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9 May 2008 07:00
9th May 2008FOR IMMEDIATE RELEASE AGA FOODSERVICE GROUP PLC INTERIM MANAGEMENT STATEMENT
Aga Foodservice Group plc is holding its Annual General Meeting at midday today at which the following statement relating to the period since 1st January 2008 will be made by Vic Cocker who retires as chairman following the meeting.
"Trading is mixed and sector data indicates the value of cooker sales has fallen this year in most international markets. Rangemaster's good orders growth has continued and orders are up over 5% so far this year. After a bright start our cast iron cooker sales are expected to be flat in the UK in the first half and down in Ireland where the market is very weak. Trading at Fired Earth has improved and orders are now up this year by over 10%. Post the sale of our foodservice operations and the cash return now being implemented, the Group maintains a strong financial position and net cash.
Against this backcloth the Group continues to raise efficiency levels and cut costs - key components in the stated objective of raising return on sales to 12 per cent. New opportunities continue to be identified and major initiatives are underway across the Group, most notably at Marvel in the USA. These measures will help to offset the sustained pressures of commodity price increases.
The focus on Aga Rangemaster, the proposed new name for the ongoing Group, as a single consumer company with complementary leading brands such as Fired Earth, La Cornue and Divertimenti, is starting to bring tangible benefits. The marketing themes of "Love Aga" and "Rangemaster - The Essential Ingredient" provide strong campaigns around which we are driving our customer relationship management initiatives. Therefore, while a slowdown in housing transactions continues, we expect to show underlying progress this year.
I retire at a point where we are making the exciting transition to a high value consumer brands group and I am sure that John Coleman is exceptionally well qualified to take the company forward as chairman."
The resolutions to be put at an Extraordinary General Meeting to follow today's AGM will, when passed, enable the company to proceed with a return of 121 pence per share to shareholders to be paid on 29th May 2008. The final dividend of 7.65 pence per share will be paid on 30th May 2008. In addition, there will be a 3 for 5 share consolidation which will reduce the number of shares in issue to 69.2 million. The average number of shares in issue in 2008 will be approximately 86 million.
Enquiries:
William McGrath, Chief Executive, Aga Foodservice Group plc - 0121 711 6015 Simon Sporborg/Charlotte Kenyon, Brunswick Group - 020 7404 5959
Notes to editors:For further information visit: www.agafoodservice.com
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