Financial highlights:

• Continued strong cash generation from the underlying business of £325.0m

(last year £330.4m).

• Total Group operating profit before goodwill and exceptionals of £220.9m

(last year £225.2m).

• Profit before tax of £481.0m after exceptional items incorporating the sale

of a 25% share in TOPSHOP and TOPMAN.

• Underlying profit before tax pre exceptional items was £167.8m, +£0.9m v

last year (£166.9m).

• Total sales of £2,735.7m (last year £2,679.0m). Total LFL sales were down -2.7%.

• Retail margin up 1.2% points versus last year.

• Continued investment in the business with capital expenditure of £87.0m

(last year £79.2m), taking our total investment since we acquired the business

in October 2002 to over £1.1bn.

• Year end net cash of £74.7m compared to bank debt of £308.9m last year.

Commenting on the announcement Sir Philip Green said:

“We are very pleased to report strong cash generation from the underlying business of £325m, despite the on-going challenging global economic conditions.

Over this past financial year, there has been further significant investment in the businesses, both in the UK and overseas.

We continue to be active with our UK portfolio creating new and exciting concepts where there are strategic opportunities to do so.  All brands have benefited from both refurbishments and new store concepts during the last year with some good results.   Most recently, we have completed the reconfiguration of all our stores at Bluewater.  We are now in the process of selecting a group of stores from all brands to upgrade and refurbish in the next 6 months.

Internationally, our franchise business has opened 127 new outlets this year (of which 50 were TOPSHOP/TOPMAN outlets) taking our total to 659 franchised outlets operating in 42 countries (TOPSHOP/TOPMAN 261 franchised outlets operating in 35 countries). Our growth overseas accelerates with a further 161 new store openings planned for the coming year, with several further markets under discussion.

In addition, Europe has become a significant focus for us, with 11 TOPSHOP/TOPMAN concessions recently opening in flagship department store locations across Europe. These include Galeries Lafayette in Paris, De Bijenkorf in Amsterdam and Karstadt and KaDeWe locations across Germany.

Following Leonard Green and Partners’ investment in TOPSHOP/TOPMAN, we are collaborating closely with them and continue to drive and grow our US business.  We opened our fourth US fully-owned TOPSHOP/TOPMAN flagship store in The Grove in Los Angeles in February 2013, and we have several further stores identified in the US  that are under negotiation.

Again within the US, we are pleased with our multi-channel business partnership with department store group Nordstrom having initially opened 14 TOPSHOP/TOPMAN departments as well as trading on their website. We have recently opened a further 28 TOPSHOP and 18 TOPMAN departments and discussions are continuing to further expand this partnership.

We are also happy with the successful introduction of TOPSHOP into Hong Kong with partners Lane Crawford in June of this year.

It is our intention to continue to drive overseas expansion through both owned, concession and franchise stores and through our international on-line business in the year ahead.

We are supporting the buying process within our brands with a specialist sourcing function dedicated to improving efficiency, flexibility and speed to market.  This has led us to work closely with several factories in the UK and Europe enabling us to deliver more choice, more often, to our customers.

Trading conditions remain challenging, therefore exciting and engaging our customer across multi-channels is at the top of our agenda.  Product handwriting, quality and value continue to be more important than ever.

In the first 10 weeks of 2013/14, total VAT inclusive LFL sales were down -3.7% versus last year affected by unseasonably mild and wet weather.

Finally, in these very tough times, I would like to thank all of the staff within Arcadia and BHS for their commitment, energy and enthusiasm and our customers for their continued loyalty in shopping across our various high street brands.”

- Ends -

Enquiries to:

Tania Foster Brown

Telephone: 020 7927 1720

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