Shares in Tesco were down on the FTSE 100 and are a recommended hold ahead of its first quarter trading statement due tomorrow.

The group released a good set of full year results in April, with revenue up 7.1 per cent to £57 billion and profit up 10.1 per cent to £3.4 billion. Much of the growth was thanks to a drive to expand the brand in east Asian nations such as China and South Korea. Net debt was also down by one billion pounds to £7.9 billion.

Tesco's results tomorrow are also expected to be driven by developments for the company outside of the United Kingdom. However Keith Bowman, analyst at Hargreaves Lansdown said that a more stable pound could "remove some of the currency tailwind which the group has previously enjoyed".

He added, "Market consensus currently denotes a strong hold prior to the update".

By 16:20 shares in Tesco were down 0.57 per cent on the FTSE 100 to 391.95 pence per share.

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