Aga Rangemaster looks to China to boost sales
COOKER and boiler manufacturer AGA Rangemaster is to target new markets such as China in an attempt to boost its sales performance due to weak demand in the UK and Ireland.
The company has seen dips in first half revenue and profits decline following dwindling sales of its iconic products.
Results for the first half to June 30, 2012 show revenue at £119.2m (2011: £121.4m), while pre-tax profit was down at £1.6m (2011: £4.2m).
In its interims statement, the firm said: “The initial signs of market improvements early in the year were not sustained resulting in a further period of weak demand – with the product introductions having maintained rather than expanded revenues.
“Good sales progress for AGA cookers and for Rangemaster in Europe and a much better performance by Fired Earth were the most encouraging features of a period in which consumers lacked confidence and the willingness to invest in their kitchens at anywhere close to the levels of five years ago.”
William McGrath, chief executive, said: “The continued challenges in the economy and lack of activity in the property market have clearly had an impact on demand in the first half as customers delay purchasing big ticket items.
“However, our investment in innovation, efficiency drive and great product offer ensures that we are well placed to respond when the market recovers. Our recent collaboration with the Chinese group Vatti demonstrates the opportunities ahead to enter into new markets.”
The Chinese collaboration is indicative of the firm’s approach to drive growth through overseas sales.
Mr McGrath added: “With the established UK and Irish markets likely to remain weak for some time in the current economic environment, the onus is on new markets such as China and on raising market penetration in markets like North America, where our market position is not yet fully developed.”
