Renaissance profit climbs to $2.3m

The computer distributor Renaissance yesterday posted a first-half net profit of $2.28 million, compared with $626,000 last year.

Revenue rose 25 per cent to $91.04 million compared with $73 million for the same period last year.

Earnings per share rose to 6.12c from 1.77c.

"It is clear that the IT market in New Zealand is suffering along with the rest of the world and there has been further consolidation in the IT distribution sector," Renaissance said.

"We have grown our market share in the period and total sales have increased, despite falling unit prices in many of our product lines."

About half the company's business was done electronically by the end of the reporting period, increasing savings.

In February, Renaissance decided to scale back its Singapore-based e-business subsidiary Conduit, selling a 16.7 per cent stake to DBS Nominees Private for $6.7 million.

In June, Renaissance decided to withdraw from direct representation in Singapore and to reduce development staff in New Zealand.

"The process of preparing for a listing had started in July 2000, at a time when world share markets were still giving a very high rating to listed e-business companies," Renaissance said.

"By the time we had positioned Conduit as a standalone entity with a market presence in Singapore the technology bubble had well and truly burst."

Renaissance expects the first-half trading trend to continue.

- NZPA