Aga boosted by Rangemaster sales
Kitchen equipment group Aga Foodservice today posted a 5% rise in half-year profits boosted by strong sales of its Rangemaster cookers.
The UK-based company, which makes the renowned traditional cast iron Aga stoves, said pre-tax profits for the six months to June 30 rose to £22m (€32.5m), up from £21m (€31m) last year.
The group added talks regarding the sale of its foodservice business, announced in July, were well underway, adding it had received “considerable interest” in the operations.
Rangemaster saw sales leap by 10% to 36,000 units in the six-month period, thanks in part to expansion in international markets.
Some 22% of sales were overseas, with a particularly good performance from its French business, which the group said had “excellent” opportunities.
Its traditional cast iron Aga and Rayburn cookers enjoyed a 7% sales lift to 9,700, buoyed by a continued increase in electric model sales.
The sales surge helped Aga offset steep rises in raw material costs, notably an extra £1m (€1.5m) from stainless steel price hikes.
The group said its Stanley and Rayburn products benefited from a renewed interest in carbon neutral wood burning models, while its homewares division Fired Earth and Grange furniture operations both made "encouraging" progress.
In the US, refrigeration division Marvel performed well despite a softening of the premium appliance market.
Aga sold its loss-making US home fashions business Domain in June.
The group announced in July it was considering a sale of the foodservice operations following its unsuccessful attempt to merge with fellow kitchen equipment group Enodis last year.
It has said a separation of its two main operations would enable the group to “aggressively” grow its consumer business led by its iconic Aga ranges.
Aga posted half-year revenues of £131.5m (€194m) for its US and European foodservice division, which makes kitchen equipment for catering businesses, up 11% thanks in part to a boost from the HM Prison refurbishment programme.
It also benefited from increased sales to UK pub chains, although the US saw a stronger performance, particularly through its doughnut lines.
The company said it was on track to meet full year expectations, with the market forecasting profits of around £49.5m (€73m).
Panmure Gordon analyst Oliver Wynne-James said: “We note a weaker than expected result in its European foodservice business (it is up for sale) and some pressure at Fired Earth and Grange.
“By product line, Rangemaster and Electric Aga sales stand out, but there is less joy for traditional Agas.”
