FTSE 100 companies are markedly more effective at adding strategic value in their annual reports than their FTSE 250 counterparts, according to review of reporting.

The end-of-reporting-cycle review by FutureValue scores the narrative in annual reports against best practice across the whole FTSE350. And while the average overall strategic value added score for FTSE 100 companies is 6.1, the average for FTSE 250 companies was just 5.2.

The highest overall score was 8.5 (for Capita and Land Securities, both FTSE 100 companies); the lowest was 1.7 for Daejan Holdings.

According to FutureValue, FTSE 100 companies are generally more sensitive to the value of effective narrative and typically allocate more resource to Annual Report production

While standards of communication appear to be high, scores would be lower if FutureValue attributed a higher proportion of marks to the use of online media.

“Many companies seem unable to focus on producing a truly effective narrative first and then worrying about compliance second,” says Ian McDonald Wood, the author of the report. “Generally, the complexity of reporting requirements means that the essential story often gets lost in the telling.”