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7th July 2006
FOR IMMEDIATE RELEASE
AGA FOODSERVICE GROUP PLC – PRE-CLOSE TRADING UPDATE
In line with established market practice, Aga Foodservice Group is issuing its regular trading update prior to its interim results for the half year ended 30th June 2006 which will be announced on Friday, 8th September 2006.
Overview
The Group again performed well in the first half of the year. Our European consumer operations moved forward and both Aga and Rangemaster continued to perform soundly. Investment in new energy efficient equipment is becoming more central to the thinking of major foodservice customers given significant rises in energy costs and this is bringing new foodservice business to us. Overall, the first half of 2006 will be in line with market expectations – ahead of 2005 when operating profits were £16.9 million and pre tax profits were £18 million.
Consumer
The excellent range of high end branded cookers supported further progress in the UK, driven mainly by the electric Aga and the 90cm products from Rangemaster. Internationally, the most impressive performances were achieved in the strong Irish and growing French markets. Cooker exports grew 40% and now account for one-third of Aga branded cookers and over 15% for Rangemaster.
During the period, UK retail operations have performed satisfactorily. Fired Earth categories of tiles, paint and kitchen furniture are ahead on a LFL basis. Overall, Fired Earth sales were slightly down as we transitioned out of rug and fabric categories to introduce our own Grange made kitchen furniture.
In the USA, Marvel, the maker of under-counter refrigerators, had a very good first half in buoyant markets. Aga Home now encompasses the Group owned retail operations of Domain and Grange in the USA. Aga cooker sales were well ahead but home furnishings remain weak.
Foodservice
Aga Bakery showed good progress. As one of the global market leaders in in-store bakery equipment and with a formidable product range, we are steadily winning major new accounts. The UK market was particularly good as were Central European markets, compensating for the flat French market. In the USA, our doughnut equipment operation was again strong. We have integrated our US bakery operations as Aga Bakery and rationalised our range of roll lines to sharpen the focus on products that are sourced from Europe.
Our refrigeration operations had another good period. Our Chinese and Australian activities were particularly strong. In the USA, the overall foodservice market is growing by around 5% and our performance has improved. In prime cooking in the UK we have a sound base to which we have added the Infinity fryer from Falcon and combi oven ranges from Eloma, the German oven manufacturer acquired in February this year. These products strengthen our position in a sector now focusing more attention on the need to cut costs by raising efficiency levels.
Second Half Initiatives
In the second half of the year the onus is on sales initiatives to capitalise further on the products and routes to market we have developed. We expect to add new international customers for our bakery operations and to see added impetus for our fryer and combi oven activities. The flexibility of the electric Aga combined with new multi-fuel models and our well established retail outlets in the UK and across Europe make our consumer operations better placed than ever moving into the second half of the year.
[-ENDS-]
Enquiries:
William McGrath, Chief Executive, Aga Foodservice Group plc - 0121 711 6015
Simon Sporborg/Nina Coad, Brunswick Group - 020 7404 5959
Analysts' meeting presentation
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Notes to Editors:
Aga Foodservice Group is a producer of premium range cookers and refrigerators for the domestic, commercial and bakery markets. The Group has major consumer brands led by Aga, Rangemaster and Marvel. In our commercial markets the onus is on energy efficiency and quality food. The Group has established market positions in both Europe and North America.
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