British American Tobacco raised its annual revenue growth forecast on Tuesday as the cigarette maker's focus on e-cigarettes and tobacco-heating devices pays off, sending its shares up 2pc.

The London-listed company said it expected revenue growth of more than 5pc at constant currencies, above its previous range of 3pc to 5pc for the year to December.

It stuck to its growth expectation for adjusted earnings per share in the mid-single digit range.

The maker of Lucky Strike and Newport cigarettes said its "new category" reduced risk products had gained share in all key markets, including the United States and Japan, with the company adding 1.4 million new customers in the first quarter.

The company, which sells Vuse e-cigarettes and glo tobacco heating products, said users of its new category products now totalled 14.9 million.

"The upgrade and delivery around reduced risk products is particularly encouraging", Jefferies analyst Owen Bennett wrote.