Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Renaissance likely to miss $1 mln earn-out from Yoobee sale

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

By Suze Metherell

May 29 (BusinessDesk) - Renaissance Corp ,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)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

What Winter? Temperature Records Set For June 20-22

The days around the winter soltice produced a number of notably warm tempertaures. More>>

Conservation Deal: New Kākāpō Recovery Partnership Welcomed

Conservation Minister Maggie Barry says the new kakapo recovery partnership between DOC and Meridian Energy is great news for efforts to save one of New Zealand’s most beloved birds. More>>

ALSO:

Tech Sector Report: Joyce Warns Asian Tech Investors View NZ As Hobbits And Food

Speaking in Wellington at the launch of a report showcasing the value of the technology sector to the New Zealand economy, Joyce said more had to be done to tell the country's technology stories overseas. More>>

ALSO:

Mediaglommeration: APN Gets OIO Approval For Demerger Plan

APN News & Media has received Overseas Investment Office approval for its plan to split out its NZME unit ahead of a potential merger with rival Fairfax Media's New Zealand operations. More>>

New Paper: Ninety-Day Trial Period Has No Impact On Firms' Hiring

The introduction of a 90-day trial period has had no impact on hiring by New Zealand companies although they are now in widespread use, according to researchers at Motu Economic and Public Policy Research. More>>

ALSO:

Corrections: Serco Exits Equity Stake, Remains As Operator

Serco has sold its equity stake in the company that holds the contract to design, build and run Wiri Prison in South Auckland but continues as sub-contractor to operate the facility. More>>

GDP: NZ Economy Grows Faster-Than-Forecast 0.7%

New Zealand's economy grew at a faster pace than expected in the first quarter of 2016 as construction expanded at the quickest rate in two years. The kiwi dollar jumped after the data was released. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news