High-street mogul Philip Green's Bhs chain has admitted a slip in annual sales and profits a day after ex-bid target Marks & Spencer said it was finally on track with recovering its sales.

Bhs said net sales were static at £889.2 million for the 53-week period ended 2 April, while same-store sales dropped 3 per cent.

Operating profit during the year fell 5.8 per cent to £105.1m.

Bhs also said former marketing director at luxury department store Selfridges had been appointed into the same role at Bhs.

Green attributed the poor results to challenging middle market conditions, and said the company will pursue its programme of new store openings and refittings.