Electrical group Dixons reported better than expected full-year results, with underlying profits before tax up 11 per cent to

£264 million.

Like-for-like sales for the year to the end of April across the group's UK operation increased by seven per cent, above market expectations of between five per cent and six per cent.

Group turnover increased by 23 per cent to £3.9 billion, up from £3.2 billion in 1999.

The only dark cloud was Currys, where like-for-like sales only increased by three per cent over the year.

Sales at Dixons were up ten per cent to £784 million, with mobile phones and laptops leading the way.

This was despite a steep decline in the video games market as shoppers waited for the next generation of games, particularly Sony's Play-

Station, which is due to arrive in shops later this year.

Dixons' group finance director Ian Livingston said talks were still continuing over a possible sale of internet group Freeserve, of which it owns 80 per cent, following the collapse of talks with German internet rival T-Online late last month.

Freeserve reported losses before one-off costs of £19.7 million for the year - including exceptional costs these reached £22.9 million.

PC World reported a 26 per cent rise in sales to £997 million, from £794 million in 1999, while Dixons' The Link mobile phone stores network reported a 32 per cent increase in like-for-like sales, with sales rising to £276 million.Most of the mobile phone growth came from sales of pre-pay mobiles, as well as increasing sales of hand-free mobiles.

Mr Livingston said the continuing popularity of new technologies such as digital TV would make for a buoyant market this year.