15th Jan 2015 08:54
LONDON (Alliance News) - AGA Rangemaster PLC shares rose on Thursday morning after the range cooker and kitchen products specialist posted a strong performance across its business, excepting some sluggishness in Europe, and said it expects a further improvement in 2015.
AGA shares were up 1.5% to 107.62 pence in early trade, as it reported a 4% rise in revenue for the year to December 31, boosted by a strong performance in the UK.
It AGA and Rangemaster ranges saw UK sales rise 10%, boosted by new products launches. The group said it expects further sales growth based on its sales-lead levels.
The group also said its Fired Earth tile retail arm saw sales rise 16% to more than GBP27 million. This month, AGA acquired a third of the 20% stake Fired Earth management held in the business for GBP1 million and is now considering its options for the future of the unit. It is also considering options for the loss-making Grange furniture business and has hired Rothschild to advise it.
The strong performance in the UK and the US was held back by weakness in Europe, where consumer sentiment remains cautious within an uncertain economic environment, the AGA said. Waterford Stanley and Grange were both hit by low demand.
In the US, its AGA Marvel refrigeration product line posted double digit revenue growth.
"We have seen continued growth from our core cooker brands AGA and Rangemaster. Fired Earth and AGA Marvel did very well. We remain focused on expanding our product offering and distribution network at home and overseas," said AGA Chief Executive William McGrath.
"Market conditions suggest 2015 will be a better year for the appliance segment, and we are working to configure the business best to take the opportunities that arise," McGrath added.
By Sam Unsted; [email protected]; @SamUAtAlliance
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