Supermarket giant Tesco has delivered full year results in line with latest market consensus, and said it would pump one billion pounds into a revamp of its UK operations.

The firm's UK woes were highlighted as it reported UK sales, excluding petrol and VAT, were down 0.6% on the previous year. Profits at the UK operation fell 1% to £2.5bn compared with the year before.

Like-for-like sales in the UK, excluding VAT and petrol, fell 1.6% in its fourth quarter, with analysts saying the company had taken its eye of its home market while chasing expansion in Asia and the US.

Tesco chief executive Philip Clarke said: ‘Whilst our International business is delivering excellent growth, contributing £1.1 billion of profit to the group, we fully recognise that we need to raise our game in the UK.'