UK pub Wetherspoon's annual profit drops 24 pct

Net income for the year ended July 27 was 35.5 million pounds ($62.5 million), down from 46.8 million pounds the previous year. Revenue over the same period was little changed, rising 2 percent to 907.5 million pounds ($1.6 billion).

The company said that the smoking ban, which took effect in July 2007, caused profitable bar sales to slide by 4.3 percent.

But some of that loss was countered by a rise in less profitable food sales of 7.9 percent.

"The year under review is the first following the smoking ban," said Chairman Tim Martin, who said he was "confident" about the company's future.

Although poor, the results were in keeping with analysts' expectations.

"Wetherspoon has reported in line and relatively robust results, when considering the array of challenges being fought," said Keith Bowman, analyst at Hargreaves Lansdown Stockbrokers. "The smoking ban, increased beer duty, rising wage costs, intense supermarket competition, poor summer weather; the list just goes on."

Shares rose 2.9 percent on the London Stock Exchange to 268.5 pence ($4.74).