The task of writing up the Annual Report doesn’t need to seem like a chore. Cannings Purple’s Investor Insight team explain.
Its the time of the year where management attention turns to the task of writing up the Annual Report and getting ready for the AGM. For some, this can seem to be a necessary chore and a bit of a waste of time.
However, it doesn’t need to be.
The Annual Report is an opportunity to mark a line in the sand, providing shareholders with details of your performance over the past year but more importantly, setting the scene for what you plan to achieve over the coming 12 months.
Many analysts and brokers pore over the Annual Report, firstly looking at the financials but secondly, details about the projects and forward plans.
Just regurgitating a summary of your announcements isn’t going to cut it. You need to craft it all together into an overarching narrative about where you plan to get to.
Likewise, whilst the AGM has the necessary compliance resolutions to get through, the Chairman’s address and MD presentation provides an opportunity to succinctly convey the strategic vision for the company. After all, for many shareholders, this is the only opportunity all year to be in the same room as management.
For shareholders, the AGM provides an avenue to ask probing questions and ensure that management are steering the ship in the right direction. If they are doing a good job, tell them. Likewise, if you don’t like what you hear, you always have the option of voting with your feet and exiting the register.
