U.K. billionaire Philip Green, paid himself 1.2 billion-pound dividend after annual operating profit rose by 10.1 percent in his Arcadia group, whose store chains include Burton, Dorothy Perkins, TopShop and Miss Selfridge.
Arcadia Group was bought over by Monaco-based Green three years ago at a cost of 850 million pounds. 92% of the stake is owned by Green and his wife, while remaining 8% is owned by U.K. bank HBOS Plc. Sales at Arcadia have registered an increase of 3 percent since the end of the financial year reportedly. Green feels that ``the market remains challenging and extremely competitive''.
Green and his wife are ranked world's 68th-richest people by Forbes Magazine. Their personal worth is approximately estimated at $6.3 billion. In addition, he also owns a major stake in the British department store group Bhs.
Bryan Roberts, London Based Planet Retail’s says: ``It underlines what a savvy trader he is in terms of buying undervalued assets and rejuvenating them. He undertakes significant risks when he buys these retail assets, and who's to argue that he doesn't deserve significant rewards?''
The company increased its profitability over the year as it was able to establish better buying terms with suppliers. Arcadia has more than 2,200 shops across the U.K. It nearly spent 65 million pounds last year opening new outlets and refurbishing others. Apart from adding 95 stores in this year along with those that came with the acquisition of the Etam chain, U.K, it plans to open 48 more this year.
Enhancements in the speed of taking stock to market and in inventory control also is believed to have helped Arcadia earn more than 400 million pounds revenue in cash.
According to a statement issued by the company, net income at Arcadia fell to 184.9 million pounds now from 188 million pounds last year due to increase in the taxation charge.
Posted
on : Fri, 21 Oct 2005 07:40 GMT | Business News
By : Anne Philips
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