Strategic Reports

Overview

Companies reporting under FRS 102 that exceed the small company thresholds must prepare a Strategic Report.

You’ll need one if your business meets any of these criteria:

• Turnover > £10 million
• Balance sheet total > £5 million
• More than 50 employees

✅ What Must Be Included

All qualifying companies must include the following components in their strategic report:

• Fair Review of the Business

  Provide a balanced and comprehensive account of the business’s development, performance, and position during the financial year. Clearly describe the principal risks and uncertainties.

• Key Performance Indicators (KPIs)

  Include financial KPIs necessary to understand the business’s development and performance. Where relevant, include non-financial KPIs such as environmental or employee metrics.

• References to Annual Accounts

  When appropriate, reference and explain figures from the annual accounts to enhance understanding of the business performance.

📂 Guidance & Examples

Here are resources to help you draft your report:

• Illustrative Accounts – Grant Thornton
• Sample Report: Magnificent Cuisine Ltd (a fictional company)
• FRC Strategic Report Guidance
• Real-World Filings via Companies House
  • https://find-and-update.company-information.service.gov.uk/company/04260035/filing-history
  • https://find-and-update.company-information.service.gov.uk/company/09356191/filing-history

💡 Tips for Effective Reporting

• Use summary tables or charts for KPIs to aid readability.
• Add a “Risk Summary” box to highlight key risks at a glance.
• Consider including a visual roadmap or performance dashboard to present metrics clearly.
• Maintain consistent headings (e.g., Overview, KPIs, Risks, Account Refs) across all support articles for uniformity.

Additional Topics You May Consider

• Guidance on size thresholds, including how to assess whether a company qualifies as “small.”
• Requirements for quoted companies, such as strategy, business model, gender split, and sustainability disclosures—where applicable.
• Advice on approval and signing procedures—that the board must approve and sign the report.
• Highlight any exemptions or differences applicable to medium-sized or quoted companies.