Aga looks to new range for strength

Aga Rangemaster, which makes and sells premium branded cookers and refrigerators, was announcing half year financial results that showed almost static revenue and pre-tax profits. Revenue from continuing operations was, in fact 1.9% up at £145.1 million (£142.4m last time) while pre-tax profits remained at £12.3 million. Chief executive William McGrath (pictured) said Aga Rangemaster had a strong family of consumer brands with a focus on the kitchen providing top class home economics. He went on: “Our performance in the first half proved resilient. Having made disposals, returned cash to shareholders and still with net cash, the business base is strong. Our products – including exciting new ones such as programmable gas Agas, wood burning stoves and induction hob range cookers - are well attuned to the needs of today's customers and we expect to emerge stronger and even better positioned following this current economic down cycle”. The company said that its financial strength provided the opportunity to make the most of its production capacity and routes to market. Current market conditions were creating short term constraints but did not detract from an expectation of growing volumes and margins. In the first half of the year the group had to face sustained higher input costs, notably for stainless steel but international sourcing strategies helped to mitigate these. However, higher input costs and energy prices were likely to restrict near term progress towards Aga’s drive towards a 12% return on sales. Efficiency gains through moves like the successful re-layout at the Rangemaster manufacturing facility and the wider use of robotics helped to offset the margin impact, the company said.