2008-03-07 17:53:43 -

LONDON (AP) - Shares of JD Wetherspoons PLC, a British pub chain, plunged on Friday after the company said six-month profit fell 16 percent after the government introduced a ban on smoking in pubs.
Net income for the 26 weeks through Jan. 27 fell to 18.3 million pounds (US$36.5 million; ¤23.9 million), from 21.7 million

pounds in the same period a year earlier. Sales were little changed, rising just 0.4 percent to 440.2 million pounds (US$879 million; ¤574.1 million).
«As anticipated, the introduction of the bans resulted in a strong growth in food sales but a decline in bar sales, which put pressure on margins and profits,» Chairman Tim Martin said.
Still, the company said it continues «to believe that the smoking bans are to the long term advantage of the trade.
The smoking ban took effect in July 2007.

Analyst views were mixed.
«The combined difficulties of the smoking ban in England and the pressure on beer prices from the supermarkets have left Wetherspoons in a tough environment,» said Richard Hunter, head of U.K. equities at Hargreaves Lansdown Stockbrokers in London. «Nonetheless, there are positives. The company is a well-run business and is suffering somewhat less than some of its competitors.
The shares dropped 9.2 percent to 283 pence (US$5.65; ¤3.69).