Green makes fastest £1bn in history

Retail billionaire Philip Green, one of the most powerful men in the High Street, today delivered a spectacular profits surge at Arcadia, the Dorothy Perkins- to- Burton- and- Top- Shop empire he bought for £850 million less than a year ago.

Operating profits have more than doubled from £108.5 million to £227.9 million in the year to 30 August, and cash generated by the business has enabled Green to repay more than £580 million of the debt taken on at the time of the deal. That is more than three years ahead of his own schedule.

The results far surpassed City expectations and mean that Monaco-based Green has effectively added another £1 billion-plus to his fortune in 10 months. Valuations of Arcadia under his ownership range up to £2 billion.

But Green, who made his first billion when he acquired Bhs in 2000, said: "I would rather focus on what the business has done and what the people have done rather than what I am worth."

He said: "The figures show that this is not magic. They are very seethrough. I hope people will see and understand that the retail formula we operate works not just across one brand, but across the length and breadth of the High Street."

Green, whose family owns 92% of Arcadia, has not taken any dividend. He said: "The priority is to repay debt first." At Bhs, which reports on 6 November, he paid himself £160 million in dividends last year.

Green said the key factor in the turnaround was devolving power to the individual retail chains, from Burton to Miss Selfridge, Evans, Dorothy Perkins, Top Shop and Top Man. Stock is being turned round faster, buying has been improved and costs cut. The best performers were Dorothy Perkins, Top Shop and Top Man.

Trading in the new financial year has got off to a good start, Green said, with underlying sales ahead by about 2%. Total sales are up by 4.3%.