Tim Martin, chair of pub operator JD Wetherspoon, has attributed a 11.4 per cent fall in profits on increasing costs, escalating taxes and the effects of the smoking ban.

The pub group saw full-year pre-tax profits dive from £62m in 2007 to £55m.

"The pub industry has been strongly affected by increase in taxation and regulation in recent years," Martin said.

"We estimate that increases in excise duty on alcoholic drinks, minimum wage-related costs and increased statutory holiday entitlements will amount to £16m"

While like-for-like bar sales fell 4.3 per cent, the company declared its increased focus on food a success, as like-for-like food sales increased by 7.9 per cent during the year.

Wetherspoon opened 23 pubs during the year, increasing the number of sites in its portfolio to 694.

Martin added that the group plans to open 30 more pubs during 2009.