LONDON, March 17, 2026, 14:27 GMT
Imperial Brands shares edged lower on Tuesday after a standard UK major-holdings filing showed Spring Mountain Investments Ltd had cut its stake in the British tobacco group below the 5% mark. The stock traded at 3,240 pence by 1241 GMT, down 0.4% on the day, while the disclosure showed Spring Mountain’s voting rights had fallen to 4.79779% from 5.857089%. 1
The timing matters. Imperial is heading toward a March 31 final dividend payment and an April 14 trading update, and HL data put the trailing dividend yield at just under 5%, leaving shifts in big shareholder positions under a brighter light than they might otherwise draw. 2
Imperial has also kept shrinking its share count. The company said it repurchased 378,901 shares on March 12 and another 12,064 on March 13 under a 1.45 billion pound buyback programme, with the stock due to be cancelled, taking shares in issue to about 784.8 million. A buyback is when a company buys its own stock and retires it, which can lift earnings per share over time. 3
At full-year results in November, Imperial said fiscal 2026 should remain in line with its plan for 3% to 5% annual operating profit growth, helped by higher tobacco prices and growth in smoking alternatives such as vapes, nicotine pouches and heated tobacco. Revenue from tobacco and next-generation products rose 4.1% in 2025, and CEO Lukas Paravicini said the group would “evolve the distinctive challenger approach” behind the turnaround, while Jefferies said the combustibles business — cigarettes and other smoked tobacco — looked in “good shape” with “resilient volumes and continued pricing power.” 4
Imperial had already promised in March 2025 to keep launching annual buybacks through 2030 and said that strategy could generate up to 3 billion pounds of free cash flow a year. Panmure Liberum analyst Rae Maile said at the time that some investors had pencilled in slightly higher growth, but added: “Buy the shares before the company can.” 5
Imperial is not alone in leaning on cash returns while pushing newer nicotine products. British American Tobacco said in December that regulation and fierce U.S. vape competition were weighing on its 2026 outlook, while Philip Morris forecast higher-than-expected 2026 profit in February and said nicotine pouches and other smoke-free products would keep driving growth. 6
Still, Tuesday’s filing does not say why Spring Mountain reduced its position, and tobacco companies remain exposed to regulation just as they try to build bigger smoke-free businesses. The U.S. Food and Drug Administration last week authorised one more vape brand but only in tobacco flavour, underlining how cautious it remains on new nicotine products, especially flavours with strong youth appeal. 7
The broader London market was firmer, with the FTSE 100 up 0.6% by 1042 GMT as energy and bank stocks advanced. Imperial’s softer tone left it lagging the benchmark, with the next company dates on the calendar a March 31 dividend payment and the April 14 trading update. 8
