Drimks firm Allied Domecq shrugged off tough economic conditions to announce profits had grown strongly at the end of its financial year.

The company, updating shareholders in a trading statement, said earnings would also be in line with expectations, leading to a three per cent share price rise.

Allied said its wine and spirits division - which makes drinks including Beefeater Gin and Tia Maria - had delivered profitable volume growth following the group's investment in growth categories and new markets during recent years.

For the year to August 31, Allied said the wine business had performed well and remained on track to achieve targeted growth and returns.

The company established a dedicated wines division in January last year, which includes Atlas Peak and Montana wines as well as Mumm and Perrier Jout champagne.

Allied said that its US business had been the strongest performer, with continued growth across its brands such as Kentucky bourbon Maker's Mark.

Meanwhile, operations in Asia Pacific and Latin America have also progressed, despite slowing economic conditions and the Sars outbreak.