Britain's biggest supermarket group Tesco delivered strong first-half results while it reassured investors that British sales had merely returned to normal while its overseas business had expanded.

"Our overall sales growth is up there with the best in the world and our profits growth is very strong considering the global market background," according to Mr Terry Leahy, Tesco's chief executive, yesterday.

Tesco reported that group pre-tax profits before goodwill and disposal costs were up 13.3 per cent to £545 million sterling (€864 million).

Sales rose by 32 per cent to £12.7 billion (€20 million) for the six months to August 10th, towards the top end of expectations.

Tesco Ireland recorded an 8.4 per cent increase in sales to €786 million.

The company said further progress had been made in new store development with approvals granted for three new stores in Dublin, Waterford and Youghal and two replacement stores in Carlow and Letterkenny, Co Donegal.

In a statement, the group said that current trading at Tesco Ireland was in line with the company's expectations.

Overseas sales rose 32 per cent, while profits from that part of the business grew 79 per cent to £59 million. - (Reuters)