Drink and snacks group C&C is to embark on an intensive marketing campaign to roll out its Magners cider brand across the UK, following a substantial increase in sales during the past year.

Sales of Bulmer's, its Irish equivalent, are expected to be flat when it publishes its full year results in May.

However, in a pre-close trading statement, the company said yesterday that this was against a backdrop of an overall 2 per cent decline in what is known as the long alcohol drinks (LAD) market. This includes off-sales and pub and restaurant sales.

C&C, which floated last May, said the ban on smoking in pubs was a significant factor in a 6 per cent decline in the on-trade market. However, growth in the off-trade sector was in double digits last year.

The company said the smoking ban would have a one-off impact in pub sales and was expected to be fully absorbed by the middle of this year. "The favourable prevailing economic conditions in Ireland are expected to continue throughout 2005, giving a lift to consumer spending growth.

The company is planning to build on the success of Magners cider which is exported to Europe and the US. It recorded a 50 per cent increase in sales volumes in the year and performed particularly well in Northern Ireland and Scotland.

It said the impact on operating profit of the weak dollar in Canada and the US would amount to €6.8 million in a full year, compared to 2003-2004. It said the impact of the US dollar depreciation on operating profit is expected to fall to €2 million in 2005/2006.

Overall, it said its profit for the year to the end of February would be in line with expectations, despite "a very challenging environment". The trading statement said turnover, excluding currency movements, would be 4 per cent higher than the previous year.

Merrion analyst Mr Robert Brisbourne said the results were broadly in line with expectations. He said the move to push Magners further into the UK had also been anticipated.