Think stakeholders’ needs first
But simply copying publicly-listed annual reports is not the answer. Private company stakeholders differ from listed companies and don’t have the same needs. Banks, lenders and private equity owners want information on cash flow, returns and risk. They want clarity, insight and a coherent story behind the numbers. At the same time, employees want to know if the company is financially stable, where the business is heading and how it has performed.
Stakeholders want more substantial insights
Driven by rising expectations from investors, lenders and regulators, some large private companies have evolved their reporting to enhance understanding and provide better insight into performance, risk and resilience.
Businesses such as DFS and Virgin Atlantic use their annual reports to tell a clear strategic story, provide robust risk disclosures and also align with requirements such as s172(1) and the TCFD. While large private companies are not held to the same disclosure standard as listed companies, the difference is smaller than it used to be and continues to narrow – especially in sustainability reporting where the UK SRS is expected to be rolled out to large private companies in the future.
Leading reporters articulate their business model and strategy clearly, provide meaningful insight into risks, and offer a forward-looking perspective. They move beyond boilerplate content and provide business-specific insight, while bringing together strategy, performance and risk into a clear, coherent narrative.
Overall quality remains mixed
The FRC says that the quality of large private company reporting remains uneven. Leaders balance public company best-practice with content that is truly relevant, cutting irrelevant disclosure while telling a clearer, more strategic story. The key is not to replicate public disclosures, but to take the best elements while stripping out what doesn’t matter.
If you'd like to hear more from Friend about how you could produce truly compelling reporting, please get in touch.
