Sometimes, reading through the London Stock Exchange’s RNS feed, it feels as though certain companies just don’t want to be understood.
Others, clearly, do: a new study has named the top 10 FTSE 100 companies for transparency.
Arm, the Cambridge-based chip designer that was acquired by Japan’s SoftBank for £24bn this summer, was named as the top company for transparency.
The ‘How Does It Stack Up?’ report, compiled by consultancy firm Radley Yeldar (RY), also named miners Fresnillo, Antofagasta and Anglo American inside the top 10.
Real estate investment trusts Land Securities and British Land, financial services firm Provident Financial Group, telecoms giant BT, Lloyds Banking Group and international equipment rental company Ashstead made up the rest of the top 10.
To compile the list, RY used 16 criteria to assess annual reports, grouped into “understanding the business and context, explaining and measuring performance, business sustainability, and effective storytelling”.
“Discussing a company’s performance without addressing the market environment in which they have been achieved, and recognising the challenges that may lie ahead leaves holes in the investment case which others will fill without all the facts,” said Brett Simnett, RY’s director of investor engagement.
“Clear and transparent reporting that covers both the positives and the negatives will always instil more trust in a company than reporting that fails to provide a forward-looking point-of-view.”
Article first published in CITY A.M. read full article here