AGA Rangemaster looks to China for growth AGA Rangemaster, the Warwickshire-based manufacturer of expensive cast iron ovens, suffered from weak sales in its domestic markets, but is pinning its hopes hopes on China for growth. Full-year revenues at the group fell 2 per cent year on year as the group's Irish business continued to decline. The UK's stagnant housing market weighed on sales of its cookers, with consumers opting out of home improvements as a result, said William McGrath, chief executive. "People spend as much money on their houses in the six months after they move as they do in the next five years," said Mr McGrath. In 2011, AGA sold 11,000 ovens - almost half the 19,600 it sold before the financial crisis in 2007. Despite the stagnant housing market, Mr McGrath was bullish that sales at AGA will eventually return to pre-crisis levels, as the group seeks new markets. "The domestic market is a key thing, but in these kinds of markets a 0-0 draw is a pretty good result - but it does mean you have to win some away games," said Mr McGrath. AGA has a partnership with Vatti, a Chinese oven manufacturer, to help distribute its ovens in the region. The key thing is our link into China. The scale of the market is enormous," said Mr McGrath. Mr McGrath cited Land Rover as an example of a British brand that has enjoyed a resurgence, driven partly by rapid growth in Asia, although he conceded that it would be difficult for AGA to gain a foothold. "We're creating a market from scratch," he said. Last summer, the company scrapped its dividend in an attempt to get a grip on its growing pension deficit, which hit almost £165m at the end of last year. The group, which has a market capitalisation of £58.7m, has pension liabilities of almost £800m, with more than 12,000 members - half of whom are retired. November's agreement with trustees to hand over £16m, however, has eased the pressure on the group, leaving it facing no further payments until 2015. Despite the one-off pension contribution, the group ended the year with a net cash balance £5m. Once gilt yields edge up from their historic lows, the company's pension predicament will be much improved, according to the group's chief executive. "In 2007, our scheme had a surplus," said Mr McGrath. The cash flow of the schemes haven't moved, the demography has been accurate - it's the appraisal of the liabilities that has moved. Shares in the group dipped 2 per cent to 83p following the statement, as analysts curtailed their full-year forecasts. Numis cut its full-year profit before tax forecast to £6.6m from £7m.