Mr Green has seen the fortunes of former takeover target M&S improve

Bhs reported sales of �889.2m ($1.5bn) in the year to 2 April, as operating profits fell 5.8% to �105.1m.

Billionaire owner Philip Green - who attempted to buy M&S in 2004 - said the market for Bhs remains "challenging".

The tycoon said he would not be paying himself a dividend this year. Mr Green took a �40m dividend from Bhs in 2004.

'Credible performance'

Managers shared a total dividend payout of �199.5m last year, after Bhs reported a record operating profit of �111.6m.

However, Bhs's latest results were in contrast to the 1.3% rise in sales for the 12 weeks to 1 October reported by rival retailer M&S, on Tuesday.

The upturn in sales at M&S followed a 5.4% decline in the previous quarter

"The middle market continues to be challenging," said Mr Green. "I believe our results for the last financial year represent a credible performance."

The retail tycoon attempted to buy M&S in a long running takeover saga last year. But, he failed to win over enough M&S shareholders for his �9bn bid.

Mr Green owns the Arcadia group of High Street stores, which includes Top Shop, Dorothy Perkins and Miss Selfridge.