Financial Times publisher Pearson was the strongest riser in early trading boosted by 'healthy sales growth' and margin improvement across the group.

In a trading update the publisher revealed it report operating profits for 2010 of approximately £850 million, a 20 per cent increase on the £710 million reported in 2009.

The publishing group - which also includes book publisher Penguin - saw share price rise by 5.5 per cent to 1,061p.

Marjorie Scardino, chief executive at Pearson, said: 'For the third successive year, our growth is vigorous even though market conditions have been anaemic.

'That confirms the soundness of our strategy and the increasing strength of our market positions. We are on the right road and set out on 2011 with confidence that we will have another good year.'

Unilever reported a rise in share price, increasing by 1.8 per cent to 1,924, while GlaxoSmithKline recovered from some of the fall in share price it experienced in the previous trading session, rising by 1.2 per cent to 1,196p.

Imperial Tobacco Group was the biggest faller, shedding 2.7 per cent to 1,874p after going ex-dividend. British Airways dropped 2.1 per cent to 293.9p as reports circulated that the results of a month-long strike ballot would be revealed on the date of its merger with Iberia.