The findings indicate a significant shift to the online environment in the wake of legislation from the Companies Act 2006, which has meant that many blue chip companies are sending out fewer printed copies of reports and, are instead, focusing their attention on delivering an interactive HTML experience. 

Provisions contained within the Companies Act 2006 have allowed companies to send printed documents only to those shareholders who request them – all others will be deemed to have ‘defaulted’ to viewing communications on the company website. This new regime has not only heralded the rise of the interactive HTML report, but also the ‘Super Summary’ Annual Report which some companies are sending to those shareholders for whom they do not have e-mail addresses. 

In a survey of FTSE 100 Company Secretaries from December year end companies, Black Sun found that:

• 80% were in a position to only send printed copies to those who request them.
• Up take for printed copy reports was, in some cases, up to 35% though this figure depended on when the consent request was sent to shareholders.
• 33% drop in the number of Annual Reviews produced between 2006 and 2007

 

“Although many more companies produce HTML reports, we haven't seen the focus on the investor website as the primary means of communications with shareholders evolve as much as we thought. Most companies are merely putting an HTML report online rather than take advantage of the medium for what it has to offer in terms of engagement and interactivity.” says Sallie Cooke Pilot, Director of Corporate Reporting at Black Sun Plc. 

“Many different reporting strategies have been deployed by companies to move to the new electronic environment, with the introduction by many of a 'super summary' to manage the transition to the online and communicate key messages. These 'super summaries' range in length from one page to 16 pages and many include; a clear explanation of the change in reporting, overview of performance and drive to the Company website. Others go even further and present key strategies and key performance indicators.” concludes Pilot.

Other key findings from the research include:

• 80% were in a position to only send printed copies to those who request them.
• Up take for printed copy reports was, in some cases, up to 35% though this figure depended on when the consent request was sent to shareholders. 
• 33% drop in the number of Annual Reviews produced between 2006 and 2007

 

A full report on the different approaches to e-communications is available on request. 

For more information or to obtain a copy, contact: [email protected].