By Marcus Leach

Tesco has reported net profits of £3.535 million, before tax, for the year to 26 February 2011, an increase of 11.3% from the previous year.

Overall sales were up 8.1% to £67.6 billion, a fact that pleased new Chief Executive Philip Clarke

"I am pleased with our strong overall performance in the face of some challenging conditions and we are well-positioned, with multiple opportunities to deliver long-term growth and rising returns," he said.

"I want to thank the 500,000 people who work at Tesco for their contribution to this performance.

"We have equipped the business for global growth with new management structures and teams — including an experienced UK Board, which is bringing more focus and energy to our largest business. Asia and Europe made excellent progress contributing nearly 70% of our profit growth in the year. The momentum in the USA is building but still has some way to go."