Imperial Tobacco said its annual profits had hit an all-time high. Imperial posted an increase of 11 per cent to £1.1 billion in pre-tax profit for the year till September 30. The turnover was 4 per cent higher at £3.1bn, which was in line with analysts' expectations. Closure of three factories over the year helped increase its productivity by 15%.
Gareth Davis, chief executive, Imperial Tobacco had predicted yesterday that the number of people smoking in England and Wales would not fall in the wake of a partial ban on smoking in public spaces to be enforced by 2007 summer.
In the UK, Imperial has 44.5% share of the total market. Its flagship brand of Lambert & Butler maintained its leadership with share of 16%. Richmond, another budget brand belonging to it, grew its share to 14.7%.
Mr Davis, who contests the claim that smoking causes lung cancer, reiterated that the available scientific research on passive smoking does not prove that it is a major health risk. He added: "If there is a risk, it is very small".
Imperial Tobacco, Britain’s largest and also world's fourth largest tobacco firm said it would spend ₤450 million on share buybacks without any acquisitions.
Mr. Davis added: "Further industry consolidation is inevitable at some stage but at the moment there appears to be nothing on the horizon and we are looking at some bolt-on opportunities".
Profits in Germany, which fetch Imperial 20% of its earnings, rose 24 per cent in spite of three tobacco tax hikes in 18 months.
Shares were down by 0.31 percent to 1,615 pence on the London Stock Exchange at close on Tuesday. They had risen strongly on Monday. Meanwhile, Imperial proposed a 12 percent increase in its annual dividend to 56 pence a share.
Posted
on : Wed, 02 Nov 2005 20:20 GMT | Business News
By : Mark Richardson
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