BUSINESS LIVE: Burberry hit by luxury slowdown; Imperial lifted by higher prices; Vertu cheers market revival

Cigarette maker Imperial Brands profits ticked higher in the first half, thanks to increased sales of tobacco alternatives and higher prices.

Adjusted operating profit grew 2.8 per cent on a constant currency basis to £1.67billion for the six months to 31 March, in-line with analyst forecasts.

Boss Stefan Bomhard said: ‘Investment in consumer capabilities, more agile ways of working and further progress with our performance culture have made Imperial Brands a stronger business better able to deliver an acceleration in financial delivery.

‘This is demonstrated in the first half with the strongest organic top-line growth in more than ten years, amid a challenging external environment.

‘In tobacco, stronger brands and improved sales execution have enabled us both to consolidate the market share gains in our priority markets achieved in recent years and to deliver a strong price mix of 8.6%.

‘In Next Generation Products (NGP), we are steadily building scale within our footprint.’

Hundreds of jobs are at risk in North Yorkshire after the future of the UK’s most ambitious mining project in a generation was thrown into doubt.

Anglo American said it would slash funding at the Woodsmith fertiliser mine as part of a radical strategy to convince shareholders it was right to reject two takeover bids from rival miner BHP.

Chief executive Duncan Wanblad has spent weeks plotting a survival plan that includes breaking up the company, including hiving off its diamond arm De Beers and platinum mines.

Burberry profits slumped by more than a third last year as the group repositioned its iconic brand in the face of continued weak luxury market demand.

Adjusted operating profit fell by 34 per cent to £418million in the year to 30 March, as like-for-like sales fell 12 per cent in the final quarter and wiped out gains made earlier in the year.

Chief executive Jonathan Akeroyd said that while the financial results underperformed the company’s original expectations, it had made good progress refocusing its brand.

‘We are using what we have learned over the past year to fine tune our approach, while adapting to the external environment,’ he said, adding that he remained confident Burberry could be the ‘Modern British Luxury’ brand.