MARKET TRENDS AND OUTLOOK CONTINUED Forward-looking information emerging Painting a similar picture to last year, 92% of companies are disclosing outlook information to some extent in their Annual Report. However, more companies this year are providing meaningful outlook discussions and targets, giving the reader the impression that the company is no longer looking at short-term survival, but is now re-focusing on the longer-term opportunities and pathway for the business. With stakeholders becoming ever more engaged in the current and future performance of the business, it is up to management to ensure that the Annual Report provides a clear discussion of forward-looking information from their viewpoint. This allows the reader to gain further understanding of the business, its strategy in context, and an indication of what the future holds – all of which will allow stakeholders to make informed opinions and gauge the potential success of the company’s future activities. In doing so, we understand that many companies are cautious of providing guidance which may prove to be inaccurate but, in our conversations with many investors, they understand the challenges which come hand-in-hand with forward-looking information. Figure 3.5 How are companies disclosing forward-looking information? 5% 12% 25% 50% 26% 8% ’08 9% ’09 10% 17% 38% 31% Outlook information in a dedicated section but only in one place 11% 29% Extensive outlook information provided throughout the report with targets Outlook information provided throughout with some numerical data or targets 21% 8% ’10 Brief outlook, not in a dedicated heading No discussion 16 © Black Sun Plc 2011 www.blacksunplc.com
