Member Article

AGA look overseas to bolster sales

Profit has fallen by over 60% for luxury kitchen appliances group in the first half of 2012 as a result of a drop in demand.

AGA rangemaster pre-tax profits of £1.6m in comparison with £4.2m were also affected by lack of activity in the property market in the first 6 months up to 30th June.

Weak UK markets have caused the company to look overseas to bolster sales by focussing on China and the U.S.

Revenues also fell by £2.2m from £121.4m in 2011, down to £119.2m in the first half of this year, while early trading on Friday morning saw shares fall by 9% after AGA announced their earnings so far for the year.

William McGrath, CEO of AGA Rangemaster said: “The continued challenges in the economy and lack of activity in the property market have clearly had an impact on demand in the first half as customers delay purchasing big ticket items.

“However, our investment in innovation, efficiency drive and great product offer ensures that we are well placed to respond when the market recovers.

“Our recent collaboration with the Chinese group Vatti demonstrates the opportunities ahead to enter into new markets.”

Volume sales for classic AGA products were up 4%, while sales for Rangemaster fell by 1%.

The cooking appliance expert decided not to pay an interim dividend as the firm hope to provide “medium-term clarity and stability”.

This was posted in Bdaily's Members' News section by Miranda Dobson .