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Almost 80% of FTSE 100 report financial KPIs

25 May 2007

Black Sun’s latest narrative reporting analysis, ‘The Complete 100: Where are we now?’ examines the most recently published reports of the FTSE 100 December year end companies. Building on Black Sun’s earlier reports, ‘The First 23’ and ‘The 37 to date’, the analysis completes the review of all of the FTSE100 annual reports to be published over the past year.

Each of the FTSE 100 reports has been analysed in detail to determine if and how, the requirements of the Business Review regulations and best practice recommendations from the Accounting Standards Board’s ‘voluntary’ OFR reporting statement have had an impact on narrative reporting in annual reports, one year on from the initial analysis in “What’s happening in corporate reporting?: Nothing and everything’.

The research evidences that a number of companies have moved their reports on significantly, with improvements in the communication of content relating to market environment, strategy, risk management and business performance through the use of KPIs and forward looking information.

“We have seen a step change in the quality of reporting, as more companies move towards increased transparency and disclosure. Many companies are making much clearer linkages between market environment, strategy, drivers of value and KPIs, risks and future outlook for their businesses,” says David Christopherson, Managing Director of Black Sun Plc.

“Our latest research reveals compelling evidence that many businesses are rethinking the way that they report as we see not only the content but structure of the traditional annual report evolve. Although less companies are using the term ‘OFR’ to describe their narrative reporting sections (down to 21% from 48% previously), more companies seem to be working towards achieving best practice standards.”

“Our research also highlights that companies are concentrating much more on making their communications accessible and understandable and ‘telling their story’, with a clear beginning, middle and end,” adds Christopherson.
 
Key findings from the research include:

• 79% of FTSE 100 companies report financial KPIs, up from 56%, and 53% of FTSE100 companies report non-financial KPIs, up from 31% 12 months ago
• Almost all companies (98%) now clearly communicate strategy, with over three quarters of companies (79%) providing objectives and business targets for their strategy, up from 40% 12 months ago
• 63% of companies are linking their KPIs to their strategy
• Nearly a third of companies, (31%) provide a linkage between their KPIs and Directors’ Remuneration

Black Sun will be publishing the research report later this month. To obtain a copy, contact vwheelwright@blacksunplc.com


For further information, please contact:
Sallie Pilot
Director of Corporate Reporting
Black Sun Plc
T: 020 7736 0011
E: spilot@blacksunplc.com

Notes to Editors

Black Sun Plc

Black Sun is one of the UK’s leading corporate reporting agencies. We help
companies- from FTSE small caps to large global organisations- to build greater trust and confidence with their investors and other corporate stakeholders by growing, developing and creating value from their corporate reporting programmes.

As corporate reporting specialists, we are committed to exploring and understanding the area of narrative reporting to provide practical and intelligent advice on the approach to structure, content, and messaging of reports at a time of changing legislative and regulatory requirements, public policy discussion, and evolving stakeholder expectations.

We have an unrivalled depth of knowledge and experience of producing annual reports and reviews, CR reports, online reports and interactive corporate websites. Our current clients include: Acergy, Alliance & Leicester, Arla Foods, Atrium, BAE Systems, BG Group, Carphone Warehouse, Centrica, George Wimpey, Hanson, Hays, Imperial Tobacco, Legal & General, Punch Taverns, Standard Chartered, and United Utilities.

For further information about Black Sun, please contact:
David Christopherson
Black Sun Plc
T: 020 7736 0011
E: christophersond@blacksunplc.com

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