Tesco has reported “a year of significant progress” in which it saw a return to profit as well as its first quarterly sales growth for three years.

In the best results since before its accounting scandal, the supermarket reported a £162 million statutory pre-tax profit for the year to February 27th, with UK like-for-like sales up 0.9% in the fourth quarter. This compares with last year’s loss of £6.3 billion, the worst results in its history.

Dave Lewis, chief executive: "We have made significant progress against the priorities we set out in October 2014.  We have regained competitiveness in the UK with significantly better service, a simpler range, record levels of availability and lower and more stable prices.  Our balance sheet is stronger and we are making good progress in rebuilding trust in Tesco and our investment case.

“Our process of transformation has generated broad-based positive momentum in the UK and internationally.  We set out to start rebuilding profitability whilst reinvesting in the customer offer, and we have done this.  More customers are buying more things more often at Tesco.

“As a team, we are committed to serving shoppers a little better every day, in what remains a challenging, deflationary and uncertain market.  We are confident that the investments we are making are leading to sustainable improvements for customers whilst creating long-term value for our shareholders."