Imperial Tobacco has hit out again at "exessive regulation" even as it reported forecast beating half year profits and topped the FTSE 100 risers.
In a statement alongside the results the company said:
We recognise we are a company with a controversial product and have always supported sensible, reasonable and practical regulation. We strongly oppose regulation that undermines the rights of our consumers to enjoy smoking and our commercial freedoms such as product display bans and further encroachment on our packaging, including the plain packaging of tobacco products.
And there's more:
Excessive regulation and tax increases by governments further fuels the illicit trade of non-duty paid and counterfeit tobacco products. Illicit trade deprives governments of tax revenues and consumers of a high quality, responsibly produced product that complies with all regulatory requirements.
For the record the company reported half year earnings per share up 16% and a 6% rise in operating profit despite a 3.7% fall in cigarette volumes, thanks to price increases and improving market share. As a result its shares have climbed 45p to £19.92. Martin Deboo at Investec said:
Imperial Tobacco's first half has come in modestly ahead of our expectations, by 1% or so on the operating profit line and by 4% or so at the profit before tax/earnings per share line. We read the full year outlook as unchanged relative to the March trading update; we retain our hold recommendation and £20.40 target price.
