River Island bonanza as dividend trebles to £90m
THE clan behind the River Island clothing business has paid itself a £90 million dividend from its vast property and investment empire.
The Lewis family trust, which has property developments from London to the Caribbean, has divided the sum between about 40 shareholders and family members.
Documents show the bumper payout – up from £30 million last year – represents by far the biggest annual dividend by the family’s investment arm since it was split from the retail division at the end of 2014.
The River Island dynasty was created by Bernard Lewis, 91, and his brothers, who began running shops selling wool in 1948. The family changed the name of its Chelsea Girl retail chain to River Island in 1988.
The payment comes amid evidence that the River Island chain, run by Bernard’s nephew Ben Lewis, has defied the gloom that has struck many of its high street rivals.
Separate documents filed by the family show sales at the retail business rose 4 per cent to £971 million in the year to December. Profit increased 1 per cent to £125 million.
River Island has been enjoying popularity among fashion-conscious young shoppers and stylish mothers. Analysts say it has a knack of putting the right garments on the rails at the right time. Other brands such as Topshop have struggled to keep pace with online and discount rivals.
By the early 1980s, the Lewis family was investing the returns from their retail outlets into property and other assets.
UK & European Investments, the property arm of the family trust, has developed more than 1,000 residential units in Britain in the last ten years, including homes in trendy Shoreditch, East London. It also owns 50 retail properties with many in prime locations.
In addition it has invested in property developments on the Continent and in the US.
The Lewis family also owns City fund management firm Cavendish Asset Management, which had £1.4 billion investments under management at the end of last year. That increased from £1.2 billion in the previous year.
The family declined to comment.