Sales and profit margins have fallen at pubs group JD Wetherspoon as it continues to battle the effects of the UK-wide smoking ban.

Like-for-like sales in the 13 weeks to October 28 fell by 1% while profit margins declined 0.6% due to an increase in lower-margin food sales at its pubs.

Bar sales suffered but demand for drinks, including wine and real ale, alongside food purchases were 'encouraging', said Wetherspoon.

Stockbroker Altium said the pubs group may become more cautious with its share buy-backs. It has spent around £6 million so far in the current financial year on buy-backs. 'While the cost of debt has risen over recent months we anticipate this programme will continue, albeit not necessarily at levels seen in prior years,' said analyst Greg Feehely.

Altium has reduced its share price forecast by 14% to 600p, but believes the shares still offer good value.

Wetherspoon's shares were down 3% to 485.75p in early trading on Tuesday.