Leading brands boost BAT profits

Rising sales of four key cigarette brands have pushed British American Tobacco's half-year profits through the £1bn mark.

BAT said sales of the its "global drive brands" - Dunhill, Lucky Strike, Kent and Pall Mall - rose by 6% during the first half of the year.

The growth saw BAT post pre-tax profits of £1.04bn for the six months, compared with £930m for the January to June period last year.

"Against a background of generally declining corporate earnings, I hope that shareholders will be reassured by the group's resilient results," company chairman Martin Broughton said.

The overall number of cigarettes sold by BAT, the world's second-largest cigarette firm, fell by 5% to 380 billion.

And Mr Broughton warned that currency "gyrations" presented a challenge in reaping the full benefit of operating profits.

In the City, BAT shares stood 1.5p lower at 686.5p in lunchtime trade on Tuesday.