Case Studies

 

Case study 1

A FTSE100 Retailer

The Brief

A FTSE100 retailing client had significantly expanded its international business. They asked us to probe the views of theirbuy and sell side analysts regarding this strategy. In particular they were interested in gauging their views of capex requirements, ROIs and potential further growth. Feedback on the perceptions of management, strategy, the financials, valuation and corporate communications was also included in the remit.

The Action

We undertook in-depth face-to-face meetings with twenty five key investors and a number of sell side analysts to sensitively probe their views of the international strategy, capex plans and views of the international portfolio. We summarised the findings and provided the detailed attributable feedback to the main Board.

The Recommendations

Following our research and using the feedback from our meetings, we made a number of recommendations to the Board with regard to their corporate communications policy going forward. We recommended;

  • Improving the transparency of the international businesses to facilitate the Market’s understanding of its strategy and progress to date.
  • Providing more financial information on returns and capex by region
  • Arranging local site visits to visit the operations and meet the local management team
  • Providing more information in the Interim and Preliminary Results presentations regarding the International businesses
  • Providing regular updates on international progress

Outcome

A considerable improvement in investor perceptionssurrounding the international strategy.

The management team were perceived to be more willing to improve the transparency of the international businesses.

Greater comfort and therefore, support from key shareholders surrounding the increasing capex levels needed to fund the international expansion.

Mini re-rating of the shareprice following improved transparency over the returns of the international businesses

 

Case Study 2

A FTSE Mid Cap Financial Services Company

The Brief

A large FTSE Mid Cap Financial Services Group asked us to investigate the views of its key shareholders of the possible demerger of its international business

The Action

We undertook face-to-face interviews with twenty shareholders and ten sell side analysts to sensitively probe their views of the company, its management team, its strategy, financials and valuation and its communications.

We asked a number of detailed questions surrounding shareholders views of the international business, its valuation, management team and individual countries within the portfolio

The Outcome

The highly detailed attributable feedback provided the Executive Team with excellent input into its decision-making process surrounding the de-merger and comfort that it would be supported by its major shareholders.

The subsequent de-merger was a success, well supported by existing shareholders and the Market with subsequent positive feedback and broker research surrounding the deal.