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Philip Green’s Arcadia has reported losses of £169.2m in its latest accounts posted on Companies House, blaming the “dramatically” changed retail landscape.
For the 53 weeks to 1 September 2018 Arcadia losses totalled £169.2m compared with £49.4m profit the previous year. Its turnover also fell 4.5% to £1.8bn.
However the losses appear to have been driven by exceptional items and other one-off costs, as operating profit (which does not take account of one-offs) was £78.1m, though still down from £124.1m they previous year.
The group said the results reflect the “ongoing challenging global market conditions for retailers” and that the retail landscape has “changed dramatically” over recent years with the “increased competition” from other high street and online retailers having a “significant impact” on its performance.
The results are from Taveta Investments, the holding company of the Arcadia group of businesses owned by Green’s wife Tina.
On a pre-tax basis, Taveta’s losses were £177m compared with profits of £53.5m a year ago. Results for Arcadia, filed separately also on Companies House today (5 September), indicate a pre-tax loss of £93m compared with £164m in the previous year.
Earlier this year the retail group approved a company voluntary arrangement (CVA) in June, allowing it to restructure and close over 23 stores, and putting up to 1,000 jobs at risk. The company was also forced to deny reports this week it was considering breaking up the retail group in order to prepare for a potential sale of the brands.
Arcadia declined to comment further on the results.
