River Island, owned by the billionaire Lewis family, has paid a £100m dividend despite only making £149.1m profit for the year to December 27 2014.
Documents filed at Companies House said “directors approved the payment of a dividend of £100m”. A spokesman for River Island told the Daily Mail the £100m had been reinvested into the group and was not paid to the Lewis Family.
The documents also showed the business had been formally valued and is worth £1.6bn.
River Island was part of a larger holding company called L51N owned by founder Bernard Lewis and his family. During the year, the family sold its stake in River Island to another firm within the group for £1.6bn, placing it into a separate subsidiary.
A spokesman told the newspaper the sale was “internal housekeeping”.
Pre-tax profit for River Island increased to £149.1m for the year from £88m, while sales increased to £925.8m from £838.6m.