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Half yearly reporting season for ASX listed companies with a 30 June year end has just finished up. For IR Department, the start of March typically signals the time when our smaller ASX listed company clients would want to roadshow. Some companies, however, will be deliberating over how important roadshows are.
Our view? Roadshows are not an outdated method of communication and engagement. In this blog, Account Director, Glen Zurcher explains that for companies with a small to medium capitalisation, they remain one of the best ways to form solid investor relationships.
As the world increasingly measures the success of engagement by likes and click throughs, it’s easy to forget the value of face to face meetings for fostering connection.
And that’s why, even with all the work we’ll do digitally to promote the companies we work with, we’re still hell bent on taking clients on the road to meet with their investors, at least twice a year
Nothing can replace face-to-face interaction when it comes to quickly building credibility and trust – which is exactly what investors need to back a company they may not have heard of previously. To reinforce that, we regularly hear that one of the most important, and perhaps THE most important deciding factors for investors in micro and small capped companies is the strength of management. So how can this best be assessed by investors? Spending time with the people you’d like to have invest in your company enables them to assess your strengths and weaknesses, ask you lots of questions and get a feel for the sort of person, you are and the team behind you.
The goal with a roadshow isn’t necessarily to convert right away (although that does happen), but to garner interest and take the first steps toward a sustainable, long-term relationship. All of which is very difficult to do simply using email, ASX announcements, newsletters and electronic channels.
We also know face to face investor meeting are a great way to learn about industry developments. Investors tend to focus on sectors and hold considerable insight into peers. Tapping into this information set can invaluable.
We’re very deliberate about the way we plan and execute a roadshow:
- What is your objective? Are you talking about your half year results or are you seeking to raise capital? Are you introducing new management? We think about these questions before considering who you should be meeting with and what they will want to hear.
- It’s not just a numbers game; we’re focused also on the quality and relevancy of those contacts to our clients. Can they invest in your company? Have they invested in your peers? Are they keen on your sector? We do our best to know the answers to these questions before putting a meeting in your schedule.
- We’re precise; we tailor unique investor pitches for each company we work with ensuring it’s easy for investors to get across the story and know if a meeting could fit with their investment mandate.
- Do you know who you’re meeting with and why they would want to meet with you? If you don’t, you should. We ensure we are up to speed on our meeting contacts and brief our clients ahead of time on how to approach the meeting.
- We lead, guide and steer each meeting; we don’t just provide our clients with a time and address, but we support our clients by running the meeting the way it needs to be run and importantly,
- We follow up – seeking feedback from the people we meet with and using their comments to help tailor the way you approach the market moving forward. We report to you and to your Board and we track all our communications, so the next time you roadshow, you’ve got an easy reference point to come back to before building the schedule.
If this sounds like a lot of work, you’re right. It is. But the discipline we bring to the process delivers outcomes that are worth the effort.
If you’d like some help thinking through your next roadshow, don’t hesitate to get in touch.
About Glen Zurcher – Account Director
Glen has extensive international public listed company experience across small and large market caps having worked in Australia and Zurich, also reaching into the London market, where he was based for almost a decade in roles with KPMG and the Holcim Group, during which time he worked with capital market participants globally.
He brings 17 years of experience working with companies, both in in-house roles and agency environments, to communicate complex stories and to ensure they are appropriately positioned to attract investment.
Originally a corporate analyst, he has experience from a number of sectors including: life sciences, tech, building materials, mining, energy and property.
Glen developed the investor relations function at Fortescue Metals Group and acted as an advisor to Singaporean listed property group Frasers’ takeover of ASX listed Australand. Glen holds a degree in Banking and Finance, is a Chartered Company Secretary and a graduate of the Australian Institute of Company Directors.
About IR Department
Established in 2007, Investor Relations Department Pty Ltd (IR Department) is an independent corporate and financial communications agency, known for delivering outstanding results for clients.
Our experienced consultants understand the importance of matching business objectives with communications campaigns. We translate complex data and messaging into understandable investor communications that form the backbone of successful investor engagement strategies, and support appropriate valuations.
We provide expert consulting services across the areas of investor relations, public relations, marketing and communications. We like to do what we say we’re going to do – delivering to brief and reporting to clients as we go, so our clients aren’t left guessing about what we’re doing, and they can measure our collective success along the way.
For more information or to contact us, please visit www.irdepartment.com.au.