Britain's top retailer Tesco announced record-beating annual profits and sales yesterday despite a spreading global recession and deepening losses at its US division.

Tesco said in a results statement that pre-tax profits jumped 14.9 per cent to a record £3.21 billion (€3.60 billion) in the 12 months to February 28.

Group sales also soared 14.9 per cent to a record £54.3 billion, marking the first time they have climbed above £1 billion s per week despite the worsening recession in home market Britain.

In reaction, Tesco's share price jumped 4.67 per cent to 347.60 pence in morning deals on London's FTSE 100 index of leading companies, which was just 0.22 per cent higher at 3,999.51 points.

"We have delivered a solid sales and profit performance, both in the UK and internationally, whilst continuing to invest in our long-term strategy for growth," chief executive officer Terry Leahy said in the statement. "We have made a good start to the new financial year and I am confident Tesco will continue to make good progress even in the current global economic environment."

Net profit meanwhile increased 1.7 per cent to £2.17 billion.

Sales rose 9.5 per cent in Britain but in Europe they soared 29.1 per cent, in Asia 29.4 per cent and in the United States, 30 per cent.

But Tesco noted that its US division made an annual trading loss of £142 million, worse than the previous year's shortfall of £62 million. The supermarket chain said these losses reflected "the more challenging trading environment in the western states and our decision not to open stores in northern California for the time being."

Tesco launched a chain of small food stores in 2007 under the "Fresh & Easy" banner in the United States but the unit has been hit hard by recession in the world's biggest economy.