Sir Philip Green's Arcadia Group has reported a 6.1 per cent fall in operating profits, but its young fashion brands including Topshop enjoyed a record year.

Sales were down 0.6 per cent to£1.85bn, down 2.8 per cent like for like. Operating profit was£275.3 million, with EBITDA falling 4.2 per cent to£339.6 million.

Green said that Arcadia's young fashion brands Topshop, Topman and Miss Selfridge all had record years, but that its mainstream brands, which include Wallis, Dorothy Perkins and Burton, had experienced a tougher time.

Sales since the end of the financial year are down 1.8 per cent.

Green said he had invested£85 million in the business over the year, focussing on new space and developing the brands' web presence. 210,000 sq ft of new space is planned in the UK in the next year, with 126,000 sq ft opening internationally, including the Topshop flagship in New York.

"Our attention to detail and operating efficiency has never been more important," said Green. "We have tried to ensure that the customer sees newness and excitement in stores on a regular basis."

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