PracticeConsultingBusiness Reporting – Small listeds must shape up

Business Reporting - Small listeds must shape up

Small listed companies have to make major changes to their annual reporting structures if they are to establish better communication links with the City and attract higher levels of investment, according to new Stock Exchange guidance.

The guide, ‘Creating Quality Dialogue’, says small companies should produce annual ‘Statements of Prospects’ and quarterly trading reports to ensure that shareholders are better informed. At the moment, most small companies only produce trading statements every six months. The guide has been sent to all listed small companies outside the FTSE-350.

Gervais Williams, head of smaller companies at investment house Gartmore, which helped produce the guide, said: ‘Consolidation of fund managers, indexation and pan-European investments mean that smaller companies have to work harder to reassure the market and raise a sufficient profile.’

But Chris Swan, chairman of car components distributor Finelist, and a contributor to the report, said communication needed to be two-way if small companies wanted to improve their valuation levels.

‘We found that 60% of smaller companies were not understood by fund managers, while 70% of fund managers felt that these companies had little grasp of shareholder values,’ Swan said. ‘We need to look at how we mobilise financial institutions and accountants should take a lead role.’

He was doubtful the new insertions, which would describe key performance indicators, would be an onerous task for such firms to comply with.

Related Articles

5 tips for SMEs to protect cash flow

Accounting Software 5 tips for SMEs to protect cash flow

5m Alia Shoaib, Reporter
Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

Consulting Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

11m Stephanie Wix, Writer
Managing partner Q&A - the year ahead: Richard Toone, CVR Global

Accounting Firms Managing partner Q&A - the year ahead: Richard Toone, CVR Global

12m Kevin Reed, Writer
Deloitte 'self-imposes exile' on government contracts to defuse PM row

Accounting Firms Deloitte 'self-imposes exile' on government contracts to defuse PM row

12m Kevin Reed, Writer
Managing partner Q&A - the year ahead: Julie Adams, Menzies

Accounting Firms Managing partner Q&A - the year ahead: Julie Adams, Menzies

12m Kevin Reed, Writer
Friday Afternoon Live: Deloitte's tech thing; PAC wants HMRC 'contingencies'; and Sports Direct

Business Regulation Friday Afternoon Live: Deloitte's tech thing; PAC wants HMRC 'contingencies'; and Sports Direct

1y Kevin Reed, Writer
Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

Audit Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

1y Kevin Reed, Writer
New head of equity capital markets for KPMG

Accounting Firms New head of equity capital markets for KPMG

1y Stephanie Wix, Writer