Shares in Renaissance Corp up 7pc on strong profit

Shares in computer company Renaissance Corp jumped almost 7 per cent this morning after it reported a 150 per cent increase in first half profit.

The company posted a n after tax surplus of $1.94 million in the six months ended June 30, up strongly on the $775,000 profit recorded for the same period a year ago.

That saw the share price rise 6.6 per cent to $1.30 in early trading.

Renaissance declared a fully imputed dividend of 4c per share, to be paid on October 7.

Group revenues were $69.5 million, an increase of 35 per cent on the previous corresponding period.

Renaissance said it was in a "very strong financial situation", with no term debt and a positive cash balance of $9.1 million at balance date.

Looking ahead, Renaissance said the second half of 2005 would show solid growth and produce another record profit for the group.

Trading had become more balanced following business model changes three years ago.

The Renaissance Brands division continues to perform strongly, with significant growth in the telecommunications, networking and security markets helping drive sales to record levels for the period, the company said.

Increased retail sales of portable computers and personal digital assistants (PDAs) had contributed to the division's high growth.

The Apple Computer division had delivered another period of sales growth, in line with, and in some cases ahead of growth levels achieved by Apple internationally.

The Insite PC assembly business had once again shipped a record number of units in the first half of the year, including the all new R1 Desktop computer, designed specifically for the education market, the company said.

- NZPA