16th Jan 2006 07:01
AGA Foodservice Group PLC16 January 2006 16th January 2006FOR IMMEDIATE RELEASE AGA FOODSERVICE GROUP PLC ("The Group") - PRE-CLOSE TRADING UPDATE In line with market practice, Aga Foodservice Group, which sells premium cookersand refrigerators into the domestic and commercial markets, is issuing itsregular pre-close trading update, ahead of its preliminary results for the yearended 31st December 2005 which will be announced on 17th March 2006. Overview The strong trading performance of the first half was followed by furtherprogress in the second half, and the Group expects to report results for thefull year in line with market expectations. Consumer The new product-led internationalisation strategies for Aga and Rangemaster haveworked well providing solid platforms for sales growth moving into 2006. Thestrongest performing product areas were electric Aga ranges, Rangemaster's 90cmcookers and cookware, but Fired Earth experienced more challenging tradingconditions. In the important Irish market the Group had an excellent year withthe position being strengthened by the acquisition of Waterford Stanley. In the US, the consumer cooker and refrigeration businesses performed well.Domain has established itself as a major Aga dealer and continues to operate ina tough home fashions market. Foodservice The European commercial operations had a good year. Aga Bakery in the UK and onthe continent saw encouraging sales and order growth and expansion into newmarkets in Eastern Europe. In refrigeration, recent sales momentum wassustained. Prime cooking was boosted by the five-year HM Prison contract awardedin December which is worth over £5 million in the first year. In the US, Aga Bakery again performed well with Belshaw seeing increased demandfor its new 'Thermoglaze' doughnut making equipment. Margins at therefrigeration operation, Victory, remained weak and moving the businessincreasingly towards higher margin areas, including steamers and fryers , is apriority. Financial and Strategic Position Optimism for 2006 is based on sales and marketing driving revenues from the saleof available products through established routes to market and on a strongfinancial position. -ENDS- Enquiries: William McGrath, Chief Executive, Aga Foodservice Group plc - 0121 711 6015 Simon Sporborg/Nina Coad, Brunswick Group - 020 7404 5959 Meetings with analysts are planned for Tuesday 17th January and a copy of thepresentation to be used will be available at www.agafoodservice.com. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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