Gresham Hotel Group has issued a profits warning for the first six months of 2001. The group, which is due to announce its interim results at the end of next month, said profits before tax and exceptional once-off items for the first half of 2001 are likely to be below expectations at around €1.5 million. This compares with €4 million in the first half of 2000.

Gresham blamed the effects on trading from travel restrictions that were put in place following the outbreak of foot-and-mouth disease in the UK and Ireland, plus a softening in the international business market, for the fall in profits. Initial indications are that trading conditions in the second half of the year would remain more difficult than the same period last year, it said.

"However, the directors envisage that while not attaining last year's performance, the group will not be as adversely affected as in the first six months," the company said.

Once-off costs relating to the sale and leaseback of The Royal Marine Hotel in Dun Laoghaire of around €0.9 million and rebranding costs of approximately €0.65 million would also be written off in the current financial year, the company said.