1st May 2014 11:01
LONDON (Alliance News) - AGA Rangemaster Group PLC said Thursday revenues rose more than 4% in the second-half, buoyed by increased activity in the UK housing market in 2013 beginning to feed through to higher household expenditure, resulting in increased order intake momentum.
In a statement released ahead of the company's annual general meeting today, the firm said revenues rose by over 4% in the second-half and by 2.4% in the year as a whole and operating profits in the year rose to GBP8.2 million from GBP6.5 million in 2012.
Chairman, John Coleman said "2013 was a year in which the tide turned in our core markets. There was increased activity in the UK housing market where mortgage approvals rose sharply in the second half. This started to feed through slowly into increased UK household expenditure on cookers although the increase was still just 1%."
In the statement, which covers the period January 1 to April 30, 2014, the company said it saw revenues rise faster than in the second-half of last year with this momentum continuing in the order intake. The firm reports "encouraging trend lines" for AGA continue with orders for the new generation of Total Control and Dual Control AGA representing over 60% of AGA cooker orders.
Within its Rangemaster division, volumes and prices have begun to rise after being flat in 2013, said the company. Fired Earth's performance at the start of 2014 has been good. AGA Marvel in North America is also growing but trading in Ireland and France for all of AGA's brands has started slowly, it said.
"The lack of demand during the long market downturn meant we had to cut back and focus resources on products with well differentiated positions. The strong product mix we now have and the better trading environment will ensure we deliver good progress this year," said Coleman.
Shares in AGA Rangemaster were trading 2.30 % higher at 178 pence per share Thursday morning.
By Alice Attwood; [email protected]; @AliceAtAlliance
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