Shares in Tesco slipped 3.5p to finish on 323.25p yesterday despite the retailer revealing a 17% increase in underlying profit to £2.25bn in its full-year results.

Tesco said yesterday that in the year to February 25, its group pre-tax profit increased 16.7% to £2.21bn, on group sales up 13.2% to £41.8bn.

In the UK, like-for-like sales increased 7.5%, with sales up 10.7% to £32.7bn.

Analysts pointed to the fact that Tesco's like-for-like sales growth had slipped to 4% in the last seven weeks.

Although analysts said that they were not overly concerned, analysts at Oriel Securities said: “It is easy to name at least five companies whose like-for-like is more than Tesco's right now and it has been years since that was the case.”

Meanwhile, Friends of the Earth gave a cautious welcome to Tesco's £100m investment into research into environmentally-friendly ways to power its stores.

However, Friends of the Earth supermarket campaigner Sandra Bell, added: “Tesco is still a long way from being a truly green company. Given its rapid growth, its commitment to sourcing cheap food and the threat it poses to independent retailers, it is hard to see how it is ever going to get there.”

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