v2 Report - Additional Information Supplement

RNS Renaissance Corporation Limited

IPOs and Investment Opportunities

Press releases

Renaissance Corporation Limited RNS 21 Aug, 2007, 15:10 HALFYR RENAISSANCE ANNOUNCES HALF YEAR PROFIT RESULT

RENAISSANCE CORPORATION LIMITED Results for announcement to the market Reporting Period Six months to 30 June 2007 Previous Reporting Period Six months to 30 June 2006 Amount (000s) Percentage change Revenue from ordinary activities $NZ 88,217 13.7% Profit (loss) from ordinary activities after tax attributable to security holder. $NZ 1,217 (53.2%) Net profit (loss) attributable to security holders. $NZ 1,217 (53.2%) Interim/Final Dividend Amount per security Imputed amount per security $NZ 0.045 $0.022 Record Date 28 September 2007 Dividend Payment Date 5 October 2007 Comments: Half year to June 2007 figures have been prepared under NZIFRS reporting standards. Half Year to June 2006 comparative figures have been restated to confirm with NZIFRS. FINANCIAL STATEMENT The Directors of Renaissance Corporation Limited are today announcing an unaudited surplus before tax for the six month period to 30 June 2007 of $1.99million (2006: $3.56million after incorporating IFRS adjustments), a decrease of 44%. The surplus after tax and minority interest was $1.217million (2006: $2.598million), a decrease of 53%. The effective tax rate for the period was 38.8% (2006: 27.1%) reflecting the impact of the new corporate tax rate on the deferred tax asset which comes into effect next year. Group revenues were $88.1million, an increase of 14% on the previous corresponding period. THE SIX MONTHS UNDER REVIEW The first six months have been especially challenging. Not only are our margins lower but in recent months sales have been restricted by availability of stock as well. Inventories at June 30 were $5.4million, 23% lower than June 30 last year. A number of products have been in short supply in June and July. It will be difficult to regain the lost ground, with the likelihood now that we have lost over one full month's sales in the year. The continuing uncertainty of product availability over the next few months and the traditional last quarter seasonal surge makes forecasting the full year's result difficult. OUTLOOK As a result of the lower margins, soft retail sales and the recent constraints in product supply, we now believe the final 2007 NPBT for our traditional Renaissance business will be in the range of $4.5million to $5.0million. During the last quarter the Company acquired MagnumMac and Natcoll (still subject to regulatory and shareholders approval). In our result to December 2007 we will incorporate 6 months trading for MagnumMac and 5 months trading of Natcoll. Net of interest we expect these businesses to contribute approximately $1.5million annually. In the remainder of 2007 their contribution to NPBT will be about $800,000. Our start up venture, Txttunes (66% owned), launched in the US in July. Txttunes has close to 25,000 songs available for payment by Text and download to computer. The management of Txttunes is partnering with suitable sites to build the awareness of the facility and the content. Prior to launch we capitalised $1.1million of expenditure. This business is budgeted to incur a deficit of $250,000 before tax in the year. The Board now expects the Group to report a net profit before tax for the full 2007 year of $5.0million to $5.5million. Distribution, and in particular the distribution of Apple products, has historically been the mainstay of the Renaissance business. Whilst Apple continues to increase its direct presence in New Zealand through the launch of the on-line store, and the likely extending of relationships with major Australasian retail chains, Renaissance is continuing to invest in the Apple brand in New Zealand. We have opened new dedicated Apple division offices in the Auckland CBD, acquired MagnumMac, begun the process of opening new retail stores, and opened two new StudentIT centres near university campuses in Auckland and Dunedin. STRATEGY We are progressing well with our acquisition strategy, which will provide a better balance in the Group's portfolio of businesses and enhance our ability to achieve increased profits in the future. Our recent acquisitions of MagnumMac and Natcoll provide increased diversification from the Group's traditional distribution business. As the Renaissance Group becomes more diversified, we will provide greater detail of individual business unit sales and profit numbers, starting with our 2007 Annual Report. DIVIDEND For this period, we are pleased to announce a fully imputed interim dividend of 4.5 cents per share, maintaining the dividend paid in August last year. This will be paid on 5 October 2007, with the shares going ex-dividend on 28 September 2007. The Company will also pay a supplementary dividend to non-resident shareholders of 0.79412 cents per share on the same date. Your Directors have been examining a dividend reinvestment scheme. Subject to final investigations and discussions, it is likely that a plan will be implemented in time for the interim dividend. For further information please contact Paul Johnston, Managing Director, or Clive Lewis, Finance Director Phone: 09-968 3688

 

Renaissance Corporation Limited RNS 13 Aug, 2007, 14:55 AQNOTICE Renaissance acquires Leading New Zealand Design College

Renaissance Corporation Limited (Renaissance) announces the acquisition of Natcoll Limited (Natcoll), a private tertiary provider of creative digital design technology courses. Natcoll is one of the most successful specialist education providers in New Zealand. Paul Johnston, CEO of Renaissance, said "This is an ideal acquisition for Renaissance. It provides diversification for the company, but in two market segments where we already have very strong ties: education and the creative industry. There is opportunity for solid growth in Natcoll here in New Zealand and overseas. Natcoll will operate as a wholly owned subsidiary of Renaissance Corporation. Natcoll's head office is based in Christchurch with three campuses in Auckland and Wellington and Christchurch. Natcoll provides courses in multimedia, computer graphic design, web development, animation and video post production. The courses are targeted at - NZQA-approved vocationally-based diploma courses. - A range of short courses for the community, primary and secondary school students and teachers. - Training for Industry in industry related software. Natcoll also provides: - senior secondary school curriculum in creative digital technology. - educational books and resources. Natcoll was founded in 1997, has a staff of 118 and has supplied high quality NZQA-approved courses to over 5000 students. The price of the acquisition will be $6.0 million of which $1.0 million will be settled by the issue of shares in Renaissance. In the year to December 2006 Natcoll generated an EBITDA of $1.3 million. The acquisition will be effective as at 31 July 2007. The acquisition is subject to the required regulatory approvals and the completion of due diligence. Mr. Murray Wood is one of the shareholders of Natcoll and he is also a Director of Renaissance's subsidiary, MagnumMac Limited. Therefore, in accordance with the NZX Listing Rules, the transaction will require the approval of shareholders as a related party transaction. The date of this meeting will be announced shortly. About Renaissance Corporation: Renaissance Corporation is a publicly listed company on the New Zealand Stock Exchange. There are three wholly owned subsidiaries. Renaissance Limited, which provides all aspects of Brand Management including Marketing, Channel Development, Logistics and full Technical Support and Repair Services. Conduit, a transactional web site development company, and Insite Technology which is the leading PC assembly business in New Zealand. Press contact: Paul Johnston Managing Director Phone: (09) 968-3688

Director's Report