No dividend for Bhs boss after sales decline
British retail tycoon Philip Green today resisted the temptation to pay himself a dividend from his Bhs empire, after sales and profits went into reverse.
Operating profits of £105.1m (€153m) banked during the 53 weeks to April 2 were kept within the business, after Mr Green declined to repeat the £199.5m (€290.4m) dividend payout of last year.
His decision followed a tough year for Bhs, with like-for-like sales falling 3% and operating profits declining at nearly twice this rate.
However, Mr Green remained upbeat about the strength of the business and said the performance was credible in the current retail climate.
Sales totalled £889.2m (€1.2bn) during the year, and Mr Green said revenues at Bhs since then were 4% lower than the previous 12 months.
“The middle market continues to be challenging,” said Mr Green, who also owns the Arcadia group of companies that includes high street stalwarts like Top Shop and Dorothy Perkins.
Today’s results were unveiled just 24 hours after a positive trading update from rival retailer Marks & Spencer, which Mr Green tried to buy in a £9.1bn (€13.2bn) takeover campaign last summer.
M&S said like-for-like sales increased by 1.3% in the 12 weeks to October 1, although this followed a decline of 5.4% in the previous quarter.
