Companies are in danger of squandering the opportunity and value that online reporting can add, according to strategic value analysts Future Value in its third Online Annual Reporting Study.

It concludes that the adoption of electronic communication is presenting an increasing challenge to report users rather than making life easier.

The study reports that a 5 to 6% increase over 2008 in the number of FTSE350 companies presenting full HTML web-based reporting “might be deemed significant in the circumstances”. But companies seem reluctant to depart from tried-and-tested reporting formats defined by the heritage print design versions.

“The reasons are probably various – auditors, cost, tradition, lack of creativity as well as convention,” says Ian McDonald Wood. “Whatever the reason it precludes the effective use of the power of the web.

“It is typical of IT advances that we overestimate what can be achieved in one or two years and underestimate what can be achieved in ten years,” says McDonald Wood. “The step-change of web-based corporate reporting is really only in its second year, precipitated by the Companies Act 2006. We are still in that period of over-estimation.”