Tackling IR: tips for SmallCaps
Handling investor relations activity without a dedicated team can be a tricky affair, but it's not an unachievable task. Emperor's Rachel Crossley spoke to ELITE Connect to share her advice on how the C-suite can step up to the challenge.
What are the main areas SmallCaps need to focus their IR activities on?
Firstly, developing a clear and compelling equity story. Smallcaps need to think about their investment case: what they want to achieve and what it is that makes them unique and sets them apart from their peers. Then it’s about using a wide range of tools and channels – from the corporate website and annual report through to fact sheets and company presentations – to effectively communicate and cascade these messages to their key audiences.
Secondly, targeting and engaging directly with the investment community. While resources are limited and you can’t meet everyone, it’s important to work out who your most relevant analysts and investors are and reach out to them directly, using your existing conduits to share regular and timely information.
How can SmallCaps best gain visibility and run IR without a dedicated resource?
SmallCaps should make the most of the technology available. Use technology platforms to target and manage relationships with the investment community. They should enhance the IR section of the corporate website so this becomes the first port of call for anyone looking for company information. It also needs to articulate their investment case and business model, include fact sheets, Q&As, corporate presentations and interactive features to bring content to life.
How will things change for SmallCaps post-MiFID II, and how can companies overcome these challenges?
As we are already seeing, the market will see a decline in both the quality and the quantity of analyst research published, making it particularly hard for smaller companies to get their story heard and make sure consensus is fair. So companies should take a look at their financial calendar and use these reporting requirements as an opportunity to tell their equity story. For example, produce an interim results booklet to share additional context in a visually engaging way, and use the annual report to present a cohesive story that articulates the company’s investment case and how it’s delivering on its promises.
To read more about MiFID II and how it will impact your business, take a look at our guide to
Making the most of MiFID II.