The group has seen profits soar

Tesco attracted a wave of investor buying after the supermarket chain raised its targets and said it would be launching a share buyback.

Group sales including fuel grew 5.9% to £30.4bn in the 26 weeks to 28 August as pre-tax profit increased doubled (+107%) to £1.1bn and adjusted operating profit rose 41% to £1.45bn.

The figures reflected sustained strong UK sales, a reduction in COVID-19 related costs in the retail businesses, and a return to profitability in Edinburgh-based Tesco Bank.

These benefits were partially offset by the year-on-year effect of £(249)m UK Government business rates relief included in the prior year. 

The adjusted retail operating profit for the year is now expected to be between £2.5bn and £2.6bn.

Tesco said it would maintain the interim dividend at 3.2p per share.