AGA revenues dip after tough year end but profits expected to hold

COOKER manufacturer AGA Rangemaster has seen a fall in full year revenues as the economic climate continues to impact its markets.

The Warwickshire-based firm said revenue for 2011 stood at £251m, down 3% on the previous 12 months. The firm said the performance was satisfactory after a tough end to the year.

However, it added work to improve margins and control costs had helped offset the impact on profits. To this end, pre-tax profit is expected to be up, excluding last year’s pension curtailment gains. Net cash balances at year-end were more than £30m.

AGA said its evolving product mix, introduction of new manufacturing processes and the support of new administrative systems had brought new commercial and efficiency opportunities to the group. These will be supported with further initiatives in the months ahead with particular emphasis being placed on enhancing the group’s international presence.

Overall sales of cast iron cookers were down but the new energy-efficient range AGA Total Control, launched in May, is now said to be reaching new audiences and contributed to a third of all AGA orders in the second half of the year. For Rangemaster, cooker sales were up overseas but down in the UK.

AGA Marvel in North America is said to be seeing encouraging sales momentum. The reduction in Fired Earth and Grange losses continues – although not as quickly as
planned.

William McGrath, chief executive, said: “The group has recently launched a formidable range of products including the AGA Total Control that will drive us forward in 2012. These products will be backed by commercial and operational efficiency gains that build firmly on the progress already achieved.”

The firm issues its full year results on March 9.

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