British American Tobacco (BAT) posted 2005 earnings near the top end of analysts' forecasts today and said it was confident of further growth.
The world's second-biggest cigarette maker said adjusted earnings per share rose 17 per cent to 89.34 pence last year as a strong performance in emerging markets offset weaker trading in Canada and Japan.
BAT shares were up 3.1 per cent at £13.69, one of the top gainers on the FTSE index. BAT, second only to Altria's Philip Morris, is more geographically spread than many rivals, making it less exposed to individual countries' attempts to curb smoking.
However, the firm quashed speculation it might soon make a big investment in China. Some analysts had been looking for BAT to invest there after Altria struck a deal with the Chinese government in December to sell Marlboro cigarettes in that country.
But China dampened hopes of a wave of deals earlier this month, saying it would not allow new cigarette factories or joint ventures with foreign partners.