Mr Green's management skills have been praised

The flamboyant Monaco-based entrepreneur bought the Topshop to Miss Selfridge empire less than a year ago for �850m.

Under his stewardship, the group's operating profits have more than doubled from �108.5m to �227.9m, in the year to the end of August, according to figures released earlier on Thursday.

The transformation has seen estimates of Arcadia's market value soar - potentially adding more than �1bn to Mr Green's personal fortune.

'Outstanding abilities'

The resulting cash bonanza has enabled him to pay back more than �580m in debt he took on at the time of the deal - three years ahead of his own schedule.

The customers today want new product more often than they ever wanted it before Philip Green

It has also led to glowing praise from City analysts about Mr Green's retail management skills.

Richard Ratner, of analysts Seymour Pierce, said: "Philip Green has outstanding abilities in sourcing, as well as tremendous financial acumen, and his restructuring of the group operationally is paying huge dividends."

Arcadia is now one of Europe's biggest privately-owned companies.

According to figures released on Thursday, total annual sales increased 3.3% to �1.8bn.

Mr Green - who was catapulted into the billionaire's league when he bought BHS in 2000 - attributed the results to a shake-up which effectively split Arcadia into eight companies.

Fast turnover

Arcadia's focus on faster in-season stock turnover had led to improved markdowns and margins, Mr Green said.

"The customers today want new product more often than they ever wanted it before," Mr Green told the BBC.

Fast turnover of new lines was the key, he added, because "you sell more full price, you don't have to keep discounting, you don't get into sale mode."

He also pointed to the success of a new store-opening programme.

"Our trading philosophy, together with our attention to detail and retail disciplines, will produce further improvement in the current financial year," said Mr Green.

'Encouraging' start

The retail entrepreneur is now the biggest seller of women's wear in the UK and presides over the country's second largest clothing group.

Arcadia's eight brands are Dorothy Perkins, Miss Selfridge, Wallis, Burton, Topshop, Topman, Evans and Outfit.

Since taking over Arcadia, which employs 24,000 people, Mr Green has given each of its various store chains its own brand director, supported by a finance, human resources and operations director.

Arcadia said trading in the early stages of the new financial year was "encouraging".

Mr Green has emphatically ruled out floating his retail empire on the stock exchange.