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New Zealand computer distributor Renaissance has reported its June year net profit rose 20 per cent to $1.46 million despite losing a good chunk of its business when Apple decided to sell direct to major customers.
The company is sticking to earlier guidance that its full-year pre-tax profit would be slightly ahead of last year's $5.2 million profit.
Earnings before interest, tax and depreciation for the half year rose 31 per cent to $3.4 million and revenue rose 9 per cent to $95.1 million.
The company said general market conditions had been challenging.
"Given the climate we have been operating in, we believe the result is very positive and shows our strategy of diversifying the group's business continues to have the desired impact," the firm said.
It said it was expanding its retail, education and digital services.
Following the acquisition of Natcoll, the education businesses contributed an ebitda of $1.5 million.
It said its Txttunes social networking business had not achieved goals set and it would invest no more than the $600,000 it had already invested.
However, the MagnumMac retail business was expanding despite the challenging market. The company said it was looking for new investments to fit with its digital division.
A fully imputed, 3cps dividend was declared. Earnings per share rose to 3.4c from 3.1c.
In March, the company reported its annual net profit had fallen 45 per cent to $3.3 million.
Renaissance said in January it expected sales and profit from its Apple distribution business to fall after the US giant had demanded changes to Renaissance's contract so major retailers could source products direct from Apple.
Renaissance shares were trading yesterday at 56c.
- NZPA
