In another quiet news day Imperial Tobacco, which I wrote about recently, has announced its intention to float a minority stake in its Spanish tobacco distribution and logistics arm on the Spanish stock exchanges. This should bring in some much need cash as their balance sheet was looking quite highly geared last time I covered it and this was one source of funds that I hoped they might utilize to reduce it. Other than that we'll have to wait to see what they get for their stake to assess what the other financial effects of this might be.
In addition to this, if you are invested in tobacco stocks and in case you missed it, you may be interested in a two part series on the industry, plain packaging and e-cigarettes etc. featuring access to British American Tobacco which was shown on the BBC recently. It included some interesting statistics in the first part including the fact that the UK treasury earns twice as much in tobacco duties compared to the cost of treating smoking related diseases in the NHS.
While I do not approved of smoking I have never actively discouraged smokers as I always figured they were keeping my taxes down! I've not caught up with the second part yet but it looked as though they would be covering e-cigarettes which is a developing threat / opportunity to the industry. If that appeals you can click on the picture below to visit the associated website and watch the programmes on the BBC i-player where they are available for the next 3 and 7 days respectively.