Aga Rangemaster profits up by 60%
Range cooker maker Aga Rangemaster reported better-than-expected operating profits of £2.4million, a 60 per cent increase for the first six months of this year, buoyed by growing sales of new products.
It now expects full year operating profits to be well ahead of 2013's £8.2m.
The group, which employs around 600 people at its two sites in Shropshire, between its foundry in Coalbrookdale and its factory in Ketley in Telford, said revenue was up 3.3 per cent to £123.5m with two-third coming from the UK.
It is on track to show strong profit before tax growth for the full year. The first half loss before tax fell to £300,000 compared to a £2.4m loss in the first half of 2013.
Aga said new products are performing well with more than 60 per cent of orders in the first six months from products launched in the last three years.
Rangemaster saw sales volumes up over 10 per cent in the UK in the first six months.
The firm last month launched the AGA City60, an electric oven on wheels priced at £4,995, which is designed for usage in town flats or in terraced houses.
Chief executive William McGrath, Chief Executive said: "We are happy with the progress achieved during the period, given our markets are improving but remain varied. We now have the market wind behind us and the product and distribution in place to benefit. The AGA City60, in particular, can grab the attention of new urban consumers and is an important ingredient to our growth plans."
Fired Earth and AGA Marvel in North America are performing strongly while Waterford Stanley in Ireland and Grange in North America continue to experience challenging trading conditions.
Aga is to launch a new 'Urban Regeneration' ad to drive sales of the AGA City 60 with the factory launch is in the first week of September.
The group is addressing the continued fall off in sales of oil and solid fuel cast iron cookers under the Rayburn and Stanley brand names.
It has introduced updated products and will be providing these with AGA Rayburn badges in the UK and AGA Stanley in Ireland.
This autumn should also see Aga'sfirst sales to consumers in China after over two years effort to obtain the required accreditations in a category previously not known in the Chinese market. Vatti has placed its first order to buy products for its dealer structure and a sales team based in Hong Kong is orchestrating the launch programme.
A new agent in Germany is also making good progress in introducing range cooking to a market which has been traditionally completely dominated by built-in cookers.
