BAT SEES STRONG PERFORMANCE FROM ALL SECTORS
A strong performance from all BAT
Industries Plc's <BTI.L> major sectors enabled the group's 1986
pretax profits to pass the one billion stg level for the third
year running, Chairman Patrick Sheehy said in a statement.
    The group earlier reported a 19 pct rise in profits to 1.39
billion, which Sheehy said was achieved without any help from
exchange rate fluctuations or acquisitions.
    Good results were achieved by its Argos and Saks Fifth
Avenue in retailing and by Wiggins Teape and Appleton in paper.
    Tobacco accounted for about 50 pct of profit with a four
pct gain to 764 mln stg and a two pct increase in world volume.
    The results were largely in line with analysts expectations
and BAT shares firmed by two pence to 537p at 0955 GMT.
    BAT said the U.S. Brown and Williamson unit held most of
its 1985 gains and increased profit 18 pct in dollar terms.
    Financial services saw profits double to 282 mln with both
Eagle Star and Allied Dunbar achieving further growth.
    Allied Dunbar reported a 51 pct rise in life annual
premiums to 39 mln stg. BAT said it increased new business by
38 pct in the last nine months after a relatively slow first
quarter. Its permanent health insurance was now the market
leader and its Unit Trust group was now the second largest in
the U.K.
    Eagle Star general premiums rose 32 pct to 1.03 billion.
Its life activities also grew 39 pct with better underwriting
results in the second half.
    Cash flow was strong and the gross debt to equity ratio
dropped to 41 pct from 51 pct. The net ratio, at 26 pct, left
the group strongly placed to pursue its further development.
    Profits from paper and pulp grew 29 pct to 217 mln stg,
nearly three times the 1982 level, with Wiggins Teape's sales
rising 36 pct to pass one billion stg.
    BAT said in 1986 it had sold 88 BATUS stores in the U.S.
For 644 mln dlrs and sold Grovewood Securities for 142 mln stg.
 REUTER
