AGA sees improving trend but US markets still tough

ICONIC cooker manufacturer AGA Rangemaster has seen a pick up in sales during the autumn, helping to boost the firm’s claims that it will report results in line with expectations.

The company, whose administrative base is in Solihull and which has a manufacturing facility in Shropshire, has experienced a few ups and downs in recent weeks. A situation reflected by its share price .

However, in an interim management statement today (Friday) – for the period from July 1 to date – the company said: “We have seen the seasonal pick up in activity during the key autumn sales period and expect to report results in line with the board’s expectations through to the end of 2010.

“This makes 2010 a year of revenue recovery and a beneficiary of cost cutting, tight cash management and product development.”

Rangemaster is a successful growing brand and is set to be the principal contributor to the group’s performance in 2010, attributable to cooker volumes up over 5%; growth in exports to 25% of cooker sales’ volumes; and the addition of products that complement the cooker.

These products account for 30 pence in addition to every £1 of revenue in the UK from sales of Rangemaster cookers. Growing sales of induction cookers, the introduction of a new slimmer model and the success of its Rangemaster Design Centres across the country have also been factors in the improving performance.

AGA has seen volumes increase by 5% this year and the firms said the level of new leads continued to improve with customers attracted to the brand.

However, group’s Rayburn and Stanley brands have seen volumes decline further, although AGA said it expected this trend to be reversed next year as a new range of cooker boilers was released.

In Ireland, the firm said it expected record sales of stoves this year despite the economic conditions in the country.

However, the picture is not so rosy in North America where sales have this autumn after a better first half, reflecting the extremely low levels of housing transactions.

Fired Earth’s volumes are marginally ahead year-on-year but it is still
operating at a loss, the group said.

William McGrath, AGA chief executive, said: “We are encouraged by the performance of our brands – Rangemaster is having another successful year and we are pleased to see AGA volumes increasing. We continue to strengthen our range cooker portfolio and the product pipeline is excellent. Yet tough housing market conditions dictate caution.

“Recent research we commissioned shows range cookers are on trend and aspirational. As we are focused on range cookers and kitchen living these trend lines provide confidence in our prospects.”