14th Jan 2008 07:00
14th January 2008FOR IMMEDIATE RELEASE AGA FOODSERVICE GROUP PLC ("AGA") PRE-CLOSE TRADING UPDATE
Aga which sells premium cookers, refrigerators and cookware is issuing its regular pre-close trading update ahead of its preliminary results for the year ended 31st December 2007 which will be announced on 14th March 2008.
In 2007 the Group delivered on its stated strategy of focusing on its consumer brands through the sale of its foodservice operations for ‚£260 million which will result in another significant return of cash to shareholders. Details of the return will be announced with the preliminary results on 14th March 2008. Trading performance in 2007 was satisfactory. Profit before tax of the continuing businesses is estimated at over ‚£26 million.
For the Aga, Rayburn and Stanley cast iron cooker lines while leads remained good, sales fell just short of the 20,000 achieved in 2006 as conversion into sales slowed towards the end of the year. Our cookware businesses performed well throughout the year.
Our Rangemaster business had another excellent, record year in 2007 - achieving revenue growth of close to 10% and cooker unit sales in excess of 75,000. Expansion outside the UK, where over 20% of cookers are now sold, notably in France and Ireland, is a central feature of the progress being achieved. We continue to focus on improving returns at Fired Earth and Grange with useful progress being made in the second half.
The cyclically slow consumer markets in the USA held back our under-counter refrigeration operation, Marvel, after a particularly strong 2006. The new generation of electronically controlled products now available will provide renewed impetus for 2008.
Current order books and leads at our major businesses are comparable to last year.
William McGrath, Chief Executive: "In 2007 we delivered on our plans to create a single focus for the Group. 2008 is likely to prove a demanding year for consumer businesses but we have excellent prospects as we seek to generate the returns from our premium brands and the recent investments we have made in product, manufacturing and routes to market."
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Enquiries:
William McGrath, Chief Executive, Aga Foodservice Group plc - 0121 711 6015
Simon Sporborg/Charlotte Kenyon, Brunswick Group - 020 7404 5959
Note:
A presentation to be used in discussions with analysts today will be available to download at www.agafoodservice.com during the course of the day.
AGA FOODSERVICE GROUP PLCRelated Shares:
AGA.L