28 February 2022

Same-Day Reporting in 2021

ROWAN CLARKE, Investor Relations


For a number of years, FIRST Advisers has been monitoring same day reporting in Australia. We define same day reporting to be when a company releases their Annual Report on the same day that they release their Full Year Financial Results.

The practice of providing the Annual Report on the same day is now considered best practice for investor relations, as it provides shareholders with a complete suite of relevant information on the previous financial year to support management’s commentary during the results reporting period. There are benefits for management that include freeing up time to focus on post-results roadshows, AGM preparation, business operations and planning for the year ahead, without the distraction of having to finalise an Annual Report.

In this blog, we report on same day reporting in 2021. Our review is focused on companies in the S&P/ASX300, segmented by market cap into Large-Cap (ASX100), Mid-Cap (ASX100-200), and Small-Cap companies (ASX200-300).

Same-Day Reporters Recovering from COVID constraints

In 2021, 51% of ASX300 companies provided an Annual Report on the same day that they released their Full Year Results. This was 5% above our 2020 finding of 46%, but below 2018 (58%).

COVID-19 impacted many companies in 2020 when they reported their financial results. Remote work arrangements, travel restrictions and other impacts of the pandemic, made it difficult for many companies to align the release of results with the publication of their annual report. These problems have started to ease in 2021.


CHART 1:
COMPANIES RELEASING ANNUAL REPORTS ON THE SAME DAY AS FINANCIAL RESULTS


In 2021, same day reporting improved in the large-cap and mid-cap cohort. For small-cap companies, the logistics involved in same day reporting appear to remain an issue as numbers fell slightly from 47% in 2020, to 45% in 2021. Prior to the COVID-19 pandemic, 57% of small-cap companies were same day reporters.

57% of ASX100 companies were same day reporters, which is an improvement from the previous year (49%) but is also ahead of 2018 (56%). Mid-cap companies had the greatest decline in same day reporting during 2020 but have also picked up the most, improving 9 percentage points in 2021 to 52%, but still below the benchmark level that was set pre-COVID-19 of 63%.


CHART 2:
SAME-DAY-REPORTING WITHIN THE ASX 300 BY COMPANY SIZE


More companies are publishing their Annual Report within one week of their results, in 2021

In 2021, as many companies are publishing their Annual Report within one month of their results, as they did in 2020. The largest improvement is seen in the number of companies publishing an annual report within one week, up from 46% in 2020 to 52% in 2021. Despite the improvement, it is still lower than pre-COVID-19 levels when 60% was reported in 2018. A trend that is becoming more pronounced, however, is for companies to either report within the first week of reporting their full year financial results (52%) or to delay it until closer to the statutory maximum period of 5 to 8 weeks (37%).


CHART 3:
NUMBER OF WEEKS BETWEEN FINANCAL RESULTS AND ANNUAL REPORT


Differences still exist between industry sectors

In 2021, our study shows that Utilities (75%), Financials (69%), Industrials (68.7%) and Information Technology (61%) are all strong adopters (60%+) of same day reporting. In 2020, e Utilities (100%), Financials (63%) and Consumer Staples (60%) led the adoption of same day reporting so the notable improvers in 2021 were the Industrials and Information Technology companies.

The remaining sectors had 35% to 47% of their constituents provide an Annual Report on the same day as their Full Year Results in 2021.


CHART 4:
SAME-DAY-REPORTING – SECTOR BREAKDOWN


Two sectors reported an improvement in same day reporting, above both 2018 and 2020 levels. As previously mentioned, 61% of the Information Technology sector adopted this practice in 2021, above both 2018 (38%) and 2020 (44%) levels. A similar trend is seen in the Financial sector, which increased from 52% in 2018 to 63% in 2020 to 69% in 2021.

Conclusion

Despite same day reporting being widely accepted as the best standard in financial reporting, the logistical challenges created by COVID-19 have not eased enough in 2021, to see an improvement in the adoption of same day reporting compared to 2018 levels. We expect that as COVID-19 induced restrictions are removed, and with further improvements in publishing and content creation technologies, the number of companies embracing same day reporting will return to pre-pandemic levels.

28 January 2022

ESG Reporting in 2021

ROWAN CLARKE, Investor Relations At FIRST Advisers, a number of our clients are starting to focus on the task of reporting on their Environmental, Social and Governance (ESG) performance for the first time. This reflects the increased momentum that has been gathering in recent years, particularly in the ASX 300. We first undertook a review […]

Read More
30 November 2021

Consolidation of ESG Reporting Frameworks moves a step closer

VICTORIA GEDDES, Executive Director. The big news this month was the announcement by the Chair of the IFRS Foundation, timed for release at COP26 on 3 November, of another important step towards the realization of global sustainability disclosure standards. At present there are a number of different frameworks that companies can use to guide how […]

Read More
27 July 2021

Starting the ESG journey

ROWAN CLARKE, Investor Relations At FIRST Advisers, we are increasingly offering advice to companies on how to best position themselves to meet investor demand for ESG accountability. What was once seen as a topic for socially conscious asset managers, is now widely adopted by investors. ESG was a hot topic at the US based National […]

Read More
30 April 2021

The Convergence of ESG and Activist forces

VICTORIA GEDDES, Executive Director Activism during COVID A review of the impact of COVID 19 on activism globally in 2020 would suggest that it largely reinforced the trend of slowing activity that has been evident since its peak in 2018. In Australia the number of companies publically subjected to activists’ demands returned to the annual […]

Read More
31 January 2021

Fink doubles down on climate

GILES RAFFERTY, Corporate Communication and Media Advisor Restating that climate risk is investment risk, Larry Fink, the Founder, Chairman and CEO of Blackrock, the world’s biggest and arguably most powerful investor, is calling for companies to share their plans for the transition to a net zero economy in his annual letter to CEOs. Mr Fink […]

Read More
31 January 2021

ASX introduces new ‘15% Rule’

Ben Rebbeck, Founding Director Recently, the ASX announced updates to Guidance Note 8 on continuous disclosure requirements in relation to earnings guidance. While the ASX retained the framework of its existing guidance in the update, its changes to Guidance Note 8 include a new ‘15% Rule’ regarding the impact of broker consensus earnings on guidance and earnings […]

Read More
30 October 2020

ESG Reporting among the ASX300

DAN JONES, Manager Shareholder Analytics As institutional investors increasingly demand more accountability for Environmental, Social and Governance (ESG) performance, companies face pressure to improve their standards of ESG reporting. However, unlike financial data, ESG information has no legislated or regulatory reporting guidelines or formats so the mechanism for delivery and any adoption of a reporting […]

Read More
30 September 2020

REVISITING SAME-DAY REPORTING TWO YEARS ON

Between 2016 and 2018, FIRST Advisers monitored how long companies took to release their Annual Report following the release of their Financial Results. The implementation of Same-Day Reporting has become an industry standard in terms of best practice investor relations because it reflects a commitment to release this document at a time when it has […]

Read More
29 June 2020

The Tipping Point for ESG is Now (Part Two)

VICTORIA GEDDES, Executive Director. In Part 1 of our article on ESG last month* we looked at the extent to which ESG reporting has gained hold in Australia and whether the strong performance of ESG funds recently might represent a moment in time when investing according to ESG principles becomes mainstream. We introduced the Standard […]

Read More
28 May 2020

The Tipping Point for ESG is Now

VICTORIA GEDDES, Executive Director. The relentless push towards the adoption of Environmental, Social and Governance (ESG) reporting by companies across the globe appears to be gaining momentum. As entire populations have gone into hibernation in an effort to contain the spread of the coronavirus, the topic of greatest interest in the global investment community is […]

Read More
29 June 2019

Is 2019 ‘The Year of the ESG Fund’?

BEN REBBECK, Executive Director The ascendency of ESG matters within Fund managers, Board rooms and with IROs has unquestionably been rising rapidly in recent years. In this context, a question we often address from Directors and IRO is: Are ESG funds just another short term market trend, like ‘Hedge Funds’ were some 5 to 10 years […]

Read More
29 March 2019

Feb 2019 Guidance Review

DAN JONES, MANAGER SHAREHOLDER ANALYTICS During February we monitored companies in the S&P/ASX300 Index that reported for the period ending 31 December 2018, building a picture of the approach to guidance in this market and what that guidance is telling us about outlook for FY19. Around three quarters of companies within the S&P/ASX 300 index […]

Read More
31 January 2019

February reporting preview

We entered the last reporting season in August 2018 with a high degree of optimism. That optimism was very short-lived as markets experienced a sharp sell-off in August, with actual results falling short of previous forecasts. Subsequently, news headlines have kept investors in a pessimistic mood, examples being the ongoing Brexit uncertainty and the ever-present […]

Read More
31 January 2019

Timing Matters When Releasing Results

It is important for a company to select an appropriate day when presenting its financial results.  With so many companies competing for attention from buy-side, sell-side and financial media, the correct timing of a result can be very important, especially for smaller companies. Understanding where the peaks and troughs are during a reporting season can help […]

Read More
1 November 2018

Annual Report – Same-Day Reporting

In July 2018, FIRST Advisers’ analysis of financial results reporting noted the continued trend by ASX 300 companies to publish their Annual Reports on the same day as their Financial Results. Termed ‘Same-Day’ or ‘Simultaneous’ reporting, we have updated our findings to see how ASX 300 companies with a June 30 balance date faired in […]

Read More
3 September 2018

Who, What & How Much? What FY19 Guidance is Telling Us

Dan Jones, Manager Shareholder Analytics During August we monitored all companies in the S&P/ASX300 Index that reported for the period ending 30 June 2018, building a picture of the approach to guidance in this market and what that guidance is telling us about outlook. Almost 250 companies within the S&P/ASX 300 index gave their results […]

Read More
27 July 2018

ESG IS MAINSTREAM ON MAIN STREET

Ben Rebbeck, Executive Director Environmental, Social and Governance (ESG) factors were once the poor cousins of institutional investors’ metrics – nice to have, but not a primary driver of valuation or investment. This is no longer the case. Times have changed, investors are more sophisticated, information is more prevalent and reliable – ESG is now […]

Read More
29 June 2018

Setting the standard – ‘Same-day reporting’ of the annual report at Full Year Results

Daniel Jones, Shareholder Analytics and IR FIRST Advisers highlighted a trend amongst ASX 300 companies towards publishing annual reports on the day they announce full year results, ‘Same-Day Reporting’, in early 2017.  We have updated this analysis in order to confirm if a new standard is emerging around best practice for publishing annual reports. For […]

Read More
8 September 2017

Guidance by Australian Companies

VICTORIA GEDDES, EXECUTIVE DIRECTOR During the profit reporting season for the period ending 30 June 2017, we monitored all the companies in the S&P/ASX 300 that reported up to 31 August, building a picture of what the favoured approach to guidance is in this market and what that guidance is telling us about the outlook […]

Read More
2 August 2017

Trading Updates for FY17 Reported in July

As a precursor to monitoring how companies provide guidance for FY18, we have been tracking Trading Updates for FY17 that were released during July by ASX300 companies (only 4%). The take-outs are as follows: 42% provided an upgrade from their previous guidance with the price performance experiencing a similar upward trend 33% of the companies […]

Read More
1 August 2017

The Annual Report and the importance of storytelling

Philippa Ellis, Governance & Investor Relations “Stories are the most powerful communication tool we have bar none” according to Andy Goodman of The Goodman Centre. We all carry stories in our heads (pre-conceptions) that strongly influence the way we view the world. These stories cause our mind to be closed to alternative viewpoints even when […]

Read More
3 July 2017

How to Engage with Passive Investors this Reporting Season

David Whittaker, Senior Investor Relations Adviser The growth in passive investing is one of the biggest shifts occurring in global capital markets. Passive funds now hold as much as 40% of total US equity market assets, up from around 20% a decade ago*. However, very few companies are adjusting their IR strategy to take account […]

Read More
9 June 2017

The Importance of Non-Financial Information

NIRI Annual Conference 2017 Ben Rebbeck, Executive Director On 4 June 2017, the National Investor Relations Institute (NIRI) Annual Conference got underway in Orlando, Florida. This Conference brings together over one thousand of the world’s thought leaders and senior professionals in Investor Relations and it is one that we have been attending religiously for the past […]

Read More
9 May 2017

When to Publish the Annual Report – A New Benchmark is Emerging

VICTORIA GEDDES, EXECUTIVE DIRECTOR Ten years ago I can remember marvelling at those companies that managed to get it together and release their full, glossy annual report on the same day as reporting their full year results. You could count them on the fingers of one hand. More commonly, three to four months after the […]

Read More

Archives