All listed companies have a section covering investor relations on their website. If done well, this section can create real value – especially for retail investors. If done badly, it merely acts as a placeholder, simply signaling that you are a listed company. In this article I will describe how your IR website succeeds.
Keep it simple
Ambition is sometimes an enemy of simplicity. You tend to want to show all the good parts about your company and end up with too much information. I tend to look at an IR website as an introduction, or a teaser, if you like.
Ambition is sometimes an enemy of simplicity.
Everyone already interested in your company will mostly focus on your financial reporting and all the information this contains. The IR website’s main task is to answer questions quickly for existing stakeholders and spark interest in potential ones. To reach these goals, focusing on graphics, bullet points and clear messaging via headlines is always a good idea. In the digital era of feeds where the attention span is short, simplicity is of the essence.
Make it unique
A key aspect of an IR website is offering information that is difficult, if not impossible, to find elsewhere. We are creatures of habit, and people will return to your site regularly if it offers valuable, hard-to-find information. Similarly, new visitors are more likely to be intrigued by content they have not seen before.
This can for example be:
- Detailed ownership information an distributions
- Financial goals and metrics at a company-specific level
- Liquidity data for dark pools and alternative marketplaces
- Consensus estimates.
Ensure it is updated
If your IR website is simple and unique you have come a long way – but it is worth nothing if the data is not up to date. The single-most common mistake on an IR website is having information that is old or irrelevant.
If keeping a top-quality IR website up to date internally is almost impossible, it is often better to lower the bar and accept a more basic version. If using an external vendor, though, never settle for placeholders.
Petter Hedborg is CEO & founder of Modular Finance
