Renaissance cuts profit forecast on distribution, retail

Monday 10th November 2008

Renaissance Corp., which distributes Apple products and offers IT services, cut its profit forecast because of lower than expected earnings the past two months and deferred orders.

Earnings before tax will be NZ$3 million to $3.5 million this calendar year, the company said in a statement. In July, the company was expecting to exceed last year's $5.2 million.

"Profits in the distribution and retail divisions of the business have not met expectations in the last two months," the company said. "Results for the remainder of the year are at best uncertain because of deferrals on some significant orders, the impact of exchange rate fluctuations and the important Christmas trading period."

Renaissance also incurred losses from the September start-up of its data insurance business, it said. Christmas trading may impact on the results and "given the current economic conditions it is not possible to make a more accurate prediction."

The shares last traded unchanged at 47 cents and have fallen 36% this year.

By Jonathan Underhill

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