Renaissance powers up 77 per cent

Computer distributor Renaissance Corporation's bottom-line profit for the June half-year rose 77 per cent to $626,000.

"Sales records were set and productivity targets in the credit department and warehouse operations were exceeded," wrote chairman Richard Ebbett in a statement to the Stock Exchange.

"The sales increase of 25 per cent was achieved with operating costs only 2.3 per cent higher."

Sales rose to $73 million from $58.41 million in the 1999 half.

Mr Ebbett said benefits continued to flow from the extensive re-engineering of the business over the past three years. Renaissance was now moving forward with the process of selling e-business products and services under the Conduit banner. It had also increased its share of the education IT spend, with Apple Computer recording very strong sales.

Mr Ebbett said the outlook for Renaissance was very positive across all of its divisions and in a time of general business pessimism it was continuing to invest in each of them.

However, the distribution business needed to be bigger, with a broader base of products, and first-half growth would be difficult to sustain in what was expected to be a tough second half.

Renaissance would grow this area through acquisition.

- NZPA

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