Aga enjoys ‘sound’ half year and ramps up Rangemaster production

Chief executive William McGrath (pictured) said the company enjoyed "a sound first half" as activity levels ticked up with the Rangemaster cooker range providing "considerable impetus". He went on: "The sustained and innovative work on our product offering and in supporting our brands, alongside the cost base reductions made, all mean we are well positioned for a recovery." In a trading update Aga said its performance was in line with expectations and had made steady progress with Rangemaster cooker sales providing a boost while consumer markets remained subdued given current economic conditions. The plan for 2010 remained to rebuild profitability and to generate cash as markets improved given continuing cost reduction programmes, strong operational gearing and a systematic investment in product development. Sales of AGA cast iron cookers were reported as being up in the first half and the current level of sales leads suggested that 2010 would prove better than 2009, even though sales of the all-in-one cooker and boiler Rayburn and Stanley models were appreciably lower. The company said that Rangemaster had another good half year. Sales through design centres, featuring the broader Rangemaster appliance offering, had performed well. Sales on the near continent had been particularly strong reflecting an established long run growth pattern. After a slow start, first half order intake for Rangemaster was up over 8% on 2009 and production is being increased from budgeted levels for the second half of the year. Closer integration of operations continued to bring benefits, notably between Aga and Rangemaster in the UK. In addition, in North America, a decision to make Aga's new state-of-the-art Greenville, Michigan site the production and distribution centre for hot, as well as cold products, will see the company's cooker production facility in Ontario close later this year. Home fashions lines overall improved but remained loss-making with Fired Earth revenues down while orders were up and for the Grange furniture business orders and revenues were ahead. Cookware lines from Aga and Divertimenti performed well.