Scotland's smoking ban has made its presence felt on the bottom lines of three listed companies which posted financial results yesterday.

Scotland's smoking ban has made its presence felt on the bottom lines of three listed companies which posted financial results yesterday.

Mecca bingo operator Rank and cigarette maker Gallaher have both suffered. By contrast, pub chain JD Wetherspoon reported a sharp sales increase in the wake of the March prohibition and is progressing plans to expand its Scottish pub estate by over a third.

The company worst hit was Rank, which operates Mecca Bingo and Grosvenor casinos. Rank said annual pre-tax profits from its ongoing business fell 12%, in part because the smoking ban helped slash bingo revenues north of the border by 15%.

Rank attempted to woo back Scottish punters by increasing prize money by a total of £18m to £205m during last year, but this failed to stem declining admissions. One in 10 of Scotland's bingo halls has shut since the ban was introduced, though the small independent chains have been worst affected.

Meanwhile, Benson & Hedges and Dunhill maker Gallaher said the ban in Scotland contributed to a 3%-4% fall in the Scottish cigarette market. The firm, which is being taken over by Japan Tobacco, nevertheless posted a 4.9% rise in underlying profit to £597m.

Analyst at Charles Stanley, Clive Roberts, said the imminent smoking ban in England and Wales would be a "minor blip" in profitability for the tobacco companies. He added: "In the UK volume levels are likely to be down 4%-5%, but companies have been very clever at managing to manipulate prices and so the impact on profits has been negligible.

"There has been a slight dampening of sentiment but the tobacco companies have known this was coming so they are growing in places like Eastern Europe and the overall impact will be modest."

In Scotland, JD Wetherspoon's pubs performed better than expected, with like-for-like sales increasing by 5% in the six months to January 28 and profits remaining steady. The company reported a 20% rise in first-half, pre-tax profits to £32.9m, lifted by strong sales of coffees and breakfasts.

"This is the evolution of the pub," said finance director Jim Clarke. "As long as we make the coffees well we make similar margins to beer, and it's similar with breakfasts."

Wetherspoon has 42 pubs and bars in Scotland and three more will open later this year, at Edinburgh Airport, in Glasgow and at Peterhead. A further 14 sites have been identified, including four in Glasgow and two in Edinburgh, all of which are subject to planning and licensing approval.

Wetherspoon raised its interim dividend by 150% to 4p a share, bringing it back in line with the sector. However, the company's cautious outlook on sales knocked 7% off the share price.

"Following strong like-for-like sales until Christmas, sales growth slowed in January and February," said chairman Tim Martin.

"In view of the increase in wages and utility costs, combined with slower sales growth, the company is cautious about the outcome in the second half."

Wetherspoon's has prepared for July's ban on smoking in England and Wales by opening or converting 61 pubs outside Scotland to non-smoking pubs. The company was also penalised with substantial declines in sales and profits following their conversion, but business has picked up in recent months.