DSG is now expanding in Europe to offset tough UK trading

Like-for-like sales - which ignore new store openings - for the 28 weeks to 12 November fell 3%. Total sales rose 4%.

The UK's biggest electrical retailer, which also owns Currys and PC World, said there was "no clear indication yet of any recovery in our markets".

However, DSG added it was confident it would "perform well relative to our competitors" in the key festive season.

European expansion

Chief executive John Clare said that while there was no clear signs of recovery, there had been "no further significant deterioration in our overall trading in the UK" during the period.

The group is well prepared [for Christmas], our ranges and deals are strong and we are fully focused on meeting the needs of our customers DSG boss John Clare

DSG is continuing efforts to open stores in central Europe as a means to offset the ongoing weakness on the UK's High Street.

Its first Polish outlet was opened in October.

Like-for-like trading among DSG's individual brands was down 2% at Dixons, 3% at Currys, 8% at PC World, and 28% at its struggling The Link phone shop.

DSG said a new management team at The Link was "fully focused" on turning the business around over the Christmas period.

Mr Clare said the overall group was now looking forward to the key festive season.

"We are entering the most important trading period of the year," he said.