Hedging for Construction Companies
Most construction companies, perhaps your included, feel forced to accept commodity price fluctuations from suppliers, despite the significant risk to your gross profit margins.
This exposure can be totally avoided.
With our Commodity Lock solutions, construction companies with turnovers under £100m can now access hedging for the first time, while those who currently hedge can now access a faster, more cost effective hedging solution.
It’s simple, customised hedging to mitigate your unwanted market risk.
- Lock in the price you pay for fuel or metals for 3-36 months
- Benefit from the same system used by international construction companies for decades
- Remove uncertainty in the price of your fuel or metals
- Options available to to fix the value of metals stock on your books
- Start small as proof of how effective it is
Commodity lock is a one-of-a-kind, specialist hedging tool offering UK Construction companies budget security by fixing fuel or metals prices without changing suppliers.
Alan Clarke Testimonial - Mini Clipper LTD
Mini Clippers is a logistics firm operating a 40-strong fleet offering next-day and economy delivery services, including palletised and hazardous freight. Like many logistics and haulage companies, they identified in their company accounts that they needed a solution to manage their commodity (fuel) risk. One of their largest and most volatile overheads (for most of our customers, fuel costs are >20% of their overall costs).
They were introduced to Foenix Partners’ hedging tool, a simple way to mitigate the risk of fuel price fluctuations. After completing Foenix’s quick set-up and onboarding process, our team of experts worked with them to create a bespoke trade, hedging 50% of their fuel requirement for an initial period of 6 months with a recent extension for 10 months.
The recent upward move in fuel prices meant Mini Clippers’ fuel costs increased, but with their hedge in place, they have reimbursed the difference between the price they hedged and the price they paid at the pump, which was 4.89ppl last month.
Here’s what Alan Clarke, Financial Director of Mini Clippers, had to say,
“The benefit of fuel hedging with Foenix Partners is it gives our company control of fuel costs. I would absolutely recommend them. 5 stars. Thank you for allowing us to get fuel arrangements in place.”
Foenix Partners is an FCA registered company.
Foenix Partners specialises in providing commodity hedging and currency solutions to UK companies and individuals with international business. We also hold a specialist FCA license to provide commodities fuel and oil product hedging for UK businesses. In a volatile and uncertain market, our success is founded on simplicity and expertise.
Want to know more?
If you’re new to fuel hedging and want to understand more about how it works to protect your profit margins, including pricing and payment details, see our complete guide to ‘The What, Why & How of Fuel Hedging’.