Upmarket oven maker Aga Rangemaster told investors today that it expects an upturn in the housing market to boost sales this year.
The group, which saw revenues dip 2.5 per cent to £244.6 million last year, has continued to see “modest declines” during the four months to 27 April, but chairman John Coleman does not expect that trend to continue.
In a statement released ahead of Aga’s annual meeting, Coleman said: “We expect increased appliance sales as homeowners move and look to remodel, assisted by the government’s encouragement of greater availability of mortgages.”
Espirito Santo analyst Sanjay Vidyarthi said: “We maintain our view that the strength of Aga’s brand portfolio, combined with the investment that has been made in product innovation, should lead to a material recovery in sales as the macro environment improves.
“Management is increasingly focusing on improving its distribution, particularly in international markets. Given the tight control on costs since the downturn, the business is highly operationally geared to any recovery in sales.”