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Renaissance more than doubles earnings

Tuesday 3rd August 2010

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Renaissance, the primary local distributor of Apple products, more than doubled its first-half earnings on increased sales and has flagged the possibility of an equity raising to fund future growth.  

The Auckland-based firm boosted net profit 150% to $473,000, or 1.07 cents per share, in the six months through June 30, the company said in a statement.

Revenue climbed 6.5% to $100.9 million across all sectors, and it predicts strong demand for the new iPad and latest iPhone will continue to support growth.  

"Despite the impact of restructuring costs we delivered top-line revenue growth across all sectors, introduced a wide range of new service offerings and continued to add class leading vendors to our distribution business," said chief executive Richard Webb in a statement.  

Shares in the retailer were unchanged at 32 cents, and have climbed 19% over the past six months. The company saw a shuffle at the top, with Webb coming on to replace former managing director Paul Johnston.

Johnston spent six years at the top and left over the company's disappointing results.  

Renaissance said the board is examining the level of its working capital, and may consider raising equity to fund growth as part of a new package. The company's debt-to-equity ratio is 220%.

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