Arcadia looks overseas to grow profit

ARCADIA, the owner of retail chains including Topshop and BHS, is planning further international expansion

after posting a 6.4 per cent rise in pre-tax profit to £213.2m for the year to the end of August yesterday.

Arcadia Group’s operating profits increased 10.4 per cent to £279.6m in the year, on sales up 40 per cent to £2.8bn.

Total sales were £2.8bn with sales at UK stores open at least a year up 1.3 per cent, and up one per cent in the first 11 weeks of the new financial year.

However, UK like-for-like sales growth at the group – which also includes Miss Selfridge, Burton, Dorothy Perkins, Wallis and Evans – has declined in recent weeks.

Sir Philip Green said he was eyeing South Africa, Australia and Asia to expand his chains, which include Top Shop and BHS.

Arcadia already has 2,542 owned and 579 franchised outlets in 37 countries. The group has just agreed to open five stores in Brazil, and is in discussions to set up in South Africa and Australia.

Green said: “We also have get to go to Asia. We’ve got to sit down and draw up a business plan. I remain cautious about the year ahead, with increases in VAT, rates, raw materials and some wage inflation. But I look to grow the business both at home and overseas.”

The company said that Green will not receive a dividend.