Trading Update
July 08 2011 - 1:00AM
UK Regulatory
TIDMAGA
8th July 2011
FOR IMMEDIATE RELEASE
AGA RANGEMASTER GROUP PLC ("the Group")
TRADING UPDATE
Profit growth achieved and AGA Total Control launch well received
AGA Rangemaster Group plc, the range cooker and kitchen living specialist,
today provides a trading update ahead of its interim results for the six months
ended 30th June 2011 to be announced on 26th August 2011.
The Group has had a solid first half to the year. Good operating profit
progress was made even though housing-related consumer expenditure remained
subdued. Revenues were slightly lower but margins improved, particularly in
parts of the Group that had been weaker performers. Net cash balances have
increased year-on-year.
Rangemaster cooker volumes were, overall, slightly down because of the
relatively quiet UK market. Exports continued to achieve new record levels on
the continent.
The Group is now seeing the benefit of decisive management action taken at
Fired Earth. The run rate of losses has fallen sharply. A clear plan with a
strong incentive structure is in place to improve performance over the next
three years. For AGA Marvel in North America demand remains subdued and the
onus remains on programmes to widen the customer base using, in particular, a
new range of premium undercounter refrigerators. Profitability has improved
following the rationalisation of Heartland cooker production and the cold lines
of Marvel into the one Greenville, Michigan production, distribution and
service support facility.
The major development for the Group in the first half of the year was the UK
launch of AGA Total Control which was very well received. It will be launched
this autumn in international markets.
The flexibility of the AGA Total Control - "On when you need it; off when you
don't" - is attracting new customers to the radiant heat cooking of cast iron
ovens and the sales to owners trading up continues to rise. AGA Total Control
will bring renewed sales momentum for AGA in the second half of the year and is
central to our strategy to grow cast iron cooker sales substantially.
Cash flows remain carefully managed and working capital ratios are now in line
with long run objectives. At 30th June 2011 net cash was in excess of the GBP22.4
million balance of a year ago.
William McGrath, Chief Executive commented: "In the current market we are
pleased with our performance, strong cash balance and market leading positions.
Looking forward we are excited about the growth opportunities for our new
products led by AGA Total Control which epitomises our plans for the future."
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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