131.5p
Gain to date: 57.5%

A share price surge this year leaves our call on premium branded cookers manufacturer AGA Rangemaster (AGA) looking well-timed. Highlighted at 83.5p (17 Jan), the £92 million cap has rallied on hopes consumer confidence will continue to increase in tandem with a revival in the housing market in the UK and North America. Back in the summer, half-year figures (21 Aug) from the Leamington Spa-headquartered firm, whose brands include iconic British cast iron ovens offering AGA and luxury tiles-to-bathroom furniture name Fired Earth, revealed flat operating profits of £1.5 million. However, orders picked up significantly in the second quarter as the benefits of rising consumer confidence and increasing mortgage approvals fed through. Given the business’ high operational gearing, Government stimulus into the UK housing market combined with a buzz surrounding new products could drive upgrades. Longer-term, a partnership with Chinese gas burner company Vatti will help AGA build brand exposure in the Peoples’ Republic, notorious for its love of Western brands.

Ride the upside for a while longer with newsflow set to please in the coming months and further upgrades ahead. (JC)