Tesco progress buoyed by Asian growth

Tesco has reported full-year profits before tax of £3.54 billion.

Tesco has reported full-year profits before tax of £3.54bn, up 11.3% from a year ago. The figures have been buoyed by growth in Asia.

Trading profits in Asia were up 30%, offsetting a disappointing performance in the retailer's core UK market, which accounts for two-thirds of its profits.

Tesco highlighted its strong performance in Thailand and South Korea in particular.

But its overall result in Asia was flattered by the strengthening of local currencies, which contributed some 12 percentage points of the 30% increase in operating profits for the region.

In its results, Tesco blamed its weaker UK performance on "the impact of high petrol prices on customers' discretionary spending in our stores" and said it expected conditions to remain tough in the coming year.

They are the first results reported under new chief executive Philip Clarke, who took over from Sir Terry Leahy in March.

Clarke has outlined how he plans to soften the supermarket chain's image. The firm has been accused of using aggressive tactics under his predecessor towards suppliers over pricing and towards local councils over planning applications for new stores.

Clarke said, "I'm a little more open, and that's the style that I'd like to have here at Tesco with all of the stakeholders."