Chaos continues at Renaissance

Activist shareholders, a crucial vote, absent strategic advice and a plea from from the board to "see the current course".

Things don't get any better at Renaissance Corporation, the listed Apple retailer and training provider through its YooBee and Natcoll brands.

Upheaval over recent years include the Christchurch earthquakes and the sale of its distribution arm to Exeed, which resulted in legal threats and an out-of-court settlement.

Its low share price made it a possible takeover target, the board said last year, prompting it to hire Grant Samuel & Associates in September to conduct a strategic review – a process that was meant to take three months from November.

However, the company says firm proposals will only be available two to four weeks after Thursday's annual meeting.

Next week's meeting is crucial for the board. Chairman Colin Giffney, who stated in the last annual report he would step down at this meeting, is now fighting for reelection with fellow director Mal Thompson, whose Martinique Management owns 12% of the company.

Meanwhile, shareholders Clive Lewis (4.9%), the former chief financial officer, and Nicki Woods (13.9%) – the widow of Murray Woods, who died in the CTV building collapsed in Christchurch's 2011 earthquake – are apparently backing Christchurch chartered accountant Robert Bijl to join the board.

At last year's AGM, Mr Lewis and Mrs Woods attempted to oust directors Richard Ebbett and Ron Halls, the acting chief executive.

Stay the course 
In a letter to shareholders yesterday, the Renaissance board says it is in shareholders' best interests to "see the current course" – despite Grant Samuel's report not being available.

The mysterious strategic review will apparently maximise shareholder value in the two remaining businesses "whether under existing ownership or in conjunction with other parties".

Negotiations are at a "sensitive stage", the letter says, and could be disrupted by removing "key directors" leading to "considerable" loss of shareholder value.

As to Mr Giffney's vacillating intentions, the AGM is not the right time to step down because of the "process under way" he is leading and he will retire "as soon as shareholders have had a chance to vote on specific recommendations".

"At that time the director requirements for the company going forward will be clearer and an orderly transition to a new board can be made."

Volatile fortunes 
Renaissance is a shadow of its former self.

In early 2006, when it held the exclusive rights to represent Apple in New Zealand, its share price (NZX: RNS) was $1.60.

It hit a low of 6.2 cents in December 2011. At today's share price of 21 cents it has a market capitalisation of a touch over $9 million, whereas it has previously been as high as about $50 million.

The company made an after-tax surplus of $2.03 million in the year to September 30, 2012, but that included insurance payouts of $3.97 million.

Yoobee retail's 10 stores made an EBIT loss of $374,000. It is budgeting a $1.47 million EBIT profit this financial year on projected revenue of $63.76 million.

The company has previously disappointed.

A 2009 profit guidance downgrade led to the resignations of Mr Lewis and then managing director Paul Johnston.

dwilliams@nbr.co.nz