Shares in Imperial Brands (LON:IMB) have lost ground in London this morning even as the company said that it was on track to meet its full-year expectations. The FTSE 100 group further confirmed that it was working on a rescue deal for troubled wholesaler Palmer & Harvey.
As of 08:36 BST, Imperial Brands’ share price had given up 1.69 percent to 3,250.50p as of 08:38 BST, underperforming the benchmark FTSE 100 index which currently stands 0.16 percent lower at 7,301.94 points. The group’s shares have lost more than 17 percent of their value over the past year, and are down by some eight percent in the year-to-date.
Imperial Brands posted a trading update today ahead of its close period on October 1, noting that it was on track to meet earnings expectations for the full year at both constant currency and reported exchange rates.
“We expect to deliver strong growth in revenues and earnings at actual currency, with constant currency performance impacted by the significant additional investments in the year,” the tobacco manufacturer pointed out in the statement, adding that its cash generation remained strong.
The company further confirmed that it was working with other stakeholders to seek to create a sustainable future for Palmer & Harvey, with whom the company has a close trading relationship. The announcement comes after Sky News reported earlier this week that Imperial and Japan Tobacco International (JTI) were expected to roll over around £60 million of outstanding loans to Palmer & Harvey.
Today’s update comes after Imperial recently trimmed its stake in Madrid-listed Logista, raising gross proceeds of about £230.8 million, and noting that up to £160 million of the amount would be used for a share buy-back.