It gets better every year. Once again standards of reporting have moved up a notch or two as more companies realise the value of a more open, informative approach. This is particularly true of key topics such as strategy, marketplace and risk.
However, coverage of some of the new requirements of the Enhanced Business Review leaves plenty of scope for improvement.
Reports are inevitably getting longer (see chart below) while the design and accessibility of many diminishes. An unfortunate combination for anyone interested in reading them. And the number of quick read Summary Financial Statements being produced is also in decline, as more FTSE 100s rely on their online reports.
Good work:
- The best get better
- Strategic focus throughout the report
- Integrated employee reporting
- Marketplace commentary
- KPIs reported with context
- Risk reporting is still improving
Could do better:
- More could provide a clear overview of the business
- Sketchy strategy descriptions, with no substantiation
- Non-financial KPIs are weak
- Environmental and social reporting is patchy
- Contractual arrangements largely ignored
- More engaging and accessible reporting
Average number of pages: narrative section and full annual report
