Aga Rangemaster is seeing no respite in the drop in demand for its upmarket cast-iron stoves, as the slump in the housing market and the wider economy continues to bite.
The company reported this morning that orders have fallen more than 20% in the 17 weeks to 1 May compared with a year ago, the same level of decline it reported in mid-March. This has forced it to cut back on production and slash costs.
"Economic conditions remain testing and unpredictable but we continue to act decisively," the company told shareholders at its annual meeting.
"Aga has seen the level of enquiries stabilise but order levels are currently well down on prior years. Marvel, our US refrigeration business, has seen the sharp volume falls of the last 18 months continue."
However, its Rangemaster stoves continue to "trade satisfactorily" and grow market share. The group believes it is the only leading UK-based manufacturer in the industry to have benefited from the weaker pound.
The firm, which is known for its Aga, Rayburn, Rangemaster and Stanley cast-iron cookers, has introduced electric models partly in response to last year's spike in oil prices and to improve its green credentials. The Guardian columnist George Monbiot has criticised the environmental impact of Aga cookers.
The company reiterated its main goal this year was to remain profitable and cash generative.
Aga has responded to the downturn by taking a series of cost-cutting measures, including laying off 470 staff and implementing a shorter working week.
