FTSE 100 companies opt to follow the herd

Financial PR for FTSE 100 companies is being dominated by an elite band of five agencies, according to a recent survey by investment market researchers City Insights.

Financial PR for FTSE 100 companies is being dominated by an elite

band of five agencies, according to a recent survey by investment market

researchers City Insights.



Brunswick, which has 21 FTSE 100 companies as clients, tops the league

of consultancies, which between them handle 80 per cent of those FTSE

100 stocks which have nominated advisers.



The other major players are Lowe Bell and Financial Dynamics which

handle 12 FTSE 100 clients each, Dewe Rogerson representing six, and The

Maitland Consultancy which works for five blue chip companies.



A second tier of agencies including Ludgate, Gavin Anderson, Citigate

and Hudson Sandler count FTSE Mid 250 companies as clients. However, the

chance of second tier advisers breaking through the FTSE 100 glass

ceiling to gain blue chip clients is slim.



Responses from the survey’s sample of corporate management of UK quoted

companies, brokers’ analysts and corporate financiers, indicate that

second tier agencies are unlikely to build their FTSE 100 client list

through organic growth or providing better service. Clients rarely

differentiate between PR advisers on the basis of service quality and

changes in the agency roster only usually occur following a change of

corporate management.



Second tier agencies appear most likely to gain FTSE 100 clients through

the defection of ’star advisers’ and their clients from first tier

agencies.



The survey found that clients often regard the individuals they work

with as more important than the agencies they represent, although their

prominence remains founded on their client list.



Leader, p9.



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