Electrical retail group Dixons reported flat trading figures today after being hit by a decline in the mobile phone and PC markets.

Like-for-like sales in the 28 weeks to November 10 were 0.8% lower, while the figure for the Christmas and New Year trading period was down 0.6%.

Stripping out the phone and PC markets, Dixons said its festive performance would have been almost 6% higher as customers snapped up new high-tech products such as wide-screen televisions, DVD players and games consoles.

The company, which said it would create 1,400 jobs through general expansion in the next six months, said Christmas trading had been in line with expectations.

Dixons chairman Sir Stanley Kalms added of the company's interim figures: "The group produced another solid set of results despite the significant decline in both the mobile phone and PC markets.

"Whilst there remains short-term uncertainty, new technology is expected to be one of the strongest areas of consumer expenditure."

Dixons, which owns Currys, PC World and The Link, saw underlying pre-tax profits for the six month period slip to £87.4 million from £90.8 million a year earlier.

The decline was blamed on the company's recent investment in new businesses in continental Europe.

But operating profits before exceptional items at the UK retail division rose 3% to £72.9 million, with gross margins up by 0.4% following supply chain improvements and the introduction of new store layouts.

Sales at The Link mobile phone business were hardest hit - falling 9% to £161 million following a 41% rise a year earlier.

PC World sales grew by 5% to £581 million, although the figure was down 2% on a like-for-like basis.

Elsewhere, comparable figures for Currys rose by 4%, with total sales reaching £751 million.

Dixons sales, at £377 million, fell 1% following the temporary closure of almost 100 stores for refurbishment and the closure of some smaller stores.

Like-for-like sales were up 1% after being affected by a significant reduction in customer traffic at airport stores following the September 11 terrorist attacks.