With Sterling losing so much ground on the US Dollar and Euro it can mean only one thing - it means that manufacturing costs have escalated to such an extent that we can no longer absorb the huge deficit between the pound and the two major currencies in which we pay for goods we import.

Price increases are inevitable because we operate in a very competitive industry where absorbing the currency fluctuation would soon bring about the demise of any non-profitable business. We make no bones that we wish to run a profitable business, that's what we get up for in the morning, we are neither a huge multi depot company with a large war chest or part of a much bigger concern - we have to pass on prices increases simply because we have to.

Hsc has built its reputation on honesty and integrity, a reputation that delivers your promise to your customer and for us to continue to offer products and services that are second to none we must focus on the future and this unfortunately will mean price increases. When you look back we have constantly year on year reduced our selling prices, passing on the improved prices we negotiated based on the increased volumes we ordered because you increased your volumes with us. Without your loyalty and kindness we would not have been able to develope the products and services you have come to to expect as standard. 

We respectfully ask that you continue to judge us on our history as who knows what is going to happen in the future. Times are unsettled but working together we can increase our opportunities and who knows may be come out of this challenging time smiling.

The Directors (Hsc Holdings Ltd)