Thu 9th Nov 2017 - Busaba Eathai sees pre-tax losses treble to £18m, renegotiates banking facilities Busaba Eathai sees pre-tax losses treble to £18m, renegotiates banking facilities: Busaba Eathai Holdings, the parent company of the Thai chain founded by Alan Yau, has reported a turnover boost but seen pre-tax losses more than treble to nearly £18m. The company renegotiated its banking facilities in September, under which there is the availability of a bank accordion facility of £1m. It saw turnover increase 6% to £29,388,743 for the year ending 27 May 2017 compared with £27,719,411 the year before. Adjusted Ebitda fell 127% to minus £402,000 compared with £1,473,000 the previous year, according to accounts filed at Companies House. Restaurant Editda dropped 15% to £3,933,000 compared with £4,650,000 the previous year. Pre-tax losses were up 239% to £17,918,000 compared with £5,282,000 the year before. It closed two loss-making restaurants, in Manchester and Liverpool, during the period. The company stated: “During the year the group continued its expansion programme with two new restaurant openings, one in Oxford Circus, London, and one in St Albans. Trading to date at these sites has been in line with expectations. The decision was taken to close two restaurants in the year, one in Liverpool and one in Manchester. The business also undertook a significant cost reduction exercise in light of challenging market conditions. The company now operates 15 sites (including one under franchise in Dubai). During the period the group made a loss of £17,825,762 (2016: loss of £4,935,104) and the statement of financial position showed a deficit of £35,166,225 (2016: deficit of £26,779,776) due to long-term liabilities amounting to £49,799,638 (2016: £48,488,199). This includes loan notes and accrued interest owed to the company’s investors, which do not fall due for repayment until at least 31 March 2020, and preference shares, treated as debt, which have a redemption date of 2023. As the trading conditions in the casual dining sector in 2017 have and continue to be challenging due to competition and macroeconomic uncertainty, the directors have conducted sensitivity analyses on these projections and have concluded there will be sufficient resources available to meet the group’s liabilities as they fall due for at least that period. This is due to the group returning to being cash generative at the operating level following the closure of two loss-making units in 2016/17 and recent cost reduction measures taken, and therefore operating within its loan facilities available based on current expectations of trading.” To further facilitate the restaurant expansion programme, a £17,000,000 facility was entered into on 23 June 2016 with Muzinich & Co and Barclays. The facility is to be fully repaid on 23 June 2023 and interest is accruing at a rate of Libor plus 6.5%. Last month, Busaba Eathai announced chief executive Jason Myers is set to leave the business at the end of November.