‘London; a nation, not a city.’ Spend a while in this vibrant metropolis and the chances are you’ll agree with Disraeli’s assessment. This sprawling city of 7.4 mn people is home to one of the world’s wealthiest economies, and ranks up there with New York and Tokyo in terms of involvement in global capital markets.
But when planning a roadshow in the British capital, the city’s size, haphazard street planning and dire traffic situation can present real logistical problems.
One common mistake people make when planning a London roadshow is assuming the important businesses are all grouped together. But while the City in east-central London is the traditional financial center, there are also important institutions further east in the Canary Wharf office complex, and in the West End. If you’re having group meetings and trying to attract audiences from both sides of the city, you’ll need to do presentations in both locations. City-based investors are unlikely to travel to a presentation in the West End, and vice versa.
London is also a very sophisticated market, so institutions generally expect – and demand – one-on-one meetings as opposed to the group presentations that are more common in continental Europe. As Alexandra Sufit, IR executive at PR and IR consultancy College Hill, explains, ‘The blue-chip firms like to be able to ask questions at meetings without other companies being present, so one-on-ones are preferred.’
Group presentations for smaller institutions are, however, acceptable. And although London is home to many major institutions, the less well-known firms shouldn’t be neglected. Small institutions are often overshadowed and overlooked in London, but they could end up being loyal investors in the long term.
Due to the diffusion of institutions and the city’s congestion issues, when planning London presentations – both one-on-ones and group meetings – it’s important to plan a timetable well in advance.
Limit meetings to between four and six per day, including breakfast and lunch, which should leave time to travel between different venues. ‘Calculate time carefully between meetings and try to develop an order so you don’t end up going back and forth across the city,’ suggests David Hothersall, executive director of Kinlan Communications & Investor Relations. And, of course, you shouldn’t even consider traveling by London’s public transport – hire a chauffeur-driven car or use taxis instead.
It is acceptable in London for companies to start the day early with breakfast presentations at 8 am or 8.30 am, although these tend to be one-on-ones rather than group meetings. Early morning group meetings might be a good way to attract analysts on their way to work, rather than trying to lure them out of their offices later on, but they are not very popular in London.
Informal mid-morning presentations are more common. They are, in fact, a distinctive characteristic of the London roadshow environment, and part of what makes London different from financial capitals in continental Europe. ‘In Paris, for example, people prefer formal lunch meetings or afternoon cocktail presentations,’ notes Jacqueline Hillier, head of roadshows and events at Citigate Dewe Rogerson. Another characteristic of London roadshows is that they tend to fall during working hours – late afternoon presentations are rare.
When in London, it’s also important to stick to the roadshow schedule. Londoners, it seems, don’t have the continental laid-back or ma?ana attitude. Instead, investors expect meetings to start and finish on time. ‘London investors are generally punctual, and take a dim view if you aren’t,’ explains Lucy Greeves, account director at Imagination Global Investor Communications. ‘It’s a simple thing but it colors an investor’s view of a company if it is habitually late.’
Heightened security measures introduced in London after 9/11, and still practiced by most of the large institutions and venues, will have to be factored into your schedule. ‘While security checks are not as stringent as in the US, it’s still advisable to carry a passport or other picture ID at all times, and to arrive at least five minutes early in order to sign in,’ advises Greeves. ‘If the team attending meetings is a large one, sending someone ahead to pre-register can help things stay on schedule.’
Key preparation
There are other cultural differences to be aware of, too. Investors in London are generally very knowledgeable, and are looking for a similar knowledge level from the companies they meet with. UK investors also often have a longer-term view than their US counterparts, so will be keen to hear about future profitability and earnings potential.
According to Paul Vann, director at PR firm Binns & Co, investors are very keen to hear financial details. ‘There is a tendency in London for audiences to look for more disclosure of how much money is going to be raised, and how much money is going on the financing of acquisitions,’ he says.
Investors in London also expect to see senior management at the roadshow, and will rarely settle for anything less. In continental Europe, presentations are often left to the marketing director or sales director, but in London the CFO and CEO must be there. There are many expert investors in London who concentrate on a single sector and look for specialist knowledge from senior management.
One method London investors use to get the detail they’re looking for is the Q&A session. Indeed, for many investors, this is where the real value of a roadshow lies. Sufficient time should be scheduled for the Q&A section of each meeting, and answers should be prepared in advance – investors can get suspicious if responses seem hesitant.
Preparation in all areas is, in fact, the key to roadshow success in this sophisticated and highly competitive market place. Each institution you meet with should be thoroughly researched in advance by the roadshow organizer, and the CEO and CFO should be presented with a briefing note before each meeting. Ideally, individual fund managers should be researched too, as the more tailored a presentation is, the greater the chance of success.
If considering a European expansion or listing, it is also important to brush up on the UK and European economic and regulatory environments. ‘Fund managers receive regular barrages of economic indicators, and market sentiment changes from day to day, so it’s crucial to be up-to-date,’ advises Hothersall.
With comprehensive preparation and proper follow-up after each meeting, the sophistication of the London market can be turned to your company’s advantage. Institutions are used to IR consultants or company representatives phoning after a meeting to gauge reactions to management style and company prospects. This feedback can then help a company formulate its future roadshow strategy.
One final word: eat breakfast. ‘We don’t do corporate catering very well in the UK,’ warns Greeves. ‘At roadshows in continental Europe you’re plied with meat and cheese, and in the US you’re weighed down with muffins. But in London often all you’ll get is a biscuit and a cup of tea. That’s not going to get you through the morning, let alone a day of presentations.’
Top ten London-based investors
£ bn in assets under management, June 2003
1. BGI 463.0
2. Deutsche Asset Management 394.0
3. JP Morgan Fleming 322.7
4. MLIM 287.0
5. Invesco 206.5
6. Goldman Sachs Asset Management 188.3
7. Axa Investment Managers 180.6
8. UBS Global Asset Management 167.1
9. M&G Investment Management 116.6
10. Legal & General Investment Management 112.7
Source: Richard Davies Investor Relations
The knowledge
City venues & West End venues
The Brewery
Chiswell St, EC1
+44 (0)20 7638 8811
The Berkeley Hotel
Wilton Place, SW1
+44 (0)20 7235 6000
The City Media Centre
Old Broad St, EC2
+44 (0)20 7797 2040
The Dorchester Hotel
Park Lane, W1
+44 (0)20 7629 8888
Great Eastern Hotel
Liverpool St, EC2
+44 (0)20 7618 5000
One Aldwych
Covent Garden, WC2
+44 (0)20 7300 1000
Top ten mutual funds in the UK in 2003
Investor name Equity assets £bn
1. Fidelity Funds Sicav European Growth Fund 8.23
2. Vanguard International Growth Fund 6.22
3. Standard Life International Trust 5.75
4. Morgan Stanley Institutional International Equity 4.90
5. T Rowe Price International Stock Fund 4.81
6. Fidelity Investment Funds – Special Situations Fund 4.11
7. Invesco Perpetual High Income Fund 3.91
8. Legal & General UK Index Trust 3.23
Source: Thomson Financial
