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19 April 2011 By Chris Hughes

The UK retailer’s new CEO has fleshed out how and when he will hit a punchy returnoncapital target. Getting there will mean revving up poorperforming international stores. After breakneck expansion and missteps in America, a more disciplined approach to growth is needed.

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Tesco posted a pretax profit of 3.5 billion pounds on sales rising 8.1 percent to 67.6 billion pounds for the year to Feb. 26, 2011.

The UK retailer said it would achieve its target to make a 14.6 percent return on capital employed (ROC) in its 2014/2015 fiscal year, the first time it has put a timeframe on the goal.

Philip Clarke, the new chief executive, said: "We are well positioned, with multiple opportunities to deliver longterm growth and rising returns."

Tesco achieved a 12.9 percent ROC on an invested capital base of about 22 billion pounds last year, up from 12.1 percent in its 2010 fiscal year.

Shares were down 1.25 percent at 395 pence at 1135 GMT.

The fall in Tesco's UK like for like sales in the fourth quarter was disappointing, Citi analysts said in a note.

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