Tuesday 26 May 2026 9:20 am
UK-listed companies are losing the confidence of retail investors
UK-listed companies are losing the confidence of retail investors, as shareholders complain of weak communication, poor transparency, and limited access to chief executives, according to new research from InvestorHub and ShareSoc.More than half of investors surveyed said transparency was missing from company communications, while almost half said listed businesses failed to provide sufficiently clear financial information.London’s IPO struggles The number of UK-listed companies has fallen by more than half over the past decade, from more than 3,000 to around 1,500 today. London saw a surge in IPOs at the back end of 2025, ending a two-year-long drought, but this trend hasn’t continued into 2026.A range of factors have been blamed for the decline, from over-regulation to low valuations, political uncertainty and excessive stamp duty on the purchase of shares. The government has responded by working to cut regulation and has introduced a three-year stamp duty holiday on new issues. However, the survey suggested that dissatisfaction among retail shareholders stemmed less from regulation and more from how companies communicate with investors.Around 53 per cent of respondents said transparency was lacking, while 48 per cent pointed to poor financial data and 45 per cent said companies failed to provide enough forward-looking statements.A further 38 per cent said listed businesses did not provide frequent enough updates, while 34 per cent said there were insufficient opportunities to engage with leadership teams.When asked which area required the most improvement, 33 per cent of respondents selected clarity of information, ahead of transparency in reporting at 29 per cent.How companies choose to communicateInvestors also appeared increasingly frustrated with how companies choose to communicate, with email newsletters ranked as the preferred channel ahead of websites, webinars and press releases.Social media ranked last among communication channels, suggesting retail shareholders preferred direct financial information over marketing-led content.The survey also found that demand for direct access to management increased alongside portfolio size, with 67 per cent of investors holding portfolios above £500,000 saying they wanted greater access to leadership.Lord Lee of Trafford, patron of ShareSoc, said: “I am pleased that InvestorHub and ShareSoc have carried out this useful survey, giving listed companies insight into the communication preferences of retail investors.“My own experience, in over 60 years of investing, agrees with much of the report, recognising the importance of direct, transparent contact with the CEO.“With the government’s increasing efforts to encourage individuals to invest more of their savings in the stock market, it is a good time for all listed companies to review and improve their retail communications and those who do it well should be rewarded.”Alex Stella, managing director of InvestorHub, said: “The investor relations playbook has not fundamentally changed since the 1990s.“The companies that recognise this and act on it will find that retail shareholders are among the most loyal and patient supporters they have.“The modern retail investor, particularly one investing significant sums over many years, expects to feel that the leadership of a business regards them as a genuine partner.“A short, honest video update from a CEO does more to build that relationship than any amount of polished corporate literature.”
