Bhs – turnaround strategy on track

Sir Philip Green, the British billionaire businessman, has insisted that his turnaround strategy for Bhs is on track after revealing a small upturn in profits. Sir Philip purchased the company in 1999 for £200 million when other retailers had written it off.

Sir Philip is positive despite some analysts predicting the end of Bhs following tough competition form its rivals such as Marks & Spencer and online retailers.

Sales at the group increased 1.4% to £872.5 million in the year to the end of March, however, like-for-like sales fell by 1.5%. Profits increased 3% to £50 million but Sir Philip did not pay himself a dividend and stated that he’d rather get the business back in the right place.

Sir Philip commented that the summer months were difficult due to unseasonable weather so this was a good result. The clothing guru is currently busy promoting Topshop - part of the Arcadia chain that he owns with his wife Tina, the chain also includes Burton and Dorothy Perkins.

He is expecting the problems in financial markets to have at least some impact in the run-up to Christmas. Prior to the credit crunch, Bhs was being managed with caution. Bank debts have been reduced from £115 million to £62 million. The majority of Bhs’s stores are in need of refurbishment, with 19 due to be completed by the end of 2007.

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