Shares in British American Tobacco were down on the FTSE 100 in morning trading after the company reported a rise in revenue and adjusted profit in the full year ended 31 December 2010.

Revenue increased five per cent to £14.9 billion, while adjusted profit from operations rose 12 per cent to just under five billion pounds.

Despite the rise in revenue and profits, volumes declined two per cent to 708 billion.

The group said it would be raising its total dividend 15 per cent to 114.2 pence per share.

Richard Burrows, Chairman of British American Tobacco, said, "British American Tobacco remains in very good shape at the end of 2010. We have increased our competitiveness by growing our share in key markets and improving our cost base. There will be further global economic challenges ahead but we can see strong opportunities for growth too. That's why I am confident we can continue to deliver superior shareholder returns in 2011 and beyond."

By 11:40 shares in British American Tobacco were down 2.26 per cent on the FTSE 100 to 2,358.50 pence per share.

FTSE