12th Jan 2005 07:19
AGA Foodservice Group PLC12 January 2005 12th January 2005 FOR IMMEDIATE RELEASE AGA FOODSERVICE GROUP PLC PRE-CLOSE TRADING UPDATE In accordance with market practice, Aga Foodservice Group plc (Aga) is issuing apre-close trading update ahead of its preliminary results for the year ended31st December 2004 which will be announced on Friday 18th March 2005. Aga had a good finish to 2004 and expects to report results for the year in linewith market expectations. UK & European Consumer The Group's European consumer operations, headed by Aga-Rayburn and Rangemaster,achieved record results. Lead indicators remained positive through to the end ofthe year. Aga-Rayburn benefited from the continuing new product programmes -most notably the 3-oven and electric ranges - and from international growth.Sales of Aga branded cookers, including the new US model Aga Legacy produced byRangemaster, increased to 11,500. Cookware sales, boosted by a strong Christmasperiod, were up over 15% in 2004. Rangemaster saw cooker volumes up over 15% andstrengthened further its UK leadership in the range cooker market - notably the90cm 2-oven and grill segment, a format created by Rangemaster two years ago.Rangemaster invested in overseas expansion and added over 500 displays outsidethe UK in 2004 which will boost 2005 sales. US Consumer The US Consumer operations improved in the second half and progress has beenmade, in particular, at Domain. Domain's home furnishings business saw volumeand margin improvements. In the last quarter written like-for-like sales were 6%up. Full year like-for-like delivered sales were level and sales from all stores- including stores opened during 2003 - were up 15%. Domain is also now Aga'ssecond largest US distributor. Marvel, the refrigeration business, performedwell and has also started to sell fridges in the UK through Rangemaster. UK and European Foodservice The European foodservice businesses saw steadily improving order levels feedinginto better results. Order intake indicates good prospects, particularly inrefrigeration. The Infinity Fryer, the key focus for future growth in primecooking, is currently undergoing field trials with two major internationalgroups and within the UK has been specified by a number of major chains. Itstechnical superiority, cost efficiency and environmental benefits make it anexciting prospect for 2005 and beyond. The bakery businesses have progressed well and have been brought together underthe 'Aga Bakery' brand. The Aga Bakery team manages French, UK and Italianmanufacturing businesses. This helps simplify the offer for customers and toraise manufacturing efficiencies. US Foodservice The North American foodservice operations were patchy. While the bakeryperformance was good, refrigeration finished well down on the prior year inspite of an upturn in orders at the end of the year. The Group's strong record in working capital management continued and net cashat the end of 2004 was in excess of £20 million. 2005 and Beyond Moving into 2005, the Group's priorities are: • Maintaining the strong performance in the UK, despite the uncertain market outlook and growing sales of Aga consumer products internationally. The objective is to capitalise on the marked increase in recent months of the number of displays and to introduce new Aga-fascia shops on both the Continent and in North America. The new La Cornue branded range cookers made in the UK by Rangemaster will be launched in March 2005. • The development of Aga Bakery in North America and Europe using the Group's unequalled product range and technical strength supporting consumer interest in quality artisan breads. • The Infinity Fryer winning market share both in the Group's traditional markets and in the Quick Service Restaurant market. • A move to a geared balance sheet through a combination of share buy backs and bolt on acquisitions. With the major businesses performing well and investments proving their worth,prospects are sound for 2005. A site visit for analysts to the Group's Rangemaster operation will take placetomorrow. A copy of the presentation to be made during the course of that visitwill be made available on the Company's website www.agafoodservice.com fromThursday 13th January 2005. (-ENDS-) Enquiries: William McGrath, Chief Executive, Aga Foodservice Group plc 0121 711 6015 Jonathan Glass, Brunswick Group 020 7404 5959 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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