South African luxury all suite hotels operator The Don Group (DON) advised that the company will be reporting a substantial earnings and headline loss for the six months period ended December 31, 2003 compared with positive earnings generated in the six months period ended December 31, 2002.

It ascribed the decrease to non achievement of budgeted levels of turnover, high levels of costs relating to individual hotel operations and head office functions, certain non-recurring expenditure, and ongoing product development and repositioning of the group in the tourist market.

As defined by the JSE listings requirements, a substantial decrease means a decline of 30% or greater.

The reviewed company results will be published on or before March 31.

I-Net Bridge 24 March 2004