Sir Philip Green has denied himself a dividend from Bhs

Retail tycoon Sir Philip Green has denied himself a dividend from his Bhs department store chain for a third year running, despite signs that the chain is beginning to reap the benefits of store upgrades.

The company reported a 3% rise in operating profits in the year to March 31, to £50m, on sales up 1.4% at £872.5m. Pre-tax profits climbed from £42.2m to £49.4m as debt interest payments fell.

As well as store revamps, the chain has also strived to improve its clothing ranges. The decline in like-for-like sales slowed to 1.5%, from 7.1% in 2005-06, while the operating margin climbed 0.1% to 5.7%.