Aga keen on huge shake-up
Friday 6th July 2007, 11:00AM BST.
Kitchen equipment group Aga today unveiled plans for a major company restructure after reporting another healthy rise in sales.
The company, which has manufacturing and retail bases at Coalbrookdale and Ketley, in Telford, said it was considering separating its catering equipment business from its food service division, which supplies larger cooking and refrigeration equipment to the catering industry.
The review, which comes after the group’s unsuccessful attempt to merge with fellow kitchen equipment group Enodis last year, could prompt a sale of the food service division and allow Aga to concentrate on its main Aga and Rangemaster arm.
Chief executive William McGrath said: “We have leading edge products, a good geographical spread and considerable momentum within our food services businesses.
“We have now created pivotal market positions for these businesses and are looking to unlock value for shareholders.”
He added that a separation of the two operations would enable the group to “aggressively” grow its consumer business led by its iconic Aga ranges.
The company predicted pre-tax profits of £22 million for the six months to June 30, ahead of the £20 million banked last year.
Sales of its core cookers – Aga, Rangemaster and Stanley – were up seven per cent, boosted by strong exports to France and Ireland.
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