Aga Foodservice, the Midlands-based company which has taken its iconic cookers to the US, is seeking to raise profits through bringing American kitchen culture to Britain.
The company, announcing plans to raise by 50 per cent the number of kitchen products it sells to consumers, unveiled plans to bring under-the-counter fridges, long prized in the US, to Britain.
Aga said: “We are looking to make wine fridges and ice makers mainstream European products as they are in North America.”
The announcement came as the company, which owns the Aga and Rayburn brands, revealed that it had met a target of sales of 10,000 items last year, helping turnover rise by 18.8 per cent to £392.4 million. Sales of 15,000 units have been targeted by 2006.
Profits were held back by US operations, which Aga has developed, in a “major cultural shift”, to reduce its reliance on the UK, where its ranges have become synonymous with the country kitchen. The US-based Aga Ranges unit ran at a £500,00 loss in 2003 with earnings at the Domain business dipped by £2 million as like-for-like sales slid by 7 per cent.
Aga’s foodservice division, which makes equipment for companies including Marks & Spencer, faced “difficult market conditions” in Europe.
“Last year was a testing year because of a lack of demand in many areas,” Aga said.
“Patchy” bakery markets on the Continent had prompted the company to withdraw from a major Dutch market and order a management shake-up.
Group profits rose by 1.1 per cent to £27.9 million.
Aga, which announced a “satisfactory” start to 2004, said that a slowdown in its acquisition programme last year had left it with the cash to support a 20 per cent increase in 2003 dividend payouts.
William McGrath, the Aga chief exective, said: “The increase reflects our confidence in the group going forward.”
Aga shares stood 4.5p higher at 245p in early trade.