Speaking at the launch of Profile's new Investor Relations Web Hosting division, Oldert said the traditional mainstays of investor relations – the annual report and regulatory announcements in the press – would soon be things of the past.

"Glossies are expensive to produce, slow to deliver, and often don't reach their target audience. By contrast, a company's web site can be updated within hours and can be accessed by anyone from anywhere."

Due to nominee holdings of shares, especially by stockbroking firms on behalf of clients, many shareholders never get to see the expensive, full-colour annual reports, he said.

Oldert also believes that the modern shareholder is more inclined to read a short email message from the company than plough through a 40-page document.

"The Internet is a powerful communication medium through which companies can quickly and positively influence investor sentiment. By contrast, the annual report is an expensive, unwieldy and relatively ineffective tool."

Oldert also believes that companies have traditionally placed too much emphasis on shareholders and have neglected potential investors.

"The only sellers of shares are existing shareholders, and there will always be shareholders that have to sell for reasons completely unrelated to company performance. Without latent demand for shares, a company's share price can only go down. To create that pool of latent demand, a company must positively influence potential shareholders. I believe the Internet will prove to be the most cost-effective medium to achieve this."

Profile Media offers a specialised web hosting service for listed companies. Standard features include daily updated price graphs, relative strength graphs, daily trading statistics, and proactive site updates. Profile also offers specialised e-mail alert services to keep shareholders informed, data-mining facilities, and a virtual press office facility.