5% fall in Aga order bookings

Aug 30 2008 by Iain Laing, The Journal

UPMARKET cooker firm Aga Rangemaster has said its order intake dipped 5% this summer amid challenging consumer markets.

This followed flat sales for its premium Aga and Rayburn ranges in the first half of the year. Volumes for its more accessible Rangemaster product were also steady, but revenues rose 5% in the period thanks to higher prices.

Overall, pre-tax profits were flat at £12.3m, with chief executive William McGrath describing the performance as resilient. He added: “We recognise that consumer markets are likely to remain challenging.”

In Ireland, where the group’s market this year has been described as very weak, Aga’s performance was markedly worse with sharp falls for its oil-fired Stanley cast-iron range, and a 20% decrease in Rangemaster sales.

Solihull-based Aga said it has also seen a shift to electric-powered cookers from the more traditional oil-fired versions, thanks to the relentless rise in fuel prices during the first half. Electric-powered Agas accounted for more than half the total for the first time, it said.

Mr McGrath said: “Our products ... are well attuned to the needs of today’s customers and we expect to emerge stronger and even better positioned following this current economic down cycle.”

Sales of big-ticket items such as cookers, washing machines and fridge freezers are seen as most at threat from a property slump as fewer home sales reduces demand.