Change of fortune for Gresham

After several years of declines, the Irish hotel group Gresham has finally reported a healthy increase in profits.

In the 12 months to 31 December 2003, pre-tax profits at the group were g1.9m (£1.3m), compared with g105,000 (£69,951) in 2002. Excluding exceptional costs and proceeds from the sale of several hotels, profit increased by 40% to g1.71m (£1.1m).

But despite the hike in profits, turnover at Gresham fell by 5.5% to g47.9m (£31.9m), against g50.7m (£33.8m) a year earlier.

Chairman Harvey Sonig said the results reflected "a satisfactory performance given the upheaval within our industry caused by the conflict in Iraq and the Sars epidemic".

The group also announced that takeover talks with a consortium of investors were continuing, albeit for a reduced amount. The consortium had offered g1.45 (96p) a share for the group, valuing it at g115m (£76.6m), but has now reduced its bid to its initial offer of g1.35 (90p) a share.

Gresham was unable to give an indication about current trading or future prospects because it is in an offer period.