Philip Green has transformed Arcadia since he took it over

He and his family are to receive the pay out after the Top Shop group unveiled annual pre-tax profits of �246m, up from �160m on the year before.

Total sales for the firm, which also includes Burtons and Dorothy Perkins, remained flat, up just 0.8% at �1.66bn.

Earlier this month, Mr Green also collected �40m in dividends from his other business - department store Bhs.

Tough market

Mr Green and his family get �460m of the Arcadia's total �500m of share dividends because they own 92% of the retailer.

The balance is going to banking group HBOS, which owns the remaining 8% stake after it backed Mr Green's �850m purchase of the business in 2002.

"We have continued to work on our supply chain, speed to market and the customer demands of newness in store to great effect," said Mr Green.

"The market remains challenging but we are confident that further progress can be made with our world-class brands."

Analysts said Arcadia had set the pace for other clothing retailers.

"A stunning set of numbers," said Richard Ratner, of Seymour Pierce.

"It shows what can be done with excellent sourcing and control of markdown."

Building a war chest?

In the summer, Mr Green failed in a �9bn-hostile takeover bid for Marks and Spencer.

Some analysts speculate that the entrepreneur may now use his latest bumper dividend to build up a war chest for potential future acquisitions, including a possible return to the doors of M&S.

Arcadia's other brands include Evans, Miss Selfridge, Outfit and Wallis.

The group has a total of more than 2,000 retail outlets.