Aga and Rangemaster’s sales bounce back
Published: 27 August 2010
Cast-iron cookers drive £16.4m pre tax profit for the group after a slow start to the year.
The Aga brand rebounded in the first half of this year, with an increase in sales volumes, significantly boosted by existing Aga owners upgrading their models. A further 300 Aga owners also invested in upgrading their burner systems this year, said the company.
Aga Rangemaster Group is optimistic, stating that the current level of sales leads and retail footfall suggests a continuing improvement in the second half of the year.
Sales of the group's all-in-one cooker-boiler brands, Rayburn and Stanley, were down, as consumer enthusiasm for solid fuel and wood burning models fell away.
However, the Rangemaster brand also had a strong performance, with revenues up around 10% for the first half and the operational gearing of the company's Leamington Spa factory boosting profitability.
While cooker volumes in the UK were flat, Aga Rangemaster explained that selling prices were up, with a shift towards higher specification products.
25% of cooker sales were outside the UK, with France now comfortably ahead of Ireland as the primary export market for the company.
Revenue for the group was up 5% to £123.4m for the first half to June 30, with the UK accounting for 62% of sales. Profit before tax was £16.4m, with Aga Rangemaster's directors opting to introduce an interim dividend of 0.7p per share given the improved performance and "more stable markets".
Aga and Rangemaster's performance offset the revenue declines seen by Rayburn and Stanley, as well as kitchen tile brand Fired Earth, which continued to make a loss, despite an increase in smaller orders. The company explained it has taken steps to eliminate the losses, which are expected to be around £2m this year.