One of the additional business challenges is managing exch ge rates when one is dealing with a substantial volume of import purchases. Whilst we’d prefer to focus all our time on managing and developing our core business, we have to plot our exchange rate exposure and take views accordingly. The picture is further compounded by dealing not just in Sterling, but also Euros and Dollars. Our US business provides some good dollar income, but we still have to budget or hedge our net dollar purchase. If you read the various reports predicting the future sterling/dollar exchange rates you would not be much better informed, since there is a wide array of diverse views. I have some previous experience in foreign exchange dealing from a previous life, but one thing I know for sure is: nobody knows! The safest strategy is to work out costs on an assumed rate and then try to fix your rate accordingly by buying forward, at least then you have certainty of your costs.