11 May 2011 07:30
FOR IMMEDIATE RELEASE
11th May 2011
FIRED EARTH DEVELOPMENT STRATEGY LINKED TO MANAGEMENT INCENTIVISATION STRUCTURE
AGA Rangemaster Group plc ("the Group") announces new plans for its Fired Earth operation. Agreement has been reached with the management team of Fired Earth for it to acquire up to 28% of the equity of Fired Earth. The team will work to implement an agreed 3 year development plan aimed at delivering a marked improvement in profitability and increasing cash generation through new product initiatives and widening the targeted customer base.
Fired Earth made a trading loss of over £2 million in 2010 on revenues of almost £22 million.
The management team is headed by Andrew Manders as Managing Director who joined Fired Earth in August 2010 on an interim basis to undertake a strategic review and develop a new business plan. Andrew has a financial and private equity background and has specialised in retail operations since 2002. He worked in the transaction team of KPMG before setting up his own consultancy and private equity fund. He has worked most notably on the Iceland Foods buy out from the Big Food Group, Jones Bootmaker, Mountain Warehouse and Aspinal of London. Andrew is supported by Rob Whitaker, who has worked for Fired Earth for over ten years, and Charlie Smallbone, an early stage investor in Fired Earth in 1986 and formerly Chief Executive of Smallbone PLC, which included the stone specialist, Paris Ceramics. Charlie will continue to work for the Group on kitchen initiatives outside the UK. The incentive plan will include other senior managers.
Fired Earth's business plan is to develop further the tile operations which provide over half of the turnover, adding to the successful tile basics ranges launched last spring. Fired Earth will continue to invest in its retail portfolio and its bathroom and kitchen ranges, sold primarily in joint stores with AGA, while continuing to provide comprehensive packages to consumers on the Group's database of over 1.3m households and to new consumers alike.
William McGrath, Chief Executive, commented:
"Fired Earth is a renowned brand with great potential. The energetic team, the clear improvement plan and timetable and the continuing Group support can now combine to see that potential realised."
Enquiries:
William McGrath, Chief Executive, AGA Rangemaster Group plc - 01926 455731 Simon Sporborg/Charlotte Kenyon, Brunswick Group - 020 7404 5959
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