RNS - Renaissance

[Lizard]

Last thread not posted on for 18 months (deservedly!):
RNS: 9% drop today (http://www.sharetrader.co.nz/showthread.php?p=215648&highlight=rns#post215648)

However, given the price action of the last few days, thought it might need a new thread with a new title. Price has gone from hovering around 22cps up to 27cps and possibly the buyer planning to clear out the offer through to 30cps this morning is for real?

Actually, I think RNS is one of those NZ shares with a December year end - which may be an advantage in putting the GFC behind them severely but promptly. On historical metrics, RNS looks potentially quite cheap - although yet to see how ghastly the final result for 2009 turns out to be.

I still own a small parcel from pre-disaster days and have added a few recently as a punt, but still only tiny hold for me. (I can feel P making a mental note to remember this one for a lecture on the sins of averaging-down if it all turns pear-shaped!)

[percy]

luckily i donot have shares in rns.
i note new ceo's cv is impressive.richard webb.
murray wood onto board makes sense.
old buffet saying 'good people join a bad company,it is the bad company,s reputation that stays intact'
ps is this the old triumph industries that i did doe on?

[Lizard]

ps is this the old triumph industries that i did doe on?

Yes it is.

Of course Abano is the one for proving bad companies occasionally go straight... though probably only if Eric Watson is selling out. :p

And Renaissance is not all bad - it has provided a few stunning trades in its "good" years.

[Phaedrus]

I still own a small parcel from pre-disaster days and have added a few recently as a punt. (I can feel P making a mental note to remember this one for a lecture on the sins of averaging-down if it all turns pear-shaped!)Liz, you may perhaps have been a little bit naughty if you bought RNS before the Buy signals shown below, but your real sin was holding on to your original investment when RNS was in an obvious downtrend.

Can we assume that, seduced by the apparently good fundamentals, you chose to ignore prevailing market sentiment?

There must be a lesson in there somewhere!

http://i602.photobucket.com/albums/tt102/PhaedrusPB/RNS115.gif

[Lizard]

Actually, percy, perhaps RNS just did too well out of distributing Apple for a couple of years there? Investors hoped the cashflow and divs were sustainable which turned out not to be the case. RNS tried to do the right thing by diversifying income streams, but the transition out of the Apple era just too severe to replace.

Maybe if they'd raised new capital at the peak and gone for broke on a larger M&A play, they might have still held up ok? Though hard to think what sort of businesses would have been suitable fit.

[Lizard]

Can we assume that, seduced by the apparently good fundamentals, you chose to ignore prevailing market sentiment?


Probably - I think where you put that quote in there might have been an initial break in downtrend? Sadly, not confirmed or I read it prematurely, but I'd gone and bought in a portfolio that only does long term investment in income shares, so I was reluctant to sell a small holding and possibly muddy IRD's view on the rest.

(I do trade in another account and declare it for tax purposes)

[percy]

lizard
i shot from the hip without thinking.
you may have picked a turnaround with rns.
looks to have broken down trend and still alot of good in the company.
i will watch sp with interest.

[percy]

lizard
still may be a pig in poke.
red flags when MD and finance director resign.
i take take that as meanning they have not got the company on course.
the december balance date an report i would think will only confirm this.
should however provide information to give us a chance to work out what the company is worth.the real test will be what the new MD can achieve and the direction or course he steers.
i will go and have a look at moorhouse ave .store.i worry they are just another retailer in
an overcrowded market.
the school business could be good as i cannot see dick smith and jbhi fi trying to get into that market.
i sell books to school libraries and find most people donot understand the market.
rns do and have done very well.
dick smith jbhifi etc not set up for schools.

the school business i would think could be very good.

[percy]

lizard
had a look at moorhouse ave store at 20 past one today.
good setup.
staff flat out with 24 customers,buying!!!!!!!

[Anna Naum]

See ex CEO has gone to major competitor who is setting up in NZ

[Balance]

See ex CEO has gone to major competitor who is setting up in NZ

Where did you see article?

Hope he takes the ex-CFO with him as well. The two of them are good time merchants who talked a lot of bs and blew some serious money through their incompetence and mismanagement.

[Silverlight]

http://www.nbr.co.nz/article/ex-renaissance-boss-returns-head-potential-competitor-117224

[bryndlefly]

"RNS Executive Directors’ Long Term Incentive Plan
As advised on 27 November Paul Johnston resigned effective 31 December 2009
and Clive Lewis resigned his executive position effective 15 January 2010. As a
consequence the Long Term Incentive plans for each of the executives
implemented in May 2008 have been terminated. The balance sheet impact of this
change will be to reduce the total number of shares on issue by 711,557 shares.
The number of shares on issue now is 44,208,520."

from stuff:
"Renaissance Corp. (RNS): The computer distribution company is to face new competition from a company set up by former managing director Paul Johnston. Simms International, a U.K. and Australia based distribution company will open for business this month with five or six staff, offering similar products to Renaissance, which employs 400 people and has an NZX value of $13.5 million. The shares dropped 3 cents to 27 cents yesterday."

[brucey09]

senor - all old news! we expected the share scheme to go.

[Anna Naum]

senor - all old news! we expected the share scheme to go.

'We' you speak for many?

[777]

Well said Anna. Not nice to be stomped on by some smart ***e on your first post.

Stay with us bryndlefly.

[percy]

bryndlefly.
good post as facts are now on rns thread.

[bryndlefly]

aw cheers. have been following these boards for a while. thought i'd actually register and put my 2 cents in every now and again. I am a bit of newbie to sharetrading though, so forgive me if i make newbie comments. (woo-hoo - 2 posts!)

[emearg]

Nothing wrong with newbie comments...

[percy]

Article on RNS and CEO Richard Webb's colourful past ,by Jenny Ruth in this weeks The Independent.

[Silverlight]

Preliminary full year result to 31 December 2009


In the interests of keeping the market informed Renaissance Corporation today announces a preliminary unaudited loss before tax of $2.721m for the 2009 year.

2009 2008 % change
$000 $000

Sales 194,790 189,633 +2.7%
EBITDA 1,300 4,648 -72%
Depreciation and amortisation (2,081) (2,073)
Impairment of assets (881)
Net finance cost (304) (284)
Profit/(Loss) from continuing operations (1,966) 2,291
Loss from discontinued operations (755) (1,087)
Profit/(Loss) for year before tax (2,721) 1,204

Trading in the last quarter of the year was mixed with some parts of the business doing better than expected and some not as well. Natcoll performed well above expectations; the opposite was the case for MagnumMac and Renaissance Education Division (RED) which were both impacted by the recession. In addition, some historic issues have been addressed and these effected the results of the last three months and the 2009 year.

A total of $3.425m one-off expenses and write offs were made during the year.

$1.789m of these were dealt with “above the line” before EBITDA was calculated. In summary these charges were:
- $1.025m – stock obsolescence and stocktake variances.
- $0.592m – costs associated with changes in the senior executive team.
- $0.172m – other recognitions.

The board has also reviewed assets for impairment and opted to write off $1.636m of goodwill and intangible assets as follows:
- $0.881m – goodwill. Of this $0.791m is all the goodwill associated with Insite Technology. $0.090m is associated with Educational Computers which has been absorbed into Student IT and, as a result, has lost its identity.
- $0.755m – final charges relating to the cessation of the Txttunes, Widget and Renaissance Indemnity initiatives. These are shown as discontinued operations above.

Most of these charges had no cash consequences. As a result the Renaissance balance sheet shows net debt of just $1.055m at 31 December 2009 and shareholder funds are $12.6m.

Nonetheless the company is in breach of one of its bank covenants (relating to interest cover). Details of the 2009 result and the breach have been discussed with the bank. If the one-off costs were removed EBIT in 2009 would have been $1.008m. Given that position and expectations for 2010 the board does not anticipate having to make any changes to be able to maintain positive interest cover going forward.

While MagnumMac was a disappointment in 2009 losing $1.597m trading and another $0.740m from stock adjustments and other one-off costs, directors are confident of the future of these stores under the new leadership team assembled during the last six months.

New CEO Richard Webb has commenced a full review of the business and during his preliminary analysis has recommended that the organisation structure be realigned to better serve its customers to lift revenue growth. As part of this realignment the balance date of the company will move to 30 September to improve the company’s ability to forecast earnings in an environment where the December quarter is seasonally high and volatile. Mr Webb will detail his plans when the annual report is released in March.

[Lizard]

From todays announcement:

Guidance:
The new CEO, Richard Webb, has completed a detailed review of the current business. The Board of Renaissance Limited can now issue guidance for the 2010 calendar year.

The business is forecasted to deliver a top line revenue of $205 million and an EBITDA of $3.5 million.


I believe this announcement refers to the 12 months ending Dec10, although the balance date will move to September.

Some points:
1. This guidance is quite premature to take seriously given that we are not even one quarter of the way through the 12 month period under forecast.
2. Taking out "one-offs", the result for the previous comparable period was around $3.2m EBITDA
3. Based on same DA as last year, no debt/interest and 30% tax rate, the forecast equates to a profit of about $700k
4. This is a "normalised" P/E of 12.6 (at 21cps) - hardly low
5. Depreciation seems high - $2.14m on $6.6m of non-goodwill, non-current assets, so may (perhaps) reduce.

Enjoyed this bit:

Despite the 2009 results the company remains on strategy to ...diversify earnings away from the tyranny of ‘disintermediation’ or the increasing desire of vendors to go direct to the market.
Interpretation = "short term trade only"

Stll, management need the share price above 50cps and up to $2 in 3 years to get benefits from their bonus share issue. The bottom of that range is possible. The top of that range looks like a fevered imagining for now.

[percy]

with EBITDA of $3.5mil on turnover of $205mil the question must be asked;Why bother? With such a low return there is no room to move.New management have a lot to prove.I was impressed with moorhouse ave store but certainly needs to prove itself.

[chrisw]

In my professional life I have a lot of dealings with MagnumMac and in fact worked for it when it was an independent company some time ago. Consequently I really know a lot of the staff here in Christchurch, the environment overall there and would have to say that based on staff turnover alone, my impression is one of a rudderless ship. The new CEO may be able to turn it around, but it will take some time and I think that the Renaissance Group remains a speculative investment at this stage.

Like Percy wrote; the margin is so tight here, it almost doesn't stack up as a business.

Cheers, Chris W.

[Nevl]

So the top 2 managers think that they can improve RNS share price by 800% in 3 years. Even if they get half way its probably worth a punt. May buy 5000 shares just for fun and see what happens. Its a pretty big call.

[percy]

[. Its a pretty big call.[/QUOTE]
Very big call.What one should remember"after all said and done there is more said than done"
may be going for gunna of the year award.

[bryndlefly]

So, will they go under...
http://www.techday.co.nz/thechannel/news/report-is-renaissance-set-to-fail/16901/7/

...or will their shares go up 800% ?
http://www.stuff.co.nz/business/industries/3522064/Renaissances-executives-eye-bonus-if-shares-soar

opinions on this company seem to be split between very pessimistic and overly optimistic

[Lizard]

So, will they go under...
http://www.techday.co.nz/thechannel/news/report-is-renaissance-set-to-fail/16901/7/

...or will their shares go up 800% ?
http://www.stuff.co.nz/business/industries/3522064/Renaissances-executives-eye-bonus-if-shares-soar

opinions on this company seem to be split between very pessimistic and overly optimistic

Thanks Bryndlefly. I think I'd have to go with the techday scuttlebutt on that...

[Balance]

Thanks Bryndlefly. I think I'd have to go with the techday scuttlebutt on that...

Those techday scuttlebutt have as much clue about management as they do about year 2000.

[Balance]

Those techday scuttlebutt have as much clue about management as they do about year 2000.

As I wrote, those techday guys will still be trying to tell you that Year 2000 was a real disaster averted.

If you follow the RNS situation, you will know that RNS is actually winding down its wholesale distribution as it's low margin and high maintenance. The techday scuttlebutts are probably wondering what happened to the wonderful days when they received plenty of service and supplies from RNS for bugger all!

One of those turnaround stories which can reap huge returns like RBD and DIL.

Renaissance MagnumMac business reports strong growth
Turnaround is six months ahead of schedule

Auckland, 7 July 2010 - Renaissance has announced that its MagnumMac retail business has returned to profitability six months ahead of plan, reporting 17 percent year-on-year revenue growth for the first three months of 2010.

Renaissance Group, which will deliver a full six-month report to the market in early August, had originally expected that the MagnumMac retail business would not return to profitable trading until the end of 2010. After weathering a challenging environment in 2009, the Renaissance retail business, comprised of seven MagnumMac stores across New Zealand, began 2010 with an improved product mix, stronger sales focus and improved cost controls.

[Lizard]

Thanks Balance. Interested in opinions as I don't have many on this stock.

My holding is small - a punt, mostly based on relative size of potential upside vs potential downside, taking into account balance sheet and revenues.

[percy]

As I wrote, those techday guys will still be trying to tell you that Year 2000 was a real disaster averted.

If you follow the RNS situation, you will know that RNS is actually winding down its wholesale distribution as it's low margin and high maintenance. The techday scuttlebutts are probably wondering what happened to the wonderful days when they received plenty of service and supplies from RNS for bugger all!

One of those turnaround stories which can reap huge returns like RBD and DIL.

Renaissance MagnumMac business reports strong growth
Turnaround is six months ahead of schedule

Auckland, 7 July 2010 - Renaissance has announced that its MagnumMac retail business has returned to profitability six months ahead of plan, reporting 17 percent year-on-year revenue growth for the first three months of 2010.

Renaissance Group, which will deliver a full six-month report to the market in early August, had originally expected that the MagnumMac retail business would not return to profitable trading until the end of 2010. After weathering a challenging environment in 2009, the Renaissance retail business, comprised of seven MagnumMac stores across New Zealand, began 2010 with an improved product mix, stronger sales focus and improved cost controls.

Well done Balance.I have been sceptical on the turnaround.I thought Richard Webb was all hot air.As I like their MagnumMac Moorhouse store,and as today's announcement surprised me I have brought a small parcel at 26cents.

[Balance]

Well done Balance.I have been sceptical on the turnaround.I thought Richard Webb was all hot air.As I like their MagnumMac Moorhouse store,and as today's announcement surprised me I have brought a small parcel at 26cents.

I attended the AGM and was impressed by Richard Webb and his new team. They were enthusiastic, highly motivated and bubbling over with ideas and I observe, all have excellent experiences and backgrounds. One is a South African chap who has finally been given a chance to prove himself after struggling to get a good job in NZ despite his strong IT and business background. Cue - RBD - contrast Vicki Salmon with Creedy.

Unlike the previous management, they did not promise a lot however - in fact, they were extremely cautious and more interested in talking their new business ideas.

One thing for sure - the wholesale business is on its way out. Big decision but in my view, right decision.

[Balance]

Big move in sp today - Launch of iPad or market waking up to this turnaround story?

If it's iPad related, buyers need to sober up!

http://www.stuff.co.nz/technology/gadgets/3949751/Fans-queue-for-Apples-iPad

See the comment on Queensgate Dick Smith?

[Lizard]

HY looks okay. On track or slightly ahead, so encouraging if uninspiring yet. I have pegged a calendar year result of $1.1m, although think they go to Sept year end, so may not mean much. Appears some consideration of an equity raising to increase working capital for expansion.

Hope they have a good plan... last thing shareholders need is more dilution before seeing any real improvement in NPAT flow through.

[macduffy]

I see that RNS is referred to in the media as "the primary local distributor of Apple products" in NZ.

Do we know any details of this?

What proportion passes through RNS' hands?

All products? Or which?

I'm trying to get an idea of the extent of their reliance on Apple, how secure the arrangement is, etc. Have a nagging feeling that I read somewhere, sometime ago that their "hold" on Apple distribuorship had been diluted.

Disc: Not holding.

[percy]

I see that RNS is referred to in the media as "the primary local distributor of Apple products" in NZ.

Do we know any details of this?

What proportion passes through RNS' hands?

All products? Or which?

I'm trying to get an idea of the extent of their reliance on Apple, how secure the arrangement is, etc. Have a nagging feeling that I read somewhere, sometime ago that their "hold" on Apple distribuorship had been diluted.Other major retailers can deal direct with Apple.However RNS Magnum plus stores seem to be the leading Apple retailer.

Disc: Not holding.

Go to the start of this thread.RNS lost sole distributorship of Apple products in NZ.They have wound down distribution business to focus on retail and other avenues.What is interesting is they are making it work.

[Balance]

Liz, you may perhaps have been a little bit naughty if you bought RNS before the Buy signals shown below, but your real sin was holding on to your original investment when RNS was in an obvious downtrend.

Can we assume that, seduced by the apparently good fundamentals, you chose to ignore prevailing market sentiment?

There must be a lesson in there somewhere!

http://i602.photobucket.com/albums/tt102/PhaedrusPB/RNS115.gif

Phaedrus,

Can we get an update from you?

Thanks!

[Phaedrus]

Here you are Balance. I could have shown a lot more indicators here - but who needs 'em?

This chart provides a stark illustration of the folly of simply "buying and holding".
Many people made truly spectacular profits on RNS, but those with no exit strategy gave all their winnings back to the market.

http://i602.photobucket.com/albums/tt102/PhaedrusPB/RNS84.gif

[percy]

Phaedrus.
Thank you for another excellent chart.

[bryndlefly]

A pretty flat response today to the announcement of increased profits. i thought the shareprice would have moved.
I had a chuckle at the latest techday article: "As predicted by The Channel last week, Renaissance has announced a healthy set of profits for the last six months. "
(this shortly after predicting the company was doomed to fail)

[percy]

an interesting article.www.stuff.co.nz technology "Renaissance to sell own 'i pad'.

[Balance]

Lots of misinformation in the market on RNS from those made redundant or those who left as they have found the performance requirements too difficult under the new management structure.

Funny how they praised the previous management when the previous management delivered diminishing profits year after year! Plus the old management blew several million dollars on misadventures like txt-tunes etc.

Makes one wonder how badly run the compnay must have been under the old management.

[percy]

Lots of misinformation in the market on RNS from those made redundant or those who left as they have found the performance requirements too difficult under the new management structure.

Funny how they praised the previous management when the previous management delivered diminishing profits year after year! Plus the old management blew several million dollars on misadventures like txt-tunes etc.

Makes one wonder how badly run the compnay must have been under the old management.
Balance.What are your thoughts on the stuff article? I thought it was very positive and would reinforce your view of the company.I have not seen any of the misinformation you refer to.I agree it was a very badly run business and to start with I thought you and Lizard were mad to be looking at it.I took onboard what you two said and brought in.Thank you both of you as the SP has certainly risen.

[Balance]

Balance.What are your thoughts on the stuff article? I thought it was very positive and would reinforce your view of the company.I have not seen any of the misinformation you refer to.I agree it was a very badly run business and to start with I thought you and Lizard were mad to be looking at it.I took onboard what you two said and brought in.Thank you both of you as the SP has certainly risen.


http://www.techday.co.nz/thechannel/news/renaissance-loses-two-more/17336/7/

http://reseller.co.nz/reseller.nsf/news/ingram-micro-rumoured-to-be-new-apple-distributor

What RNS is proposing to do is consistent with what the new management are aiming to do - reduce reliance on Apple whilst making sure that they are still the preferred Apple distributor in NZ.

[Jaa]

an interesting article.www.stuff.co.nz technology "Renaissance to sell own 'i pad'.

Build and export their own iPad? Are they nuts? That strategy is hardly working out well for Whitcoulls and their e-reader is it.

In IT, managers always dream about building their own software/products so they can be just like their heroes at Apple, Oracle or Nintendo etc. Unless the managers have serious past experience (ala Rod Drury) and significant backing doing these dreams almost always end in failure of which RNS has had plenty. Such dreams are a clear warning. Every time they have tried to build their own IP in anything more than a limited manner it has been a disaster. Think txt tunes, the first version of Ferrit etc.

Everybody knows what MagnumMac stands for, they are very clearly defined in a growth part of the marketplace (Apple related products) why destroy that by re-branding to something incomprehensible? YooBee??!?!!?

Based on that article I would be selling out (not that I own any RNS shares to sell).

[Balance]

Build and export their own iPad? Are they nuts? That strategy is hardly working out well for Whitcoulls and their e-reader is it.

In IT, managers always dream about building their own software/products so they can be just like their heroes at Apple, Oracle or Nintendo etc. Unless the managers have serious past experience (ala Rod Drury) and significant backing doing these dreams almost always end in failure of which RNS has had plenty. Such dreams are a clear warning. Every time they have tried to build their own IP in anything more than a limited manner it has been a disaster. Think txt tunes, the first version of Ferrit etc.

Everybody knows what MagnumMac stands for, they are very clearly defined in a growth part of the marketplace (Apple related products) why destroy that by re-branding to something incomprehensible? YooBee??!?!!?

Based on that article I would be selling out (not that I own any RNS shares to sell).

Have a look at Ebos.

That will give you a better idea of what RNS is going to do.

[Balance]

As I wrote, those techday guys will still be trying to tell you that Year 2000 was a real disaster averted.

If you follow the RNS situation, you will know that RNS is actually winding down its wholesale distribution as it's low margin and high maintenance. The techday scuttlebutts are probably wondering what happened to the wonderful days when they received plenty of service and supplies from RNS for bugger all!

One of those turnaround stories which can reap huge returns like RBD and DIL.

Renaissance MagnumMac business reports strong growth
Turnaround is six months ahead of schedule

Auckland, 7 July 2010 - Renaissance has announced that its MagnumMac retail business has returned to profitability six months ahead of plan, reporting 17 percent year-on-year revenue growth for the first three months of 2010.

Renaissance Group, which will deliver a full six-month report to the market in early August, had originally expected that the MagnumMac retail business would not return to profitable trading until the end of 2010. After weathering a challenging environment in 2009, the Renaissance retail business, comprised of seven MagnumMac stores across New Zealand, began 2010 with an improved product mix, stronger sales focus and improved cost controls.

39 cents.

Up 77% since beginning of the year.

RBD all over gain.

[percy]

39 cents.

Up 77% since beginning of the year.

RBD all over gain.

Mr.Market thought otherwise.last sale 27cents.down over 30% since your post.

[Felix]

Today's announcement must be a joke, surely. The company provides an interest free loan of $335k to the then Managing Director for the purposes of implementing a long term incentive scheme, the Managing Director leaves, he decides he can't (won't???) pay any of it back and the company decides the loan will be written off if he transfers approx $95k of shares back to the company. In the meantime the shares have absolutely tanked since the loan was provided in 2008.

C'mon, please tell me this is some kind of joke. How can the company's "long term incentive scheme" go so wrong and how is it that a big whig cannot pay back $$$? RNS seems to be going from bad to worse.

[HarryFlashman]

Have to agree. Anyone know what is behind the fall in the shares? I thought Magnum Mac was trading well given the strengths of the Apple range and that the reshaping of the business was looking good.

On share acquisition - could the board not have asked/required "the Shareholder" to pay for the 500,000 shares based on the average price over the past three months (or some other formula) so as to get at least some cash out of the deal?

[Voltaire]

No idea how Magnum Mac (Yoobee) are doing overall but I've always thought they were/are very exposed to the growth of business via the online Apple Store. Personally, I very rarely use Magnum Mac - not so much based on the retail experience but rather a series of sub-standard efforts by their repair centres. Anyone who's been into a genuine Apple store overseas will find it hard to be excited by MM's efforts and if Apple ever decided to open a store/stores in NZ I'd be recommending bailing from RNS asap ...

[Lizard]

Paul Johnston was with Renaissance for 12 years. He was MD from 2003 until his resignation in 2009. According to the 2008 annual report, he earned $378,108 in that year. He departed at end of FY 2009, for which his reported remuneration was $706,363. The 2008 report says this regarding the issue of shares (and the terms are confirmed as unaltered in the 2009 report):

Loans to directors
Paul Johnston was granted an interest-free loan of $335,000 for a period of three years to enable him to exercise 500,000 outstanding employee share options. This loan was approved by shareholders at the Annual General Meeting held on 23 May 2008. The purpose of this loan is to align Mr Johnston’s interests with those of the Company’s shareholders and must be repaid irrespective of the performance of the Company or its share price.

If the guy was worth $1,000,000 for his efforts over two years, yet he no longer has assets to repay more than the equivalent of about $75,000 (i.e the equivalent of 500,000 shares at current share price of around 15cps), then perhaps he should turn up at the office and work off his debt... :)

[winner69]

Paul Johnston was with Renaissance for 12 years. He was MD from 2003 until his resignation in 2009. According to the 2008 annual report, he earned $378,108 in that year. He departed at end of FY 2009, for which his reported remuneration was $706,363. The 2008 report says this regarding the issue of shares (and the terms are confirmed as unaltered in the 2009 report):


If the guy was worth $1,000,000 for his efforts over two years, yet he no longer has assets to repay more than the equivalent of about $75,000 (i.e the equivalent of 500,000 shares at current share price of around 15cps), then perhaps he should turn up at the office and work off his debt... :)

.... even as the tea lady eh?

[brucey09]

Snrs.
Maybe the money he has is as you say in a trust - not his??

[percy]

Interesting to note "the cowboys are still in the financial markets and not just in the movies."

[Balance]

The deal involving the ex-CEO is a shocker! Especially when Paul Johnson is working for a competitor. He was the guy who stuffed up RNS with several bad acquisitions and along with his sidekick, Clive Lewis, resigned after 'stock' issues were discovered by the company.

Looks like he has not stopped shafting the company and the company is willing participant.

Hopeless.

[percy]

Nice to see brave buyers at 11.6 and 11.5 cents.On behalf of all of us, may I wish them well.Just when you thought things could not get worse,they just did.

[winner69]

So even worse than they said ..... and the perfect storm scenario is about to come true and the 2012 forecast will need to be downgraded even further .... and essentially broke and will need to go to shareholders with their hands out

And I like the way the head honcho apologised to the people of Chch for 'belittering' them by reducing the impact to such financial terms .... good on him ..... deserves a medal for bad taste I reckon

Giffney seems to blame everybody for this unmitigated disaster on everybody but himself and his Board .... again anothe medal for being brave

But all should take heart cause their is '(quote) There is no doubt in the minds of the Directors that Renaissance has a future.' .... I'll think I'll include in my picks for the 2012 NZX stock picking comp

[percy]

So even worse than they said ..... and the perfect storm scenario is about to come true and the 2012 forecast will need to be downgraded even further .... and essentially broke and will need to go to shareholders with their hands out

And I like the way the head honcho apologised to the people of Chch for 'belittering' them by reducing the impact to such financial terms .... good on him ..... deserves a medal for bad taste I reckon

Giffney seems to blame everybody for this unmitigated disaster on everybody but himself and his Board .... again anothe medal for being brave

But all should take heart cause their is '(quote) There is no doubt in the minds of the Directors that Renaissance has a future.' .... I'll think I'll include in my picks for the 2012 NZX stock picking comp

Sober reading.You would have to be a brave [foolish] shareholder to give these roosters any more money to loose.The sooner it goes into liquidation the better.

[Onthemoney]

Time for a quick play with these on the turn around...

[Felix]

The AGM report used very emotive language. I don't know how wise it is to rag on Apple whilst looking to sell the distributor business for Apple to somebody else. It just looks unprofessional and a bit stupid given Apple makes the call on which supplier they go with.

The directors need to take responsibility for some of the company's current situation. They are quick to blame Apple, the earthquake and the world economy. Other companies have been through the same sorts of issues and have responded with firm action to cope.

[Felix]

Was today's announcement that Renaissance "has been confirmed as an Apple computer supplier under the All-of-Government IT Supply Agreement" really sufficient to spark a 43% increase in the share price? Granted it was at a low volume but it just makes no sense that the market likes this announcement so much. There is nothing about how much extra business this will involve and when it kicks in, and you have to wonder how much benefit RNS will receive given earlier comments they've made about the Apple margins and working with Apple in general.

[elZorro]

Was today's announcement that Renaissance "has been confirmed as an Apple computer supplier under the All-of-Government IT Supply Agreement" really sufficient to spark a 43% increase in the share price? Granted it was at a low volume but it just makes no sense that the market likes this announcement so much. There is nothing about how much extra business this will involve and when it kicks in, and you have to wonder how much benefit RNS will receive given earlier comments they've made about the Apple margins and working with Apple in general.

Years ago I was being trained in Apple product repair and Renaissance was big news. I see their shareprice has been much higher in the past. Like you Felix, I found the wording in the annual report very strange and unprofessional. Would have been nice to own some of their shares ahead of the news though. The curve on the SP chart looks a bit like the one that started up OGC's big ramp a couple of years ago.

[Balance]

Suspect company is being very cautious, as well it should - nothing but depressing negative news from them in the last 5 years!

Been a number of positives coming out of RNS however in recent times but stock has been such a disappointment that market has taken little notice :

1. Profit upgrade of over 40% - Per 2nd March AGM comments in early March - "In the Annual Report we gave reasonably detailed guidance for the year to September 2012. In summary we expected an EBITDA of $3.1m. This translates to an EBIT of $1.1m. While we started the year slowly, by the end of January we were $400,000 ahead of our month on month budget. We expect to have exceeded our budget again in February. All three businesses – education, distribution and retail - are contributing positively."

2. Insurance payout - Further $2.038m received on 30 March, adding to $1.9m received prior. Looks like another $1m plus to come.

3. Government contract - should enhance value of Apple distribution business to be sold.

[brucey09]

Snrs.
The Apple margin for RNS is very low - smaller profit

[Balance]

Snrs.
The Apple margin for RNS is very low - smaller profit

Imposible to make money as an Apple distributor - margin is less than 1% after costs, and before stock write-offs. I understand that one of the distributors in Asia learnt the hard way after over-ordering iPad2 and is left with expensive stock when iPad3 was launched. And Apple will not even tell you as a distributor and reseller when new products are launched, and when and how much stock you are getting! Read Techday for all the gory details.

Case of the more you sell for Apple, the more you lose!

Only way to make money out of being an Apple distributor is to leverage off the brand's pulling power - accessories, IT services, apps etc.

Seems like RNS is heading that way so good luck to them.

[waiwai]

Latest Interim result (31 March 2012) was positive, but the profit margin from retail shops / distribution which was too small. What i can see - education & service will become valued assets of a company and will make an good profit in nearly future.


Especially, technical services & support

[Balance]

Latest Interim result (31 March 2012) was positive, but the profit margin from retail shops / distribution which was too small. What i can see - education & service will become valued assets of a company and will make an good profit in nearly future.


Especially, technical services & support

This sure has been a hard stock and a really bad one to be involved in for anyone in the last 5 years!

But the real turning point could be here at last!

2011 was the year when the perfect storm just about sank RNS - ChCh earthquake and massive changes to Apple distribution arrangements took place in the midst of a major restructuring of the company.

Well, Apple distribution is gone (and good riddance to that business as Apple is intent on accessing customers directly or via retailers , rather than wholesale distributors), RNS has been receiving its earthquake insurance payments and it is going to have a debt free balance sheet, cash and two profitable operating units.

[Minerbarejet]

What now? Shares jump 20% on news that they dont have a clue what to do next and are actively seeking advice :confused:

[percy]

What now? Shares jump 20% on news that they dont have a clue what to do next and are actively seeking advice :confused:


Glad you posted.I laughed my head off..!!!!!

[percy]

Glad you posted.I laughed my head off..!!!!!

Just thought I would bring the original thread up.

[Balance]

Just thought I would bring the original thread up.

This is probably a fair summary of where RNS is at today :

http://www.stuff.co.nz/business/8199223/Renaissance-rises-from-a-ghastly-2012

What is left unsaid is how the review by Grant Samuel of the options for the company is going. The timeframe was expected to be 3 months from Nov 27, 2012 so it's running a month behind.

Is that a good sign or bad sign?

[percy]

43,604,050 shares on issue.Market cap at 21cents $9,156,851.EPS 4.49 cents PE 4.68 NTA 5.6cents per share.Not paying a divie.

[Balance]

43,604,050 shares on issue.Market cap at 21cents $9,156,851.EPS 4.49 cents PE 4.68 NTA 5.6cents per sale.Not paying a divie.

NPAT in 2012 was all extraordinaries etc - bugger of financial statements to make any sense out of.

Their forward projection is for a profit of around $1m - EBIT of $1.473m less interest less tax.

Given the company's infamous track record of missing projections year after year (albeit for good reasons - e.g.. Christchurch earthquake), the market is highly skeptical RNS will achieve anything like $1m EBIT.

Even more damning for the company is its habit of issuing options and shares to its CEO, lending them money to fund the purchase of the options and shares and then, forgiving a big part of the debt and buying back the shares! $335,000 for 1st CEO, and then $120,000 for last CEO. Not big sums of money but indicative of how screwed up the company is when managing its affairs.

So trade sale of the operating units best option for the company.

That is certainly what I am counting on happening.

[percy]

Balance.
Thanks.

[Minerbarejet]

and now to end the saga we have appeals for votes, infighting amongst directors, no results for the proposed resurrection. I've had a gutsful and taking a hit. Spray and walk away as they say. At least I can stick the proceeds into something like PEB and recover some of it maybe. When I see statements like time is of the essence on an appeal to vote, unable to disclose until after the meeting, retain the current directors because negotiations are at a sensitive stage, blah blah, all I can see is chickens flying home through clouds of smoke.
Parachute deployed at 1645 landed at 1700 hours Major over and out

[Minerbarejet]

Major, the company has been sick for sometime now. You have made the right decision, though perhaps you saw some silver linings that made you hold longer than you should have.

This came to light in Sharetrader Update in case you missed it.

Poor results are pouring pressure on Renaissance's board – as well as its own goal of turning up to the annual meeting without details of its much-vaunted strategic review, other than saying a "path is "more or less determined".
Mr Giffney said afterwards the board expected "a bit of a donnybrook", adding: "And to be honest if I was a shareholder I would be p*ssed, too."

This is a company?

Seems I was justified in selling albeit a bit late.

This post has the intent of helpful information and has an ironic question regarding the subject.
It also contains an opinion.
No offense is intended to any member of sharetrader forums

[brucey09]

Snr.
And directors reduced fee 30%? at meeting?

[Balance]

NPAT in 2012 was all extraordinaries etc - bugger of financial statements to make any sense out of.

Their forward projection is for a profit of around $1m - EBIT of $1.473m less interest less tax.

Given the company's infamous track record of missing projections year after year (albeit for good reasons - e.g.. Christchurch earthquake), the market is highly skeptical RNS will achieve anything like $1m EBIT.

Even more damning for the company is its habit of issuing options and shares to its CEO, lending them money to fund the purchase of the options and shares and then, forgiving a big part of the debt and buying back the shares! $335,000 for 1st CEO, and then $120,000 for last CEO. Not big sums of money but indicative of how screwed up the company is when managing its affairs.

So trade sale of the operating units best option for the company.

That is certainly what I am counting on happening.

As expected, company announced at its AGM that it is tracking behind forecast (yet again). No surprises there as RNS's track record speaks for itself!

So it really is getting down to what is happening with the sales process.

Enough clues given at the AGM to suggest that the waiting is just about over and RNS, in one shape or form, is going to be history soon.

Looks to me like it's all going to be all over for 'Apple' retail operations. Apple is a fading star and has screwed its distributors too hard - now the big switch is over to Samsung and Windows 8 devices.

[Balance]

Sorry Balance, I don't see that at all.

I've been an Apple user since 1996, and reselling Apple through retail has been abominable. Hence why Apple has its own retail presence across the world, which has been a rip roaring success.

Apple sales for many years, before the rise of the internet in 1995-1996 and the online sales channel, were sold in NZ and around the world through catalogues. So the sales channel for Macs excluded a heavy retail presence going all the way back to the early 1990s.

Now, Apple premium resellers (or whatever they are called) are screwed two ways. It's easier and cheaper to get a customised Mac direct through the Apple NZ website than through a reseller. But if you need an "off the shelf" mac, you can get this from Noel Leeming where you also get finance easily, and Fly Buys for your trouble.

Cellphones are sold through Telecom and Vodafone, where they have the ability to put you onto plans that offer phone subsidies. So no reason to go to Yoobee either.

Lastly, the one competitive advantage that Yoobee has is service and value-adds in customer experience. Rhetorically, have you been in a Yoobee lately? Not a good experience in my book.

iPads have lousy margins though. It's the high value accessories like leather cases where retailers make the money.

Am an Apple user as well and staying on as my IT system is all based around Apple. Too hard for me to change and I cannot be bothered to update my mobile and computer every 6 months in any case!

But it's fascinating to me that my children and their friends are switching over to Samsung and other brands in a big way. It is not that cool to be an Apple user any more.

So what has changed and why has Apple's share price fallen 40% from its peak and is now back to where it was in Jan 2012?

The fortunes of IT companies rise and fade - depending on whether they are market leaders and leading the pack, or have become market followers and playing catch-up.

To me, Apple is playing catch-ups these days. The most telling sign of that was when it launched the iPad 4 along with the iPad mini in Oct 2012. There was little fanfare and many iPad 3 owners felt screwed big time as the iPad 3 was all of 6 months old!

Apple basically panicked at the competition building up and did a catch-up launch. In the process, it buggerised its brand power.

http://www.allvoices.com/contributed-news/13246052-apple-screws-millions-of-customers-with-ipad-4-release

Events like these give you an insight into where a company is at.

[Balance]

Apple has grown so arrogant in recent years that it not only reduced the margins for distributors, it also squeezed them on credit terms - from 60 days credit (too generous) to now, cash terms.

So Apple gets a nice one off shot in its cash pile but at what cost to its relationship with distributors?

Renaissance's experience with Apple is repeated around the world and Samsung has smartly moved into the space - better margins and credit terms with a superior product.

But wait, there's more!

Apple got so cocky it decided that it can screw its loyal customer base as well!

First, with the iPad 4, and then Apple launched IOS 6.1 in late January 2013 without sorting out all the bugs - we are now at 6.1.3 two months later and Apple is still sorting its shxt out!!!

Loyalty cuts both ways - something the Americans have yet to learn.

Notice how quiet Apple is these days with its product and software launches?

I only found out about the IOS 6.1 battery problem after a few of us iPhone users suddenly noticed our phones' battery life shortened down dramatically!

It got so bad that Vodafone sent an alert to its customers NOT to download IOS 6.1

http://www.theregister.co.uk/2013/02/11/vodafone_ios6_1_software_problem/

Bye bye Apple as the market leader.

[skid]

Apparently Samsung makes alot of the parts that go in to IPhones.
Apple sues Samsung--Samsung just increases the price of the components to recoup the loss.
Id put my money on Samsung-although not till this situation gets worked out with N Korea

[Balance]

Apparently Samsung makes alot of the parts that go in to IPhones.
Apple sues Samsung--Samsung just increases the price of the components to recoup the loss.
Id put my money on Samsung-although not till this situation gets worked out with N Korea

N Korea is rattling the money tree again but increasingly, it's looking like a suicide run.

China is losing patience (if you read the Asian press rather than Western reports which have been so wrong on all things Asia) and without China, South Korea and US will attack first strike.

So Samsung looks like a good bet.

Contrast the Samsung Galaxy s3 now at $583 versus Apple 5 at $915 - no contest! Apple's 'coolness' is not worth $332!

Watch for next launch of Apple product - will there be the overnight queues like before? More like just a few planted Apple staff trying to build up the hype but looking like dorks!

Sooner Renaissance gets rid of Yoobee retail, the better.

[percy]

Would anyone care to comment of their website

[Balance]

I read that Apple is now looking to launch its next iPhone 5S possibly up to 3 months earlier.

Meanwhile, grappling with its IOS issue - hardly surprising when you consider that IOS 6.1 had all kinds of problems still being fixed, and Apple rushed its Maps app with major errors into use (oops).

http://www.dailymail.co.uk/sciencetech/article-2303548/Is-Apples-new-iPhone-iPad-software-jeopardy-Experts-claim-engineers-pulled-projects-finish-major-overhaul-time-summer-launch.html

Sooner that Renaissance moves out of being wholly Apple, the better.

[Balance]

They never were wholly Apple. They had PC offerings, their own assembled Insite PC products here in NZ for years. They also wholesaled a variety of computer accessories like printers, power UPS boxes, servers, racks, routers etc. They have also been involved in web software development of some kind. A transaction system. Not quite sure exactly what it is. This distribution of other products goes back several years - at least 12-15.

Renaissance are not a failing company because of Apple. Renaissance are a failing company because their execution has been lousy ever since Sparky was a university student with a part time job working in an Apple dealership owned by Renaissance. Tech Pacific, then Ingram, simply dominated the distribution space because their processes, pricing and people were all superior.

I should clarify that I am commenting about YooBee Retail today.

I went into their Albany store a few weeks ago and seriously wondered how on earth their store can survive and compete with the other stores selling a greater range of products, including Apple.

Especially when Apple is the one which decides with new product launches, which distributor and retailer get what volume to sell. I know this because I asked their Newmarket store why they had so few iPads to sell last year and I was told they were lucky to get what they were given! Now they are swamped with iPads and mini iPads because nobody wants the freaking stuff!

Heck, I got better range, price and service buying from a parallel importer in Ponsonby who brings in Apple and other products from Hong Kong and Singapore!

RNS needs to move on fully away from Apple and focus on its education unit.

[Balance]

http://www.reuters.com/article/2013/04/17/us-apple-shares-idUSBRE93G0PA20130417

http://www.smh.com.au/opinion/politics/apple-any-day-still-seems-like-good-advice-20130116-2ctp8.html

Closing down YooBee Retail must now be a real possibility.

Apple is now going from weakness to weakness.

It is just not cool anymore to be seen with an Apple product, especially the iPhone.

And if you are dumb enough to queue up from midnight for a product launch by Apple, you fully deserve to be facebooked as most uncool mug of the year!

[Balance]

Wow, that actually made me want to go buy some razorblades and use them on myself. Negativity permeating throughout every single word, dear lord!

Is this meant to punish the shareholders who did not go with the Boards directions on the future of the company?:

"Our retail division is work in progress and we are working systematically through options. We decided that we should write off the goodwill attributable to the retail division because the forecasts that had sustained that value at the full year have clearly not been met."

PR speak for closing down retail operations.

Sad for RNS and for staff when it happens but inevitable as Apple is so yesterday.

And I will warrant to say that Apple will regret the way it has marginalized its distributors. Likewise, the disdain it shows for customer service is already showing through in Apple's performance.

[percy]

[

Potentially RNS could sell the education assets out of the Renaissance vehicle, shut down the Yoobee moneypits and sell the shell to someone who wants a backdoor listing. That would probably extract the most value from their sorry situation.[/QUOTE]

Yes.... RNS was in fact itself a backdoor listing.Can't remember all the names,only that at one stage it was Triumph Industries,and maybe before that they distributed Akai and other products like Pioneer stereos.I long history "on the road to nowhere."

[corpr8raider]

Bummer. Looks like the turnaround in fortunes are a long way down the road for this puppy, that's if they can find a roadmap that can put them back on a growth path.

Another basket case that will be relegated to the small pile of stocks that never quite recovered from their ill fortunes after the GFC knocked them down a peg or two.

[Balance]

Prediction: Within 6 months, the Yoobee chain will either have been closed down or sold to someone else, or broken up and sold to independent dealers, or a mixture of all of the above.

What pittance received will be returned to shareholders, and the company will be taken private, returning back to National College branding.

Nobody wants the YooBee chain, STC - it's yesterday's story.

YooBee retail tried to ride on the coat tails of Apple by mimicking the hugely successful Apple stores - a dumb experiment as Apple controls and limits supplies of products to YooBee.

So RNS carried the Apple brand, did the promotion, carried the costs, advertised heavily on new product launches and had bugger-all to sell!

When it has stock to sell, like now, the market is flooded with Apple products which is just a big yawn to the market.

Heck - you can get an iPhone from one of the parallel import shop (with warranty) for 20% plus off!

The sooner RNS takes the hit and closes the stores down, or diversify YooBee with other brands, the less blood RNS's good division will bleed.

You can just imagine the angst within RNS's management - the good business is getting dragged down by the bad business.

[Balance]

Balance, there are plenty of people out there who like Apple products, and a number of Apple retailers out there who have done well from selling Apple (ubertec, Imagetext spring to mind). Mainly because they have great service, and value adds for customers. Yoobee were just a retail presence.

I disagree that Apple products are a big yawn, but I'm not really interested in a Protestants are better than Catholics debate. What I think we all agree is that tight margins, high street retail and questionable management has butchered Renaissance in recent years. Note that Renaissance were not just Apple distributors, but also sold PCs, printers, routers, software and more. They couldn't get any of that right either and have had to hock that off to others.

I use Apple products, STC and I like them. I am simply passing on observations in the market - Apple is simply not seen as cool anymore. That's why the stock is trading on a PE of 10.71 times.

Remember how Apple engineered queues at product launches? You will be seen as seriously uncool if you are seen queuing up these days.

[Balance]

Not sure I agree. A lot of the euphoria has worn off, but have been to the USA a few times in recent months (CA, TX, NY) and the level of iPhone ownership boggles. Lots of Samsungs too, to be fair, but the Apple ecosystem is hardly in decline.

I read somewhere that Apple has gone from being a magical company, to a great company. I think that's fair. We shouldn't project magical abilities back on Apple until they release new products that reinvent their classes, which I have no doubt they will do.

As for Renaissance and magic, we're all agreed on their disappearing act!

Why is Apple so uncool?

http://www.royalgazette.com/article/20130116/BUSINESS07/701169997

http://www.smh.com.au/opinion/politics/apple-any-day-still-seems-like-good-advice-20130116-2ctp8.html

From my personal experience, I can tell you my children and their university friends will not be seen dead with iPhone.

Apple was both a magical and great company - caring about its products and services - to a company caring purely about profits.

Indicative how Apple has lost its way, post Jobs, is the rush to launch its products before they are properly tested - Maps and IOS 6.0.

There have been 3 fixes rushed out on IOS 6.0 so far.

Then there's the debacle over iPad 4, launched barely 6 months after iPad 3 - the magic was well and truly lost.

[Balance]

I think you read too much into the above.

For every article that says Apple is uncool, is plenty of evidence it continues to hold huge presence in the minds of consumers.

Yes, iOS 6.0 and Apple Maps were poor rollouts. Particularly Apple Maps. I am sure iOS 7 will impress users though. Feedback on the Apple Rumor sites suggest it will be a big change from the old skeuomorphic style OS.

But you are wrong on iPad 4. It was launched mostly so soon after Ipad 3 so that their entire iOS lineup were using new lightning connectors, not the old "flat" 30pin connector. Moving my own fleet of iOS devices to the new lightning connector, plus sound docks and accessories was deemed to be a nuisance when my iPhone 4S, wife's 4, her iPad and my iPad 3 were all on the old connectors, plus two perfectly good and reasonably new sound systems.

I will migrate to the new lightning connector iOS devices when they announce new products this year. I wonder if this migration barrier has slowed adoption somewhat, rather than perceived "uncool" factor.

The sp of Apple tells a lot - and the market has an uncanny ability to read and predict what is happening with a stock.

At a PE of 10.71 times, massive share buyback and strong market presence, you have to ask.

Remember how IBM, Nokia, Data General, Honeywel etc used to rule the roost?

[Snapper]

Why is Apple so uncool?

http://www.royalgazette.com/article/20130116/BUSINESS07/701169997

http://www.smh.com.au/opinion/politics/apple-any-day-still-seems-like-good-advice-20130116-2ctp8.html

From my personal experience, I can tell you my children and their university friends will not be seen dead with iPhone.

Apple was both a magical and great company - caring about its products and services - to a company caring purely about profits.

Indicative how Apple has lost its way, post Jobs, is the rush to launch its products before they are properly tested - Maps and IOS 6.0.

There have been 3 fixes rushed out on IOS 6.0 so far.

Then there's the debacle over iPad 4, launched barely 6 months after iPad 3 - the magic was well and truly lost.

I'm not sure that iphones have lost their mojo. i was listening to ZM when they were having a competition and the winners could select an iphone or a Samsung. 90% chose the iphone.

Myself, i prefer the Samsung but I never was that cool.

[Balance]

I'm not sure that iphones have lost their mojo. i was listening to ZM when they were having a competition and the winners could select an iphone or a Samsung. 90% chose the iphone.

Myself, i prefer the Samsung but I never was that cool.

Says that ZM listeners are not cool surely? :D :D :D

[corpr8raider]

The news doesn't get better..

http://www.renaissance.co.nz/sites/default/files/investor-news/Interim%20Report%202013.pdf

[blackcap]

Had a quick look myself as I hold a remnant of RNS shares and was just curious as to how the annual would look. Not good at all and the directors dont really inspire with their comments. What do you do with a company like this? Keep going? Try to sell off the parts? Is it worth a punt at 11 in case they can start getting sales going?

[percy]

Had a quick look myself as I hold a remnant of RNS shares and was just curious as to how the annual would look. Not good at all and the directors dont really inspire with their comments. What do you do with a company like this? Keep going? Try to sell off the parts? Is it worth a punt at 11 in case they can start getting sales going?

Pig in poke.!

[blackcap]

A page or so back I said they would close down the Yoobee chain within six months. I reckon that's still likely to happen. They will then de-list, and simply be a privately owned training school for CAD jockeys and Photoshop graphic designers.

I guess they are trying to find out how they can get the cash together to pay out shareholders if they wish to de-list? Or find some public backer. Hmmm as I read the figures I figure there is not much sense in going on. If you keep bleeding money you might as well stop. But who would want to buy their assets? That is the big poser for me.

[Minerbarejet]

This stock has been in the recovery position for years and is not responding. Pity because it used to pay a good div. Response - nil, Recovery - nil, Resurrection - unlikely, Renaissance -even more unlikely

[Balance]

This stock has been in the recovery position for years and is not responding. Pity because it used to pay a good div. Response - nil, Recovery - nil, Resurrection - unlikely, Renaissance -even more unlikely


Dead - as dead as a doornail is YooBee retail.

[blackcap]

https://www.nzx.com/companies/RNS/announcements/238597

Renaissance close half their Yoobee stores, including Albany, Sylvia Park and Britomart.

More disappointment coming in their September result.

Interesting they are looking too sell their education side of the business, the one that makes money. That indicates they are looking to cash up and return money to shareholders, then sell the shell or de-list.

Well its about time this sorry saga ended. I guess to a certain extent they did not go back to shareholders often for more funds like so many other listed vehicles. THat is in their favour. THey had some "bad luck" as well and things just did not go their way. But its time to shut shop, sell what is left, give shareholders the cash and find another venture to backdoor in the shell.

[Balance]

Well its about time this sorry saga ended. I guess to a certain extent they did not go back to shareholders often for more funds like so many other listed vehicles. THat is in their favour. THey had some "bad luck" as well and things just did not go their way. But its time to shut shop, sell what is left, give shareholders the cash and find another venture to backdoor in the shell.

Hear hear.

Renaissance should also serve as a cautionary tale to all NZ*companies never to trust the Americans. Loyalty means nothing to them - just dollars.

But as they sow, they will reap.

[Balance]

I'm not sure the Americans, by which I presume you mean Apple USA, are to blame for years of Renaissance's underperformance. Renaissance was poorly performing well before choice was introduced to those retailing Apple kit.

A cautionary tale, STC about dealing with the Americans - I am not glossing over RNS's mismanagement either!

Bear in mind that RNS was one of Apple's top performing distributors in the world from the word go - through thick and thin.

When Apple started becoming really 'hot' in the 2000s, it began to screw the likes of RNS - well documented reduction in credit terms, supply terms, rationing of products, introduction of direct competition by itself in supplying directly to some retailers, etc and finally, adding an extra distributor in NZ.

How can you run a business when you get bugger all products to sell when they are launched and are hot, and when they are out of fashion, become a dumping ground for them?

I know one of the RNS staff who quit in disgust and is now a happy Samsung staff - RNS was accused of being arrogant in supplying stock to retailers but the retailers did not want to know that Apple decides which retailer (yes, retailer) gets what stock when products are launched - micro management!

[Balance]

I have also known a number of CDL/Imagetext/MagnumMac/Yoobee people through the years, and they have nothing but contempt for Renaissance/Triumph (in days of yore). Competition couldn't come quickly enough for those relying on Renaissance for wholesale. Note - not just Apple but many other OEM products like printers, peripherals, PCs, software.

The complaints I heard seemed to be always about iPods, iPhones, iPads etc.

Of course everyone wants as many of them as they can get when they were sizzling hot and queuers were 10 miles long for them.

But if Apple Inc controls totally what you get (bugger all), and in turn, tells you which retailer gets what (playing favoritism against the smaller retailers) - you are screwed.

Funny how Apple products are so readily available now but nobody really seems to have burning desires to get them like before.

The launch of the mini-iPad was a fizzer and a total embarrassment to those dumb enough to queue up!

[blackcap]

Can someone please put this company out of its misery....

RNS
29/11/2013 15:58
FLLYR

REL: 1558 HRS Renaissance Corporation Limited

FLLYR: RNS: Unaudited result for the year to September 30 2013

RENAISSANCE CORPORATION LIMITED
(Company)

Renaissance Board releases unaudited result for the year to September 30 2013

In the year to September 30 2013, Renaissance recorded a net operating loss
of $1,684,000.
This loss was recorded after a depreciation charge of $869,000, interest
expense of $82,000 and one-off, cash costs of $540,000 related to downsizing
and closure of stores.
Non-cash write-offs of $5,677,000 and the write off of deferred tax assets
and future tax benefits $2,779,000 took the total IFRS accounting loss for
the period to $10,140,000.

Table: Attached

The Company has not experienced consecutive 'normal' trading years since
2008. This has made reporting comparative trading results that shareholders
might understand extremely difficult. 2013 is no exception.
In this years result we have incurred one-off cash expenses of $540.

Table: Attached

In addition we have made various decisions about our assets and this has
resulted in further write-offs of $5,677,000.

Table: Attached

While Education did not achieve its operating budget, the business traded
well and, as reported in our segment presentation, made a profit of $1.852m
before tax.
We have taken a complete bath in our retail business. Taking trading losses,
write off of goodwill, asset write-offs & write-downs in closing stores and
various other costs to account, the segment result was a loss of $9.022m.

Retail
Apple Inc. has kept expanding the outlets for their product in this country.
Toy's R'us became the latest outlet for iPads. Competition has been
intensifying for a while. In late 2012, retail competition in Apple products
broke out in a rash. It is now commonplace for big box stores to offer 10%
off Apple product. The Yoobee stores cannot buy most Apple products at that
price. We have lost margin and market share.
To September 2013, year on year same store unit sales in our key Apple
products of iMac and iPad, have increased. Portables are down as mobile
users switch to the iPad. Phones are well down as the Telcos offer deals on
the hardware for contracts. The average sale price of all units is down year
on year.

Table: Attached

Same store $ revenue is down 17%, such has been the combined effect of these
factors. Revenue in the retail group was down 29%. At the same time, across
the whole Apple range gross margin has fallen from 11.3% to 7.8%. Without
the service function at our Newmarket, Hamilton, Wellington and Blenheim Road
stores and a comparatively good performance in third party products, the
result would have been even more devastating. The board believes the model
for a dedicated chain of Apple-only retail stores is no longer viable for
Renaissance as a public company. It continues to look for ways to
re-position the business.
In the year to September 30 2013 we have made significant non-cash write offs
to recognize the current state of trading. We have written off the goodwill
that had previously been associated with the business. We have written off
the store fittings at the stores we closed - Albany, Downtown, Sylvia Park
and Dunedin. We have impaired all the store fittings at our remaining
stores. We have made more provisions for stock.
More importantly redundancies and other payments associated with store
closures have swelled the cash loss from trading. We have made provisions
for on-going lease payments on premises that have been vacated, and the
current trading stores where lease expenses exceed the expected economic
benefit.

Education
The Yoobee School of Design result was the shining light. The core business
of domestic students continued to operate at Tertiary Education Commission
limits. The drop off in international students, which was felt across the
industry, impacted the results in 2013. Management has focused on this area
and there are clear signs that prospects for International students are
improving. Considerable investment has gone into our online learning project
and we now have [6] courses up and running. However revenue generated was
lower than budget.
Notwithstanding these softer areas, the core business is performing well and
EBITDA, after adjustment for unallocated head office costs was $2.0m.
The process of selling the Education unit to the Academic Colleges Group is
underway.
ACG are applying for regulatory consents. It is unlikely that approvals will
be received before February or even March.
As reported, the structure of the transaction has been changed to a sale of
shares rather than a sale of assets. This should speed the regulatory
process.
The School's Christchurch campus has secured ideal premises at the University
of Canterbury. That fixes another pre-condition.
The University is undertaking the works to prepare the new space for moving
in over Christmas.
Discussions with vendors where services are shared between Renaissance
subsidiaries have commenced.
The Special General Meeting seeking shareholder approval will now be held on
22 January. Documents for the SGM will be sent to shareholders before
Christmas.
IFRS was supposed to make accounts easier to understand. Perhaps that was
for accountants. Accounting standards demand that assets held for sale (our
Education subsidiary) are reduced to just two lines in the accounts - one for
assets $9,257,000 and one for liabilities $3,764,000. The effect of the
transaction, if it had taken place at September 30 2013, is as follows:

Table: Attached

Conclusion
Directors await settlement of the transaction with Academic Colleges and the
search for a viable model for retail. In the mean time we continue to reduce
costs in any way possible.
Directors remain of the view that ultimately they would like to return cash
to shareholders.

[Felix]

Well the merciful end is nigh after today's announcement that the retail business has been disposed. Will be interesting to see how much is left to distribute to shareholders and whether they hock the resulting shell off to another venture.

Other than a great run in the early 2000s when Apple products took off there isn't much else to remember fondly about this company as it fades into the sunset.

[whatsup]

After todays meeting any thoughts on RNS's future ?

[warthog]

Extinction. Either de-listing or target for a backdoor listing for somebody else.

Renaissance were always run by a bunch of white guys with their heads firmly planted in the sand.

And it showed in their attitude towards clients, resellers, and anyone else who had the misfortune to deal with them.

Their business culture was all about screwing people for the most possible, and scratching backs for favours. They applied their "rules" to some people but relaxed them to the point of absurdity when it came to others.

Then one day Apple turned around and called their saggy-arse bluff (they always hoped Apple would buy them out). By this time there was this thing called the internet and selling directly to customers, cutting out the middleman who added no value whatsoever yet took a hefty margin for zero contribution. These days Apple sells up-to-date hardware from Sydney, direct to consumers in NZ, overnight in many cases. This is mostly better than Renaissance ever did for its own network of reseller "customers" locally.

People were brought in to replace the ageing, wrinkled, closed-shop middle (aspiring, but never really having the chops) management to give the business a new face and approach. Nice idea, except the culture basically ran them over. So they left. Then the rot continued unabated.

Good riddance to this old, stifling, ridiculous fossil of times gone by.

[whatsup]

Extinction. Either de-listing or target for a backdoor listing for somebody else.

Renaissance were always run by a bunch of white guys with their heads firmly planted in the sand.

And it showed in their attitude towards clients, resellers, and anyone else who had the misfortune to deal with them.

Their business culture was all about screwing people for the most possible, and scratching backs for favours. They applied their "rules" to some people but relaxed them to the point of absurdity when it came to others.

Then one day Apple turned around and called their saggy-arse bluff (they always hoped Apple would buy them out). By this time there was this thing called the internet and selling directly to customers, cutting out the middleman who added no value whatsoever yet took a hefty margin for zero contribution. These days Apple sells up-to-date hardware from Sydney, direct to consumers in NZ, overnight in many cases. This is mostly better than Renaissance ever did for its own network of reseller "customers" locally.

People were brought in to replace the ageing, wrinkled, closed-shop middle (aspiring, but never really having the chops) management to give the business a new face and approach. Nice idea, except the culture basically ran them over. So they left. Then the rot continued unabated.

Good riddance to this old, stifling, ridiculous fossil of times gone by.

Well that straight from the shoulder, IMHO the capital et al is too mixed up for a back door listing about $1 mil market cap is about right not approx. $7 mil.

[warthog]

Well that straight from the shoulder, IMHO the capital et al is too mixed up for a back door listing about $1 mil market cap is about right not approx. $7 mil.

What are NZX, compliance fees, etc. all adding up to these days?

Radical capital restructure or disappearance. How's that?

[waikare]

Some news that maybe of interest those who are unlucky to be shareholders in Renaissance Corp.

NZXR) advises that RNS ordinary shares will be placed into suspension at close of business on Tuesday, 5th August 2014.

The suspension will be put in place prior to the Special Meeting of Shareholders to be held on Monday, 11th August 2014 at which shareholders will vote on the appointment of Liquidators. The suspension will ensure that there are no unsettled trades if the Liquidators are appointed.

The final trading day in RNS ordinary shares will be Tuesday, 5 August 2014, prior to being suspended at close of business.

Please contact Client and Market Services on +64 4 496 2853 or cms@nzx.com with any queries.

Disclosure: Holding

[waikare]

We are now in the hands of liquidators.....................

[waikare]

Trading will cease on the 29th Aug.

[mikeybycrikey]

Wow. I just got paid out another 3 cps from the liquidation of Renaissance.

Overall it was a pretty bad investment for me but good to get a little bit more out of the carcass of this company.