More than six years of investing in renewables is set to pay off for Aga Rangemaster after the upmarket cooker-maker reported a jump in sales.

Shares in the Leamington-based group rose this week after it revealed revenues in 2010 were up five per cent on the £245 million reported in 2009, while net cash grew £5 million to £33 million.

The increase was aided by a three per cent rise in exports, and chief executive William McGrath told the Birmingham Post he was confident that demand for renewables and wood-burning stoves would boost sales this year.

On the face of it, Aga has much to fear about rising commodities prices – including increasing the cost of manufacturing and distribution.

However, Mr McGrath said while that is a concern, the move towards renewables presents an opportunity for the company.

Aga has invested in solar energy, including a home electric and hot water range powered by sunlight.

He explained: “Energy prices are always an issue. Clearly that applies to an awful lot of consumer products when you are talking about input prices and manufacturing costs.”

He added: “From a customers’ perspective, when energy prices move you would expect more interest in wood-burning stoves. When oil prices are higher you see the wood-burning stove business gain momentum.”

Aga will be setting out to capitalise on rising gas and electricity bills in the home with a ‘Burn Wood Not Money’ marketing campaign.

Mr McGrath said the company has also developed products allowing the storage of heat, to aid the micro-generation of electricity.

He said: : “One of the coming phenomena is going to be renewables. Obviously the Government is very keen to progress here.

“We have been working hard for the last six or seven years on renewables.

“An Aga is a heat-storage cooker, and that is what is needed. Renewables tend to release sporadically and an Aga can absorb that.”

Mr McGrath said the company has benefited from “operational discipline”, which has seen it increase cash levels from about £28 million at the end of the last financial year to about £33 million.

Aga’s shares on the Alternative Investment Market rose by 8p, to 108p, in early trading after the statement.

And Mr McGrath said the upturn in the market has put the business in a better position to invest in the coming years, after being more reserved recently.

He said the group remains focused on growing export sales, which already account for 24 per cent of income, with France now being its largest export market and investment taking place in growth cities like Shanghai and Istanbul.

Mr McGrath added: “We will be looking to grow the business to the scale of a couple of years ago.

“We will be looking to invest in the business in the next couple of years after having to be careful over the last few.”