Since the mid-1980s, Ireland’s economy has boomed as the country became a prime production base for the European market, and a prime target for investment, particularly by US technology companies. The peak came in 1999, with an astonishing GDP growth rate of 11 percent.
But while Ireland enjoyed its ride on the crest of the technology wave, so it suffered when the wave crashed – and GDP has now slowed to a forecast of 4.2 percent this year. The heady days of the so-called ‘Celtic tiger’ are well and truly over and it’s time for a more sedate economic story.
Hand in hand with this story, of course, goes the tale of investor relations development in Ireland. This has recently flourished and grown in stature, as more and more companies recognize the importance of communicating their story, in good times as well as bad.
And, as Fiona Ross, head of group investor relations at Bank of Ireland, acknowledges, times have certainly been bad recently. ‘Ireland was on a massive high during the Celtic tiger period, so Irish IROs have had a tough time over the past couple of years explaining the downturn,’ Ross says. ‘But people are now conceding that we had a soft landing, and things are starting to look up.’
Ross describes 2003 as a difficult year, with sluggish equity markets and almost no IPOs. ‘It was a tough slog being out on the road, explaining the situation to shareholders and trying to keep people’s spirits up,’ she adds.
And Irish IROs know all about being out on the road. Companies in Ireland often have a very diverse shareholder base, with far more foreign investment than other countries. A lot of Irish firms look to the US for investment, and IROs are very adept at attracting international capital and dealing with foreign shareholders on a daily basis.
The majority of companies are dual-listed (in Dublin and London), and many also have a US listing – via either an ADR or full listing – so one of the distinguishing features of investor relations in Ireland is the amount of traveling involved.
Small is beautiful
The Irish market is very small so, as Ross explains, Irish IROs know each other, deal with each other often and sometimes even find themselves traveling together. ‘On planes back from a big conference or event, it can be like a big, flying cocktail party of IR executives and senior management,’ she laughs.
Ross also notes that another distinguishing characteristic of the Irish investment scene is Irish companies’ embryonic approach to corporate governance. ‘I have to admit, I think Ireland is a little bit behind some other countries in terms of governance,’ she confesses. ‘We haven’t fully embraced the Higgs report or the combined code the way some other markets have, although this is changing.’
These issues – corporate governance, international capital, roadshows – are just some of the topics that will be discussed at the second annual IR Magazine Ireland Conference & Awards on April 22. The event – at the Jurys Ballsbridge Hotel in Dublin – will be a half-day conference of panel discussions and presentations, followed by a lunchtime awards ceremony.
The event hopes to build on the success of last year’s conference and awards, which were described by one participant as a ‘tool for company networking’, and were attended – in the words of another attendee – by ‘very influential people in Ireland’s IR arena.’
The conference aims to bring together those involved in the Irish investor relations scene to discuss best practice in all IR areas – including technology, media relations and attracting capital. The awards celebrate Irish IR achievements in categories such as best annual report, best investor meetings and roadshows, best IR by a CEO and best IRO.
The past couple of years might have been tough, but it is in tough times that IR can be at its most effective. It seems as if Irish IROs have risen to this challenge, and are ready for the challenges ahead. This tiger may no longer be burning bright, but it is still burning steadily.
