Ambitious loss-making internet professional services (IPS) and 'digital media solutions' company Advance Visual Communications (AVC) is moving up from Ofex to Aim through a £5 million placing at 10p a share, writes Ben Cobley.

Existing AVC shareholders are being offered 9.9 million shares at the same price as other placing subscribers, which is less than their Ofex suspension price in September of 22p.

This is part of the management's continuing strategy to expand across Europe, taking advantage of the low valuations accorded to even successful businesses in the highly localised and fragmented internet services sector. Chief executive Amir Massoud Amiri claims the environment for expansion in Europe is 'very attractive'.

AVC was formed when Interactive Horizons Communications took a big interest in what was then called Advance Digital Communications, in November 1999. After that, Amiri was appointed as chief executive, the name was changed and the current strategy put in place.

In March, the company, which lost £991,000 on £818,000 turnover in the nine months to June, bought Geneva-based internet agency Voxel. This operation now provides half of group sales, which is expected to rise to over 75 per cent by the end of 2001.

AVC's target clients are medium-sized and large corporations and public bodies, with watch maker Tag Heuer, Adidas, the Department of Trade and Industry and Reuters among existing clients. Targeted acquisitions are typically businesses with a local sales base, but without such a centralised and highly developed production facility as AVC acquired through Voxel in the south of France.

Amiri (whose brother Ali is also on the board as sales and marketing director) expects AVC's growth rate in the European IPS sector to be 'better than the market'. AVC has set itself the goal of becoming the leading player in the European sector by 2004.

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