoke to our business. RBS tailors their offering to dovetail with our objectives. And because they really do understand our business, they’re very good at coming up with proposals to help us achieve our strategic goals. They’re also extremely good at helping us understand how their products work and giving us a clear grasp of what could otherwise be a confusingly complicated area.
Q. What would you say is key to successfully managing FX risk?
A. Flexibility. Prior to working with RBS, I assumed that once a product was in place, it couldn’t be changed. So I was delighted when they found ways to restructure and adapt existing products to deliver better value for us. We now benefit from a seamless transfer of products that ensures we are consistently making the most of changing markets.
THE BUSINESS MAGAZINE – SOLENT & SOUTH CENTRAL – APRIL 2012
Q. In what ways have you specifically benefited from consolidating all your FX activity with one provider?
A. We’ve been working with RBS now for just over two years and we have made a 3% FX gain on the euros traded in that period.† Not only does RBS deliver on budget, but we’ve consistently made a gain against our targets.
Q. What is the primary outcome of working with RBS?
A. Stability. We now have the ability to plan more accurately and our profits and budget are better protected.
Q. How would you describe your relationship with RBS?
A. Close, understanding and mutually beneficial. I really feel that RBS not only understands our business, but is 100% committed to helping us grow – we’re moving forward together hand in hand. At every level. For example, my RBS relationship manager introduced me to their online RBS Marketplace. Now I can get done in two minutes what used to take two hours. Again, I used to spend time looking up indicative rates; now I just call RBS.
Q. What would you recommend other businesses look for in an FX provider?
A. First and foremost, understanding – a genuinely deep understanding of your business is the foundation for everything. RBS’s understanding of Bisley enables it not only to be alert to any activity that might impact our business, but also to be pro-active in identifying opportunities and making recommendations. With the understanding in place, I’d say the next criterion is active management. A key element of our successful relationship with RBS is their insight into our portfolio and how we manage it. To gain an edge, you need a partner that has this insight and pro- active approach.
Finally, for us, loyalty is key. It’s always been a cornerstone of our approach – we have maintained full employment since the 1980s, even at the expense of profit. So knowing that RBS will be there for us through thick and thin makes a big difference.
To take control of your FX exposure with the No. 1 FX provider to UK corporates (Euromoney FX survey 2011, 2010, 2009), contact your RBS relationship manager or:
Robin Barnes, regional director, Solent & Thames Valley 0118-9522150
robin.barnes@
rbs.co.uk
Neil Tandy, UK Corporate FX team 020-7085-0269
neil.tandy@rbs.com
† Note: past performance is not a reliable indicator of future performance.
www.businessmag.co.uk
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