A study conducted by the Foundation for Performance Measurement claims that the FTSE 100 companies are “failing to provide much meaningful information on drivers of future value and performance” in their annual reports.
The report could help the case of design and communication consultancies seeking annual report work. Published last month, The Well Rounded Annual Report found that 61 of the FTSE 100 companies failed to include any measure of customer service, 74 did not mention any measure of innovation and 75 failed to include any measure of Research and development.
A Foundation for Performance Measurement spokesman claims that: “The annual reports still leave a lot to be desired if they are to be used by investors to make an informed judgement about the likely future performance of the company.
“Companies can be far more effective in communicating performance messages to shareholders and potential investors,” he adds.
The survey concludes that the organisations providing the most performance data are those in the public or media spotlight, such as chemicals and life sciences, extractive and oil companies, retail banks, utilities and telecommunications.
Redhouse Lane managing director Jeremy Redhouse says: “It’s difficult satisfying so many different audiences equally under the umbrella of one annual report.
“Instead of having one blunt instrument to satisfy everyone, companies should spend time and energy breaking it down into component parts. Digital media like the Internet and CD-ROMs have the facility to present so much information in so many ways.”