Fired Earth Development Strategy
May 11 2011 - 1:30AM
UK Regulatory
TIDMAGA
FOR IMMEDIATE RELEASE
11th May 2011
FIRED EARTH DEVELOPMENT STRATEGY
LINKED TO MANAGEMENT INCENTIVISATION STRUCTURE
AGA Rangemaster Group plc ("the Group") announces new plans for its Fired Earth
operation. Agreement has been reached with the management team of Fired Earth
for it to acquire up to 28% of the equity of Fired Earth. The team will work to
implement an agreed 3 year development plan aimed at delivering a marked
improvement in profitability and increasing cash generation through new product
initiatives and widening the targeted customer base.
Fired Earth made a trading loss of over GBP2 million in 2010 on revenues of
almost GBP22 million.
The management team is headed by Andrew Manders as Managing Director who joined
Fired Earth in August 2010 on an interim basis to undertake a strategic review
and develop a new business plan. Andrew has a financial and private equity
background and has specialised in retail operations since 2002. He worked in
the transaction team of KPMG before setting up his own consultancy and private
equity fund. He has worked most notably on the Iceland Foods buy out from the
Big Food Group, Jones Bootmaker, Mountain Warehouse and Aspinal of London.
Andrew is supported by Rob Whitaker, who has worked for Fired Earth for over
ten years, and Charlie Smallbone, an early stage investor in Fired Earth in
1986 and formerly Chief Executive of Smallbone PLC, which included the stone
specialist, Paris Ceramics. Charlie will continue to work for the Group on
kitchen initiatives outside the UK. The incentive plan will include other
senior managers.
Fired Earth's business plan is to develop further the tile operations which
provide over half of the turnover, adding to the successful tile basics ranges
launched last spring. Fired Earth will continue to invest in its retail
portfolio and its bathroom and kitchen ranges, sold primarily in joint stores
with AGA, while continuing to provide comprehensive packages to consumers on
the Group's database of over 1.3m households and to new consumers alike.
William McGrath, Chief Executive, commented:
"Fired Earth is a renowned brand with great potential. The energetic team, the
clear improvement plan and timetable and the continuing Group support can now
combine to see that potential realised."
Enquiries:
William McGrath, Chief Executive, AGA Rangemaster Group plc - 01926 455731
Simon Sporborg/Charlotte Kenyon, Brunswick Group - 020 7404 5959
END
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