Aga bids to boost sales

Upmarket oven firm Aga Foodservice today outlined plans to boost sales of its iconic ovens and cut costs after reporting flat profits growth last year.

The firm, which makes and assembles its trademark Aga and Rayburn ovens at plants in Coalbrookdale and Ketley, reported pre-tax profits of £27.6 million, up 0.4 per cent on 2006.

But it said it would look to trim costs by £3 million and launch a marketing push as it targets a return on sales "closer to 12 per cent".

The figure in 2007 was 10.6 per cent.

It said jobs were not set to be affected by the cost cuts, with savings largely expected through changes to product specification and manufacturing.

Aga also announced it was changing its name to Aga Rangemaster after the sale of its Foodservice arm for £265 million last year.

The group posted a seven per cent rise in sales of its Rangemaster oven to 76,000, but said sales of its Aga, Rayburn and Stanley ranges finished the year down two per cent at 19,600 after a slower second half.

Chief executive William McGrath said: "We have produced a sound performance in 2007 as well as delivering on a number of strategic initiatives.

"In particular the timely sale of Foodservice, the proposed return of £140 million of cash to shareholders and the appointment of John Coleman to be chairman."