The global tobacco sector further enhanced its reputation as a safe haven for investors on Thursday after British American Tobacco, the world’s second-largest publicly listed cigarette company, delivered a 20 per cent jump in annual pre-tax profits and raised its dividend payment by more than a quarter.

For the year to December 31, sales volume rose a modest 1 per cent on an organic basis. But revenue grew by more than a fifth to £12.1bn ($17.3bn) thanks to price increases and currency gains from the weak pound.