BREWING firm Daniel Thwaites has recorded a fall in day-to-day business partly because of the effect of the smoking ban.

The Blackburn-based company has issued its interim results for the six months ending September which reveal operating profits fell seven per cent from £9.6million for the same period in 2006 to £8.9million.

Turnover was also down from £83.8million to £82.7million.

However, overall post-tax results were £11.6million up from £4.3million in 2006 mainly because the company received a tax credit of £7.2million which was deferred from last year.

The company produces beers including Lancaster Bomber and is celebrating its 200th year.

In a statement issued to shareholders chairman Ann Yerburgh said the reduced unaudited operating profits included one-off restructuring costs of £500,000.

She added the company's hotel division Shire, had performed well with refurbished rooms helping to increase trade.

Mrs Yerburgh said: "Brewery operations have experienced particularly testing trading conditions with an extremely wet summer and the effect the smoking ban has had on trade from July.

"This has been slightly offset by additional opportunistic contract work and good control of our costs."