ANNUAL MEETING UPDATE

 

With results season and annual reports now wrapping up, companies are starting to think about their Annual Meeting. Earlier this year, the Australasian Investor Relations Association (AIRA) hosted a briefing which included commentary from Computershare Australia on trends in annual meetings during 2016.  While ASX listed companies are usually significantly larger than New Zealand, there are many similarities and learnings which can be shared across the ditch.

Some of the key outtakes can be read here. 

 

 

SUCCESSFUL RESULTS BRIEFINGS

 

The Australasian Investor Relations Association (AIRA) recently held a briefing and Panel discussion on conducting successful results announcements and briefings.  While Panel members were from large ASX listed companies, interestingly, many of them are moving towards the more simplified and cost effective practices of their small and medium cap peers.  

A summary of their comments, as well as our own recommendations for best practice results announcements, can be read here. 

 

 

WHY ESG REPORTING IS IMPORTANT


ESG helps to improve performance, protect reputational assets, and win shareholder and stakeholder trust. The top three reasons for reporting on ESG are: 

1.       Improved Access to Capital: Socially responsible investors – both private shareholders and large funds - are now factoring ESG into their decision making processes and demanding more disclosure and transparency on companies’ ESG initiatives and measurements.

2.       Better Risk Management: Companies that measure and understand ESG risk are likely to have a more accurate holistic view of the company as a whole and  therefore an enhanced view of corporate risk.

3.       Enhanced Long Term Performance: Evidence is mounting that shows companies that pay attention to ESG factors perform better in the long term. ESG factors also provide a way for companies to improve and differentiate their business. 

Read more about the growing demand for ESG disclosure.

 

 

MEDIA SNAPSHOT: NATIONAL BUSINESS REVIEW

 

Our first review is on the National Business Review, one of New Zealand’s fastest growing and innovative business media outlets.

 

 

MAKING THE MOST OF YOUR RESULTS ANNOUNCEMENTS

This is one of the key communication events of the financial year for listed companies. As well as disclosing the financial results, this is an opportunity for companies to engage with shareholders, tell their story and share their vision.  There are a number of different communication channels which can be utilised including management video, results call, investor roadshow and media interviews. 

 

A SIMPLE OVERVIEW OF WEBCASTING

As technology improves and the cost of webcasting comes down, it has become a more useful tool for investor relations. Primarily, it helps to reach a wider audience and also helps companies meet their continuous disclosure requirements by ensuring that there is open access to information provided at shareholder briefings and annual meetings and so on. This Snapshot Report provides a simple overview of the use of webcasting and a guideline to what costs can be expected. 

 

ANALYST BRIEFINGS AND DISCLOSURE CONSIDERATIONS

A recent record AUD $1.2 million fine for an Australian listed company has demonstrated the need for  management to be aware of their disclosure requirements around analyst briefings. It has also raised awareness of best practice around managing market expectations and consensus.

There are a number of guidance notes and reports from regulatory and investor groups to ensure management are aware of their continuous disclosure obligations in regards to analyst briefings and managing consensus estimates.

Ellis and Co has compiled a snapshot summary of these documents and tips for management to consider when briefing analysts.

 

GETTING INVESTORS INTERESTED IN YOUR BUSINESS

Since the start of the GFC, there has been a tightening of the investment market, and it has become increasingly challenging for companies to attract and retain investment funds.  

However, in recent months, we have seen a renewed interest in investing in shares, with several popular listings on the NZX and investors looking for new opportunities. 

This is a good time to make sure you have the right strategy in place to get investors interested in your business. We have collaborated with the experts to put together our Top Ten Tips to help you get investors buying your shares.