UP TO 1,200 workers at the British American Tobacco cigarette factory in Southampton have helped the global company make global profits of nearly £1.9 billion.

The seed-to-smoke giant saw pre-tax profits rise by 20 per cent from nearly £1.6bn last year.

BAT shareholders in Hampshire, including many staff at the 26-acre site factory at Millbrook, are expected to receive windfall share dividends on May 4 of 29.2p a share - up eight per cent.

The factory here, overseen by head of UK and Ireland operations Allan Short, is BAT's only production facility in the country, and it makes strong smokes for export outside of the EU.

European profits alone increased by £190m to £726m, with volumes growing by seven per cent to 268 billion cigarettes.

Brands produced at the Southampton plant, where the average salary is £26,000, include Dunhill, State Express 555 and Rothmans International. BAT's annual results, released this morning, also showed that group volumes across the world soared by eight per cent to 853 billion cigarettes.

That means its cigarettes are chose by one in seven on the world's estimated one billion smokers.

Sales were helped by BAT's new foothold in Italy, as well as the USA merger of R J Reynolds and Brown & Williamson. Chairman Jan du Plessis today crowed about how the company was outperforming other companies in the stock market.

He said: "Our success over the last three years has enabled us to deliver an average total shareholder return of 20.8 per cent a year, compared to 2.4 per cent for the FTSE 100."

Mr du Plessis also acknowledged the growing movement against smoking in public places. He endorsed segregated areas even though smoking is permitted in most areas at the Southampton plan.

He said: "We will continue to support tobacco regulation that balances the preferences of consumers with the interests of society, establishes an open-minded approach to harm reduction as a public health policy and does not undermine the competitive business environment.

"In the debate over smoking in public places, for example, we will promote the provision of segregated and properly ventilated smoking areas. These solutions work perfectly well and are a more balance approach than the social exclusion of smokers favoured by anti-tobacco campaigners."