Renaissance likely to miss $1m earn-out from sale of Yoobee School of Design

Renaissance Corp Chairman Colin Giffney
A former Yoobee Retail store
Renaissance Corporation 12-month price history (NZX.com)

Renaissance Corp [NZX: RNS],which has sold all of its operating assets as part of a plan to return capital to investors and close down, says it's unlikely to get a $1 million earn-out from the Yoobee School of Design because earnings are tracking below target.

The Auckland-based shell company, which sold its design school to Academic Colleges Group for a net $13.3 million in January, would get the earn-out if Yoobee's earnings before interest, tax, depreciation and amortisation was between $2 million and $3 million in the year ending September 2014. Academic Colleges advised Renaissance on May 13 that the number of overseas students had trended below budget and

Ebitda was now forecast at $1.95 million, Renaissance said in a statement.

NZX-listed Renaissance, which lost its monopoly on Apple products sold in New Zealand, has been selling businesses for the past two years. At the start of this year the board said it would return cash back to shareholders and has been approached by companies wanting the shell for a backdoor listing.

The company had $7.22 million, or 16.6 cents a share, of net assets as at March 31, most held as cash. In posted first-half results today showing an operating loss of $129,000, which chairman Colin Giffney said was "barely relevant" given the company is winding down.

Future operating expenses were mostly covered by interest income and Renaissance remained committed to returning funds to shareholders, it said, giving no timeframe.

The shares were unchanged at 14 cents and have declined 6.7 percent year-to-date. The shares were first listed on Jan.1, 1968, according to NZX data.

(BusinessDesk)

This article is tagged with the following keywords. Find out more about My Tags

NZ Market Snapshot

Forex

Sym Price Change
USD 0.7847 -0.0004 -0.05%
AUD 0.8951 -0.0008 -0.09%
EUR 0.6212 -0.0004 -0.06%
GBP 0.4889 -0.0005 -0.10%
HKD 6.0860 -0.0040 -0.07%
JPY 84.1510 0.0290 0.03%

Commods

Commodity Price Change Time
Gold Index 1241.1 -7.450 2014-10-22T00:
Oil Brent 84.7 -1.510 2014-10-22T00:
Oil Nymex 80.5 -1.970 2014-10-22T00:
Silver Index 17.2 -0.310 2014-10-22T00:

Indices

Symbol Open High Last %
NZX 50 5279.7 5298.2 5279.7 0.21%
NASDAQ 4429.2 4435.9 4419.5 -0.83%
DAX 8934.5 8957.2 8887.0 0.60%
DJI 16615.3 16653.9 16614.8 -0.92%
FTSE 6372.3 6401.5 6372.3 0.43%
HKSE 23296.0 23397.2 23404.0 -0.20%
NI225 15093.8 15144.4 15195.8 -0.37%