Busaba Eathai 'cautious' on expansion after making £18m loss

Busaba Eathai was set up in 1999 by Alan Yau, founder of the Wagamama restaurant chain
10/11/2017 - 12:13
Busaba Eathai Holdings Limited, parent company of Thai restaurant chain Busaba Eathai, made a pre-tax loss of £18 million for the 12 months ending 27 May, according to the company’s latest results on Companies House.

The loss was 239% up on last year’s figure of -£5 million as the group reported challenging market conditions had affected business.

Ebitda and adjusted Ebitda were both down at £3.9 million and -£400,000- falls of 15% and 127% respectively,

One bright note for the group was reported turnover of £29.4 million, an increase of 6% against the same period last year.

After increasing its UK presence over recent years, the company says consumer confidence and a fall in sterling would have an effect on future openings.

A spokesperson for Busaba Eathai said: “The group’s expansion programme carries with it an element of risk and uncertainly so the company has adopted a management structure to ensure the restaurants maintain a consistent level of food quality and service.

"The design and layout of the restaurants will also be adapted where necessary."

Busaba opened and closed two restaurants during the 12-month period covered in the report.

Sites in Manchester and Liverpool were shut down while restaurants were opened on Oxford Street, London and in St Albans, leaving the current estate at 15-including one franchised restaurant in Dubai.

Last month, Jason Myers announced he will be stepping down from his role of chief executive and leaving the group at the end of November. Current managing director, Terry Harrison, has been confirmed to fill the post.

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