IPF secures foreign currency contracts

The Leeds-based group said last month that sterling had appreciated materially against the local currencies of the countries where it operates during the course of 2011.

The group has announced its hedging rates for 70 per cent of profits for 2012, but said the exchange rate is likely to be 17 per cent worse than last year.

This is three percentage points worse than indicated at the time of the group’s trading update in December.

Analyst Andrew Mitchell at Charles Stanley said: The group’s foreign exchange hedge rates for 2012 show a modestly worse year on year profit impact than foreshadowed in mid-December.

“While a small negative, in the context of downgrades already factored in and macro uncertainty this is not a significant hit.”

The group’s shares were down three per cent this morning at 175.5p.