By Marcus Leach

A 38% fall in full year profits has prompted Arcadia, the firm who owns Top Shop and BhS, to announce the closing of 260 stores over the next two years.

Speaking with the BBC Arcadia's owner Sir Philip Green said that the closures would happen as and when store leases run out.

Financial highlights:

- Robust headline cash generated of £297.4m (£383.1m last year).
- Total Group operating profit before goodwill of £190.4m.
- Total Group pre tax profit of £133.1m.
- The margin was down -1.8% points v last year (equal to £52.4m).
- Total sales of £2,682.5m.
- Total UK VAT inclusive like for like (LFL) sales were -1.8% on last year.
- E-Commerce sales grew by +27% while the underlying retail LFL was -4.3%.

"Trading conditions remain extremely challenging, with style, quality and value at the top of our agenda and more important than ever," said Sir Green.

"Additionally, the warmest October and November on record have made autumn trading much tougher.

"We have got - from my memory - 450 or 460 stores where leases expire in the next three years. And I think on our latest summary we will close more than half of those on lease expiry. So I would say, I would expect us to close 250, 260.

"Now, there may be other opportunities that turn up that we might want to open. But certainly, in terms of our existing portfolio, currently that's our thinking."

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