Pre close Trading Statement

RNS Number:2045U
AGA Foodservice Group PLC
14 January 2004



14th January 2004
FOR IMMEDIATE RELEASE


                           AGA FOODSERVICE GROUP PLC
                            PRE CLOSE TRADING UPDATE



In line with best practice, Aga Foodservice Group is issuing its regular
pre-close trading update, ahead of its preliminary results for the year ended
31st December 2003, to be announced on 19th March 2004.



Overview

The Group has had a mixed year.  The UK consumer operations performed strongly
while the US operations faced challenging conditions for most of the year. In
foodservice, the UK and European activities were down but the US performed well.
New product launches and innovation are now playing a key part in driving
performance.  Overall the results for 2003 will be - as expected - broadly in
line with those for 2002.



Consumer

The UK consumer operations performed strongly with impressive sales growth at
Aga and Rangemaster.  We achieved our target of selling a record 10,000 Agas in
the year (Project 10,000), with both the Six-Four and 3-oven Aga proving
successful.  Rangemaster, also driven by new products, was well ahead of the
prior year.  Fired Earth made solid progress, with double digit sales growth,
although overall margins were reduced.  The investment already made, together
with strong marketing programmes, give a positive outlook moving into 2004 for
these businesses.



Although market conditions are improving, Domain had a difficult year and
profits fell.  However, the 25% retail space expansion programme completed
during the year and the good performance of Domain stores which now incorporate
Aga displays, give us optimism for 2004.   Marvel's performance since
acquisition in September 2003 has matched expectations.



Foodservice

In Europe, foodservice markets remained quiet, particularly in the UK where
hotels and supermarkets delayed capital spending programmes.  On the Continent,
Bongard was held back by reorganisation and high product development costs.  In
2004 we are expecting market conditions to be better and the Group has exciting
new products to bring to market.



The US foodservice operations performed well in refrigeration and bakery with
both Victory and Belshaw making good progress. Adamatic also saw a strong
increase in its order book for equipment made in both the US and Europe.
Further progress is expected in 2004.



Product development

In line with our strategy we have continued to invest in product development and
marketing initiatives to provide a platform for long-term growth. In the next
few weeks, for example, we are launching some major new lines which are likely
to have an appreciable impact this year:



-         The new all electric Aga - the simplest, lowest maintenance Aga ever -
          will, in particular, boost export sales.

-         A new generation of commercial fryers - substantially more cost
          efficient for customers than current market leading models.

-         Premium refrigeration made by Marvel launched under the Group's brands
          in the UK.



The Group's international sales structures are now in place to take these
products to their markets.



William McGrath, Chief Executive, said: "We now have our strongest ever product
ranges available and have much enhanced routes to market.  After a year of
concentrated effort and consolidation within the operations, we see our
prospects for 2004 as promising."



ENDS -

Enquiries:

William McGrath, Aga Foodservice Group                        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

TSTBIGDBBUBGGSX