Following the announcement of Richard Webb's decision to step down as CEO, Renaissance has released its preliminary unaudited results for the year to September 30 2011.
According to the company's announcement to the NZX today, Renaissance has lost nearly $4.4 million in the 12 months to September 30 on a total revenue of $182 million.
Last year, the company posted a profit of $301,000 and an operating revenue of $154 million.
“As foreshadowed in the company’s release to shareholders on September 9 2011, the result for the year to September 30 2011 is a substantial loss,” says chairman Colin Giffney the NZX statement.
Renaissance blames the Christchurch earthquake and “poor trading performance” in New Zealand for the loss.
Giffney says the company is still waiting to hear back from its insurer QBE New Zealand regarding earthquake claims.
“In the view of the directors, as a result of delays in processing these claims, our reported result to September 30 2011 seriously understates the actual performance of the group in 2011,” adds the chairman. “This is not to say that the underlying trading performance was satisfactory. It was not.”
The company has so far received $1 million from its insurers and is waiting on “at least $3.6 million”.
The chairman says the company is going to need to consider what to do with its distribution business. “We have examined sale, merger with another distributor, and retaining the business and growing it. Apple continues to introduce changes to the distribution model, to the margin structure and to the credit terms. We are actively looking at options.”
Renaissance lost its exclusive distribution right to Apple in New Zealand when the vendor appointed Ingram Micro as a second distributor in the country in October last year.
Giffney adds that the company has been in breach of bank covenants but is now compliant with a new banking facility which runs through to May 2012. He also adds that the forecast released in the beginning of the month may have been “too optimistic” and says the company is recasting the numbers and the forecast is likely to be downgraded.
“There is no doubt in the minds of the directors that Renaissance has a future,” he adds.