TESCO is to create a further 20,000 jobs worldwide as it bids to break the £2bn profits barrier.

Analysts believe the supermarket group could achieve the milestone within the next two years after seeing another set of record results.

Tesco's profits over the past 12 months have reinforced its position as the dominant force in the UK supermarket sector.

Pre-tax profits rose 17.6 per cent to £1.6bn, with the underlying figure at the upper end of City expectations at £1.71bn, a gain of 21.9 per cent.

Sales worldwide were £33.6bn - up 18.7 per cent - while £26.9bn was rung up at the tills of the group's UK supermarkets.

The figures, which cover 53 weeks to February 28, include like-for-like sales growth of 6.7 per cent in the UK - a performance described by Tesco as one of its strongest in recent times.

Sir Terry Leahy, chief executive, said: "The figures demonstrate what a great British success Tesco is at home and abroad. The last year has been an exciting time for retail and a great year for Tesco."

Tesco, which is based in Hertfordshire, has 1,981 stores in the UK, with an additional 300 outlets abroad, including Hungary, Poland, Thailand, South Korea and Japan.

As part of its plan to sustain that growth, Tesco said it would be creating another 20,000 jobs worldwide. It already has more than 300,000 staff, including 90,000 overseas.

The results highlight Tesco's rapid growth in the non-food sector, with the company now claiming to sell more baby goods than Boots and Mothercare combined.

The group said about half of the 20,000 jobs due to be created this year would be in the UK, including through the continued expansion of the company's Express convenience store format