ShareSoc Blog
This blog gives you the latest topical news plus some informal comments on them from ShareSoc’s directors and other contributors. These are the personal comments of the authors and not necessarily the considered views of ShareSoc. The writers may hold shares in the companies mentioned. You can add your own comments on the blog posts, but note that ShareSoc reserves the right to remove or edit comments where they are inappropriate or defamatory.
There is more news given in the News page of our web site and more analysis of news is provided in our monthly newsletter for members – see the Newsletters page.
If you would like to be notified about new posts to our blog you can opt-in to our Weekly Wrap-Up Email service. If you are a member of ShareSoc select the “Weekly Wrap-Up Email” option here. If you are not a member select the “Information and Education Services” option here.
The Competition and Markets Authority (CMA) have issued their final recommendations to improve competition in the audit market after an earlier public consultation. This follows widespread concerns over the dominance of the big four audit firms, the lack of apparent competition on price or quality, and repeated complaints about the quality of audits following several big and small company failures. Audit firms seem to have got off relatively lightly if the CMA’s recommendations are implemented by the Government. Here’s a brief ...
In January 2019, the FCA and FRC issued a joint discussion paper DP19/1 Building a regulatory framework for effective stewardship.
On 15 April 2019, we made a joint response from UKSA and ShareSoc on behalf of individual investors. In our response we make the following key points:
Investor stewardship must not let boards off the hook for their own stewardship. The Stewardship Code should be renamed the Investor Stewardship Code to better reflect what investors do and to better acknowledge the role of ...
Are your investments at risk from the “Blue Planet” effect or will it help them prosper? Will the companies you hold be winners or losers as politicians and the public respond to climate change? Most importantly, are the management on top of the material environmental issues for their industry, do they have strategies to respond and are they giving you the information you need? Often you will have to look into and beyond the narrative and risk reporting not just the financials ...
The Financial Reporting Council (FRC) have announced an investigation into the audits by Grant Thornton of the accounts of Interserve (IRV) in the years 2015-2017. Interserve was a large outsourcing company with most of its business from Government contracts. It ran out of cash and went into administration on the 15th March with debts of £738 million. Readers will no doubt be aware that Grant Thornton were also the auditors of Patisserie Holdings and Globo, both cases where very substantial fraud ...
Department store operator Debenhams (DEB) has been put through a pre-pack administration. It’s been bought by a new company formed by its secured lenders. Mike Ashley of Sports Direct is furious. His company invested £150 million in the shares of the company in the hope of taking it over, which will now be worthless. He had some choice words to say on the subject which included that it was an “underhand plan to steal from shareholders”, “as normal politicians and regulators ...
I have written before about the merits of strong brands. This is a paragraph from my new book soon to be published (entitled “Business Perspective Investing”): “Trade marks help customers to identify with the product, and make it easier for them to select the product on a new purchase. Brands are particularly effective when there is actually little difference between competitors’ products - for example, lager beer, gin or washing powder. Brands are exceedingly valuable if well maintained. Coca-Cola is a ...
Readers are probably aware that founder Julian Dunkerton managed to win the votes yesterday (2nd April) at the EGM that he requisitioned at Superdry (SDRY). The votes to appoint him and Peter Williams were won by the narrowest of margins despite proxy advisors such as ISS recommending opposition. My previous comments on events at Superdry are here: https://sharesocstagin.wpenginepowered.com/blog/company-news/superdry-does-it-need-a-revolution/ . It did not seem clear cut to me how shareholders should vote, but I did suggest there was a need for change.
There ...
RBS Shareholder Committee Campaign: Update 15 - Resolution has been accepted and is on the AGM agenda
The Shareholders Circular and notice of the AGM was sent out on 18 March to all shareholders on the register, along with a copy of the annual report (only 267 pages this year), headed “Building a simple, safe and more customer-focused bank”. You only get a paper copy of the annual report if you asked for it.
Those people who have invested in RBS shares via ...
Educating investors is one of ShareSoc’s primary objectives. If you have not recently visited the ShareSoc Investor Academy then I recommend you do so. We continue to add to and improve the site. https://sharesocstagin.wpenginepowered.com/investor-academy/
One of the best ways to learn about investing is to listen to experts and the Mello Investment Trust and Funds Conference on 15th May is an excellent opportunity to do so.
Of particular interest may be the sector experts who can highlight the key performance indicators and the ...
Dear Member,
The FRC is doing a survey of investors views of the topics that the Reporting Lab should look at over the next few years. The link to the survey is:
https://www.smartsurvey.co.uk/s/labsurvey11/
Please do respond if you can; it should only take about 5 minutes to complete (I just did it and it took me 7 minutes but I wrote lots of comments). The FRC runs an excellent investor engagement programme of which the Reporting Lab forms an important part. The FRC is very ...
