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3 Jul 2008 07:08
FOR IMMEDIATE RELEASE3rd July 2008Aga Rangemaster Group plcTrading Update
In accordance with its usual practice, Aga Rangemaster is today issuing a trading update in advance of its interim results announcement for the six months ended 30th June 2008 due to be published on 29th August 2008.
Aga Rangemaster confirms that it is making good progress within its operations as it creates a focused brand-led business. Underlying trading results for the first half are expected to be broadly in line with those for 2007, as restated for the Foodservice disposal. As previously announced, the first half results will contain reorganisation costs as an exceptional item reflecting a drive to deliver efficiency initiatives across the Group. These initiatives will help mitigate the impact of the challenging trading conditions which are making achieving demonstrable progress against the Group's performance targets difficult. Our Balance Sheet remains strong and the growth opportunities well set.
Key points to date in 2008:
* The Group completed its ‚£140 million cash return to shareholders following the sale of the Foodservice operations. The Group had net cash at 30th June 2008 and further bank facilities with an average life of 4 years were arranged during the period in the normal course. * Rangemaster has continued to grow market share in a difficult cooker market, with sales up 5% over the same period last year. * Aga revenues have grown in the first half supported by the strong marketing programme. We continue to invest in the development of Aga and Rayburn products to ensure that they continue to meet customer needs and to ensure that our longer term prospects are encouraging even if it is right to be cautious in the short term. * The Group is taking action to rationalise its operations in Ireland, where the market has deteriorated materially. This rationalisation programme had a significant impact in the first half. * Marvel production of under-counter refrigerators is to be concentrated in Greenville, Michigan where a new factory in the state supported `renaissance zone' will open in early 2009. This follows the announcement of the closure of its Richmond, Indiana factory. In the longer term, the overall North American rationalisation project is expected to have a material positive impact on operating performance. * Rangemaster is consolidating its distribution at a newly leased facility a mile from our Leamington Spa factory and this will also be the Group's new commercial centre.
"Overall our wide range of consumer brands are proving resilient. Our marketing programmes, in support of our strong brands, are backed by product development initiatives which reinforce the relevance of our well differentiated products to consumers. With efficient manufacturing and well established distribution structures, the potential for the Group remains strong although we are mindful of the current economic climate we are facing." William McGrath, Chief Executive.
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Enquiries:
William McGrath, Chief Executive, Aga Rangemaster Group plc - 0121 711 6015 Simon Sporborg/Charlotte Kenyon, Brunswick Group - 020 7404 5959
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