Real business case study: Why HMY Group choose Kantox for their FX needs
9 June 2013 · 2 min read
As an SME it can feel frustrating to pay undisclosed spreads on foreign exchange (FX) transactions time and again.
This is how HMY Group felt too.
This frustration is often compounded by the added pressure on your credit lines to cover FX costs and the common need to search for competitive bids.
You may feel resigned to simply having to pay the high (unknown) costs of FX products, fees and exchange rate spreads, or like many SMEs, you just stay exposed to exchange rate volatility.
Why did HMY Group want to change FX provider?
HMY Group also felt a sense of resignation regarding their FX transactions until they found that moving away from their bank and changing their FX provider by turning to Kantox brought a multitude of previously unattainable benefits and led to an improved relationship with their bank.
“By working with Kantox, we have been able to achieve more competitive pricing and greater transparency, whilst freeing up our credit lines. This has enhanced rather than detracted from our banking relationships as we are able to transact more value-added business with our banks.” Ignacio Sanchez, HMY Group’s head of treasury, in an exclusive article for Treasury Management International magazine (TMI)
As Ignacio Sanchez, head of HMY Group’s treasury department, explains in TMI, his company sought a change in FX strategy for a number of reasons:
- HMY Group were quoted unknown spreads on each transaction by their bank
- Their credit lines were often depleted by covering FX interest rate transaction costs
- The company wanted to define a more accurate hedging strategy
Though HMY are not the largest organisation in their sector globally, they certainly are the most geographically dispersed, and so, they face the same currency challenges as larger multinationals.
The company decided to look at different methods to manage their foreign exchange exposure beyond the traditional bank-broker sphere in 2011 as a result of a series of costly FX fees associated with the completion of an $18 million acquisition in China.
What Ignacio values in Kantox
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5. Complete transparency
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Who are HMY Group?
HMY is the European leader in retail store fixtures and commercial spaces. 50 years of growth saw the company posting total revenues of €440 million in 2013.
HMY employs over 4,500 people in 65 countries, with eight plants globally.