Protecting margins and supporting international growth

Reducing exposure to currency volatility and easing seasonal cashflow pressures

A leading UK meat exporter partnered with Bibby Financial Services to strengthen cashflow, manage foreign exchange risk and create a stronger foundation for continued international growth.

Founded more than 30 years ago, the Scotland based business has grown into a market leader in its sector, supplying high quality meat products to customers across Europe and international markets. As export revenues increased, the business was presented with new opportunities for growth, but also greater exposure to currency volatility and seasonal cashflow pressures.

Looking to protect profitability and support future expansion, the company approached Bibby Financial Services for a solution that would provide greater financial certainty and flexibility.

Managing growth in international markets

The business had built a strong reputation in overseas markets, with a significant proportion of sales generated outside the UK. However, as international trade became a larger part of the business, foreign exchange exposure increased significantly.

At the time, the company relied primarily on spot transactions when purchasing foreign currency and had no formal foreign exchange strategy in place. This made it increasingly difficult to forecast accurately and protect profit margins against adverse currency movements.

Exchange rate fluctuations created uncertainty around budgeting and financial planning, while the growing scale of international trade meant even small market movements could have a meaningful impact on profitability.

Alongside these challenges, the company was also experiencing seasonal cashflow pressures. Working capital was tied up in unpaid invoices, limiting the availability of funds needed to purchase stock, meet customer demand and capitalise on growth opportunities.

The leadership team recognised that a more strategic approach to both foreign exchange management and cashflow funding was required to support the next stage of growth.

A combined FX and invoice finance solution

Bibby Financial Services took the time to understand the business's trading cycle, customer relationships and international revenue streams before developing a tailored solution.

To address foreign exchange risk, BFS implemented a structured FX strategy designed to provide greater visibility and control over future currency requirements. By aligning currency management with the company's budgeting objectives, the business was able to reduce uncertainty and improve financial planning.

Alongside this, BFS provided a £1 million invoice finance facility, enabling the company to release cash tied up in outstanding invoices. This improved working capital and provided the liquidity required to manage seasonal fluctuations and support day-to-day operations.

The business also benefited from access to BFS's online platform, simplifying foreign exchange transactions and helping to reduce the costs associated with moving funds internationally.

By combining foreign exchange expertise with flexible funding, BFS delivered a joined up solution that addressed both margin protection and cashflow management.

Building resilience for long-term growth

With a structured approach to foreign exchange management, the company gained greater certainty over future revenues and costs. Improved exchange rates and proactive management of currency exposure helped protect margins and strengthen budgeting accuracy, allowing the leadership team to make decisions with greater confidence.

The invoice finance facility improved cashflow and increased purchasing power, enabling the business to respond more effectively to seasonal demand and strengthen relationships with suppliers. Access to working capital also provided greater flexibility when negotiating terms with customers and pursuing new opportunities in international markets.

The finance team benefited from reduced administrative pressure and enhanced reporting, allowing them to focus on strategic priorities rather than reacting to market volatility.

Today, the business is better positioned to manage the challenges associated with international trade while continuing to pursue ambitious growth plans. By combining invoice finance with a tailored foreign exchange strategy, Bibby Financial Services has helped create a more resilient business with the confidence to expand into new markets and build long term success.

At a glance

• Sector: Meat Export
• Location: Scotland
• Turnover: £20m
• Invoice Finance Facility: £1m line
• Foreign Exchange Trading Value: £4m trading value

Key outcomes

• Greater protection against foreign exchange volatility
• Improved cashflow through a £1 million invoice finance facility
• Enhanced working capital and purchasing power
• Increased confidence in budgeting and forecasting
• Stronger supplier relationships
• Greater flexibility to support international growth