Housing boom boost for Aga

Sales of electric ovens finished in Telford helped the company's operating profits rise by more than a quarter.

It says it is benefiting from a housing market than is buoyant again following a disastrous dip during the recession.

The news is a big boost to the 800 workers employed by Aga Rangemaster at its bases at Coalbrookdale and Ketley in Telford.

And it is the latest indication that Telford & Wrekin's economy is on the up.

It follows an announcement last week that Heinz intends to expand its factory in the town bringing 80 jobs to the town. Car parts firm Stadco also revealed this week that it is expanding with an additional jobs in Telford and Shrewsbury.

Full year results, released today, reveal operating profits that indicate the growth of a company increased last year by 26 per cent to £8.2 million, although pre-tax profits actually fell by £600,000 to £1.1 million because of one-off costs. Aga's company's revenue also increased by 2.4 per cent to £250.4 million during the year.

The company's performance is closely linked to people spending money on their homes.

It benefited from the sudden burst of forward momentum in the housing market in the second half of last year, both from orders for new houses and from people making improvements to existing homes.

There has been particular demand for Aga's range of electric range of cookers, which are made in Coalbrookdale and Ketley. Chief executive William McGrath said: "There was a sharp shift towards electric cooker models, which represented 70 per cent of sales in the year."

He said the Aga Dual Control has had an immediate impact, adding: "More than half of sales volumes in the second half were of Total Control and Dual Control electric models. These products are factory-finished at our sites in Coalbrookdale and Telford."