Continuous disclosure

Shares in IT company Renaissance, the local distributor for Apple, jumped 6.6 per cent to $1.30 on Monday after news the half-year profit was up 150 per cent on last year.

Net profit for the six months to June 30 was $1.93 million, up from $775,000 for the same period last year. Revenue of $69.5 million was up from $51.2 million and the company predicted a record result for the full year.

Managing director Paul Johnston put the result down to restructuring more than three years ago that halved the size of the then loss-making business.

The company moved away from competing in the mass distribution market to specialise in brand development, e-business, education and computer and server assembly.

The share jump continues a rise that has seen share value more than double in less than a year.

Share value began climbing last November on expectations of strong sales growth of well-known brands including Apple, Palm and Asus.

In February, the company posted a record result, with net profit for 2004 of $2.3 million, up from $1.3 million a year earlier.

Although a record result, share value stabilised at about $1.15 before falling back to 77c during April.

Johnston says limited liquidity, investors selling for a gain after the previous rise in value and market perception that the growth rate may not be sustainable could explain the decline.

However, at the April annual meeting, the company said results for the first quarter of 2005 were equivalent to the entire first half of 2004 and growth was expected to continue.

The news reversed the share-price decline and marked the start of a steady rise in value to more than $1.30 in August.

Renaissance listed in 1968, moving from mining into IT in 1994.