Asda suffered a fall in full-year pre-tax profits after having to set aside an allowance for legal costs resulting from the Office of Fair Trading’s investigations into milk and tobacco price-fixing.

In reports filed at Companies House for the year to December 31, 2007, pre-tax profit was£560.7 million, down from£592.7 million the year before.

In the report, Asda said that the group has capitalised on its every day low pricing strategy to increase market share. The result, it said, was that “growth significantly out-performed the market, with the group achieving above market share growth in every single month of the year”.

Sales rose to£16.9 billion – up from£15.7 billion the year before. Underlying operating profits “grew year on year and were ahead of internal targets”, it added.

During the year, 18 stores were opened, along with two relocations, 13 extensions and 17 renovations. The grocer said it attracted about 1 million more customers during the period and enhanced its offer with more choice and improved quality, particularly with developments in its chilled food, organic and Extra Special ranges.

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