Let Hornby's FX nightmare be a lesson to smaller firms

Kantox CEO cautions against perils of failing to hedge FX

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Last week the risks posed by foreign exchange (FX) fluctuations became a painful reality for model train manufacturer Hornby, as it fell victim to unprecedented rate movements. When sterling unexpectedly strengthened against the Hong Kong dollar, the Scalextric provider reportedly lost £1.2 million in the final quarter of its financial year on currency risk alone.

While this is devastating news for Hornby, hopefully this incident will serve to draw attention to the consequences of ignoring the

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