Agas tend to evoke draughty country cottages, Labradors and apple-cheeked farmers' wives. As more and more people choose to live cheek by jowl in city flats, hawkishly watching their energy bills, these bucolic images can seem increasingly at odds with modern living. In response to this problem, AGA Rangemaster (AGA) has been working hard to transform its products and appeal to new lifestyles.
These efforts finally appear to be paying off after years of stagnation. Orders of Aga's more efficient and programmable cookers, launched in 2011 and 2013, were up 8 per cent in the first half, and now account for over 60 per cent of product orders. This year will see the unveiling of the AGA City60, a smaller cooker aimed at young urbanites, as well as a gas-fired version of its Dual Control range, which management hopes will materially widen the customer base. New Rayburn and Stanley cookers will also be introduced, and Aga will enter the Chinese market for the first time this autumn.
In the UK, which accounted for nearly two-thirds of group revenue, sales jumped 10 per cent in the first half. In Ireland, meanwhile, the benefits of last year's rationalisation programme were offset by weaker sales. Overall, group operating profit grew 60 per cent to £2.4m.
Numis Securities has pencilled in pre-tax profit of £11m for the full-year, giving EPS of 12p (from £6.8m and 7.5p in 2013).
| AGA RANGEMASTER (AGA) | ||||
|---|---|---|---|---|
| ORD PRICE: | 159p | MARKET VALUE: | £110m | |
| TOUCH: | 157-159 | 12-MONTH HIGH: | 190p | LOW: 110p |
| DIVIDEND YIELD: | nil | PE RATIO: | 42 | |
| NET ASSET VALUE: | 158p* | NET DEBT: | 2% | |
| Half-year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2013 | 120 | -2.4 | -3.5 | nil |
| 2014 | 124 | -0.3 | -0.9 | nil |
| % change | +3 | - | - | - |
*Includes intangible assets of £89m, or 128p a share | ||||
