AGA.L Regulatory News (AGA)

7 Jul 2006 07:00

7th July 2006FOR 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.OverviewThe Group again performed well in the first half of the year. Our Europeanconsumer operations moved forward and both Aga and Rangemaster continued toperform soundly. Investment in new energy efficient equipment is becoming morecentral to the thinking of major foodservice customers given significant risesin 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 2005when operating profits were ‚£16.9 million and pre tax profits were ‚£18 million.ConsumerThe excellent range of high end branded cookers supported further progress inthe UK, driven mainly by the electric Aga and the 90cm products fromRangemaster. Internationally, the most impressive performances were achieved inthe strong Irish and growing French markets. Cooker exports grew 40% and nowaccount for one-third of Aga branded cookers and over 15% for Rangemaster.During the period, UK retail operations have performed satisfactorily. FiredEarth categories of tiles, paint and kitchen furniture are ahead on a LFLbasis. Overall, Fired Earth sales were slightly down as we transitioned out ofrug and fabric categories to introduce our own Grange made kitchen furniture.In the USA, Marvel, the maker of under-counter refrigerators, had a very goodfirst half in buoyant markets. Aga Home now encompasses the Group owned retailoperations of Domain and Grange in the USA. Aga cooker sales were well aheadbut home furnishings remain weak.FoodserviceAga Bakery showed good progress. As one of the global market leaders inin-store bakery equipment and with a formidable product range, we are steadilywinning major new accounts. The UK market was particularly good as were CentralEuropean markets, compensating for the flat French market. In the USA, ourdoughnut equipment operation was again strong. We have integrated our US bakeryoperations as Aga Bakery and rationalised our range of roll lines to sharpenthe focus on products that are sourced from Europe.Our refrigeration operations had another good period. Our Chinese andAustralian activities were particularly strong. In the USA, the overallfoodservice market is growing by around 5% and our performance has improved. Inprime cooking in the UK we have a sound base to which we have added theInfinity fryer from Falcon and combi oven ranges from Eloma, the German ovenmanufacturer acquired in February this year. These products strengthen ourposition in a sector now focusing more attention on the need to cut costs byraising efficiency levels.Second Half InitiativesIn the second half of the year the onus is on sales initiatives to capitalisefurther on the products and routes to market we have developed. We expect toadd new international customers for our bakery operations and to see addedimpetus for our fryer and combi oven activities. The flexibility of theelectric 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 6015Simon Sporborg/Nina Coad, Brunswick Group 020 7404 5959Meetings with analysts are planned for midday today and a copy of thepresentation to be used will be available at www.agafoodservice.com.Notes to Editors:Aga Foodservice Group is a producer of premium range cookers and refrigeratorsfor the domestic, commercial and bakery markets. The Group has major consumerbrands led by Aga, Rangemaster and Marvel. In our commercial markets the onusis on energy efficiency and quality food. The Group has established marketpositions in both Europe and North America.ENDAGA FOODSERVICE GROUP PLC