BRITISH American Tobacco's (BAT) profits have risen by 8.5 per cent thanks to profit growth across most of its businesses.

Pre-tax profits in the first quarter to March 31 increased to £624m from £575m, after four of its five regions produced results well ahead of the previous year.

BAT closed its factory in Darlington in July last year with the loss of 500 jobs.

About 80 workers from the region transferred to BAT's Southampton factory, but managers have not ruled out job losses there in the future.

BAT, whose flagship brands include Dunhill, Kent and Lucky Strike, announced a rise in European profits of £30m to £181m.

There were good performances in all other regions apart from America Pacific, with Japan and Canada both showing lower profits and volumes.

Changes in accounting in the merger of its US business Brown and Williamson with RJ Reynolds, and the sale of Italian business Etinera, dragged first-quarter operating profits down four per cent to £582m.

Chairman Jan du Plessis said comparisons with last year would become tougher this year because of various one-off tax benefits in the second half of last year.

Shares closed up 21p to 995p.