Recent analysis shows that the majority of FTSE 250 organisations no longer submit quarterly reports. Is this a sign of increasing focus on long-term planning or simply the avoidance of an ultimately pointless exercise and administrative burden?
There have been numerous articles, reports and commentaries on this topic, often focusing mainly on the external market perception or reaction. I believe however that we need to look deeper and focus much more on how these requirements, in force between 2007 and 2015, affected not just results, but culture.
They are familiar headlines to all of us – ‘Company X sees record quarterly growth’ or ‘Company Y sees quarterly profits plunge’, swiftly followed by numerous opinion pieces outlining why things are going right or wrong. Is the decline in reporting every three months a wise move though? The FCA certainly thinks so, moving to drop the requirement in 2015, albeit somewhat quietly, after a consultation period.
The response to whether the requirement should be dropped was broadly positive, but will it really relieve pressure on businesses and ultimately help to solve the UK’s productivity conundrum? Many are doubtful to say the least.