Are companies trading on London Stock Exchange required to disclose customers accounting for 10%+ of revenues?
Question:
Answer:
There is no direct rule that requires companies to do that. However companies listed on the LSE are required to disclose issues that could have a "material effect on the share price". One customer accounting for more than 10% of revenue would be considered a material issue.
Most large companies use their results statement to tell the market who their large customers are. Those companies who rely on one customer for a substantial part of their revenues are expected to give a lot more information on the commercial relationship with that customer. They normally trade on a lower rating on the LSE as there is a risk the share price will fall if that customer switches to another supplier.
No they are not, and why should they be required to do so?
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