Fashion chains Topshop and Topman had their best ever years in the 12 months to August 28, as pre tax profits at parent Arcadia Group climbed 6.4% to £213.2m.
Arcadia’s UK like for like sales grew 1.3% during the period - which Sir Philip Green hailed as a “good performance in a competitive and challenging year”.
“The continuity of our senior management together with all the talent we have across our brands enables the business to continue to focus and deliver both operational efficiency and manage our costs and cash whilst most importantly supplying merchandise our customers want to buy,” he said.
Arcadia said UK like for likes at Bhs grew by 0.9% compared to 1.5% across Arcadia. Green said: “Our leading fashion brands Topshop and Topman have again had a strong year producing record turnover and profit.”
Arcadia generated £386.2m in cash during the period - £42.8m more than last year - and reduced its bank debt by £146.3m to £464.1m.
It also opened 215 concessions in Bhs of other Arcadia fascias - most of which were Wallis and Dorothy Perkins.
Green said Arcadia Group also got off to a positive start to the current financial year and reported a 1% increase in UK like for likes for the first 11 weeks.
However, he said he remained “cautious” about the year ahead because of the climbing cost of raw materials, wages, rates and the January increase in VAT to 20%.