Average public company annual report and accounts are now 98,000 words - longer than The Hobbit - our research reveals.
Our latest report: Close the Book: It’s Time to Cut Annual Reports Down to Size has revealed the length of the average annual report has ballooned to a staggering 98,000 words, longer than J.R.R. Tolkien’s The Hobbit.
That marks a 31% increase in word count in just five years and means they are likely to pass the 100,000-word mark this year. The QCA warns that mounting disclosure requirements, particularly around ESG and executive pay, are turning a vital investor communications tool into an overwhelming compliance exercise.
The QCA’s latest policy paper calls for a major rethink of the UK’s corporate reporting regime, including scrapping what it calls the “essay on pay” around remuneration, pruning environmental disclosures, simplifying and standardising reporting requirements and the fast adoption of digital tools. With private capital now backing 14 times more companies than the UK’s quoted sector, the study also calls for a levelling of the playing field on transparency and accountability.
As the Department for Business and Trade prepares for a consultation later this year, the QCA’s report arrives at a critical moment, echoing EU efforts to cut administrative burdens by 25% by 2029.
Key findings include:
- Report Inflation: FTSE 100 reports have increased 27% since 2019 and now average 152,000 words, longer than The Da Vinci Code. Main Market reports are up 40% to 101,000 words, longer than The Hunger Games, and AIM reports have swelled 23% to 42,000 – making them a bigger read than The Lion, the Witch and the Wardrobe.
- Remuneration Reporting: On average, runs to 10,000 words – the length of The Art of War – with Main Market companies seeing a 40% increase.
- ESG Disclosures: ESG-related content has surged 236% to 11,000 words on average – as long as The Metamorphosis.
Click here to download our full report: Close the Book: It’s Time to Cut Annual Reports Down to Size
“Annual reports can be vital tools for shareholder communication, but as chapter after chapter is added to them every year, it’s time to call a halt.
We need to focus on what’s really important to engender investor trust and confidence and discard the waffle that distracts from delivering growth.
The Government has a real opportunity this year to cut complexity, boost productivity and level the playing field between public and private companies.”
James AshtonCEO, Quoted Companies Alliance
