Profits heat up for Aga following sales increase
ICONIC cooker and boiler manufacturer Aga Rangemaster has seen profits return to double digits as sales of its products increased ast year.
The company, which has a manufacturing base in Shropshire and an administrative centre in Solihull, saw pre-tax profits increase from £0.5m in 2009 to £19.9m, with revenues growing 6% from £245m to £259.1m.
Basic earnings per share rose from 2.5p to 21.7p and the company has declared a dividend of 1.7p whereas nothing was put forward in 2009.
The company is seen as an important barometer for the overall economy and so the results will have a significant positive impact, suggesting confidence may be returning to both the consumer and housing markets.
William McGrath, Aga chief executive, said: “Our two core brands, Rangemaster and the classic AGA, put in strong performances and were key to the near 6% revenue increase.
“We expect similar trend lines in 2011 in spite of the clouds over consumer markets. Strong finances, good operational gearing and investment in new products were the themes of 2010 which will bring clear cut progress in 2011.”
The group said 2010 had seen a steady pick up in the level of sales, up nearly 6% at the full year having been up 4.8% at the half year. Of sales in 2010, 63% were in the UK and 37% internationally – which the group is now aiming to increase to 50%.
Operational streamlining and product development work, which is expected to bring substantial benefits in the year ahead with induction ranges and the new Rangemaster 100cm lines, have been highlighted as growth contributors.
“These factors taken together underpin the confidence of the board in both the resilience and the prospects for the group which is reflected in the
restoration of dividend payments,” said the firm.
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