Renaissance rising up through the ashes

23 Jan 13

Renaissance Corporation is hoping to bounce back from a "ghastly" previous year, pledging to create a "new normal" after a long period of company change.

The former Apple distributor made the claim following twenty four months of upheaval, which seen a number of problems for the firm.

"2012 has been another year of upheaval for the company," Colin Giffney, Renaissance chairman told NZX before the holiday period.

"There has been lots of change. Businesses have been sold, activities shut down. Historic assets have been written out of the accounts.

"Now though, the balance sheet is stabilising. 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.

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

The main events that affected Renaissance during 2012:

• 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.

• They exited the Quay Street & Onehunga premises.

• They exited the Insite PC build business.

In retail Renaissance:

• 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.

The company have projected a total revenue in 2013 of $63.8m, down from $80.6m, and ebit of $1.4m.

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