Cigarette manufacturing company, British American Tobacco (LON:BATS), watched its share rally on the appointment of its new Non-Executive Director, Darrell Thomas.
Mr Thomas will join the Board in the Non-Executive Director role, and as a member of the Audit and Nominations Committees, with effect from December 7 2020. Coming into the role, he brings ‘significant’ financial, regulatory and US experience to the British American Tobacco Board, gained during his ‘extensive’ career.
Currently acting as the Vice President and Treasurer for Harley-Davidson, Mr Thomas previously stood as interim Chief Financial Officer for Harley-Davidson, VP and CFO and Harley-Davidson Financial Services, and VP and Assistant Treasurer at PepsiCo.
Prior to these roles, Mr Thomas spent nineteen years in banking, working for Commerzbank Securities, Swiss Re New Markets, ABN Amro Bank and Citicorp/Citibank, where he held roles in capital markets and corporate finance.
Commenting on the new appointment, British American Tobacco Chairman, Richard Burrows, said: “I am pleased to welcome Darrell to our board. Darrell has extensive business experience in the USA. He is also very experienced in regulatory affairs there. These strengths will complement the balance of skills on the board underlining the importance of the US to BAT.”
Today’s news follows the company’s previous news, that its pre-tax profits shed 5.2% year-on-year, due to litigation charges and restricting costs. Though its revenues rose during the full-year, its notable litigation costs included a £236 million charge in the US, a £202 million charge in Russia and a £172 million impairment in Indonesia.
Following today’s news, things were a little more optimistic. British American Tobacco shares rallied by 4.39%, up to 2,840.50p. This is around 15.29% short of its post-pandemic high of 3,275p, and 23.22% behind analysts’ target price of 3,500p a share.
Analysts currently have a consensus Buy rating on the stock, while the Marketbeat community gives it a 62.47% ‘outperform’ stance. The company has a p/e ratio of 10.27, and a dividend yield of 7.16%.