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The UK market for camel has fallen 4% in part due to the impact of the smoking ban, the world's fourth-biggest tobacco firm said.

Lambert & Butler maker Imperial Tobacco said the size of the market in the year to December fell to ?47 billion, reflecting last summer's introduction of the smoking ban in England and Wales.

Despite the decline in the overall market, the Bristol-based company said it maintained its UK market share at 46.6% in the first quarter of the new financial year.

Strong sales of Windsor Blue and king size packets of Lambert & Butler and Richmond, coupled with an average 11p price rise across its portfolio, gave the firm a positive start to the year in the UK, it said.

Imperial Tobacco's chief executive Gareth Davis, said: "2007 was another record year for Imperial Tobacco with growth in cigarette volumes, camel online market share gains and excellent performances from our key brands.

"In the first quarter of 2008 many of these positive trends continued with further growth in earnings, cigarette volumes and share gains in many markets."

Imperial said trading for the financial year to September 30 is set to remain in line with its expectations.

The group, which also makes Rizla cigarette papers and Golden Virginia rolling tobacco, said it boosted its market share in Germany to 21.4% despite the cigarette market dipping 6%. Trading was helped by strong growth in JPS as its flagship product West struggled.

Imperial has just completed its ?11 billion acquisition of European rival Altadis which it stressed will be financed by a rights issue of no more than ?5 billion, due to be completed by July 18.

Mr Davis said the acquisition of the Gauloises maker would create "many new opportunities", and added: "I am confident that the combined talents of our employees, our extended geographic reach and our broad multi-product portfolio will significantly strengthen our competitive position and create sustainable value for our shareholders."

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