Strengthening housing market boosts AGA ahead of new product launch

A STRENGTHENING UK housing market has helped to boost the first half performance of Midlands-based boiler and cooker manufacturer AGA Rangemaster.

The company said the housing market had been a “positive factor” on its trading and was illustrated by increases in spending on cookers.

It said it anticipated good progress for the full year although warned that while orders had continued to improve, markets nevertheless remained variable. It said May had been quiet but the company had bounced back strongly in June, although the business continued to be impacted by the strength of sterling.

AGA said order intake year-to-date was up around 6% and sales were up close to 4% – the rate of increase in the second half of 2013. Fired Earth and AGA Marvel in North America saw order intake increases of over 10%. AGA and Rangemaster orders were up by over 6%. However, Waterford Stanley and Grange were significantly down.

The trading update came ahead of the launch today of the company’s new AGA City60, a key product which the company hopes will open new market niches.

The AGA City60, launched before an invited audience at the company’s new AGA shop in Spital Square, Bishopsgate, is designed for City living and the company hopes it will enable customers to see beyond its country cottage image as it targets different areas of the housing market, including apartments and terraced houses.

The AGA City60 is electric and has programmable roasting and simmering ovens; a boiling-come-simmering plate and it is factory-finished with wheels for easy installation. It is also room vented. The oven, priced at £4,995, is set for national roll out in September 2014.

The group said the launch was part of its investment in new products and marketing this year to support its growth plan.

Following the AGA City60 and Dual Control gas will be the Rangemaster 60 – all of which the company hopes will broaden its market appeal.

William McGrath, AGA’s chief executive, said: “We are making good progress with our strategic and operational plans for our improving cooker markets. The AGA City60 is a breakout product reaching a wider customer base and we are focused on taking the opportunities that provides.”