April 2025

Over the years, how have you seen the influence of retail investors evolve, and do you think they are taken seriously enough by boards?

My own retail engagement started with AGMs, as that was the only opportunity you had to meet management and learn more about the operations and culture of the company. Mello has definitely improved the landscape with lots of physical meetings and seminars, as have other platforms like ShareSoc, etc. When the pandemic arrived, there was a rapid change due to all engagement moving online. However, companies still need to realise that major investment is not made just over a webinar and need to still be assisted with face-to-face meetings. That said, retail engagement has definitely improved in recent times with all the online engagement.

Retail investors still need to be taken more seriously. Most advisors, like brokers, still guide boards towards institutional investment. The challenge at the moment is that institutional funds are having to leave the market, so retail is more important than ever.

What are the biggest mistakes companies make when communicating with private investors, and how can they improve engagement?

I think a lot of it is down to trust. Private investors want to believe management is doing a good job. They have to trust them with what they say and do. Our motto is "under promise, over deliver".

We do not like information going out solely via the City & institutions, as opposed to shareholders. For example, downgrades or upgrades via broker research that is not available to private investors. This would suggest we need to be wary of a company.

Companies can improve engagement by ensuring they have a time and cost budget to meet them. So many management teams will say they are too busy to meet private investors face to face, outside of their AGM, but they are happy to do roadshows meeting institutions in the City. Including private investors in roadshows and ensuring open access to retail for fundraises is a great start.

Do you think the UK markets provide enough support for small and midcap growth companies, or is more reform needed to encourage investment?

The AIM market in particular is not supported well enough and there is probably reform needed as well. I think the market as a whole needs more independent oversight. I believe that the AIM market, where many retail investors are focused, should not be part of the LSE.

What is the most interesting thing you have read or watched recently?

It's not a new show but Dragons' Den for me. As an investor & entrepreneur, I will never get tired of watching that show. My main focus to get away from business is sport, so you won't see a Mello investor show hosted by me during Wimbledon!

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Please note: The views and opinions expressed in this interview are those of the individual financial professional(s) and do not necessarily reflect the views or opinions of Alma Strategic. These insights are provided for informational purposes only and may not be relevant at the time of reading, as market conditions can change rapidly. The information provided should not be construed as investment advice or a recommendation to buy, sell, or hold any financial product or security. Individuals should conduct their own research and consult with a qualified financial advisor before making any investment decisions. Alma Strategic disclaims any responsibility for the accuracy or completeness of the information provided in this interview.