Arcadia Group, which owns chains such as Dorothy Perkins, Topshop and Miss Selfridge, has seen pre-tax profits rise 6.4 per cent to £213.2 million in the full year ended 28 August.

Operating profit increased 10.4 per cent to £279.6 million, while total group sales reached £2.8 billion. On a like for like basis total UK sales rose 1.3 per cent.

The group said that it had seen cash generation rise £42.8 million to £386.2 million, while capital expenditure was reported as being £112.6 million.

Bank debt fell from £610.4 million to £464.1 million.

Sir Philip Green, owner of Arcadia, said, "I am pleased to be able to report operating profit for the group of £279.6m, up 10%, and excellent cash generation of £386.2m, up £43m on last year. I believe this to be a good performance in what was a competitive and challenging year.

"The Arcadia Group together with Bhs now has some 44,000 people working across our different businesses. The continuity of our senior management together with all the talent we have across our brands enables the business to continue to focus and deliver both operational efficiency and manage our costs and cash whilst most importantly supplying merchandise our customers want to buy.

"Our leading fashion brands Topshop and Topman have again had a strong year producing record turnover and profit. During the year we have created 215 concession departments within Bhs with Wallis and Dorothy Perkins being the main beneficiaries. The enlarged Group now operates from 2,542 owned and 579 franchised outlets trading in 37 countries.

"We have continued to invest capital in our business and taking into account last year's expenditure we have invested £600m over the last 5 years. UK like for like sales in the first eleven weeks of the new financial year were up 1.0%.

"In respect of the year ahead, I have to remain cautious, with increases in VAT, rates, raw materials and some wage inflation. I will however look to grow the business both at home and overseas."