A company annual report is a published yearly report which a public company with shareholders has a legal obligation to produce. The annual report is a document which is created to supply information, detail key events which have taken place over the last year and give a company overview to current shareholders and potential company investors.
Company annual reports can also be used as a prospectus for potential business colleagues, suppliers or, depending on the business are, even customers! The report gives these groups the opportunity to complete some background research on the company before proceeding with any deals.
A company annual report tends to follow a basic structure with all of the necessary contents included and on top each company adding their own range of financial and company reports and information. In such circumstances the more information included in the document the better as this shows an open and honest company which has been able to identify their strengths and weaknesses.
The content of the annual report is important. It includes a range of financial statements from the company, an audit report from an independent auditor which are complimented with a selection of statements from the Chairperson, CEO and other company directors or important individuals which are key to the company's growth and success.
The financial statements which are included in the annual report are primarily to assess the stability and profitability of the business so investors and shareholders can identify good investment opportunities. The financial statements include a range of documents such as a balance sheet, cash flow statement and a profit and loss statement. The highlights of this information which be used in graphs throughout the report and referred to in written statements from the company directors and key individuals. This financial information will be backed up with an audit report from an independent auditor, ensuring all information featured into the report is credible.
The range of written statements which are included in the document always include the minimum statements from the Chairperson and CEO but this is often complimented with statements from other key individuals and employees that play an important part of the operation of the business along with a mission statement. In addition there will be a range of important statements which will detail the key events which have happened to the company over the past year and any social or economic changes which may have led to this. Potential growth opportunities, new markets, areas for further financial development and the direction the company will be taking over the next financial year.
The company annual report is an essential document which has a range of benefits for both the company producing it and other parties who are involved in the company. If you are considering working with a new company or looking to invest in a company then you should take a look at their recent annual reports. Like many business documents the annual report has progressed with the use of technology and have moved forward from lots of text and dull black and white charts to a range of colourful graphics, images and useful information which is easy to digest.
Company annual reports are available free of charge, most company websites offer their annual report for download. One of our regular customers Car Insurance .org.uk obtains data from us for their commerical car insurance customers.
Another customer of ours whom specialise in Commercial Property Insurance, have been using our website for annual company reports, when assessing potential commercial property buyers.