Home / Knowledge / News / Apparel/Garments / Rowlinson Knitwear adopts new foreign exchange strategy
Rowlinson Knitwear adopts new foreign exchange strategy
07
Nov '13
Stockport-based schoolwear supplier Rowlinson Knitwear has implemented a new foreign exchange strategy to help protect the firm from currency volatility risk.

Working with HSBC's Manchester Commercial Centre, Rowlinson has ensured approximately 90% of its US Dollar requirement is hedged on a 12 month rolling basis, whilst at least three quarters of its currency need is hedged on a two-year outlook.

The company believes the new strategy gives it long-term security against fluctuations to the US Dollar, but also the flexibility to adapt its approach depending on the movement of the currency. As part of the strategy, Rowlinson is using foreign exchange options for the first time to complement its use of forward contracts.

The foreign exchange options used by Rowlinson provides the firm with protection at a specified rate on a specific date in the future, or at a more favourable rate on a proportion of their exposure if exchange rates move in its favour. Under a forward contract, the company must transact at a pre-agreed rate of exchange on a future date.

The company, which switched its full business banking to HSBC last year, worked with Senior International Commercial Manager Neil Ward and Amanda Bradley, Associate Director with HSBC's Global Markets division, on the deal.

Rowlinson Knitwear has been in business since 1935 and prides itself on operating in an ethical way, alongside its unparalleled ability to quickly fill personalised orders across the UK. Today the company holds around 50 per cent of the UK personalised traditional knitwear market, distributing to hundreds of UK retailers, including John Lewis.

The company imports stock from suppliers across a number of countries, including Egypt, Bangladesh and Cambodia and the majority of its import trade is conducted in US Dollars.

Donald Moore, Managing Director of Rowlinson Knitwear Limited, said: "Protecting against foreign exchange risk is a key financial priority for us, particularly given the recent volatility in the currency markets. The US Dollar has been on volatile in recent months and this directly impacts the cost of our imports. As we fix our sale prices 12 months ahead, it's important that our currency needs are hedged alongside that to ensure we can effectively manage costs. This ultimately also benefits the end consumer."

"We worked closely with HSBC to develop this new foreign exchange strategy and I am pleased that we are able to hedge a proportion of our currency requirements as far away as two years from now. That brings certainty to our business and allows us to manage cashflow and planning. HSBC clearly understood our needs and was able to introduce a strategy that met our requirements."

Jason Trigg, HSBC Manchester Area Commercial Director, said: "Establishing a robust foreign exchange strategy is important for any business trading internationally as even slight movements in currency either way can have a significant impact on profits. This foreign exchange strategy reduces Rowlinson's risk and also gives them the potential to increase imports through a larger facility."

HSBC


Must ReadView All

Sri Lanka’s apparel exports rise after EU GSP+ reinstatement

Apparel/Garments | On 18th Nov 2017

Sri Lanka’s apparel exports rise after EU GSP+ reinstatement

Sri Lanka’s apparel exports from January to September 2017 has...

Bangladesh plans 2 leather estates in Rajshahi, Chittagong

Apparel/Garments | On 18th Nov 2017

Bangladesh plans 2 leather estates in Rajshahi, Chittagong

Bangladesh Prime Minister Sheikh Hasina has said two more leather...

ASEAN, Hong Kong sign free trade agreement

Textiles | On 18th Nov 2017

ASEAN, Hong Kong sign free trade agreement

The Association of Southeast Asian Nations (ASEAN) and Hong Kong...

Interviews View All

Deepak Jain
Baggout

We are using Facebook and Instagram to promote ourselves

Kamlesh Vaghela
RK Textiles

Very few machinery manufacturers have R&D units

Top executives
Textile industry, India

The event should be organised every year

Rikesh Mistry

Jupiter Comtex Pvt Ltd, established in 1973, started its textile machinery ...

Abhishek Pachauri

Reckon Industries adapts latest systems for manufacturing from designing...

Sugandha Bhardwaj

<div>New Delhi-based Brinjal Designs Pvt Ltd manufactures home furnishing...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

November 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
68.5%
No
12.4%
Skip
19.1%

Total Votes: 89

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
61.8%
No
30.3%
Skip
7.9%

Total Votes: 89

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
86.5%
No
10.1%
Skip
3.4%

Total Votes: 89

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
80.9%
No
9.0%
Skip
10.1%

Total Votes: 89


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search