29 Nov 2011

Quake loss reported by Renaissance

12:51 pm on 29 November 2011

Renaissance Corporation has reported a loss of $4.3 million in the year to the end of September, due to the costs associated with the Christchurch earthquakes and poor trading conditions.

That's a turnaround from a profit of $301,000 in the nine months to September 2010, when it changed its reporting date.

Insurance claims for damage and loss of earnings total $4.6 million and it has received a part-payment of $1 million.

Revenue rose 18% to $182 million, which includes the extra three months trading.

But Renaissance warns challenges remains, including what to do with its distribution business which is being affected by Apple's demands, and evidence that trading will not meet expectations.

The company says it may need to raise money if the rest of the insurance money is not received soon.