Menu
Renaissance direct business grows notably

Renaissance direct business grows notably

Renaissance’s direct business posted the most notable percentage increase in profitability in the six months to 30 June, according to unaudited results posted to the Stock Exchange.

The direct business’ revenue, grew to $25.6 million from $21.9 million for the previous corresponding half year, with profit growing 30 percent to $714,000. It comes from customers in government, education (including the Natcoll subsidiary), enterprise and small business.

The traditional distribution business’ revenue grew slightly from $50.7 million to $51.7 million year on year for the half year, although profit was slightly down to $1.67 million.

Retail revenue grew nearly $2 million to $23.1 million, with a $183,000 loss for last year’s corresponding six months turned into a $21,000 profit this year.

The online business’ profit was $30,000, up from a profit of $4,000 the previous corresponding half year, with revenue of $353,000, up from $105,000.

CEO Richard Webb expects the trend toward its direct business growing faster than the traditional distribution business will continue, saying its creative services, application development and on-site support are behind the increasing profitability of the direct business.

“Anybody who has had a direct business has been introducing new services. We’ve got a platform and a mobile applications business that is starting to come into its own. We’ve had huge requests from clients for those types of applications and programmes and that’s much more lucrative than just selling a box. Our mix will continue to shift more to applications and services.”

In his interim report, chairman Colin Giffney stated that; “Because profitability in our traditional distribution business has become so constrained our drive is to increase the revenues we earn from direct enterprise clients, and direct consumer clients through our traditional retail outlets and our online ecommerce platform.”

In the report, Giffney said distribution accounts for 50 percent of group revenue, with major customers including 20 retailers, and more than 100 resellers of varying sizes.

For the six months to June overall, Renaissance recorded a year on year revenue boost of 7 percent, to $100.9 million, and a net surplus after tax of $473,000.


Follow Us

Join the newsletter!

Error: Please check your email address.

Featured

Slideshows

Meet the top performing HP partners in NZ

Meet the top performing HP partners in NZ

HP honoured leading partners across the channel at the Partner Awards 2017 in New Zealand, recognising excellence across the entire print and personal systems portfolio.

Meet the top performing HP partners in NZ
Tech industry comes together as Lexel celebrates turning 30

Tech industry comes together as Lexel celebrates turning 30

Leading figures within the technology industry across New Zealand came together to celebrate 30 years of success for Lexel Systems, at a milestone birthday occasion at St Matthews in the City.​

Tech industry comes together as Lexel celebrates turning 30
HP re-imagines education through Auckland event launch

HP re-imagines education through Auckland event launch

HP New Zealand held an inaugural Evolve Education event at Aotea Centre in Auckland, welcoming over 70 principals, teachers and education experts to explore ways of shaping and enhancing learning using technology.

HP re-imagines education through Auckland event launch
Show Comments