Billionaire entrepreneur Sir Philip Green said his Bhs business now has a “good platform from which to develop”, after stabilising performance last year.

The clothing and homewares group recorded a 3 per cent increase in operating profit to£50 million on sales up 1.4 per cent to£872.5 million. Like-for-likes fell 1.5 per cent over the period to March 31.

Since then, same-store sales have been flat until the last six weeks, when they showed a 3 per cent improvement.

Green said he had refurbished 19 shops since the start of the year and that they were delivering sales 12 per cent ahead of the rest of the chain. He will accelerate the revamp programme in the new year, “subject to the final quarter’s trade”.

He said that the market remains competitive and cost growth was “challenging”, but insisted: “The company continues to generate strong cashflows, resulting in a virtually ungeared business.” Bank debt has been cut from£115.2 million to£61.8 million.

Bhs declared no dividends for the year.

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