BAT profits a timely reminder of 'recession proof' tobacco companies

This allowed for a 3 pct drop in volume sales, easily made up by 8 pct 'recession-type' increase of prices.

Not many companies would be able to do this, however, 'a smoker and his cigarettes are rarely parted' enabling tobacco companies to actually increase profits without any losses by blaming the recession driving up their prices.

Such an example can be seen in British American Tobacco clearly, where an 8 pct increase in prices, generated a 10 pct increase in profits without any large losses in sales.

Other tobacco companies, such as Japan Tobacco (yet to report), Imperial Tobacco (trading in line with expecations so far 2010), and Altria Group (21.7 pct net revenue increase) also remain strong despite the struggling times and increasing unemployment.

"While many companies have struggled in the harsh economic climate and international markets have wavered, I find myself with the great privilege of being Chairman of a business that continues to deliver excellent results." said Richard Burrows.

"There are signs the global economy is beginning to improve, although unemployment, which is an important influence on our business, may continue to rise in developed markets. We have a very clear strategy and excellent management, with a well balanced portfolio of brands" commented Burrows.

Indeed, if the global economy does improve, then Burrows may be able to increase volume growth without a much reduced reduction in price allowing further sustainable profit growth.

An increase in GDP growth revised today will surely reassure this - and with smokers spending so-called 'free cash' more, the likelihood is that sales will increase.

A fact noticed by Telegraph's Questor which has put a 'buy' rating on it.

Currently, the share price is up 41p (+1.88 pct) at 14:55 GMT.

Of 15 brokers monitoring it, 10 recommend a strong buy, 3 a buy and 2 are neutral - the most recent of which, Evolution Securities, put a 2,250 target price on it (upgraded from 2,179.50).