IR Monitor – 2 February 2025

In this week’s newsletter:

• FTI Consulting’s very own Talal Almoallem makes the case for enhanced disclosure and forward guidance from companies in the Gulf states
• Is Wall Street ready to stay up all night? asks the FT. The NYSE is looking to trade for 22 hours a day — raising thorny questions about how equity markets function
• Want to list on AIM? The pitfalls and opportunities on London’s junior stock market
• DEI pay incentives come under pressure after two-year surge. The links between executive pay and diversity goals have lost ground in large companies’ most recent annual filings as American corporations retreat from DEI, reports The Wall Street Journal
• CityAM: UK listed firms issued third-most profit warnings ever last year behind only the pandemic and the aftermath of the dot-com bubble bursting
• And finally … in case you missed it: IR Monitor Live with our predictions for 2025

This week’s news

The case for enhanced disclosure and forward guidance in the Gulf states

Talal Almoallem, a Senior Director in FTI Consulting’s Dubai team, makes the case for enhanced disclosure and forward guidance in the Gulf Cooperation Council (GCC). In his latest article, Talal explains that providing forward-looking guidance remains uncommon in GCC capital markets although doing so is important because the practice of guiding can act as a powerful tool for attracting investors, increasing analyst coverage and improving liquidity. As the GCC markets evolve, there is a clear opportunity to improve transparency and align with global best practices. 

Is Wall St ready to stay up all night?

In light of the discussion about the NYSE’s plans to extend trading to 22 hours a day, the Financial Times’ Jennifer Hughes highlights the emerging and complex debates. When, for example, does a trading day begin and end if it runs around the clock? What would be the closing price of a stock if the days were seamless? What are the costs of maintaining complex systems with little or no downtime? The rise of overnight trading, fuelled by platforms like Robinhood and an increasingly knowledgeable base of retail investors, is reshaping the landscape. While new trading apps and habits formed during pandemic lockdowns are undoubtedly driving demand for extended trading hours, this shift is also unearthing concerns around the potential knock-on effects on traders’ personal lives. 

Want to list on AIM? The Times lists the pitfalls and opportunities on London’s junior stock market

Unshackling the junior stock market to help small and high-potential firms tap the UK’s public equity markets will benefit us all through economic growth, writes Richard Harpin in The Times. AIM has helped more than 3,600 companies raise more than £60 billion since its launch 30 years ago and can be a game-changer for businesses to fuel growth plans. However, questions remain as to whether AIM has stopped working effectively in recent years due to high costs and excessive red tape that have made it less accessible. By reducing these barriers, AIM can rejuvenate the market, support ambitious firms and “give Britain the investment boost it so sorely needs.” 

DEI pay incentives come under pressure after a two-year surge

Target, previously one of the US’s most visible supporter of corporate Diversity, Equality and Inclusion (DEI) initiatives, has announced plans to end its workforce and supplier diversity programmes this year, The Wall Street Journal reports. The company is now dropping workforce diversity targets established in 2020, which set out to increase the representation of Black employees across the company by 20%. Despite a spokesperson saying the company remained on track to meet those goals, Target joins a spate of US companies rolling back diversity commitments. The changes follow mounting industry pressure from conservative activists and shareholders to divest from DEI policies and President Trump’s executive orders on DEI practices. Target said the decision was made “with the goal of driving growth”, reflecting changing leadership attitudes to the value and profitability of DEI posturing to shareholders.   

UK-listed firms had third-worst year for profit warnings in 2024 – CityAM

Recent findings by EY have revealed that 2024 was the third-worst year for UK-listed companies issuing profit warnings, City AM reports. In 2024, one in five companies issued profit warnings, totalling 274, making it the worst year ever after the pandemic and the dot-com bubble. Amongst the main obstacles to meeting earnings expectations were contract cancellations, higher costs and supply-chain disruption. The worst affected firms were consultancies, industrial suppliers and recruiters, which issued 37 warnings across the year. The retail industry closely followed, with seven profit warnings in Q4 despite positive trading updates for the festive period.  Although profit warnings have since slowed in the first month of 2025, leaders of the study warn that “the road ahead remains rocky.”  

And finally… in case you missed it: IR Monitor Live with our predictions for 2025

In the second edition of our occasional IR Monitor Live, FTI Consulting’s investor relations professionals share their predictions for the year ahead, with US market volatility, M&A and of course AI at the top of the IR agenda. Have a watch  here!