Mr Green is getting richer

Mr Green, who last week pulled out of the race to buy Safeway, announced that he had paid himself a �203m dividend during the financial year which ended 29 March.

The sum exceeds the �200m for which he bought BHS three years ago as well as the firm's pre-tax profits during the year.

The dividend will push Mr Green further up the UK's rich list.

Mr Green said he had borrowed an extra �250m in order to finance the cash payout.

"It's normal financing," he said. "It's cheap money... a year's cashflow repayable over five years."

'Improved quality'

Pre-tax profits at BHS dropped to �123.3m from �172.3m a year ago - a figure which had been boosted by property sales.

Mr Green said: "The year to March 2003 was always planned to be a year of consolidation on the back of the significant profit uplift in the previous year.

"We continue to develop our supply chain and speed to market, to ensure improved quality and value is delivered to our customers."

He said trading at BHS would be revitalised by store refits, with 10 already completed.

Stores query

Last year Mr Green expanded his empire by buying Arcadia, whose brands include Dorothy Perkins, Miss Selfridge, Wallis, Burton and Topshop.

Under his stewardship, the Arcadia group's operating profits more than doubled from �108.5m to �227.9m, in the year to the end of August.

But he pulled back from the race to buy Safeway, saying it was unclear after talking with competition regulators whether he would be allowed to sell any of the group's store.

Mr Green is a self-made billionaire with a reputation of having an expert eye for what will appeal to mass-market customers.