Aga looks to processes to counter weak demand

However, the group managed to follow up a profitable second half to 2009 with an improved and profitable first half of 2010 as markets bounced back after a slow start. Sales were up by nearly 5% with growth at Aga and Rangemaster partly offset declines in sales of the Rayburn, Stanley and Fired Earth brands. The company said its current level of sales leads suggesed that the improving trends should continue into the second half even though the level of housing mortgage approvals - a key sales indicator - suggested the market was now flat year-on-year. Revenue in the first half was £123.4 million up from £117.8 million in the first half of 2009 with pre- taxprofit of £16.4m compared with a £2.4 million loss in the first half of 2009. The UK provided 62% of sales, Europe 23% with 15% in North America and the Rest of the World. Aga Rangemaster said it had responded "swiftly and firmly" to the recession, streamlining its management structures in the UK and in North America and was aiming to have a single set of processes across the Group which would strengthen the capacity of the business to deal with weak consumer demand. Chief executive William McGrath (pictured) said: "2010 is proving encouraging with Rangemaster driving improved profit performance even though consumers remain cautious. Rangemaster's export growth, product innovation and the breadth of its range of appliances are providing a stimulus and we look to it, alongside Aga, to trigger the operational gearing we have in place and we expect this to drive longer term earnings momentum."