A FTSE SMALL CAP Group Company Secretary writes...
Do listed companies tend to have a H&S narrative in their AGM Statement and/or where applicable in their AGM presentations?
We were asked at our recent AGM why there had been no mention of a serious H&S incident in the AGM Statement/Presentation (but the incident had occurred 11 months before the AGM and had been covered in the Annual Report produced and released in December). The financial impact of the incident and subsequent investigation, whilst significant at a local and personal level, was not material from a Group perspective.
Are we out of step in not reporting it again and is there an expectation from shareholders to report these matters at the AGM?
If covered in AR, properly disclosed and not an ongoing issue, I’d suggest no need to report again at AGM. Shareholders can ask about such an incident and learnings / changes in processes etc but that’s different.
We would not seek to refer to such an old issue, unless there had been a very recent and relevant development eg a prosecution. Our AGM presentation is largely a re-hash of what is given to analysts on the day of the prelims, updated to refer to current trading, which statement is usually released to the market the day before the AGM (to give the CEO and FD chance to deal with any analyst queries that arise.
I don’t think you are out of step. Your AGM announcement will be analysed for evidence of future performance expectations, as much as current trading.
If this incident, whilst serious, did not have a significant impact on the reported results and future performance then including it will only serve to make shareholders question why you have done so.
This is different to referring to it, and any resulting changes to operations, in the CEO’s presentation of the last year’s performance. But that would only be if it is deemed to be of significance (including reputational) by the Board.
You are not out of step and we follow the same practice.