Revenues up 4% for AGA as it looks to realise value for shareholders
RANGE cooker and kitchen lifestyle brand, AGA Rangemaster has announced a 4% increase in full-year revenues compared to the previous year.
The Midlands-based company said order intake was also higher, notably in the UK, while operating profits and the net cash balance at the year-end were also above those for 2013.
It said its focus now would be on the expansion of its core cooker and refrigeration brands in the UK and international markets.
The performance and prospects of Fired Earth are now encouraging, it said. This month has seen the company use a pre-existing arrangement, dating from 2011, to acquire one-third of the management’s 20% shareholding in Fired Earth for a net £1m. It said it was now looking at when it was best to realise value from Fired Earth for shareholders.
The group is also examining options for its loss making furniture operation, Grange.
The core UK cooker brands, AGA and Rangemaster saw orders grow in the UK by around 10%, boosted by new product introductions such as the AGA City60 and Rangemaster 60.
It said it was now looking for further improved sales momentum and lead levels indicated that this would come through.
In North America, AGA Marvel, with its new generation of refrigeration products, saw double digit revenue growth for the second year running.
Fired Earth was said to have strengthened its position as the UK’s premier tile retailer and had a good year with sales up 16% to over £27m. Online sales – as for AGA Cookshop online – were also said to have grown strongly.
However, progress has been tempered by trading in Europe, where the company said customers remained cautious in their spending because of economic conditions. Waterford Stanley, the Irish stoves led business, and Grange, the French-based furniture operation, have been particularly affected by low demand.
William McGrath, Chief Executive, said: “We have seen continued growth from our core cooker brands AGA and Rangemaster.
“Fired Earth and AGA Marvel did very well. We remain focused on expanding our product offering and distribution network at home and overseas. Market conditions suggest 2015 will be a better year for the appliance segment and we are working to configure the business best to take the opportunities that arise.”
