River Island owners pay dividend
24th August 2009
The high street fashion chain River Island, has paid a dividend of up to £250m in spite of last years profit drop of nearly 30%. Worth close to £1bn, River Island is headed by Bernard Lewis and is one of UK 's richest, having turned River Island into an international success story with 250 shops in 13 countries and £700m in sales. The Lewis Trust Group (LTG) paid a dividend of nearly £243m in April, with the sum transferred to holding company LTG UK, in which the group 's ultimate parent, the Cayman-Island based LFH International, is a shareholder.
LTG 's extensive property interests include a hotel in Eilat, Israel and a luxury resort, the Ritz-Carlton in Palm Beach, Florida. The hotels were largely responsible for the profit decline, down from £150m in 2007 to £106.8m in the year to 31 December as trade dwindled in the recession. Losses at the hotel division widened from £3.3m in 2007 to £15.8m in 2008, while its property arm slumped to a loss of £9.4m. The retail arm, including River Island and a wholesale business, saved the day with profits up £8m at £161m. Subsidiary River Island Clothing had paid its parent a £100m dividend in 2008, topped up in April with a further £192.6m. At the end of the year LTG had net assets of £991m.
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