Tesco posted a 24.4 per cent hike in profits to £822 million after a half-year of "excellent progress".

The UK's biggest grocery chain reported significant growth in customer numbers and said people were spending an average of three per cent more per visit.

The profits figure was at the top end of analysts' forecasts and came as like-for-like sales increased by 8.3 per cent.

This included strong growth in clothing and home entertainment and left the company "well placed" to meet the challenges of tougher comparatives in the second half.

Strong petrol sales contributed to growth in the 24 weeks to August 14, although profit margins were lower as Tesco did not pass on the full cost of oil price increases.

Sales of clothing were up 39 per cent and home entertainment was 26 per cent ahead, contributing to 17 per cent growth in non-food products.