The purpose of Investor Relations is to provide a clear, honest and accurate picture of a Company’s past performance and its prospects for the future to the City. The aim is to make sure that the Company is valued fairly in the market, and that the share price is an accurate representation of the performance and future prospects of the business taking into account both industry sector and macro-economic issues. The main failing for which the markets penalise a company is surprises. If you promise big things and do not deliver, the impact on the share price can be significant. The means for communicating to the City are varied with a mixture of the formal (results presentations, trading statements etc) and the informal (seminars, conferences and phone calls).
The role therefore of the Investor Relations officer is an exciting one, dealing day-to-day with senior executives and equity analysts and investors. There is no prescribed route into investor relations, with a mixture of skill sets represented. The key attribute is the ability to communicate financial and strategic issues honestly and effectively.