To follow the first chapter in this series, which outlined the requirements of the London Stock Exchange’s new Rule 26, we develop the theme of how a listed company can make the best use of its corporate website as an Investor Relations (IR) and Public Relations (PR) vehicle. In this article we focus principally on the IR function of a website, but of course its PR purpose is inextricably linked.

Amongst the range of media available to support a company’s IR activities, ‘online’ has become the primary communications channel. The reasons are obvious: a website can be updated quickly and cheaply – unlike printed material - and is available to a global audience 24 hours a day.

However, like any published information, if not well managed the IR section of a website could detract. It must always satisfy - even exceed - the expectations of your audience.

A primary communications tool

Your corporate website should be considered as your primary means of corporate communication: it should be the principal source of current, qualitative information about the company and must always leave the visitor with a positive impression – and hopefully encourage them to invest.

Facilitate finding information

Investors want to extract relevant information from your website quickly and efficiently, hence a website should be built with the aim of directing the user to information intuitively. Technology should be used only when it adds value, and not for its own sake; complex web pages with flash technology and invasive design will deter more than appeal.

Make sure that the text is easy to read, as it is harder to read on the screen than in hard copy, and use effective, concise and clear paragraphs. Avoid relying solely on information buried in downloadable documents (for example pdfs, annual reports and power point presentations) but instead gather the information into a simple, readily accessible format that can be viewed straightforwardly.

Navigation elements such as a site map, site search facility and breadcrumbs will assist website navigation. Where appropriate, direct the investor to essential information through quick links across the site.

Encourage your audience to return to the site

Regularly update and review the content of your website and make sure that your website is the prime channel for news releases. Set up an email alert system for announcements and forthcoming events so that your audience continuously receives relevant information.

Do not let information become inaccurate and outdated

It is important to update investors regularly with the latest developments to your website, as this will help maintain an audience’s interest. Keep a steady and regular news flow, as this will indicate that the company is moving forward and help brokers to substantiate their recommendations. Ensure that the information is current and timely. If possible, date-stamp the information so that visitors can easily identify what is recent and what is past. Share price feeds need not be expensive to implement, and give visitors less reason to leave the site to seek information elsewhere.

Do not fall short with the information you provide

Providing the information required by the London Stock Exchange (for information on Rule 26 see our article The Alternative Investment Market new Rule 26: A website headache? ) will not necessarily differentiate you from others so alongside management biographies feature interviews, speeches or videos that encapsulate the management’s vision. If your company has operations in various countries, offer multilingual content. Also include sections related to corporate governance and corporate social responsibility, as they are areas of increasing interest to investors.

Do not let the flow of information be a one-way process: let investors and other visitors leave feedback, or fill in a general enquiry form. Use your website proactively to influence - and respond to - online private investor chat room rumours.

Accessibility compliance: it is a legal requirement - and improves site usability

It is now a legal requirement that websites should be fully accessible; content should be equally accessible to users with visual, hearing, cognitive, and motor impairments. Amongst a list of compliance requirements, images should be accompanied by a sufficient description (‘alt tag’) to enable their purpose to be identified and, in a similar vein, text presented as graphics should tagged – although it is best to avoid text in this form if possible. Users should be able to have access to navigation menus irrespective of the web page they are reading and should be able to increase the font size throughout the site. For further information visit www.w3.org/wai/resources for more information.

Monitor website traffic

Having built and refined your website you’ll want to know who is looking at it, so you should have a system which will monitor the use of your website. Good usage tracking software will provide a wealth of information about visitors and will give you clues about which sections of your website are the most visited - and therefore which will require your attention.

For the last six years, Intendance has been serving AIM listed organisations with their online requirements. For further information about any of the above please contact us on telephone number +44 208 871 1330 or email charleslouis.moreau@intendance.com

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