Stalled demand for Aga ranges and a downturn in sales of its sister brand of Stanley in Ireland have damped half-year profits growth at Aga Rangemaster.

William McGrath, chief executive of the upmarket kitchen goods maker and retailer, admitted concerns about rising fuel costs had dented demand for its flagship Aga cookers, which typically cost £7,500 to supply and install.

Aga wants to reignite interest in its cast-iron ranges by promoting more economical models that use off-peak electricity and programmable gas systems aimed at cutting costs.

The group was also seeing a lift in sales of wood-fired stoves and ranges as customers tried to reduce costs by using free "carbon-neutral" foraged wood to supplement commercial supplies.

Sales of electric versions of the ranges accounted for more than half of all Aga sales for the first time.

As well as encouraging frugal foragers, Aga is extending trade-in offers for loyal customers to those wanting to exchange less-efficient models for new ones.

In Ireland, inquiries for solid-fuel versions of its Stanleys, capable of burning coal or home-produced peat, were picking up regardless of consumer belt-tightening.

In spite of poor trading in Ireland and North America, demand for its Rangemaster line of continental-style cookers remained strong. Sales at the company's home improvement business Fired Earth grew 10 per cent. Aga, which last December sold its commercial food service division for £265m and returned £140m of the proceeds to shareholders, held pre-tax profit steady at £12.3m on a slight advance in sales to £145m (£142m) in the six months to June 30.

Shares, which have fallen 72 per cent over the year, partly as a result of the disposal, have also been hit by a general slump in consumer stocks, Mr McGrath said. The shares rose 5.6 per cent on Friday to 198¼p, valuing the company at £130m.

Aga increased its interim dividend to 4p (3.85p), payable from earnings per share of 9.5p (8p). Mr McGrath said the balance sheet was strong, with renegotiated banking lines and net cash of £17m at June, compared with net borrowings of £80m in the previous year.

Broker Numis described the results as "resilient" though it noted a 5 per cent weakening in summer trading - a fall Aga aims to counter with a marketing push. Numis is rating Aga's target price at eight times estimated full-year earnings - "a discount to the wider retail sector given the exposure to the big-ticket and home categories".