Busaba Eathai earnings rise after closing regional sites

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Thai restaurant group Busaba Eathai’s earnings are back in the black after the closure of all its sites outside London.

Recent filings for the year to 26 May 2018 show adjusted EBITDA increased 318% to £877,000, up from -£402,000 for the previous 12 months.

But turnover decreased 3% to £28.4m, and the company posted an overall pre-tax loss of £17.9m.

Busaba closed restaurants in Liverpool and Manchester in 2017 and its site in St Albans in 2018. It also launched a restaurant under franchise in Dubai in 2015, but it is no longer trading.

The group, founded in Soho by Wagamama founder Alan Yau in 1999, is left with 13 London locations and has run delivery-only brand Katsu Kitchen with Deliveroo in the capital since 2018.

Busaba was backed by Phoenix Equity Partners for 11 years until this summer, when growth capital investor Muzinich Private Debit acquired a controlling stake.

Going forward the company says that though Brexit-related ‘consumer uncertainty post the referendum result in 2016 continues to impact the casual dining market’ the directors believe Busaba’s 'dedication to delivering superb Thai food within a strong brand and distinctive environment will help the business endure the challenging trading conditions’.

Brazilian barbecue concept Cabana also closed its two remaining restaurants outside London when its five sites in the capital were bought out of administration earlier this month.