Renaissance documents year of upheaval

Renaissance has released their preliminary unaudited full year report for 2012, documenting another year of upheaval for the company.

The distribution firm says 2012 has seen lots of change, with businesses sold, activities shut down and historic assets now written out of the accounts.

"The balance sheet is stabilising," Renaissance says. "The business is "right-sized".

"Focus has returned to the retail and education businesses and we have ended the year with a platform from which to grow."

These are the main events that affected Renaissance this year:

• The Christchurch campus finally relocated to Mairehau (March 2012) after being in temporary premises since February 2011.• The earthquake insurance claim has been settled.• The board made the decision to exit Distribution in September 2011 and this was finally concluded in September 2012 after a tortuous process.• We exited the Quay Street & Onehunga premises.• We exited the Insite PC build business.

In retail Renaissance have:

• Closed five StudentIT stores (March 2012)• Shifted to new premises in Hamilton (December 2011) and Wellington (February). Since balance date the Dunedin store has been relocated.• Opened new stores in Cashel St Container Mall (November 2011), Riccarton Mall (July 2012) and Sylvia Park (August 2012).• Dealt with all slow moving stock• Moved to a direct supply arrangement with Apple Inc. and faced a reduction in credit terms from 45 days to 30 days.• Overall staff numbers reduced from 268 in September 2011 to 184 in September 2012.

Bankers

"We need to record the support we received from the Bank of New Zealand during this period," Renaissance says.

"It is easier to talk about now. At the peaks of our cash flow deficiencies, we were recording midmonth peak borrowings of $10m and more as our main supplier reduced our credit.

"We should all be grateful that the Bank believed in the path we have taken."

Staff

"It has been a turbulent couple of years. Employees have been through major change which has no doubt seemed never-ending.

"We thank them for their efforts and we all hope for a progressive future."

Directors

"I wish to acknowledge the role of my fellow directors through what has been a very turbulent time. It has often been difficult to see the real issues through a mass of numbers and external events.

"Their support through those very difficult times is acknowledged."

Summary

"Two years on, you only have to go to Christchurch and see the temporary accommodation for both the education and retail operations to understand how much the earthquake affected us.

"However a new normal has been reached. The Apple distribution business and its attendant stretch of the balance sheet are over.

"The company looks forward with confidence now that the upheavals of the last two years are behind us.

"It is refreshing and exciting to be able to consider and implement plans for the future again."