Pho eyes expansion as performance ‘buoys confidence’

Vietnamese restaurant group Pho is eyeing continued expansion after seeing turnover increase by more than 30%.

The group reported that turnover grew by 33.6% to £58.3m in the 12 months to 19 February 2023. However, on the backdrop of cost pressures, gross margins fell from 81.4% in FY22 to 78.3%, and profit before tax reduced from £5.6m in FY22 to £1.8m.

Within its financial results the group said: “There have been a number of challenges for the hospitality sector in the year, principally fluctuations in supply chain pricing and utilities as a result of the ongoing conflict in Ukraine, which the industry has to absorb.”

Despite cost pressures the group said its performance had “buoyed director’s confidence in the recovery of the market”.

In 2021 private equity firm TriSpan has announced that its dedicated restaurant fund Rising Stars had acquired a significant majority stake, bringing investment that has seen five sites open taking the portfolio to 37 restaurants and five dark kitchens.

The group said that since year end additional funding has been secured to allow for continued expansion through the next several years.