Tesco has exceeded market expectations this morning by announcing a 25% increase in its operating profits before exceptional items for the year to February, growing to just under £1.3bn.

The group's total sales rose by 3.7% to £55.9bn.

But this report also factors in a £235m cost that the firm paid recently to draw a line under its 2014 accounting scandal - which meant that its pre-tax profit fell by 39% to £145m.

Dave Lewis, its chief executive, has committed to keeping in store prices low as the pound's value remains depressed. The said the company is "passing less inflation into the market than any of our competitors."

"The last place we would go is to consider raising prices, we would only do that after exhausting every other option," he continued.

The slimmed-down group doesn’t detail its Irish performance, but it says that operating profits across the UK and Ireland grew by 60% to £800m before exceptional items.

The group has also defended its proposed £3.7bn purchase of the Bookers the British food service and convenience store chain against the criticism of some major shareholders