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.

By Suze Metherell - BusinessDesk