Especially given the (relatively recent) move towards quarterly reporting, it can seem as if results preparation is an endless conveyor belt – as soon as one is done, preparation for the next begins. We imagine some IR Directors wonder if they will ever have time to do their day jobs. Many private companies regard not having to announce results as a perk of the job. In a world where the rush to IPO seems to be becoming less intense, and more and more larger companies are choosing to stay private and finance their growth via other means than the equity and bond markets, the idea of announcing results publicly is alien to them.
We think that some of them are missing a trick, and here are some of the reasons why a private company should consider announcing results:
The good news is a private company maintains absolute control over how and when it chooses to announce results. They don’t need to publish their full accounts, or even a full set of financial statements, and they certainly don’t have to do it every quarter. They might decide to maintain complete control over the process by producing all the materials themselves (which may include video, infographics and a press release) that they host on their own website and publicise via their own social media channels and by good old fashioned emails to customers, suppliers and employees. In addition to this, some may decide that an exclusive interview with one journalist is an appropriate way forward, others may want to broadcast the news as widely as possible by initiating a full media relations programme. All this can be done once a year, which means that nobody drowns in the process, and enough time can be taken to get the messaging exactly right for all audiences.