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!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Featured

Slideshows

Channel gathers to celebrate the Reseller News Innovation Awards 2020 winners

Channel gathers to celebrate the Reseller News Innovation Awards 2020 winners

More than 500 channel leaders gathered in Auckland on 21 October at the ​Reseller News Innovation Awards ​2020 to celebrate the achievements of the New Zealand technology industry's top partners, start-ups, vendors, distributors and individuals.

Channel gathers to celebrate the Reseller News Innovation Awards 2020 winners
Meet the winners of the 2020 Reseller News Innovation Awards

Meet the winners of the 2020 Reseller News Innovation Awards

Reseller News honoured the standout players of the New Zealand channel in front of more than 500 technology leaders in Auckland on 21 October, recognising the achievements of top partners, start-ups, vendors, distributors and individuals.

Meet the winners of the 2020 Reseller News Innovation Awards
Meet the Reseller News 30 Under 30 Tech Awards 2020 winners

Meet the Reseller News 30 Under 30 Tech Awards 2020 winners

This year’s Reseller News 30 Under 30 Tech Awards were held as an integral part of the first entirely virtual Emerging Leaders​ forum, an annual event dedicated to identifying, educating and showcasing the New Zealand technology market’s rising stars. The 30 Under 30 Tech Awards 2020 recognised the outstanding achievements and business excellence of 30 talented individuals​, across both young leaders and those just starting out. In this slideshow, Reseller News honours this year's winners and captures their thoughts about how their ideas of leadership have changed over time.​

Meet the Reseller News 30 Under 30 Tech Awards 2020 winners
Show Comments