One of the London stock market’s longest-serving chief executives announced his intention to stand down today.

Imperial Tobacco boss Gareth Davis will retire in May after more than 37 years with the Bristol-based firm, including 13 years as chief executive.

He will be replaced by chief operating officer Alison Cooper, who is set to become only the fifth woman at the helm of a FTSE 100 Index company. The other female chief executives are Dame Marjorie Scardino at Pearson, Dorothy Thompson at Drax, Angela Ahrendts at Burberry and Cynthia Carroll at Anglo American.

The appointment came as Imperial – the maker of brands including Davidoff, JPS and Gauloises Blondes – posted full-year pre-tax profits of £2.23bn, an increase of 39% on a year earlier. Cigarette volumes were 10% higher at 322bn after the “swift and efficient” integration of European rival Altadis.

UK revenues increased by 3% to £893m in the year to September 30, due to price increases and a stable cigarette market.

Chairman Iain Napier said 59-year-old Mr Davis had transformed Imperial from a predominately UK business into one of the world’s leading international tobacco companies.

Mr Napier also praised Ms Cooper’s leadership capabilities and strategic vision. The 43-year-old has held a number of senior positions since joining the firm in 1999 from PricewaterhouseCoopers.

“She has an exemplary track record in our business and has played a key role in driving our international expansion,” Mr Napier added.