Excellence in Reporting in the FTSE 100 & 250
The period reviewed will be 1 April 2009 to 31 March 2010, and we will review the annual report and supporting corporate reporting such as investor presentations on the company's website and corporate responsibility reports.
Corporate reporting excellence is demonstrated when a balance is achieved between the three pillars of reporting - content, quality and linkage. Within content we look at the information the company has chosen to report – does it include all the elements we would expect to see and focus in on the key messages? Does it provide a balanced assessment of the quality and sustainability of the underlying operating performance of the company? Quality refers to the depth of the information – does the company use only qualitative information or is it supported with quantitative data, benchmarks and targets? Does the reporting cover the past, present and future? Finally, for linkage, we consider how well a company demonstrates a clear and consistent message throughout its reporting and whether the different elements reported relate back to the strategic themes set out as key to company success.
Specific areas we focus on include:
- A clear explanation of the impact of trends and factors shaping the company’s market environment, supported by a comprehensive analysis of its marketplace.
- An explicit statement of the long-term direction of the company, supported by the short-term strategic priorities and actions to pursue this, with clear use of specific targets.
- A consistent message or story running throughout based on the stated strategic themes.
- Clear analysis of the principal risks the company faces in meeting its strategic aims, including information on how these are mitigated and managed.
- An insight into the key resources and relationships managed by the company in order to fulfill its strategic objectives.
- An explanation of how strategic performance is measured over time, accompanied by supporting trend data and future targets.
- Clarity in reporting of fundamental financial performance such as underlying drivers of financial results, cash and funding policies and positions, and segmental performance.
- An appreciation of the company's approach to sustainable development and how this links to the strategic ambitions of the company.
