Profits slump 42% at Sir Philip Green's fashion empire
Profits at Taveta Investments, parent company of Sir Philip Green's Topshop to Burton fashion empire Arcadia, slumped by 42% in the year to 26 August 2017.
The group, which has just released its headline figures of the 12-month period, said that it made operating profits before goodwill, amortisation and exceptional items of £124.1m on total sales down 5.6% at £1.9bn.
Taveta chief executive Ian Grabiner said the business had suffered due to the ongoing challenging retail environment but said its online sales had shown positive growth and that the business had a strong cash position.
"Our worldwide digital sales were +11.5% v last year. The increase in digital sales is taking place at the expense of traditional 'bricks and mortar' retailing, as consumers embrace the opportunity to purchase across all the channels available to them.
"Whilst we have found headline sales and profits disappointing, we remain a strongly cash generative business and had a positive net cash balance at the year end of £157.2m," Grabiner said.
He added that the company was also set to open a new distribution centre in Daventry next year to support the expansion of its online business.
The Arcadia group comprises Topshop, Topman, Dorothy Perkins, Miss Selfridge, Wallis, Outfit, Evans and Burton.