Renaissance profit slumps

Computer distributor Renaissance yesterday posted a 97 per cent fall in net profit to $67,000 for the six months to June 30.

That compares with a $2.28 million profit recorded for the same period a year earlier.

Revenue for the period was $60 million, down from $91 million in the previous corresponding period, while earnings per share declined to 0.18c from 6.12c a year earlier.

Renaissance will pay a fully imputed dividend of 3c a share on September 27.

Before unusual items and tax the result was $662,000, compared with a loss of $1.48 million a year earlier.

Renaissance chairman Richard Ebbett said the company had radically restructured its computer distribution business during the period, exiting non-profitable brands and growing its portfolio of exclusive distribution arrangements.

"We have taken some very tough decisions in order to put the group back on a positive track following the melt-down in the market for technology stocks and the tough domestic trading conditions," Ebbett said.

"The latest financial results include the final costs of severing our relationships with the mass market brands relinquished at the end of last year. Given this, we are encouraged by the modest profit achieved."

Ebbett said the company expected to show improved earnings in the second half of the year.

Renaissance Corp shares closed yesterday up 2c at 36c.

- NZPA