Writedowns at the Spanish business, amid weak conditions there, hit full-year figures at Imperial Tobacco (IMT). But the maker of Gauloises cigarettes and Golden Virginia rolling tobacco reported a solid enough underlying performance, with adjusted pre-tax profit having risen 3 per cent to £2.63bn, as price increases offset ongoing volume declines. That leaves the shares looking solidly defensive - although stability and income, rather than growth prospects, remain Imperial's key attractions.
That £1.2bn writedown was related to the carrying value of intangible assets in Spain, acquired with the takeover of Altadis - Spain's worsening economic situation forced a revaluation of these under international accounting rules. The company still has Spanish intangible assets on its balance sheet of about £1.6bn.