Aga delivers 2009 profit – but only just
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The cast iron cookers company Aga said today (12 March) that it had achieved its goal of generating revenue and delivering a profit in 2009 although it only just managed the latter.
In what it described as "an extremely tough year" the Aga Rangemaster Group generated revenues of £245 million (2008: £279m) and made a pre-tax profit of £0.5 million (£14.4m)
Chief executive William McGrath (pictured)said: "The generation of cash was the big achievement of 2009 and that remains the focus given the caution needed in the current market. Our lead indicators, however, are positive and after a slow order intake at the start of the year, the prospects are encouraging heading into the spring."
Aga said it had responded quickly and well to the downturn in the consumer markets caused by the recession which made 2009 a tough year. The board had prioritised remaining profitable and cash generative which had enabled it to secure unaltered the long-term financing arrangements organised in early 2008.
2009 had seen sharp falls in demand in the first half before levelling out and, in some areas, strengthening later in the year. These trends were reflected in first half sales down 18.8% and sales down 12.3% for the full year.
Looking to 2010, Aga said the 300 years of innovation it had highlighted last year put the company in good stead to deal with the current economic cycle. The warmth felt towards key brands led by Aga itself had come through strongly in the year - notably through the 300th anniversary of the first smelting of iron ore with coke at the AGA foundry which is where the industrial revolution began. It intended to continue to grow and create new markets for its range cookers and cooker/boilers. The board saw energy management in the home - seen in new government initiatives to boost renewable energy - as a major theme for the years ahead and believed that the product offering it has been developing over the last decade was particularly well attuned to future consumer requirements.
The company also intended to widen the position of range cookers in the UK and Ireland and to become a significant force in the North American cooker and refrigeration market under the Aga Marvel brand.
