Shares in Aga Rangemaster dropped 11% today as it scrapped its dividend in order to bolster its pension fund.
“It’s obviously not a positive to drop the dividend,” chief executive William McGrath admitted. “But it should be seen in the wider context which is about achieving some medium-term clarity over the pension scheme.”
First-half profits dropped from £2.1 million to £1.5 million on sales down 1% at £119 million.
McGrath said: “While the housing market continues to be flat it is difficult to see the market making any progress for us so we have to look to self-help. That means things like the smartphone-controlled iTotal Control Aga and moving into new markets like China.”
Aga also announced today the launch of its first five-oven cooker.
The shares fell 7.75p to 59.25p.
