No respite from weak consumer markets – AGA
LEAMINGTON Spa cooker and boiler manufacturer AGA Rangemaster says its order book is picking up after a slow start to the year because of weak consumer markets.
In an interim management statement to the London Stock Exchange ahead of today’s AGM, the firm said it has a number of cost cutting measures in place.
Chairman John Coleman said: “The strength of our product offering and the efficiencies of our operations increased further in 2012, but there was little respite to the long running weakness of the consumer markets in which we operate.
“We are, therefore, pleased that we were able to increase profitability once again even though overall revenues fell slightly.
“So far this year, the modest overall turnover declines of 2012 have continued.
“We do not take the slow start to the year as indicative of the full year ahead as lead indicators and order intake levels, now level with last year, have become more encouraging.
“In 2013, we expect increased appliance sales as homeowners move and look to remodel assisted by the Government’s encouragement of greater availability of mortgages. This trend is already solidly established in North America where AGA Marvel orders have risen appreciably.
“For 2013 we have cost reduction measures already underway, most notably seen in further rationalisation programmes involving Waterford Stanley in Ireland and Grange in North America.
“We are at the same time determined to allocate resources to maximise the benefits from the product innovations of recent years such as AGA Total Control, thereby allowing us to establish positions in faster-growing markets where we can make use of the operational gearing available within the business.”
AGA expects sales to be up this year, particularly in international markets and a return to profit at Fired Earth.
It also expects newly established commercial links, like that with gas burner company Vatti in China to add to the pace of improvement.
AGA has also announced the appointment of Rebecca Worthington as an independent non-executive director. She will take up her role on the board with effect from July 1.
She is the founder and chief executive of Lodestone Capital Partners, a newly formed business which manages and invests in real estate assets and debt, which she founded. Prior to this, she was finance director of Quintain Estates & Development.
