Arcadia Group sees high street increase

Arcadia Group has posted a small rise in annual profits as conditions on the High Street continue to challenge retailers. Pre-tax profits at the privately held group rose to £252.79m, compared to profits of £246.33m last year. Philip Green will get most of Arcadia 's final share dividends of £1.3bn as he owns 92% of the firm which includes Top Shop, Dorothy Perkins and Etam.

The balance will go to banking group HBOS, which owns the remaining 8%. The bank backed Mr Green's £850m purchase of the business in 2002. Mr Green's interests are partly held by his family. Operating profits at Arcadia rose 10.1% to £326.1m, but current trading conditions were described as challenging. "I am delighted to announced that our third year, since acquiring the business in October 2002, has again produced an excellent set of results," said chairman Philip Green.