Who doesn’t like the idea of getting something for nothing? If you’re an investor in the UK’s leading companies, don’t miss out on the freebies, special offers and discounts that many of them still provide. Shareholders’ perks are on offer from industries ranging from storage solutions to the services sector.
For companies, these perks represent an opportunity to build closer and more mutually supportive relationships with their shareholders, especially retail shareholders who typically receive less attention than large institutional investors. They also encourage shareholders to become consumers of their products and services, and can be a useful way of getting rid of unsold stock or spare capacity.
The end of an era of shareholder perks
In modern times, many companies have cut back on such perks or abandoned them altogether. They’ve typically argued that investors would rather see them focus on maximising profits – and that they can offer more value through initiatives such as special dividends or share-buyback programmes.
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The administrative cost of running perk schemes has been a factor too; some companies have also maintained that as new technologies have seen many investors trade in and out of their shares more frequently, perks and freebies designed to foster long-term loyalty from shareholders are no longer so appropriate.
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Nevertheless, perks haven’t disappeared altogether. There are still a wide variety of schemes available, and the best of them remain valuable. The key is to check that you’re eligible. If you manage your investment portfolio on one of the large online platforms, you will almost certainly own your shares through a nominee arrangement. In that case, you won’t automatically be entitled to the perks attached to the shares.
Platforms such as Hargreaves Lansdown, Fidelity and Interactive Investor promise to pass on perks, but you may need to make a specific request to ensure this happens. Shares held inside individual savings account (ISAs) and self-invested personal pension (SIPPs) wrappers can be particularly problematic.
Also, some companies have qualification criteria for perks. You may need to hold a certain number of shares to get the benefit, or larger shareholdings may give you access to more generous perks. In a few cases, shareholders must have owned their stake in the business for a minimum period before they qualify.
The other critical caveat with shareholder perks is that no company offers a generous enough scheme to justify an investment in its business for the perk alone. Some perks are more valuable than others. For example, you only need a single share in Bloomsbury Publishing – currently trading at around £4.75 – to get a third off the recommended retail price of all its books, so you can make your money back with a couple of good reads.
By contrast, Next’s investors must hold at least 100 shares to get a one-off 25% discount on a purchase; it would cost you £14,000 to buy that holding at Next’s share price. So buy the shares because you’re impressed by the prospects for dividend income or capital growth (ideally both), not to get a freebie. But if the investment case stacks up, perks can be a very welcome extra.
The 20 best shareholder perks on the market
Adnams: The Suffolk-based brewer offers shareholders 10% discounts on most of its products, whether you buy in person or online; you can also get discounts on meals in its managed properties and on its brewery tours. Register online for Adnams’ shareholders’ loyalty scheme to qualify.
Big Yellow Storage: All Big Yellow’s shareholders are entitled to a discount of 10% at all Big Yellow or Armadillo stores on both self-storage and flexi-office rentals; the same discount is available on products and services, including packing materials and insurance.
Bloomsbury Publishing: One share in the company entitles you to a discount of 35% off the full price of all books (print only) from the publisher, best known for the Harry Potter series. You’ll find a form on the website through which you can claim the benefit.
BT Group: Shareholders can claim a range of discounts on BT’s products and services – as well as on other technology products. The offers often feature generous savings on gadgets.
Carnival Corporation: Investors with at least 100 shares are entitled to on-board credits on Carnival cruises – essentially a pot of cash to spend while you’re on the boat. The amount of credit on offer depends on where you’re cruising and how long for. A 14-day trip on a P&O Cruise would net you £150 of credit.
Chapel Down: If you’re a fan of English wines, a shareholding of up to 1,999 shares in Chapel Down will get you a 25% discount voucher to spend annually, as well as free tastings and early access to new vintages. Investors with larger holdings get additional benefits, including more generous discounts and invitations to special events.
Fuller’s: The hospitality company’s Shareholder Indulgence Card qualifies you for a 15% discount on food and drink in hotels and pubs managed by Fuller’s. You also get discounts on bed and breakfast rates in its inns and hotels. But you’ll need to own at least 1,000 shares to qualify.
Getlink Group: If you’re an investor in Getlink Group, quoted on the Euronext market in Amsterdam, you’re entitled to a 30% discount on up to three return crossings a year (or six single journeys) via Eurotunnel, which the company now owns and operates.
Irish Continental Group: Investors who own at least 1,000 shares in the travel company can claim a 20% discount on ferry services between Britain and Ireland, and between Britain and France. There are smaller discounts available on other ferry services operated by the company as well as on its package holidays.
Legal & General: Shareholders may claim a discount of up to 25% on premiums for its life-insurance products. And if you apply for one of its lifetime mortgages, L&G will give you a £250 gift card.
Marston’s: Investors in the pub company who hold 500 shares or more receive 24 vouchers each year. The vouchers offer 30% savings on food – but not on drinks – in Marston’s pubs.
Mitchells & Butlers: All shareholders in Mitchells & Butlers receive a shareholder discount voucher booklet of 12 vouchers each year. They can be used in the company’s pubs and restaurants across the UK, including All Bar One, Miller & Carter and O’Neills.
Mulberry: The Mulberry Group offers a discount card giving shareholders discounts of up to 20% in a range of its stores worldwide. This perk is issued in March each year to investors with at least 500 shares, but isn’t available to investors with SIPPs.
Newbury Racecourse: Investors with at least 101 shares get free entry to race days at Newbury. You can claim two day-badges if you hold less than 5,000 shares; investors with 5,000-9,999 shares get a single badge entitling them to unlimited race-day attendance; those with 10,000 shares or more get two of these badges.
Next: Investors with 100 shares in the retailer receive a 25% discount on full-price purchases made in a single transaction in Next retail stores. Vouchers entitling shareholders to the discount are typically issued in April each year and must be redeemed by the end of October.
Renishaw: Shareholders in engineering business Renishaw may not realise that the company owns a travel agency, Wotton Travel. Investors are entitled to discounts on holidays booked through the business.
Safestore: Shareholders receive a 25% discount off storage costs at Safestore, plus 20% savings on merchandise when you become a customer. You’ll need 100 shares or more to qualify and the scheme is managed by the firm’s registrar, Link.
Shepherd Neame: Investors in the brewer qualify for a Gold Card as long as they hold at least 100 shares; if you have 3,000 shares or more, you’re entitled to a Black Card. The cards offer savings of up to 25% and 30% respectively on food, drinks and accommodation at Shepherd Neame’s pubs and hotels.
Telecom Plus: Telecom Plus operates several utility brands in the telecoms and energy sectors. Shareholders get access to special energy tariffs priced roughly 10% below standard prices, as well as a 10% credit each year equal to their total spend on non-energy services.
Whitbread: Shareholders in Whitbread can claim a Shareholder Benefits Card offering a range of discounts – including free Premier Inn breakfasts for up to two adults and 10% off food and drink in Whitbread-owned restaurants across the UK. You’ll need to own at least 64 shares in the company to qualify.
Shareholder perks and crowdfunding
While shareholders’ perks have traditionally been the preserve of stock market-listed companies, they’re no longer the only game in town. Firms raising money on equity crowdfunding platforms often see freebies as vital to attracting investors’ interest. You might be offered discounts on their products and services, exclusive membership benefits, or a rewards scheme.
For example, Crowdcube currently features the Spanish craft brewery Garage Barcelona, which has already raised €240,000. Even small investors are entitled to a 10% discount on its products for life. Invest larger sums, and you’ll get invitations to its new bar and even dinner with the founders. In some cases, firms raising money on these platforms are doing so to finance the launch of new products still in development, in which case investors will often be able to buy these first, or at a discounted price.
London-based Woolf Helmets is developing a foldable helmet for cycling and snow sports; investors in the company, now raising money on Seedrs, are promised first refusal of the product, as well as big discounts. These rewards can often make it much more fun to invest in these businesses, and if they really take off, there’s the prospect of a return on your capital too.
But remember that firms on crowdfunding sites are immature and prone to collapse. It’s a high-risk investment that perks and freebies alone can’t compensate for.
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