Green ditches dividend amid falling Arcadia profits. By Dan Martin

Billionaire retailer Sir Philip Green will not take his usual bumper dividend this year after his fashion business saw pre-tax profits fall by 20%.

Results released by the Arcadia group, which includes Top Shop, Burton, Dorothy Perkins and Miss Selfridge, showed pre-tax profits dropped from £253m to £202.4m in the year to September.

The decline was a consequence of disappointing sales figures for the company.

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Comments
richard.murphy's picture

The dividend could not be repeated

richard.murphy | | Permalink

The company had negative retained reserves after last year's bumper dividend. You might get away with that once, but not twice.

I would suggest that the straightforward perception of the dividend as a payment to shareholders out of profit might need to be revised in this case. That particular, record breaking, dividend was somewhat more complex than that.

See my thoughts on this at http://www.taxresearch.org.uk/Blog/2006/06/19/sir-philip-green-the-rewards-of-tax-avoidance/

Richard Murphy
http://www.taxresearch.org.uk/blog/.