Renaissance makes profit despite two setbacks

Computer reseller and trainer Renaissance Corp returned to profitability in the six months to March 31, declaring a $239,000 profit before tax and a $1.9 million post-tax operating surplus following receipt of $2.5 million in insurance payouts.

The business was hit by two major blows in 2010 and 2011 - the introduction of a second licensed Apple products reseller and the Christchurch earthquakes, which triggered insurance claims of $5.2 million, of which recoveries of $3.6 million have been realised.

However, total sales revenue was off 24 per cent at $77.3 million in the first half of the current year compared with the same period a year earlier, reflecting poor execution of a name change for the MagnumMac stores to the Yoobee brand and sales lost to the new Apple supplier.

The Yoobee rebrand had been caught up in the Christchurch earthquake and had not been handled well, said chairman Colin Giffney in a statement to the NZX.

"To end the six-month period with earnings before interest, tax, depreciation and amortisation of $1.3 million and ... a profit before tax of $240,000 was a good outcome."

Renaissance shares closed down 1.5c yesterday at 15.5c.

- BusinessDesk

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