Cooker maker AGA Rangemaster said a strong performance in May was followed by a quiet June, as the group continues to experience tough trading conditions, particularly in Ireland.
In the first half of 2012 overall revenues and operating profits, excluding property profits, were slightly lower than in the corresponding period of last year. Despite this, the group continues to expect to achieve revenue and profit growth for the full year as its product and cost initiatives work through.
AGA cast iron cooker sales grew 4% year-on-year in the first half, which management put down to the introduction of its "Total Control" offering; international displays of Total Control are expected to start generating sales in the second half of the year.
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Sales in Ireland fell off again in the first half, while the Rangemaster cooker range in the UK saw volumes ease off a tad, although exports to continental Europe continued to grow.
Sink sales volumes - which link to housing completions - were up. The Fired Earth division saw sales up over 6% year-on-year with better performance across its product categories as its turnaround continues.
The North American operation, AGA Marvel, saw new ranges of refrigeration products being established in the market, and these sales are so far replacing sales to one major customer. Grange home furnishings had a further difficult
time in North America and revenue and cost initiatives continue to be focused on returning the overall Grange operation to profitability.
"International sales growth remains a central objective. This will become clearer in a year in which we expect further progress," said William McGrath, Chief Executive of the company.
After payments made as part of the German litigation settlement announced in March, increased Pension Scheme funding payments, the funding of international expansion and the usual seasonal working capital movements, net cash balances at the half year were around £12m.
"We have tremendous brands led by our re-energised AGA ranges and key product lines are starting to gain momentum," claimed McGrath.
JH
