Bhs entrepreneur Philip Green in line for £180m windfall as profits treble

The Bhs entrepreneur Philip Green continued his remarkable turnaround of the high street retailer yesterday with trebled profits and the promise of more to come.

The news was accompanied by confirmation that Terry Green (no relation) is to leave as chief executive at the end of June after failing with a bid for the company. He has also decided not to bid for Rubicon, the retail chain that includes Warehouse, Hawkshead and Racing Green. He is considering other deals instead.

Philip Green, who paid £200m for Bhs two years ago, declined to comment on reports that he will pay himself a £180m dividend after profits soared to £100m and Bhs's estimated value surged to £1bn.

He confirmed there would be a payout to shareholders (he owns 95 per cent of Bhs) but declined to say what he would do with the money. "Dunno," he said. "I might buy a newspaper."

Asked why he had turned down Terry Green's offers, he said: "Because I've got sufficient confidence in the business. I don't need to sell it." On the possibility of a stock market flotation Philip Green said: "We don't need to float. The only basis would be if we wanted to acquire something and needed cash and paper."

Further deals are being considered by the man who came close to a hostile bid for Marks & Spencer two years ago. "We're always looking. Terry's looking at various things too. He's got my advice. It is disappointing he's leaving but he wants to do something for himself."

Terry Green will be replaced by Paul Coackley, the current finance director, who will become chief operating officer. Commenting on his departure, Terry Green said: "We had two goes at buying it but the recovery was always racing ahead of the numbers. He was probably right not to sell it." He said he would receive a bonus from Bhs but declined to say how much.

The comments came as Bhs reported operating profits of £100m for the year to 30 March, up from £33m a year ago. Turnover rose 7 per cent to £851m with like-for-like sales up 5.4 per cent. Mr Green, who spent £5m on a three-day party in Cyprus earlier this year to celebrate his 50th birthday, said attention to retail basics had provided the basis for Bhs's turnaround: "The main thing we've done is improve the supply chain."