Sales on slower burn at Aga

The company reiterated that having delivered what it described as a resilient performance in the first half of 2008 when pre-tax profit was £12.3 million on turnover of £145 million, trading conditions deteriorated. Operating profits in the second half of 2008 were appreciably below those achieved in the first half, it said. Rangemaster cooker sales in 2008 of approximately 68,000 units were down from 76,000 in 2007 as markets weakened and dealers destocked. Aga said it had already taken decisive action to cut costs to address volume decreases with factories operating for shorter time periods and discretionary expenditure being cut. Headcount is now 12% lower than at the start of 2008 and previously announced plans to save annual costs of over £6 million, had all been implemented. The Group said its focus in 2009 would be to continue to make the most of the considerable investment it had already made in product development, routes to market and production efficiencies. Chief executive William McGrath (pictured) said: “We have acted decisively in response to the changing market conditions. Our sound finances, strong UK manufacturing and customer bases, together with export opportunities assisted by recent currency movements, all give us confidence that we will emerge from the current challenging trading environment with strengthened market positions.”