Trading Statement
July 06 2004 - 4:06AM
UK Regulatory
RNS Number:5274A
AGA Foodservice Group PLC
06 July 2004
6th July 2004
FOR IMMEDIATE RELEASE
AGA FOODSERVICE GROUP PLC - PRE-CLOSE INTERIM TRADING UPDATE
In line with market practice, Aga Foodservice Group (Aga) is issuing its regular
pre-close trading update, ahead of its interim results for the half year ended
30th June 2004 which will be announced on 10th September 2004.
Aga also announces that, in advance of its forthcoming close period, the ongoing
share buyback programme has been halted in accordance with the UK Listing Rules,
which restrict share purchases during such periods. To date it has acquired
3,705,000 shares under the programme at an average price of #2.37 per share.
Overview
--------
The benefits of the development plans of the last three years are becoming clear
in key areas of the business. Very strong trading performances have continued in
UK consumer operations. In foodservice operations, large customers - notably in
the UK - were still deferring expenditure and consequently trading was mixed in
the period. The first half 2004 will be up on the reported pre tax and goodwill
amortisation profit of #14.8 million for the same period in 2003 and the outlook
is that the full year will show the expected year-on-year progress. Cashflow in
the period was strong compared to the same period in the prior year.
Consumer
--------
Aga-Rayburn had another record first half with new products like the 3-oven Aga
and the electric Aga winning immediate customer acceptance. Orders of Aga
branded cookers in the first half were up 10% showing the Group's strong
progress beyond the Project 10,000 target achieved in 2003. Aga branded products
introduced in the last three years accounted for over 25% of orders. Nearly 20%
of orders were outside the UK - well ahead of the prior year.
Rangemaster had a very impressive first half. This business continues to benefit
from the restructuring carried out by management in 2002 which aligned it with
Aga and with higher added value markets. Orders for the period are running up
over 20% year-on-year. Fired Earth's orders were up over 10% with the Aga/Fired
Earth stores particularly strong. Domain, the US home furnishings operation, saw
orders up 17% - slightly down on a like-for-like basis. This growth will feed
through into delivered sales and improved trading results later in the year.
Foodservice
-----------
In Foodservice, the new Infinity Fryer is now on full trial with a number of
major quick service restaurants and foodservice chains. Made at Falcon's new
home in Stirling, the fryer is expected to be a major engine of growth for the
foodservice operations in the UK, USA and Europe.
Bakery and foodservice markets remained quiet in the UK although orders have now
started to pick up and the number of projects and roll-outs under discussion do
suggest a stronger second half. Williams Refrigeration, in particular, saw real
order levels improving. On the continent, Bongard saw flat sales volumes but
improving margins. Current business opportunities are encouraging. The US
foodservice sales were satisfactory but margins were under cost push pressures.
The Group's investment in recent years in research and development, production
facilities and routes to market now mean it is well placed to benefit from a
cyclical upturn in new installations, in addition to the ongoing product
replacement cycle.
Stockbroker
-----------
Collins Stewart have been appointed joint stockbroker to the company with
Dresdner Kleinwort Wasserstein.
-ENDS-
Enquiries:
William McGrath, Chief Executive, Aga Foodservice Group plc 0121 711 6015
Jonathan Glass, Brunswick Group 020 7404 5959
This information is provided by RNS
The company news service from the London Stock Exchange
END
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