Pub group JD Wetherspoon - which has a number of outlets in the West Midlands - has seen sales slide since the introduction of the smoking ban across England last summer and interim figures on Friday are expected to reflect the impact.
The group reported a one per cent fall in like-for-like sales in the first quarter immediately after the July introduction, with sales declining further in the second quarter, down 3.2 per cent, as the wintery weather put smokers off. Evolution analysts are forecasting an 11 per cent drop in interim pre-tax profits, to £29. 2 million from £32.9 million the previous year.
The group has tough comparisons to beat from the first half of the previous year, when like-for-like sales in the first three months soared 9.2 per cent.
And it has already braced the market for difficult 2008 trading after the smoking bans, with margins also under pressure with less profitable food sales taking centre stage.
Analyst expectations for the full-year are for a drop in pre-tax profits to around £59 million, from £62 million. But Wetherspoon is not guilty of poor planning ahead of the smoking ban, according to Evolution.
It said the group's preparation had been "exemplary", with some £8 million invested on outside facilities and improved kitchen equipment to cope with the increased focus on food sales.
A raft of rivals reported subdued trading over the Christmas period, including Punch Taverns and Enterprise Inns, suggesting the sector as a whole has been suffering.
Wetherspoon has maintained that the effects of the smoking ban will be good in the long run, but realistic that bar sale declines are likely to knock performance in the short-term.
Evolution said there was "good value" to be had with Wetherspoon, but predicts the pick up in like-for-like sales may not happen for six to 12 months.
Transport group Arriva should post higher full-year profits on Thursday although the firm has seen higher costs at its rail business.
The company won the CrossCountry intercity rail franchise from Sir Richard Branson's Virgin Trains last July, but said in December that rail numbers would be impacted by bidding costs on three separate deals.
It also runs the Arriva Trains Wales franchise, which has seen strong demand. Consensus forecasts put the overall group's pre-tax profits at £114.6 million, four per cent ahead of the previous year.
Arriva is confident of further growth in 2008 with limited exposure to rising fuel costs in its bus business, where the group has increased services and seen encouraging growth in passenger numbers.
Deutsche Bank analyst Chris Reid said: "Arriva is fully hedged for 2008 and we think UK Bus is trading well.
"It should be able to make further progress in Europe as it has balance sheet capacity, competition for acquisitions should fall back, and recent euro-sterling exchange rate trends also provide a mild tailwind."
Meanwhile, banking giant HSBC will today be the last of the UK's "big five" banks to report annual results, with all eyes again on the impact of the credit crunch.