Aga back on form as market recovers
A reinvigorated housing market is set to help Aga Rangemaster to another year of growth, after the company delivered an impressive return to form during 2013.
The West Midlands-based company, which finishes its electric Total Control and Dual Control models at factories in Telford and Coalbrookdale, saw revenue increase by 2.4% to £250.4 million during the year.
Pre-tax profit actually fell by £600,000 to £1.1 million, but operating profits, excluding exceptional one-off items, grew by 26% to £8.2 million.
Since the collapse of the housing market in 2007/8, Aga has been running at around 30% lower than at its peak performance, but in the second half of the year a strong improvement in mortgage approvals was immediately reflected in Aga's performance.
Sales volumes rose 10% in the full year, despite being 2% down after six months, while sales of electric models, including those made in Telford, now account for 70% of Aga's total output.
Chief executive William McGrath said: "There was a sharp shift towards electric cooker models which represented 70 per cent of sales in the year.
"The Aga Dual Control launched in June 2013 has had an immediate impact. Over half of sales volumes in the second half were of Total Control and Dual Control electric models."
He added: "The tide turning in the housing market proved pivotal and we will benefit as the number of house moves increase.
"As revenues start to grow, with capacity available and with new products and a widened targeted customer base, we are confident of good progress in the year."
Rangemaster has been widened out to become a whole kitchen brand, and the company's refrigeration lines achieved sales of more than £5 million.
