Imperial Tobacco Financial Analysis

Topics: Balance sheet, FTSE 100 Index, Asset Pages: 14 (3248 words) Published: April 18, 2008
Imperial Tobacco

S.No.ParticularsPage No.
1 IMPERIAL TOBACCO Company Profile2
2Key management personal and shareholding distributions3
Share Holding Distributions
Comparative Profit and Loss Growth Analysis
Comparative Balance Sheet Analysis
Financial Ratios Analysis
Imperial Tobacco Direct Competitor Comparison
Valuation Ratio Comparison with Industry And Sector
Statistical/ Technical Analysis
5Risk Analysis10
6Final comment11

1.Company Profile

Address:PO Box 244 Upton Road
Bristol BS99 7UJ United Kingdom

Index:FTSE 100 | STOXX 600

Market Place(s) :Frankfurt | Amsterdam | Virt-x | London | Virt-x | New York Number Of Shares :677,483,000
Sub-Industry:Tobaccos, Cigars and Cigarettes

Imperial Tobacco Group is the world number four in the cigarette manufacture and distribution sector. Its brands are divided into several ranges so as to reach a wide a market as possible. They include Embassy and Regal, Davidoff (so-called "luxury" cigarettes), SuperKings and John Player Specials (mid-priced), and Lambert & Butler (more cheaply priced).However the group's business does not focus solely on cigarettes. Imperial Tobacco also produces cigars, pipe tobacco brands, and is also the world leader in hand-rolling tobacco with the Drum brand. Not to mention RIZLA, making the firm a giant in the cigarette paper market too.Thus dominating the tobacco market, Imperial Tobacco pursues an aggressive expansion strategy. Other than its large European market, the group has taken over the Horizon, John Brandon and Peter Stuyvesant brands, which has taken it into the Australian and New Zealand markets, and bought out Tobaccor, the second biggest cigarette producer in Sub-Saharan Africa, giving it a firm foothold on the African continent and in Madagascar.Finally, Imperial Tobacco acquired the licence to distribute Marlboro (Philip Morris group) in the United Kingdom and in 2002 it took over the German cigarette firm (the world's fourth biggest manufacturer) Reemtsma, thus strengthening its position in Central and Eastern Europe. IDENTITY CARD

Reuters Code:IMT.L
Local Code :IMT
Number of employees:14,486 ( 30/09/2006 )
14,910 ( 30/09/2005 )

The following graphs show the Group’s current debt maturity profile:

The following table shows the Group’s current short- and long-term solicited credit ratings.

Imperial Tobacco Group PLC
Rating agencyShort termLong term (outlook)
Fitch RatingsF2BBB
(rating watch negative)
(under review for possible downgrade)
Standard and Poor’sA-2BBB
(credit watch negative)


The Board of Imperial Tobacco Group PLC, which meets at least five times a year, currently comprises a Non-Executive Chairman, six Non-Executive Directors and four Executive Directors, with a clear separation of the roles of Chairman and Chief Executive to ensure an appropriate balance of power and authority.

1Iain NapierChairman
2Gareth DavisChief Executive
3Robert DyrbusFinance Director
4Graham BlashillGroup Sales and Marketing Director 5Alison CooperCorporate Development Director
6Pierre JungelsSenior Independent Director
IT Group started their share rolling buyback program on 23 February 2005. On 8 February 2007 they announced that the share buyback program has been temporarily suspended following the agreement to buy Commonwealth Brands for US$1.9 billion (£974 million).There is a summary of share buyback information below. SummaryNumber of sharesValue excluding transaction costs

Shares in issue prior to commencement of buyback programme...
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