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Philip Green's Arcadia profit dented by BHS losses

For the ninth year in a row, Philip Green Arcadia group will not pay a dividend
For the ninth year in a row, Philip Green Arcadia group will not pay a dividend

Arcadia, the retail group owned by the family of billionaire Philip Green, posted a 3% fall in annual profit. 

Strong performances from the Dorothy Perkins and Wallis brands were offset by more losses at department store BHS. 

The group, which also owns the Topshop, Topman, Burton, Miss Selfridge and Evans brands, said it made a profit before tax and one-off items of £143.1m in the year to the end of August, down from £148.1m in 2012-13. 

Total sales were up 1% to £2.71 billion. 

Echoing other UK retailers, Green said that in the first 10 weeks of Arcadia's 2014-15 year sales at stores open over a year, including VAT sales tax, were down 1.2%, affected by unseasonably mild and wet weather. 

The group generated £316.8m of cash during 2013-14 and ended the year with net cash of £205.1m. But for the ninth year in a row, Green did not pay a dividend. 

Losses at BHS widened to £21m in 2013-14 from 19.3 million the year before. 

Green, who bought BHS for £200m in 2000, said turning round that business remained challenging, though a trial of three food stores within BHS had "traded favourably" so far. 

The tycoon purchased the rest of Arcadia for £850m in 2002 and a decade ago he failed in a second attempt to buy Marks & Spencer, Britain's biggest clothing retailer by sales value. 

In 2012 he sold a 25% stake in Topshop/Topman to US private equity firm Leonard Green & Partners for £350m.