- Posted by Graham Dockrill
- On August 8, 2016
- 0 Comments
Following the recent exit from the European Union, New Zealand companies are now eagerly identifying opportunities within the United Kingdom. HedgebrookPro is one of these savvy New Zealand companies. It has taken advantage of the devaluation of the sterling and a market receptive to opening up to the world. Utilising the skills and resources of Citrus Tree Consulting, www.hedgebookpro.com has entered the UK market.
As clearly highlighted by the Brexit induced currency volatility, UK based importers and exporters have their own challenges when managing foreign currency cash flows. However, the approach to FX management is the same in the UK as it is in New Zealand and Australia. Foreign currency cash flows (known or forecast) are identified and quantified, then hedging contracts such as forwards and options are entered to mitigate the impact of current fluctuations on Profit and Loss.
The UK therefore proved to be a natural market for the HedgebookPro software and, assisted by Citrus Tree Consultants , they have recently opened a London office.
Hedgebook CEO, Richard Eaddy, says, “The UK operates under the same IFRS accounting regime as New Zealand and Australia. Plus the importers and exporters based here have an equally volatile foreign exchange landscape to navigate as those companies based in Australasia. Hedgebook is fit for purpose here in the UK and there are literally tens of thousands of companies in the SME space that can benefit from Hedgebook’s easy-to-use software. Citrus Tree’s goal is to introduce Hedgebook to these companies so they can manage this significant risk to their businesses and make better hedging decisions.”
The Fintech sector is an excellent example of the emerging opportunities in the UK. Research by TheCityUK finds that 2.1 million people now work in finance and related professional services – the highest level since 2008. As the industry consolidates and rationalises post-Brexit any service that facilitates efficiency or increases revenue is welcome.
Software as a Service (SaaS) targeted at SMEs that can easily be scaled and sold across borders without the complexity of customs clearance and associated tariffs are best positioned to take advantage of Brexit.
The usual definition of small and medium sized enterprises (SMEs) is any business with fewer than 250 employees. There were 5.4 million SMEs in the UK in 2015, which was over 99% of all businesses.
Entering any new market can be expensive and prone to risk. By partnering with Citrus Tree Consultants HedgebookPro have been able to approach the UK in a considered and strategic manner. This partnership is now seeing HedgebookPro secure new resellers and channel partners. Our well-defined strategy, combined with on the ground support and visibility is bringing HedgebookPro success that could not have been achieved remotely from New Zealand.