More Green magic from 'solid' Bhs

RETAIL tycoon Philip Green will be back in the news this week with the unveiling of a 'solid set' of results at his Bhs department store group.

Though like-for-like growth has not been substantial, a source claimed that the chain will show further significant improvements in profits.

'Most of the High Street is finding things tough at the moment and Bhs is no exception,' said the source. 'But where Green wins against the competition is by consistently making impressive improvements in margin.'

The results come just weeks after Green announced a surge in profits at Arcadia group, which includes Burton and Topshop. Green, who bought the Arcadia fashion group less than a year ago for £866 million, reduced bank debt from £807 million to £400 million and forecast the business would be debtfree by the middle of 2005.

Green has already made a fortune from Bhs, quadrupling its value since he bought the company for £200 million in 2000.

He would not comment on the Bhs figures ahead of this week's announcement, but he disputes claims from researcher Taylor Nelson Sofres that his share of the childrenswear market has dropped by up to eight%. Green said his childrenswear was in fact up by nearly two% over the past six months.

Green announced last Thursday that he was no longer interested in bidding for supermarket chain Safeway.

His decision followed a meeting two weeks ago between Lord Grabiner, chairman of Arcadia, Allan Leighton, the Bhs chairman, and the Office of Fair Trading.

Green's team concluded it would be too complex to dispose of any stores because every deal would have to be approved by the competition authorities. The decision leaves the way clear for Morrisons to make an offer.