Aga's Irish first-half sales grow more than 20 per cent

Upmarket British stove maker Aga Foodservice, the new owner of former Irish rival Waterford Stanley, said yesterday that Irish…

Upmarket British stove maker Aga Foodservice, the new owner of former Irish rival Waterford Stanley, said yesterday that Irish sales grew more than 20 per cent in the first half of this year as economic growth drove demand for cast-iron cookers.

Aga, best known for the iconic ranges favoured by celebrity chefs such as Nigella Lawson and Jamie Oliver, acquired Waterford Stanley in June 2005, from managing director Michael Laffan and US venture capitalists Pricoa Capital.

The deal, worth €13.8 million, was aimed at enhancing Aga's position in the Irish market, where it already distributed its Aga and Rangemaster brands.

Sales growth in Ireland looks set to continue at the same pace in the second half of 2006, buoyed by the purchase of Waterford Stanley, which last month moved into a new €5 million factory, Stephen Rennie, Aga's chief operating officer, said in an interview. The company also plans to add Aga stores in Cork and Galway, after opening one recently in Dún Laoghaire.

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Pretax profit for the entire group climbed 11 per cent to £20 million (€29.5 million) in the first half from £18 million a year earlier, when Aga received £700,000 in interest on overpaid tax.

Total revenue jumped 21 per cent to £273.3 million as the company pursued overseas expansion through acquisitions and introduced new products to reduce its reliance on the UK market, where the economy has suffered a slowdown in overall consumer demand. The strategy has helped Aga double its dividend over the last five years.

"Our determined efforts to develop new markets for our cookers are proving effective and we expect to see further growth in the second half, notably in Ireland and France," said William McGrath, Aga's chief executive.

Waterford Stanley's Mr Laffan, meanwhile, is due to stand down as managing director at the end of September after overseeing the sale of the company to Aga.

Owen Power, head of sales at Waterford Stanley, will become commercial director and replace Mr Laffan as Aga country manager.