Having Investor relations (IR) at the heart of a company’s communication with the markets is a key to success.
We all are aware that the target groups for financial communication are both important and demanding. Our work is characterised by acute financial skills and high precision levels.
Today’s financial markets are increasingly global; HEAR-ir has an established international network of partners in the world’s financial hubs, and best in class banks and legal advisors.
We are also able to advise companies on the positioning of their IR function, internal structure and responsibilities, resourcing required, along with devising comprehensive IR programmes.
In more details, WHAT IS IR?
IR covers strategic and operative communication with investors and other relevant financial target groups, and contributes to making the company’ potential more visible and well understood – while at the same time reducing uncertainty.
HEAR-ir support primarily small-medium listed companies from the different segments of Borsa Italiana, LSE group, (MTA, Star, AIM). We also assist small-medium caps listed in the UK or elsewhere in Europe, with focus in areas such as:
- Running the IR-function
- Quarterly / Annual reports
- Regulatory issues
- Investor meetings, roadshows, etc.
- Investor targeting
- Capital market days
- Issue management
- Reverse roadshows
- Competitive intelligence
While becoming a publicly traded company is an accomplishment in and of itself, it also represents the beginning of your company’s next phase – becoming a successful public company.
Here are some tips as you develop a successful foundation for your company and grow your IR Program:
- Selecting a solid, experienced management team
- Providing timely, high-quality disclosure
- Setting clear, achievable set of IR goals and objectives
As an example, we present what we think is a successful IR Program Checklist
- Investment Thesis - Clearly present the company’s investment-worthy qualities
- Investor Deck – Provide an easy-to-navigate overview of the company, its financials, competitive landscape and the company’s growth strategy
- Coherent Story Arc – Get to know current and potential investors and address their unique concerns. Long-term institutional investors will have very different needs vs. smaller hedge funds
- Aggressive Sell-Side Analyst Strategy – Have a solid understanding of the metrics analysts and investors are most concerned with (e.g. units sold, stores opened, cash generated, year-over-year or quarter-over-quarter growth)
- Investor Conference Schedule – Make a list of relevant investor conferences to have senior leadership present and attend
- Investor Communication Strategy – Constant communication with investors demonstrates that the management team is committed to delivering on its promises.
At HEAR-ir we have an in-depth understanding of finance as well as a broad understanding of communication. This combination reaches its fullest potential in financial PR, creating synergies between IR and PR for listed companies. A company’s reputation may be improved by engaging in proactive media work based on financial information. Similarly, a strong profile in the media may contribute to increased interest from investors. This is best achieved when you integrate your IR and PR work.
Financial PR also includes advising companies within the financial sector, such as banks, fund management companies, brokerage firms and private equity companies.
The growing importance of ESG factors
IR is no longer a stand-alone function – it will be more and more part of the stakeholders’ engagement helping to facilitate the link between the financial market and the SDG (Sustainable Development Goals) agenda.
ESG reporting is now a core part of the investment decision process.
ESG-related information moved from a marginal to a central part of investment analysis. Signatories to the UN-supported Principles for Responsible Investment (PRI) now represent $60trn in assets under management, + 22trn in 2010. Almost all leading institutional investors of UK and Italian listed companies are PRI signatories. The need for issuers to respond to this demand for information is clear.
ESG reporting priorities - eight priorities Identified: